Not sure if you meet the requirements for a regulated trade? As part of our customized legal problem-solving service, we’ll assess your situation and recommend the next steps.
What Is a Trade License?
A trade is a form of business that the Trade Licensing Act defines as a regularly performed, independent activity carried out by an individual at their own risk, in their own name, and with the aim of earning money, while complying with the rules set forth in the Trade Licensing Act. A trade thus allows people to run their own business without needing an employer. However, this also means that self-employed individuals do not have certain benefits that employees enjoy, such as fixed working hours or the right to vacation time.
Self-employed individuals must also pay their own social security and health insurance premiums and handle their own tax payments, which includes the obligation to file an annual tax return. People engaged in a trade are referred to as self-employed individuals (OSVČ).
There are two basic categories of trades: registration-only trades and licensed trades. Registration-only trades are further divided into unrestricted, craft, and restricted trades. In this text, we will focus specifically on restricted trades.
License-Restricted Business
To obtain a regulated trade license, you must meet specific criteria for the given trade. Most often, these criteria relate to professional education, work experience, specific qualifications, certification from the relevant government agencies, extensive experience in the field, registration in professional registries, and so on.
This is because professions carried out under a regulated trade pose a higher risk of harm to clients’ health, safety, or property; therefore, it is necessary for those practicing them to meet certain standards and requirements. We will examine the specific requirements for individual professions in the following chapter.
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An Example from Our Law Practice
A client approached us because he wanted to expand his business to include massage, fitness, and recovery services. He had completed a course but wasn’t sure whether he met the requirements for a regulated trade or what documents he needed to submit to the trade licensing office. We reviewed the specific field of business, the scope of his qualifications, and his prior experience, and prepared the necessary documentation for him so that it was clear which professional competency requirements he met. The client was then able to register his business without unnecessary additional paperwork or delays.
Requirements and List of Regulated Business Fields
Regulated trades encompass a total of 33 fields. Different conditions apply to the practice of each of these fields. These are summarized in the appendix to the Trade Licensing Act. Let’s take a brief look at the fields of regulated trades and the conditions for their practice:
- Geological work: A certificate of professional competence issued by the Ministry of the Environment is required.
- Tobacco processing and the manufacture of tobacco products: Education in a field focused on food chemistry and agriculture is required, along with practical experience, the duration of which depends on the level of education attained.
- Manufacture and sale of hazardous chemicals: For manufacturing, you must have a degree in a field such as chemistry, mining, metallurgy, mechanical engineering, civil engineering, electrical engineering, fire protection, food science, medicine, veterinary medicine, pharmacy, natural sciences, agriculture, or forestry, along with practical experience commensurate with the level of education attained. In the case of sales, it is sufficient to demonstrate a certain length of practical experience in the field.
- Manufacture and repair of mass-produced prostheses, orthoses, and bandages: A degree in prosthetic and orthotic technology or a related healthcare field is required, as well as relevant work experience, if applicable.
- Optometry: You must have training as an optometrist, optician, or optical technician. In the case of retraining, you must also have 4 years of practical experience in the field.
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- Business Activities in the Field of Hazardous Waste Management: You must have a degree in a natural science or technical field and work experience commensurate with your degree.
- Project work in construction: You must have a degree in a field focused on construction or architecture and a length of practical experience commensurate with your degree. You must also be licensed or registered on the list of registered persons.
- Construction, modification, and demolition of buildings: In this case as well, you must have a degree in a field focused on construction or architecture, a length of practical experience commensurate with your degree, and authorization or registration on the list of registered persons.
- Purchase, sale, destruction, and disposal of pyrotechnic products in categories P2, T2, and F4, and the performance of fireworks displays: To perform these occupations, you must hold a certificate of professional competence. To obtain this certificate, you must be at least 18 years old, have at least a high school diploma, be of full legal capacity, have a clean criminal record, and be medically fit.
- Purchase and sale of cultural monuments or objects of cultural value: You must have an education in a field focused on fine arts, restoration, art history, conservation, fine arts and arts and crafts, or the antique trade, along with a period of practical experience commensurate with your level of education.
- Trade in animals intended for hobby breeding: You must have an education in a field focused on animal husbandry, zootechnics, or veterinary medicine, along with relevant practical experience.
- Accounting consulting, bookkeeping, and tax record-keeping: You must have an education in the field and relevant work experience.
- Real estate brokerage: You must have a degree in a field focused on law, economics, finance, marketing, business, civil engineering, or construction. A degree in a related field (law, economics, civil engineering) does not have to be the sole qualification —it can be substituted with 3 years of relevant work experience .
- Activities of independent insurance claims adjusters: In this case, a high school diploma is sufficient, regardless of the field of study.
- Conducting public auctions, with the exception of forced auctions: You must have a college degree or even a lower level of education. In this case, however, practical experience is also required.
- Valuation of movable property, real estate, intangible assets, financial assets, and business enterprises: To value movable and immovable property, you must have a degree in a field focused on asset valuation and, where applicable, relevant work experience. For the valuation of intangible assets, financial assets, and business enterprises, you must have a college degree in the field of asset valuation and, where applicable, practical experience as well.
