Licensed trade – conditions and fields

Quick overview

• A licensed trade is a business that you can’t start just by declaring it. You must first obtain a concession, a permit from the trade authority, often after obtaining a statement from another government body.
• Typically, these are high-risk industries, such as car transport, security of property and people, travel agency, alcohol production, weapons handling or funeral services.
• The application is usually accompanied by proof of identity, professional competence, experience, responsible representative if applicable, and registered office or place of business.
• The office has 30 days to make a decision and the fee for the first application is usually CZK 1,000.

Do you need to check whether your business is a licensed trade or is the office making the application more complicated? Have an attorney check your documents before submitting your application – this will often prevent requests for completion and unnecessary delays.

What is a trade

The Trades Act defines a trade as a regular activity carried out independently, under one’s own direction, on personal responsibility, with the aim of making a profit, the conditions of which are laid down in this Act. A trade is a form of business that allows you to work on your own, which means without an employer, but also without certain protections typical of employees, such as fixed working hours or holiday entitlement.

Tradespeople also have to pay their own social security and health insurance and are responsible for paying their own taxes, which includes having to file a tax return. They are known as self-employed persons (self-employed).

There are two main categories within trades: notifiable trades and licensed trades. Reportable trades are subdivided into free trades, craft trades and tied trades. In this article we will deal specifically with licensed trades.

What is a licensed trade

A licensed trade is a specific type of business that requires obtaining a concession from a competent government authority or institution (e.g. a ministry). This type of trade differs from other types of trades mainly because the business in these trades may have a significant impact on health, safety, public interest or the environment. The operation of a licensed trade is therefore not only subject to obtaining a licence, but also to compliance with stricter rules and is more often subject to state supervision.

Licensed trades are regulated in particular by the Trade Licensing Act (Trade Licensing Act). The list of licensed trades and the requirements for professional or other special competence can be found in Annex 3 to the Trade Licensing Act. For some trades, however, it is also necessary to observe the specific legal provisions – for example, for weapons, ammunition, transport, travel agencies, security material or funerals.

We recommend checking in particular the sectors related to arms, ammunition and munitions, as an amendment related to the new legislation on arms, ammunition and munitions came into force on 1 January 2026. Therefore, when preparing your application, it is not sufficient to rely on the old list from the internet; always check the current wording of Annex 3 and any requirements of the special law.

How to arrange a licensed trade

To obtain a licence to practice a licensed trade, you will either have to go to the trade office in person or apply online. In either case, you will need to provide a few basic documents:

• AnID card to verify your identity.
• A completed uniform registration form, which is the basis for applying for a trade.
• Proof of your professional competence or that of your professional representative (e.g. school leaving certificate, certificate of passing a qualification exam, etc.)
• In the case of a professional representative, you must have his/her declaration that he/she agrees to act in this capacity and his/her certified signature.
• If you want to have a place of business other than your permanent residence, then you will need an extract from the Land Registry proving ownership of the property or a lease agreement for the property.

From an attorney’s experience: in concession applications, it is often not the form that is wrong, but the attachments. For example, the client provides proof of education but no longer attaches the required length of experience, the consent of the responsible representative or proof of establishment. The office then completes the application, the procedure is prolonged and the entrepreneur cannot start the activity on the planned date. Before filing, we therefore recommend that you review the specific field in Annex 3 of the Trade Licensing Act and check whether you meet not only the general conditions but also the specific requirements of the field.

Not sure what exactly to include with your application? For licensed trades, the requirements vary depending on the field. We’ll check that you have the right documents for your education, experience, responsible agent and business premises, and point out any weaknesses in your application before you submit it to the office

Licensed trade and fees

There is a fee of CZK 1,000 for applying for a licence. For each additional application for a concession or notification of an additional trade, there is a fee of CZK 500. The fee can be paid directly at the trade licensing office, by postal order or by bank transfer.

Time limit for processing

The Trade Licensing Authority has 30 days from the date of receipt of your application to decide whether to approve the licence. The entry in the trade register must then be made within five working days.

Experience: An entrepreneur wanted to expand his services into a field that at first glance looked like an ordinary free trade. When checking the contracts and the description of the activity, it turned out that part of the services fell under the licensed trade and a responsible representative would have to be provided. If he had started offering services without a licence, he would have risked a penalty and a problem with the validity of the subsequent contracts. In situations like this, the key is not just to assess the marketing name of the service, but the actual content of what you will be providing to customers.

Terms and conditions and list of licensed trades

Advocate’s tip: If you are unsure which trade your business falls into, don’t just go by the similarity of the name. For licensed trades, the specific requirements in Schedule 3 of the Trade Licensing Act and sometimes the opinion of another authority will decide. In a legal consultation, we will help you determine the right field and prepare an application that corresponds to what you actually plan to do.

