Notification of an unqualified trade by founders of a newly founded limited liability company with its registered office in Czechia
How to found a limited liability company (společnost s ručením omezeným – s.r.o.)
The company is founded by a memorandum of association (two or more founders) or a foundation deed (a single founder) which must take the form of a notarial deed.
The founders of the company may be Czech or foreign natural or legal persons. The same applies to the director(s) of the company.
For more information on founding a company please contact a notary or a lawyer.
Why is a trade licence needed?
Persons wanting to run a business in Czechia are legally required to obtain a licence before they start (for exceptions see below).
Most business activities are ‘trades‘ (živnosti) which are licensed by trade licensing offices (živnostenské úřady).
The trade licence most frequently used is the licence for ‘unqualified trade’ (volná živnost).
To obtain a licence for an unqualified trade, it is necessary to make a notification of the trade at the trade licensing office.
What is an unqualified trade and what is not?
In order to obtain a licence for an unqualified trade, no proof of professional competence is required.
Within the scope of unqualified trade, the following activities may typically be carried out:
- intermediation in trade and services (except for intermediation of consumer credit or employment),
- wholesale and retail trade (except for purchase and sale of arms, toxic substances or spirits)
- manufacture of food products (except for manufacture of bakery and confectionery products, ice-creams, beer or preparation and sale of meals and drinks for immediate consumption in the facility in which they are sold),
- software services,
- advisory and consulting activities (except for tax and accounting advisory, legal advice or psychological counselling),
- design (except for construction design),
- translation and interpreting (except for activities of registered interpreters),
- teaching languages,
- bicycle courier services.
The areas/fields of activity pertaining to an unqualified trade are listed in Annex No. 4 of the Trade Licensing Act – detailed descriptions of each area’s content is to be found in Annex No. 4 of the Government Decree on the content of trades.
The activities mentioned in brackets and a number of others either fall within other trades where a proof of professional competence is a condition of getting the licence (e.g. catering services, building construction, sports coaching, massages or truck transport) or they are activities licensed by other authorities (e.g. health and social services, agriculture or generation of and trade in electricity).
No licence is required for:
- letting of property,
- use of the results of intellectual creativity (e.g. artists, journalists or authors of computer programs or databases),
- temporary or occasional (cross-border) provision of services by entrepreneurs from other EU member states.
If you need information on activities licensed by other authorities or on cross-border provision of services, you can learn more from our colleagues at the Point of Single Contact.
How to notify an unqualified trade
The easiest way to submit a notification is to visit any municipal trade licensing office in Czechia.
At the trade licensing office, an officer usually fills in the Single Registration Form electronically. Then the form is printed and the person making the notification (the notifier) checks and signs it.
What documents must be presented to the trade licensing office?
- a proof of identity (identity card, passport, residence permit card),
- a memorandum of association or a foundation deed as a document proving that the legal person has been founded,
- a document proving a legal right to use premises in which the registered office of the company (sídlo) in Czechia is located, usually it is a written consent of the owner of the premises – to download the specimen of the consent see Živnostenský úřad města Brna (ŽÚmB) => Formuláře a vzory => Specimen – Consent for Registering a Business Address (Registered Office), bilingual CZ-EN,
- a proof of payment of the administrative fee of 1 000 Czech crowns (CZK); after signing the form, the notifier pays the fee at the cash desk of the authority (by cash or card) and presents the receipt to the officer;
- a power of attorney if the notification is made by the notifier’s attorney.
Paper documents should be presented in originals or verified copies, electronic documents should contain either a qualified electronic signature of the person who issued it or an authentication clause on conversion of a paper document into electronic form. Electronic documents can be sent by e-mail directly to the officer at the counter.
What are the time limits for the processing of the notification?
The trade licensing office shall make an entry in the trade licensing register within five working days of making the submission of the notification.
The record of the company is available at the register’s website immediately after the entry in the register has been made (see www.rzp.cz => SUBJECT SEARCH).
The trade licensing office shall issue the notifier with an extract from the trade licensing register which must be attached to the application for registration of the company in the commercial register.
What are the time limits for applying for the registration of the company in the commercial register?
All business companies including limited liability companies are legally required to be registered in the commercial register.
The application for the registration of the company in the commercial register must be signed by all the founders and submitted within 90 days of the date of receiving the extract from the trade licensing register.
The application may be submitted either to the relevant registry court or to a notary who also is entitled to make entries in the commercial register if entered facts are taken from a notarial record executed by this notary.
Once registered, the company has legal personality. The trade licence is effective as of the date of the company’s registration and is valid for an unlimited period of time.
The record in the commercial register includes the unique identification number of the entrepreneur (identifikační číslo osoby – IČO) and it is available at the register’s website or.justice.cz.
For more information on the registration of a company in the commercial register please contact a notary or a lawyer.
Do you need to learn more? Please see “Useful Links” or contact our employees:
Mr Lukáš Lysoněk, lysonek(dot)lukas(at)brno(dot)cz, phone +420 542 173 056
Ms Vendula Podlipná, podlipna(dot)vendula(at)brno(dot)cz, phone +420 542 173 326
Mr Ctirad Los, los(dot)ctirad(at)brno(dot)cz, phone +420 542 173 344
Mr Radan Mach, mach(dot)radan(at)brno(dot)cz, phone +420 542 173 316
Magistrát města Brna (Brno City Municipality)
Živnostenský úřad města Brna (Trade Licensing Office of Brno City)
Malinovského nám. 3
601 67 Brno
Czech website: Živnostenský úřad města Brna (ŽÚmB)