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 sole trader is referred to as a self-employed person (self-employed) and may be both a natural person and a legal person. In theory, a self-employed person can also be a legal person (e.g. a limited liability company) if he or she meets the conditions of the Trade Licensing Act and appoints a responsible representative for the trade.
There are two groups of trades – notifiable and licensed. Three other types of trades fall under the registration 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 (formerly called a “trade certificate”), you will either have to go to the trade office in person or apply for a trade licence online.
If you plan to register your trade in person, 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 you 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:
Another quick and easy way to apply is via the central public administration portal.
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The craft trade is a regulated activity, which means that in addition to the general conditions (legal capacity, integrity), it is necessary to provide proof of professional competence (i.e. education in the field, a related field or practice).
The conditions imposed on the craft trade exist for the reason that these are activities that simply cannot be performed by 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. Professional competence can be demonstrated by education, experience or the appointment of a responsible representative.
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 the 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 then 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. A responsible representative can perform this function for a maximum of four entrepreneurs at the same time.
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:
Handicraft trades are regulated trades, which means that in order to practice them, it is necessary to prove professional competence, for example, by an apprenticeship certificate, high school diploma or proof of experience. If the entrepreneur does not meet these conditions, he can appoint a responsible representative. It is possible to set up a trade in person at the trade office or online, with a registration fee of CZK 1,000. Craft trades include, for example, carpentry, plumbing, masonry or hairdressing. Choosing and registering a trade correctly is crucial to running a legal business and meeting legal obligations.
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