Would you like to open a hairdressing salon or a car workshop in the premises of your family home? Or are you planning to set up a real estate office in one of the rooms of your apartment? It may not be as easy as it may seem at first glance. In this article, we’ll look at what conditions need to be met when setting up a business in a family home or apartment, and give you advice on what to look out for.
A place of business is a place where a business is carried on. This can be, for example, offices, business premises or workshops. As an entrepreneur, you don’t have to have a business premises or you can have several.
A place of business is a specific physical location where the actual business activity is carried out. A place of business is then the address where the entrepreneur (legal entity or sole trader) is officially registered in the commercial register or trade register. It serves as the main administrative address and is the official address for communication with state authorities. In reality, the business does not have to take place here. There are even virtual headquarters where the entrepreneur only has a registered business and receives correspondence there. It is compulsory for every entrepreneur to have a registered office, and he always has only one.
You can therefore have a registered office practically anywhere. If you have a permanent place of residence, then nothing prevents you from doing so. Otherwise, you only need the approval of the property owner. On the other hand, you can no longer set up a place of business just anywhere. Since the establishment is actually running a business, it is subject to stricter conditions.
We will guide you through the process of setting up your company and offer all the services you need for your business. Thanks to our experienced team of lawyers, you can be sure that everything will go smoothly and in the shortest possible time.
Any newly established establishment (or its relocation or closure) must be notified to the trade licensing office at least three days before commencing business. This also applies to the temporary closure of an establishment, where information about the closure must be posted in a clearly visible place.
Proof of ownership or use of the property where the establishment is located must be provided (e.g. an extract from the Land Registry or a lease agreement).
Each establishment must be clearly marked with the name of the entrepreneur or the name of the company and an identification number. If you plan to have a shop or offer services in your flat or house, you must also indicate the person in charge and the opening hours. In the case of accommodation establishments, the category of accommodation.
If you are planning to run a business, for example, in the body care or catering sector, then approval of the establishment by the hygiene authority is also required. In this case, the establishment must comply with hygiene standards and specific conditions, such as the spatial separation of the different parts of the establishment.
In addition to the above, it is important to ensure adequate facilities for any employees (cleaning room, changing area, toilets with sink and soap) and compliance with hygiene standards in all aspects of the operation (washable and disinfectable materials, proper waste management) and fire precautions.
You can find out more about the requirements for opening a business and how to set up a business and what you need to comply with in the next article.
If you plan to open an establishment in an apartment or house where you also live, you will probably be affected by the need to change the use of the building in addition to the general conditions. Every building has a specific purpose for which it was approved. In the case of an apartment and a family house, it is most likely to be a building intended for residential use.
Therefore, if you want to run your business from your house, you will have to have it converted into non-residential premises. This may also involve the obligation to carry out structural alterations (e.g. the need to put water in a room where you plan to have a beauty salon).
At the same time, it is also good to bear in mind the relationship with your neighbours. Some types of business can have an impact beyond the boundaries of your premises (for example, noise from a car workshop you plan to set up in a disused garage at your family home). It is always better to agree with your neighbours and take measures to mitigate the negative impacts of your premises as far as possible. Otherwise, an angry neighbour can cause you problems.
How to deal with problem neighbours? Find out in our article.
To change the use of a property, an application must be made to the local building authority. The application should include a specification of the new use (in this case, non-residential premises for a business), a description of the planned activities to be carried out and, where appropriate, technical documentation.
The municipality’s master plan also plays a role. If the change of use of the building to non-residential space is not in accordance with the zoning plan, we have the wrong news for you. While you can apply for a zoning change, in practice it will most likely be a multi-year process with an uncertain outcome.
The local building authority may give you the permit straight away or may require you to meet certain technical requirements that will require building modifications. These typically relate to safety, health and infrastructure (electricity, water, waste, etc.). In this case, a building procedure will be initiated and only if the conditions are met will the authority give you consent for the change of use.
The other authorities affected by the change of use of the building also have an opinion on the change of use. Typically, these are the sanitary authorities or the fire brigade, who check whether the hygiene conditions and fire prevention measures have been met. This may also include the need for an environmental assessment of the change of use of the building.
For a flat, the situation will be a little more complicated. This change will affect not only you, but also the owners of the other flats in the apartment building (unless you are the owner of the entire apartment building). In this case, the change of use of the flat must be approved by your neighbours, i.e. the unit owners’ association or housing association.
Are you a member of the SVJ committee or the board of directors of a housing cooperative? Are you planning to apply for a change of use of your apartment and do not know how to do it? Arrange with us to represent you at a meeting of owners or members of the housing association.
If you plan to set up a business in a rented apartment, you will need to take all the steps listed above, plus get the landlord’s permission. In case you manage to arrange everything, you still win. There will still be a black cloud hanging over you in the form of the termination of the lease. In this case, you will have to leave the apartment and you will lose your business. And that’s regardless of the tens of thousands you’ve invested in building improvements and the name you’ve built up.
A business premises is the place where the entrepreneur actually carries out his or her activities, as opposed to the registered office, which serves only as an official address. Its establishment requires registration with the trade office, proof of ownership or lease rights, establishment signage and in some cases, health and safety approvals.
If the establishment is to be set up in an apartment or family house, it is often necessary to change the use of the building to non-residential premises, which may involve the need for structural alterations. In addition, in the case of flats in apartment buildings, the consent of the owners’ association or housing association is required. In the case of a rented apartment, the owner’s consent is required, and there is a risk of termination of the lease agreement.
We will safely guide you through the entire process of setting up an LLC and provide all related services. We will handle everything quickly and professionally so that you can enjoy your own company as soon as possible. For a pre-determined price and throughout the country. You can pay only after the service is provided.
Ondřej is the attorney who came up with the idea of providing legal services online. He's been earning his living through legal services for more than 10 years. He especially likes to help clients who may have given up hope in solving their legal issues at work, for example with real estate transfers or copyright licenses.
In person and online. Just choose the appropriate service or opt for an independent consultation when you are unsure.
