If you decide to start your own business in the Czech Republic, you will need a business licence, which issues your local Trade Office. There are a number of requirements that have to be met. The basic requirements are: you have to be at least 18 years of age, you must be capable of taking independent legal actions and have a clean criminal record and you must verify that you do not have any outstanding obligations related to tax, medical insurance and social security authorities.
Recognition of Qualifications
Should you decide to start a business in a regulated area as a sole proprietor, you will also need recognition of your existing foreign professional qualifications. The body performing such recognition in this type of situation is the Ministry of Industry and Trade of the Czech Republic. If the recognition process is subject to any special legal requirements, the recognition is handled through the respective professional chamber.
Social Security, Health Insurance and Taxes
Each individual who has a private business in the Czech Republic must pay regular contributions to the medical insurance and social security authorities and make regular tax payments. If the revenues generated by the business exceed CZK 2 million within a twelve-month period, you must also pay value-added-tax (VAT). Individuals who do not meet the above minimum criteria can always register to collect and pay this tax on a voluntary basis. If you are the manufacturer, importer or exporter of certain types of products, you also have to pay the related excise tax. This tax applies to products such as fuels, spirits, beer, wine and tobacco products. The volume of products manufactured, imported or exported, as expressed in the respective units of measurement, is used as the basis for the calculation of the excise tax to be paid. For additional information, contact the Czech Ministry of Industry and Trade.
Nationals of other EU countries cannot enter the following professions (as employee or self-employed): notary public, court executor and patent attorney. In terms of other professions, nationals of other EU countries have the same access to these jobs as Czech citizens. In practical terms, this however means that, once again, the necessary permits required for such work in the Czech Republic must be obtained (e.g. a business licence). In order to obtain such a permit, the applicant must meet certain requirements and provide proof of qualifications. In the case of professional type occupations, it is necessary to become familiar with the specific legislation regulating the respective profession (e.g. doctor, solicitor, etc.).
EU nationals can obtain a business licence in the Czech Republic without having a residence permit. However, should their family members also wish to apply for a business licence, they would likely be asked to provide a proof of residency for the family member who is an EU national when applying for the business licence.
An EU national who does not possess a Czech business licence, but is licensed for a certain type of business in his or her home country, can only conduct business in the Czech Republic on the basis of such a licence on a temporary basis.
Businessinfo.cz – the official Czech business web portal – offers an application that allows you to access and work with electronic versions of original forms used by the various Czech authorities and institutions. The forms can be completed online and printed or saved either directly in the application or as a file in your computer. The application uses your registration data, which it automatically enters into the respective forms. You have to create an account and sign in to have access to this application.