The Czech Republic is a land of opportunity, especially for the ones coming with fresh ideas. New, independent businesses pop up everywhere in this country, originating from humble, inexpensive origins, like food trucks kitchens, home offices, co-working spaces, and apartment building cellars. Also, Czechia routinely ranks in the top 10 safest countries in the world.
Disclaimer: Be aware that this article is not a substitute for legal advice. Please always check official websites or seek legal advice before you take action.
What is a sole proprietor Živnost in the Czech Republic?
Being a sole proprietor (OSVČ) entails a simple form for doing business in the Czech Republic. The registration procedure involves the natural person who wants to set up the activities in this country by using their own name. In legal terms, a person can establish the operations as a sole trader only starting with the age of 18, as the Trade Licensing Act defines it.
Živnost has many advantages: it is easy and fast to establish; accounting system, tax reporting as well as many other stages of business have been simplified; you can work without having a work permit in the Czech Republic. However, to register as a sole proprietor, you must possess a business visa even if you don’t plan to stay in the country.
How to set up Živnost in the Chech Republic
First, you have to choose a type of activity. There are three kinds of licenses in the Czech Republic:
- Professional (requires a diploma or any proof of qualification)
- Concession (is issued on the basis of a special permit from the Ministry)
*Free licenses cover 80 types of activities that do not require any proof of qualification. Some of the types included are: wholesale and retail trade, hotel services, hosting, IT consulting, translation and teaching at language courses, estate agent services, etc. Most entrepreneurs choose this form.
Next, you need to apply to an agency of proprietor activity. For this step, you will need these documents:
- a certificate of no criminal records in the Czech language notarized by the court translator
- an agreement with the property owner on granting you the legal address and extract from the Real Estate Register
- current visa or biometric card
Bring the set of documents mentioned above to any agency of proprietor activity. An agent will take the copies and fill the electronic registration form. This will cost 1000 CZK (Czech Korunas).
Within a week after registration at the Agency, you’ll receive the certificate with your register number on it. Your certificate’s validity expires simultaneously with your visa.
This step can be done online, via the Trade Licencing Register website.