Czech trade license registration for sole proprietors

How to register as a sole proprietor in the Czech Republic: a step-by-step guide

The sole proprietor registration process ("Živnostenský list") is relatively simple. The main challenge is securing permission for a legal address, while the other steps are simple formalities.

The main requirement for sole proprietor registration is current residency in the Czech Republic or the European Union. This requires either a long-term visa, a temporary or permanent Czech residence permit, or citizenship of the Czech Republic or another EU member state. Unfortunately, registration is NOT available to people who are not residents of the Czech Republic or another EU country.

If you meet this requirement, you can proceed with the registration procedure described below.

Preparing information and documents

Before applying for a Czech trade license as a sole proprietor, you must prepare the following documents and information:

• Permission to use the sole proprietor's legal address ("Souhlas s umístěním sídla"). Surprisingly, this is the most challenging document to obtain. This permission can be issued by any owner of residential or commercial real estate in the Czech Republic or by their authorized representative. Many organizations in the country provide such legal addresses for a fee, and they are available in all major cities. This service is known as a "virtual office" ("virtuální sídlo"). You can find such providers in most cities, with prices for the address permission typically ranging from EUR 70 to EUR 250 per year. The address providers will prepare and certify the permission document for you, specifying the sole proprietor's name and the validity period of the address. Note that the entrepreneur will be linked to the corresponding territorial tax authorities based on the location of this legal address.
• Select specific business activities ("Obory živnosti", sometimes also called "Obory činnosti") in advance. The Czech Republic has an extensive list of unrestricted business activities ("volné živnosti") that any entrepreneur can conduct simply by applying, without requiring additional verification. You can typically adapt almost any business to fit within these categories. Review the list using the link above and select the numbers corresponding to the activities you plan to engage in. Please note that the Czech Republic also has so-called restricted licenses ("vázaná živnost" and "řemeslná živnost"), which are more difficult to obtain and require verification. However, these apply to highly responsible sectors, such as residential construction or waste management. In the vast majority of cases, unrestricted business activities will be sufficient.
• Get a criminal record certificate from the Czech Republic. While the Trade Licensing Office has access to the criminal record database and conducts its own verification, we still recommend getting a criminal record certificate from the state criminal record register. You need to get the certificate specifically from the Czech Republic, as sole proprietor registration is currently available only to residents of the Czech Republic and the EU. Additionally, this certificate includes a check of the person's criminal record in other EU countries. Frankly speaking, there is currently no clear consensus on whether this certificate is mandatory. In any case, we recommend obtaining it to address any potential questions. It is not difficult to obtain one; we can also assist in getting the Czech criminal record certificate.
• Prepare CZK 1,000 to pay the administrative fee.

Once you have everything prepared, you can move on to the next step.

Submit the sole proprietor registration application

Once the documents and information are ready, you can visit the nearest Trade Licensing Office ("Živnostenský úřad") to submit your sole proprietor registration application. You can easily find one by searching for "Živnostenský úřad" in your city. These offices are located in almost all municipal and district government offices (for example, in Prague, they are located in all district offices and marked as "Živnostenský odbor").

These offices generally accept applications on Mondays and Wednesdays. You can submit your sole proprietor registration application at ANY office, in any city or municipality in the Czech Republic where one operates, regardless of your registered residential address or the location specified in your legal address permission.

At this office, you submit your trade license registration application. You must provide documentation confirming your residency in the Czech Republic or another EU country (visa, residence permit, or passport). Staff usually help you with the application. You will need to present the permission for the legal address and the criminal record certificate and indicate the business activities you have selected. The CZK 1,000 administrative fee is also paid there.

Your application will then be processed. Current processing times vary depending on the specific office, but it typically takes one week from the application date. However, it can be faster if the workload permits; in some situations, the approved Czech trade license is issued immediately. In summary, you will receive your license either immediately or within one week.

Final step: verifying your IČO, DIČ, and Datová schránka

After your application is processed, you will automatically be assigned a business identification number ("IČO") and a tax identification number ("DIČ"). Both are issued automatically, requiring no additional action from you.

You can check your sole proprietor registration in the Czech Trade Licensing Register on the official website rzp.gov.cz or by using our Czech entrepreneur verification system (please note that our system may sometimes update with a delay). You can find your license on both platforms by searching for your first and last name (in Latin characters) or using the assigned identification number (IČO). Once it appears in the register, you are officially registered as a sole proprietor and may start business activities.

If necessary, you may obtain a certified paper extract of your trade license from the Trade Licensing Office (either where you submitted your application or at any other branch in the Czech Republic), from any notary public, or at a CzechPoint location. While this document is rarely required, it is still available.

After registration, you will automatically be assigned a Datová schránka (read more about Datová schránka), which is important for your future accounting activities, tax reporting, and all interactions with official authorities in the country.

It is also a good idea to find an accountant who will manage your financial records, formally register your business, and clarify all accounting procedures and tax details.

This completes the sole proprietor registration process.