Becoming self-employed

Yes, you can.

Any foreign national can apply for a trade licence when holding a long term visa, residence permit or temporary residence – being it for any purpose: business, employment, studies, family reunion.

If you don’t have a long-term residence card or long-term visa yet, and you need the trade license first in order to apply for the long-term visa, you can get a “preliminary trade licence” with a validity for six months for the purpose of the application.

The trade licence covers most areas of business. It is very likely you’ll be able to perform what you had in mind with only a trade licence. Or become self-employed without a trade license – if you are an artist or author etc.

The law classifies several types of trades. They differ in the requirements you need to fulfil to be eligible to register.

1. Unqualified trade. Many areas of work are accessible and grouped as unqualified trades (‘živnost volná’).  With one licence covering all areas – e.g. teaching, translating, web design, consulting and other eighty professions. 
2. Vocational, professional and permitted trades. Only when trades require certain technical or professional qualifications (e.g. construction, massage, cosmetic services, running a restaurant), it is necessary to apply for individual trade licences for each trade and substantiate the application with A) an appropriate diploma, authorization or certificate; or B) responsible representative – a guarantor – who is authorized and can legally vouch for you.

Overview of activities under the unqualified trade are listed under Annex 4, vocational trades, profesional and permitted trades under Annex 1, 2,3 of the Trade Licensing Act. Download the full list, or the more detailed description of different trades (vocational trades page 2-29, professional trades page 20-30, permitted trades page 31-38, free unqualified trades page 39-71), and read the Annexes.

The required certificate/diploma for vocational or professional trades can be completed with institutions responsible for your “qualification”: https://www.narodnikvalifikace.cz/vyber-kvalifikace/profesni-kvalifikace

Acquiring a trade licence certificate is a reasonably straightforward, though somewhat drawn out, process.

The office which issues the trade licences is the Živnostenský úřad (ŽÚ). In Brno, it’s located at Malinovského nám. 3. Now they have an English speaking officer there, so you can set up an appointment for English-speaking clients.

The documents required are pretty much like those that are needed for obtaining any other official papers in this country, including a clean criminal record (see the question What documents do I need below). Obtaining the excerpt from the criminal register can often be the biggest obstacle. You have to get it from your home country, from most countries get an apostille (or super legalized) and translate it all into Czech. If you are an EU family member then you are not required to present a criminal record.

You will also have to prove that you can use the address you have given as your registered place of business. For example, if you plan to use the flat you rent as your seat of business, you will need a lease signed by your landlord. For more details about the documents necessary for the application keep reading below “What documents do I need?”.

At the Živnostenský úřad, one of the employees will check your documents to make sure you have everything needed, and then fill in the application form online with you.

The cost is 1,000 CZK.

You will receive a “certificate of incorporation” document within a week. You will be issued a temporary trade license if you need to yet apply for a business visa and come back to the Trade Licensing Office once the visa has been issued.

You can find more details directly at the website of the Trade licensing ofice Brno: https://en.brno.cz/business-science

Submissions and changes can be made at any Trade Licensing Office in the CR – not only the one according to your registered address.

Trade Licensing Office in Brno is located here:

• Živnostenský úřad města Brna, Malinovského náměstí 3,
• 4th floor
• Tel: 542 173 316
• E-mail: zu@brno.cz
• Office hours:
  • Monday 8 a.m. – 5 p.m.,
  • Wednesday 8 a.m. – 5 p.m.,
  • Friday 8 a.m. – 12 p.m.

Now you can make an appointment with English speaking officer.  

List of documents to bring with you to obtain your trade licence:

• Passport with a visa for a stay over 90 days or a long-term resident permit.
  • Long term visa or resident permit may be submitted within 90 days after obtaining the provisional license
• Excerpt from the Crime Register from the state of applicant’s nationality or the state of his last stay – must not be older than 3 months and needs to be super-legalized / apostilled¹. And translated to Czech². Ask your embassy or national authorities where and how can you get this.
  • In case you hold a Permanent Residence card or Blue card or Long Term Residence for the purpose of Studies / Research;  or you are a family member of a researcher or student or foreigner with a Permanent Residence – the Trade Licencing Office will not request the Criminal Record from you.
• Document proving the legal grounds for use of place of business. An address of your seat of business, your official contact address. A lease contract or written consent of the owner of the property, a standard lease is sufficient unless it states explicitly that you are not allowed to conduct business. Instead of the valid lease, you can ask your landlord / any property owner to sign a Consent for registering a business address on this form signed by the property owner. Or you can rent an office space or virtual office (e.g. here, here or here) with a PO box as an option too.
  • In case you hold a Permanent Residence card and you want to register the seat of your business to the same address – you don’t need to bring any other document, contract, or consent. Just your Permanent residence card with the address printed on the card will do.
• Documents proving professional or other qualifications (if required by law for vocational/professional/permitted trade)
• Payment of the service fee – 1.000 CZK

