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How do you start a business? Just 3 steps and you're self-employed
Make starting your business easier with a guide on how to set up a sole proprietorship. You’ll learn how to register as a self-employed individual and how to obtain a business ID number. We’ll walk you through the entire process, from choosing your line of business to submitting the application form.
1. Choose the type and field of your business
Successful business registration begins by clarifying which field you want to operate in. You might think you already know—you’ll be a graphic designer, translator, accountant, or you’ll start an online store.
It’s important to correctly translate the name of your business activity into the language used by government agencies so you can fill it out on the business registration form. Official names can sometimes be confusing, so we’ll help you navigate them. Follow these steps:
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Write down what you’ll be doing as a self-employed person.
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Review the lists of unregulated, skilled, regulated, and licensed trades.
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From the lists, select the names of activities that correspond to the scope of your business.
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For each activity, note whether it is a free, skilled, regulated, or licensed trade—this will help you determine in the next step what requirements you must meet to start your business.
TIP: Want to better understand the differences between business categories and get more practical tips to help you make your choice? Read our detailed article on how to choose the type and field of your business.
2. Check whether you meet the requirements
Congratulations—you’ve already decided what kind of business you’ll run. What’s next? The law sets out two general requirements you must meet to register as a self-employed person:
- Full legal capacity. You can prove you’re over 18 with your ID card; if you’re younger, you’ll need an additional document—court approval of your legal guardian’s consent for you to conduct business independently.
- Clean criminal record. The Trade Licensing Office will verify this itself in the criminal records database (applies to Czech citizens).
Conditions for a Free Trade
If the business activities you have selected fall under unregulated trades, you need only meet the two basic conditions listed above to obtain a business license. You do not need to provide any additional documentation.
Requirements for Skilled Trades and Regulated Trades
For regulated and skilled trades, you must also submit additional documents. The exact requirements are set by law; generally, this involves proof of your professional qualifications — whether you have graduated from a school in the field, have sufficient work experience, or have completed a retraining course. If you do not meet the requirements, you can substitute proof of professional competence by appointing a responsible representative, or guarantor, who will meet the conditions on your behalf.
Requirements for Licensed Trades
In the case of a licensed trade, it is necessary to obtain a special permit (license) issued by the state or municipality. The requirements for obtaining a license vary by industry—details can be found in Appendix No. 3 of the Trade Licensing Act. We cover licenses for couriers and large-scale trucking in separate articles.
3. Where and how to register a trade: at the Trade Licensing Office or online
You start a business by submitting a unified registration form (abbreviated as JRF) to the Trade Licensing Office. You’ll fill out your personal information, select your business activities, and provide your registered office address. If you don’t want your registered office to be at your home and choose a different address or a virtual registered office for self-employed individuals, you must provide proof during registration that the property owner agrees to the location of the registered office— so be sure to obtain this consent in advance.
Using the JRF, you can also immediately notify your health insurance provider and the Czech Social Security Administration (ČSSZ) that you are starting a business. This saves you time and effort, as you won’t have to notify each institution separately.
Good to know: Starting in 2024, as a self-employed person, you will no longer need to register with the tax office.
Starting a Business in Person
You can register a business in person at any branch of the Trade Licensing Office; it does not have to be the office in your place of residence. Office staff will help you fill out the form and answer any questions you may have. You’ll pay an administrative fee of 1,000 CZK to register a business or submit a license application in person (the fee is 800 CZK for online submissions).
If you have chosen a trade from the list of unregulated, regulated, or skilled trades and meet all the requirements, you become a self-employed person immediately upon submitting the JRF (i.e., on the same day; alternatively, you may select a different start date for your business during registration). However, if you are applying for a licensed trade, you must wait for the license to be granted.
Registering a Trade Remotely
You can also apply for a business license online, but in that case, you’ll need to fill out the form yourself— we recommend downloading the instructions from the Ministry of Industry and Trade.
You have two options for registering as a self-employed person remotely:
- PDF registration form. Fill it out, print it, and mail it to the trade licensing office.
- Online form in the Trade Licensing Register. Log in to the application using your Citizen Identity. Submit the form to the office electronically signed or via a data box. This registration costs 800 CZK.
You can pay the fee by postal money order or bank transfer (upon agreement with the office). The Trade Licensing Office will then enter you into the registry. The statutory deadline is 5 business days, but in practice it may take longer (e.g., if you are asked to provide additional information).
Starting a Business with the Help of Specialists
Don’t like waiting in line at government offices, and does filling out forms make your head spin? Take advantage of our services. We’ll handle the entire process of starting your business online for you. We’ll advise you on choosing your line of business and handle all the paperwork, so you’ll obtain your business license quickly and hassle-free.
How does the entire process work in practice, and what are the realistic timelines?
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You order our business registration service for self-employed individuals.
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You provide us with the necessary documents to prepare the power of attorney.
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We’ll prepare the power of attorney and send it to you for your signature.
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You will provide us with the signed and notarized power of attorney (a power of attorney with official notarization).
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We’ll submit the notification to the Trade Licensing Office usually the same day, or no later than the next business day.
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The Trade Licensing Office has 5 business days to process the application—in practice, it usually takes the full 5 days and sends a notice to pay the administrative fee on the fifth day.
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We will pay the administrative fee on your behalf immediately and send the payment confirmation back to the office.
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Once the fee is paid, the office is no longer bound by a specific deadline—entry into the online registry usually takes place within 3 business days of payment.
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The day after the entry is made, we receive an official extract from the Trade License Register, which we will send to you immediately upon receipt (for licensed trades, the deadline is 30 days).
Important: The date the business is established is the date the application is filed, not the date of the actual entry in the registry.
We’ll handle everything via email or phone. A face-to-face meeting isn’t necessary, but we’d be happy to meet with you at our Prague office.
Write to us and we’ll get back
to you within 24 hours.