Trade conditions: what do you have to meet to get an IN?

It is not difficult to set up a business in the Czech Republic - that is probably why almost every fifth person in the Czech Republic is in business. You just need to meet a few legal conditions. See which ones.


In the previous article, we discussed the process of setting up a trade. Today, we'll take a closer look at the steps that are worth taking before you head to the trade licensing office. These are mainly about choosing the type of trade and meeting the conditions to obtain the licence. These can be divided into two categories:

  • the general conditions that must be met by every sole trader;
  • special conditions depending on the type of activity chosen.

GENERAL CONDITIONS FOR THE OPERATION OF THE TRADE

You must meet these criteria regardless of the type of activity you choose:

  • full legal capacity (proof of age 18 with a valid ID; for minors, this can be replaced with the consent of a legal guardian and court approval),
  • good repute (for citizens of the Czech Republic, the office will obtain a criminal record).

If you have already been doing business or are doing business in the Czech Republic, you also need proof that you do not owe the tax office, the Social Security Agency or the health insurance company.

Other conditions for obtaining a trade licence depend on the type of trade chosen. If you are setting up a free trade, you do not need to meet anything else.

SPECIAL CONDITIONS

In addition, for some activities, it is necessary to demonstrate professional competence or obtain a concession. This requirement applies to trades:

  • crafts (e.g. baker, butcher, watchmaker...),
  • bound (for example, accountant, planner or psychologist),
  • licensed (e.g. a carrier, arms manufacturer or tour operator).

PROFESSIONAL COMPETENCE - HOW TO MEET IT?

For selected activities, the state requires professional qualifications (inter alia for safety reasons). You will need to bring documents to prove your qualifications, in addition to your ID card.

The law sets out specific competence requirements for individual activities - giving you several options for demonstrating competence:

  • education in the field or in a related field (certificate, diploma),
  • professional qualification or retraining (retraining certificate)
  • experience in the field (confirmation of experience from the employer, including employment contract).

WHAT IF YOU DON'T HAVE THE CREDENTIALS TO QUALIFY?

You can also prove your competence through another person, called a responsible representative (someone who meets the required conditions and provides you with the necessary documents). This is worthwhile if you want to do business in a field in which you yourself do not have the required education or certification.

The activity is then carried out by you (or your employees) and a responsible representative ensures that the business is conducted in accordance with regulations and professional standards. The responsible representative must have a contract with the entrepreneur and meet the general and specific conditions for carrying on the trade. Further criteria are laid down in Section 11 of the Trade Licensing Act.

If you plan to do business with the help of a responsible agent, be sure to submit to the office:

  • proof of professional competence (e.g. teaching certificate, certificate of completion...),
  • a notarised declaration agreeing to perform this function.

The Trade Licensing Office will also be interested in the integrity of the responsible representative, but will obtain an extract from his/her criminal record itself.

CONCESSION - WHAT IS IT AND HOW TO GET IT?

A concession is a special official permit issued by a state or municipality. You must obtain it to practice a trade classified as a licensed trade. As with a professional license, you can meet the requirements by using a responsible agent.

You apply for a licence by filling in a form at the trade licensing office. The latter will forward the application to the relevant institution (e.g. the Ministry) specified in the Annex to the Trade Licensing Act for consideration. The institution then has 30 days to decide on the application.

Attention! In contrast to a reporting trade (i.e. a free, craft or tied trade), there is no legal entitlement to a licensed trade. So even if you meet the conditions, no one can guarantee that you will actually get it.

In this way, the authorities regulate the number of persons operating the same business in a certain area (e.g. taxi, exchange office) or by tightening the conditions they try to ensure greater safety in selected business activities (e.g. production of alcohol or weapons and explosives).

SETTING UP A BUSINESS QUICKLY AND EASILY

Are you planning to set up a business but don't feel like running around the authorities? Leave the formalities to us. We will take care of all the paperwork for you and you can soon start your business.

Send us a message and we'll get back to you - we can sort everything out remotely.


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