Starting a Business in 2026: 5 Steps to Obtaining a Business License and an IČO

Are you planning to start a business and want to establish the right relationships with clients or business partners from the very beginning? We’ll draft or review your partnership agreements to ensure they reflect the actual operations of your business and protect you from unnecessary disputes and financial risks.

Step One: Determine Which Category Your Business Falls Under

As a future business owner, you’ll primarily be subject to the Trade Licensing Act. This Act sets forth the rules for self-employment, but it also defines what does not constitute a trade (for example, doctors, veterinarians, and notaries are not considered self-employed, nor are activities such as securities trading or real estate leasing). These activities are generally governed by special laws.

The Trade Licensing Act is therefore the first step toward a successful start. Different types of trades, including these, have specific requirements, so familiarize yourself with what to expect.

Generally, trades are divided into two groups— licensed trades (for which it is necessary to first obtain a license—e.g., taxi service) and notification-based trades. Notification-based trades include craft trades , regulated trades , and unregulated trades. For the first two—that is, craft trades and regulated trades—in addition to the general conditions, a requirement for professional competence is also stipulated; for unregulated trades, professional competence is not required.

What does “self-employed person” mean?

When it comes to obtaining a business license, the term self-employed person is often mentioned—that is, a person who earns income from a business or other independent activity. Nowadays, the term “freelancer” is also sometimes used. However, this is not an exact equivalent of “business owner,” even though the two terms often overlap. “Self-employed person” is a broader term that also includes those entrepreneurs who do not need a business license to practice their profession.

Step Two: Secure Any Potential Collaborators

As mentioned above, the law distinguishes between three types of registered trades and sets different requirements for establishing each one, which must be met. The easiest route is to operate a free trade. An example is animal breeding. If you want to engage in this activity, the law does not require you to have any special education or certification. All you need is legal capacity and a clean criminal record.

However, there are also skilled trades and regulated trades, for which additional requirements must be met, particularly so-called professional competence. The requirements vary by trade; for example, the law may require an apprenticeship certificate in the field, a high school or college degree with a specific focus, or recognition of a professional qualification issued by an authorized body.

If you lack the necessary education or experience, you can appoint a responsible representative who meets the required professional qualifications. Sole proprietors also have this option, so it is not necessary to form a company due to a lack of qualifications. You probably wouldn’t want a trained butcher—who boasts years of experience studying animal anatomy—to treat your sciatica at a massage parlor. Similarly, in a tattoo or hair salon, a private preschool, or a pet store specializing in pets for hobby purposes, you must employ only individuals who have the appropriate qualifications.

An Example from Our Law Practice

From our legal practice, we know that even the seemingly simple process of starting a business may not always be merely an administrative formality. For example, we were approached by a client who was employed and composed music on the side. He wanted to register a business as a part-time self-employed individual for this activity and needed to know which business category to choose, what to include in the registration form, and what obligations he would subsequently have toward the authorities.

First, we discussed with the client how he actually intended to earn money from his music. The act of creating one’s own original works is not the same as running a business under the Trade Licensing Act. For example, if an author creates their own music and earns income from its copyrighted use, this may constitute a separate activity outside the scope of the Trade Licensing Act. However, if the client simultaneously offers clients additional services related, for example, to music production or other business activities, the appropriate trade license may be required.

Based on the client’s specific planned work arrangements, we therefore separated his income from copyrighted works from the activities for which he would need a trade license and prepared a step-by-step guide for him. This included recommendations on how to properly register the business, how to handle matters with the Czech Social Security Administration (ČSSZ) and health insurance providers when running a business alongside employment, and what to keep in mind when tracking expenses related to, for example, studies, production, advertising, or professional courses. The client thus received a clear plan for how to start a business without unnecessarily obtaining a license for activities that do not fall under the Trade Licensing Act at all.

Step Three: Gather the Necessary Documents and Establish a Business Premises

When planning your business, you must complete the necessary documentation in accordance with the requirements of the Trade Licensing Act.