1. The superlegalization/apostille is not required from Afghanistan, Albania, Algeria, Belarus, BiH, Montenegro, N.Korea, Kosovo, Cuba, Kyrgyzstan, Macedonia, Moldavia, Mongolia, Russia, Serbia, Syria, Ukraine, Uzbekistan and Vietnam.

2. Translation needs to be done in the CR by a certified translator here. Except:  Certified translations from Algeria, Cuba, Ukraine, Vietnam, and formal Yugoslavia (BiH, Montenegro, Kosovo, Serbia, Macedonia) are recognized in the CR.

The basic administrative fees at the Trade Licensing Office are as follows:

• 1,000 CZK for the first notification of trade (opening), regardless of the number of trades or activities
• 500 CZK for every subsequent notification/change
• 100 CZK for a printed extract from the registry

It is possible to pay the fee in cash or with a credit card at the Trade Licensing Office.

In case you haven’t filled out a form (Jednotný registrační formulář) at the Trade Licensing Office to register you at the responsible offices automatically, you have to do it separately.

1. Social security

You can register by visiting the office Městská správa sociálního zabezpečení at Veveří 7 (just with your ID) or filling in a form “Oznámení o zahájení samostatné výdělečné činnosti“, fill and print out here, or download pdf,  and delivering to the office in person or by post before the 8th of the month following the month in which you started to provide the business services.

Depending on whether your business is an extra or main activity or if you are in the flat tax mode, you might have to start paying your monthly premiums. In any case, after the end of the calendar year, you will have to submit an overview of your income in a yearly report. Read more about “Do I have to pay monthly fees” and “How do I calculate the social security contributions” in the guide on Being self-employed.

2. Health Insurance

Finally, in case you are in a public health insurance system (are you?), you have to inform your health insurance company about starting the business. Every company has different forms, contact them directly, within 8 days from starting to provide business services.

In case you are in prepaid commercial health insurance for foreigners, you don’t inform them. Having a business is unrelated to commercial health insurance.

Depending on whether your business is an extra or main activity or if you are in the flat tax mode, you might have to start paying your monthly premiums. In any case, after the end of the calendar year, you will have to submit an overview of your income in a yearly report. Read more about “Do I have to pay monthly fees” and “How do I calculate the social security contributions” in the guide on Being self-employed.

(3. Tax Office – in case you have to register for VAT)

In case you want to or you have to register for Value Added Tax, for example, if you provide services to VAT payers in other EU countries, you must register with the “Financial office” and you receive a DIČ  number to identify all your invoices.

If you are not a VAT payer (or identified person for VAT) you do not contact the Tax office until you must file your taxes after the end of the calendar year. Then you have to file an individual’s tax report before the end of March. For more details about income tax or VAT tax, read the guide on Being self-employed.

If you would like to apply a flat tax “paušální daň” (the one fixed monthly payment to cover social security, health insurance and income tax, read more here), you need to report it to the Tax office from the first day of your active business (or at the beginning of a year until January 10), by filling an online form “Oznámení o vstupu do paušálního režimu“ and then printing, signing and delivering the form to the Tax office. You can apply to become a flat taxpayer at the Trade licensing office too – at the same time when you register your business.

Regular payments

When starting your business, you have to decide whether the business is your “main activity” – then your social security and health insurance will be primarily and monthly paid by you, or it will be your “extra activity” and the social and health insurance will be primarily and monthly paid by your employer or the state (in case of students/retired/parental leave).

If the business is your “main activity”, you are expected to regularly pay minimum social security and health insurance from the first month.

The income tax is paid back for the past year. The fiscal year in the Czech Republic matches the calendar year; tax return for the past year must be filed by 31 March, unless you hire a professional certified tax consultant, in which case the submission date is end of June.

Alternatively, if the business is your main activity, and your turnover won’t exceed 1,5 million CZK in a calendar year, you can opt for a “flat tax” rate including income tax/social security/health insurance for 7  498 CZK  monthly (2024) and then no more calculating or accounting after the end of the year is necessary.

For more details on obligations and payments towards the Financial Office, Social Security Administration and Health Insurance please read the guide Being self-employed.