- Performance of surveying activities: You must have an education in a field focused on surveying and practical experience commensurate with your level of education.
- Inspections, examinations, and testing of specified technical equipment in operation: You must obtain a certificate issued by the railway administrative authority.
- Restoration of works of fine art: You must have completed a degree program focused on restoration, fine arts, or arts and crafts. You must also have the required length of practical experience.
- Specialized protective disinfection, pest control, and rodent control: In all cases, you must possess professional and practical knowledge in the field and hold a valid certificate of professional competence.
- Organizing courses to acquire the knowledge necessary to perform specialized disinfection, pest control, and rodent control: You must possess professional qualifications.
For certain regulated trades, such as bookkeeping or real estate brokerage, it can be difficult to determine whether your education and experience actually meet the legal requirements. If you don’t want to risk delays at the trade licensing office, we’ll help you assess what documents you’ll need and how to properly define your business scope. As part of our customized legal problem-solving service, we’ll propose a specific course of action within 24 hours.
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- Mountain Guide: You must have a high school diploma and either a professional qualification for guiding or retraining for this activity, as well as 4 years of experience.
- Water Rescue Service: You must have a qualification as an open-water rescuer or as a head lifeguard.
- Technical and organizational activities in the field of fire protection: You must have an education in a field focused on fire protection, or a certificate of professional competence issued by the Ministry of the Interior, or retraining and two years of experience.
- Provision of occupational safety and health services: You must provide proof of education in occupational safety and health and relevant work experience.
- Provision of physical education and sports services: You must have a university degree or higher vocational education in a field focused on physical culture, physical education, and sports. It is also possible to complete retraining. Practical experience is not required.
- Operating a driving school: You need a professional certificate issued by the relevant regional authority and one year of practical experience.
- Daycare for children under three years of age: You must have professional qualifications to practice certain healthcare or social work professions, be a kindergarten teacher, or hold a professional qualification to work as a nanny for children before they begin compulsory schooling.
- Psychological counseling and diagnosis: You must have a college degree in psychology. If you have a single-major degree, you must also have one year of experience in the field; if you have a multi-major degree, you must have three years of experience in the field.
- Animal Training: You must have an education in a field focused on animal husbandry, zootechnics, or veterinary medicine, along with the corresponding length of practical experience.
- Activities Involving the Breach of Human Skin Integrity: You must possess professional qualifications to practice certain healthcare professions. Alternatively, you must have training in cosmetology and a certificate of professional qualification for activities involving the breach of human skin integrity.
- Massage, reconditioning, and regenerative services: You must be qualified to practice certain healthcare professions or to work as a physical therapist or massage therapist. You may also have a college degree in rehabilitation or physical education, or a professional certification in classical massage or sports massage.
- Operation of tanning beds: You must have professional qualifications to practice certain healthcare professions or a college degree in a field focused on physical culture, physical education, and sports, or a special certificate of qualification for operating a tanning bed. Professional competence may also be demonstrated by a professional qualification for operating a tanning salon in accordance with the Act on the Recognition of Continuing Education Results and one year of practical experience in the field.
Summary
A regulated trade is a type of notifiable trade for which the law requires professional competence. Therefore, it is not sufficient merely to be 18 years of age, legally competent, and of good character. For a specific field, you must also provide proof of education, work experience, a certificate, authorization, a professional qualification, or another document required by law.
The requirements vary significantly depending on the activity. Different conditions apply to real estate brokerage, accounting consulting, driving schools, project management, massage services, childcare for children under three years of age, or the operation of a tanning salon. This is precisely why it is important to verify the specific field before submitting your registration.
If you are unsure whether you meet the requirements, it is not advisable to rely on general information. Missing or incorrect documentation can delay the entire process. A lawyer can help you identify the correct business category, review your documents, and prepare your application for the Trade Licensing Office.
Frequently Asked Questions
What is a licensed trade?
A regulated trade is a trade subject to registration for which, in addition to the general requirements, you must also meet the professional qualifications specified for that particular field.
What is the difference between a free trade and a regulated trade?
For unregulated trades, you do not need to demonstrate professional competence. For regulated trades, you must provide proof of, for example, education, work experience, a certificate, or a professional qualification.
How can I find out if my business activity is classified as a regulated trade?
You need to compare your planned business activity with Annex 2 of the Trade Licensing Act. If you are unsure, ask a lawyer or the Trade Licensing Office for an assessment.
Do I need work experience for a licensed trade?
Often, yes, but not always. In some fields, a specific degree or certification is sufficient; in others, several years of experience are also required.
Can someone else meet the professional qualifications on my behalf?
Yes, in some cases, a responsible representative who meets the professional qualifications may be appointed in place of the business owner.
How long does it take to obtain a licensed trade permit?
It mainly depends on whether you have all the required documents ready. If the documents are complete, the process is usually quick; if there are any uncertainties, the office will ask you to provide additional information.
What happens if I submit the wrong documents?
The Trade Licensing Office may ask you to provide additional information or clarification. If you do not demonstrate professional competence, you will not be granted a trade license for that field.