When visiting the office, bring a valid ID card and 1,000 crowns (800 CZK for online submissions). You can also fill out the form you’ll need at the office in advance at home. Detailed information can be found on the website of the Ministry of Industry and Trade (Unified Registration Form | MIT).

When registering your trade, you’ll also need to provide your registered office address. However, this is not the same as a business location—not every entrepreneur is required to have a separate business location. If you’ll actually be conducting your business at a specific location, you’ll also need to report it to the Trade Licensing Office as appropriate. If your registered office is different from your place of residence, you may need to provide legal justification for using the relevant premises.

What are the basic requirements for a trade license?

To apply for a business license, you must have full legal capacity (full legal capacity is acquired upon reaching the age of 18, but even a minor may engage in business in certain cases —though they need the consent of their legal guardians and approval from the guardianship court) and have a clean criminal record (i.e., you must not have been convicted in the past of an intentional criminal offense committed in connection with business activities or with the business activity for which you are applying or which you are registering), which can be proven by an extract from the Criminal Records Registry (which the Trade Licensing Office will obtain on its own).

As mentioned above, for certain activities, you must also demonstrate professional competence to operate such a trade; you will need to provide, for example, proof of education, work experience, or authorization to perform the activity, and in some cases, approval from another government agency.

Step 4: Go to the office and pay all the necessary fees

Before you start your business, you must file a “business registration.” This is the basic step for establishing your business—whether in person, through Czech POINT, or electronically. The fee for this service is currently 1,000 crowns (800 CZK online). You can pay in person when filing your business registration at the Trade Licensing Office or at a Czech POINT, or by postal money order or bank transfer.

When filling out the form, consider what types of business activities you will be engaged in, not only in the near future but also in the long term.

To apply for a trade license, simply visit any municipal trade licensing office or complete the process online via the Trade Licensing Portal. You can also find a directory of trade licensing offices on the website of the Ministry of Industry and Trade.

Step 5: Keep track of your follow-up obligations and start your business

After starting your self-employment, don’t forget about the follow-up reporting obligations. You must notify your health insurance provider of the start of your business within 8 days. Under the legislation effective as of July 1, 2026, you have 15 days from the start of your business to notify the Czech Social Security Administration (ČSSZ). Many of these obligations can be fulfilled using the Unified Registration Form.

Obtaining a business license does not conclude the legal aspects of running a business. Once you start working for clients or collaborating with suppliers or contractors, it pays to have clearly defined terms regarding pricing, deadlines, liability, confidentiality, and the process for terminating the collaboration. We can draft or review a collaboration agreement for you to ensure it reflects how your business actually operates and leaves no room for unnecessary disputes.

When can I start operating my business?

After establishing your business , you’ll receive an IČO, or Identification Number, under which you’re registered. The Trade Licensing Act recognizes certain businesses that only require notification, and in such cases, authorization to operate the business takes effect on the date of notification. However , if you plan to operate a trade for which you need a so-called “concession,” you must wait until the decision to grant the concession becomes final. You can then prove your trade license by providing an extract from the Trade Register.

Summary

Starting a business in 2026 is a relatively quick process, but the most important thing is to determine right from the start what permits you need for your business. For unregulated trades, you do not need to demonstrate professional competence, whereas for skilled trades and regulated trades, you must meet specific qualification requirements. If you do not meet these requirements yourself, appointing a responsible representative may be a solution. For licensed trades, you also need a decision granting the license.

You can file the registration in person or electronically. When starting a business for the first time, the standard fee is 1,000 CZK; the electronic fee is 800 CZK. Once you’ve actually started your business, be sure to fulfill the follow-up obligations—in particular, notifying your health insurance provider within 8 days and the Czech Social Security Administration (ČSSZ) within 15 days. Many of these procedures can be handled through the Unified Registration Form. Separate registration for personal income tax as a self-employed individual is no longer required.