People performing manual work in the form of various crafts need a trade licence. However, this trade cannot be set up by just anyone. In order to practice it, several conditions must be met. In our article, we will tell you what these conditions are and what activities are included in a craft trade.
A trade is a self-employed activity that an entrepreneur carries out on his own responsibility and for profit. It is governed mainly by the Trade Licensing Act, which defines the conditions for starting, operating and closing a trade. A person who is a sole trader is called a self-employed person (self-employed) and is a natural person, not a legal person.
There are two groups of trades – notifiable and licensed. Three other types of trades fall under reporting trades: free, craft and bound trades. In this article we will focus on the craft trades.
Tip: We have discussed other types of trades in our next article.
To get a trade licence, you will either have to go to the trade office in person or apply for a trade licence online.
If you are planning to apply for a trade licence in person, then you will need to bring a few basic documents with you :
The trade in this case is established immediately. At the Trade Licensing Office, you will receive an extract from the Trade Register with your identification number (IČO) immediately upon registration.
Tip: Would you like to become a craftsman but don’t have the qualifications? Have you considered retraining? The Job Centre can be a big help. It can save you tens of thousands on retraining courses. You can find out exactly how this works in our article on the topic: The Job Centre’s offer of retraining.
An online trade is usually a more convenient option. However, in this case, you will have to wait about a week for your application to be processed. The procedure is simple:
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Craft trades are regulated activities. This means that in addition to the general conditions (legal capacity and good character), you are required to have professional competence (i.e. education in the field, a related field or experience) to practice it.
The conditions imposed on a trade exist because it is an activity that simply cannot be carried out by just anyone. Otherwise, it would not be possible to ensure the quality and safety of the services or products provided. You can therefore only practise a trade if you really understand the field. You must prove this by education or experience or by providing professional supervision.
Specifically, you must meet one of the following conditions:
For cases where you have neither experience nor education, there is still the option of a responsible representative.
Tip: Trade or job? Try both! What are the advantages of such a combination and what can get in your way of doing business? Find out in our article.
A responsible representative is a person who fulfils the conditions to practice your trade. You choose this person yourself. The responsible person is responsible for the proper operation of the trade and for ensuring that the trade regulations are complied with. The relationship between the representative and the represented person must be contractually regulated. It is up to you to decide what conditions you put into the contract, including the remuneration for the work of the responsible representative. You might as well get your own Mr. Lawrence to drive around your shop with a beer in his hand. Also, you cannot be appointed to act as a responsible representative for more than four businesses.
Tip: Do you need to contractually manage the relationship with your responsible representative? We will be happy to prepare a contract for you or review an existing one.
You are obliged to notify the Trade Licensing Office within 15 days of the appointment of the responsible representative and the termination of his/her function. The responsible representative can then perform his/her duties from the date of appointment (provided that he/she meets all the conditions). If the responsible representative does not perform his/her duties or does not meet the conditions, you must appoint a new responsible representative within 15 days at the latest.
In our practice we met Mr Novák, who has set up a business in the butchery sector. However, he did not have the necessary education or experience, so he invited a responsible representative to help him. However, he did not do his job as he should have and did not alert Mr Novák to the errors in the hygiene regulations. As a result, Mr Novák was fined. Fortunately, however, he contacted an Accessible Advocate. We advised him that this was misconduct by the responsible representative and secured compensation for Mr Novák.
Finally, let’s take a look at the list of activities that fall under the craft trade. As the name suggests, these are craft trades based on manual labour. Specifically, these include:
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