As mentioned above, a licence is granted on a case-by-case basis, with the authority taking into account the applicant’s professional qualifications, integrity and other specific requirements given for the particular type of business. The specific requirements can be found in Annex 3 of the Trade Licensing Act. Let’s look at them more briefly.

Manufacture, processing and sale of fermentable or potable alcohol and spirits

To be able to perform this activity, you must have at least a secondary education with a high school diploma in food technology, chemistry, agriculture, pharmacy, medicine, veterinary medicine, or in the field of laboratory technician for pharmaceutical production and a length of experience that depends on the level of the highest education obtained. Thus, for example, in the case of a university degree, no experience is required, while in the case of a secondary education with a high school diploma, you must have 3 years of experience in the field.

The concession in this case is decided by the Ministry of Agriculture.

Production and processing of sulphite or synthetic alcohol

To carry out this activity, you must have at least a secondary education with a high school diploma in chemistry and a length of experience that depends on the level of the highest education obtained.

The Ministry of Industry and Trade decides on the licence.

Handling explosives and munitions and carrying out blasting operations

The conditions vary according to the way in which munitions and explosives are handled. In some cases, a university degree in a technical science or technology is required. For others, a specific licence is required (e.g. pyrotechnician or gunner).

If you want to do business in this field, you must also prove your reliability. This is proved by a so-called lustration certificate issued by the Ministry of the Interior. This check determines whether you cooperated with the communist regime in Czechoslovakia. Another important condition is that this activity can only be carried out in an establishment listed in the ammunition licence.

The Czech Mining Authority or the Czech Office for Testing of Weapons and Ammunition decides on the licence.

Handling of weapons and ammunition

Again, the conditions vary according to the way in which weapons and ammunition are handled. You may have to have a university degree, experience in the field, professional competence or a pyrotechnician’s licence. Again, you must prove your reliability.

The Czech Mining Authority or the Czech Office for Testing of Weapons and Ammunition decides on the licence.

Handling of safety material

Security material includes items used for defence and security purposes. To practice this trade, you must have at least a secondary education with a teaching certificate with a technical, economic, military or police background and be at least 21 years old. Possibly retraining and one year of experience. It is also a condition that all your employees must be of good character.

The decision on the concession is made by the Regional Police Directorate.

Manufacture and processing of fuels and lubricants and distribution of fuels

For the production and processing of fuels and lubricants, you must have at least a secondary education with a school-leaving certificate in a chemistry-related subject or a professional qualification as a chemist for the operation of equipment and an appropriate length of experience. For the distribution of fuels, you need a minimum of a secondary education in any field or a professional qualification as a chemist for the operation of equipment and appropriate experience.

The decision on the licence for fuel distribution is made by the Customs Office.

Production and distribution of thermal energy, not subject to a licence

To operate this trade, a minimum of secondary education with a school-leaving certificate with a technical orientation and relevant experience is required. In the case of less powerful thermal energy sources, secondary education with a school-leaving certificate with a technical qualification and 3 years’ experience or a certificate of retraining for the operation of small energy sources is sufficient.

If you do not hold a thermal energy production licence and a thermal energy distribution licence, then you must demonstrate that you have the technical capacity to carry out the licensed activity. You must also have liability insurance.

The State Energy Inspectorate decides on the concession.

Road transport

This includes small and large freight transport and passenger transport. Large is taken over loads weighing more than 3.5 tonnes or more than 9 persons including the driver. To carry out large transport you must meet four basic conditions:

1. Establishment: you must have an office where you can keep company records and have at least one truck.
2. Good standing: You must be of good character under the rules of the Trade Licensing Act (i.e. you must not have a criminal record related to the business, or other related records such as drink driving).
3. Financial capacity: Must be demonstrated by a bank guarantee, insurance or opening balance sheet.
4. Professional competence: Must have a responsible representative who passes a written examination administered by the transport authority.

The transport authority decides on the licence.

Inland waterway transport

You must prove your reliability and professional competence. To do this, you must have passed an inland waterway transport examination before the navigation authority and have at least three years’ experience. Alternatively, you can also provide evidence of a school-leaving certificate in relevant subjects.

The Ministry of Transport decides on the concession.

Inspection testing of professional equipment for the application of products

A minimum of secondary education with a school-leaving certificate in plant medicine, plant protection, horticulture, horticulture, hop-growing, viticulture, forestry, agricultural or forestry technology or general agriculture and 3 years’ experience in operating and adjusting product application equipment, or a minimum of secondary education with a school-leaving certificate and 4 years’ experience in operating and adjusting product application equipment. You must also have an approved establishment.

The licence is decided by the Central Institute for Agricultural Inspection and Testing.

Carrying out pyrotechnic surveys

You must have a pyrotechnician’s licence or a certificate of competence to carry out pyrotechnic surveys. You must also provide evidence of your reliability.

The Mining Authority decides on the licence.

Conducting public auctions

You must have a degree in auctioneering or real estate and relevant experience.

The Ministry of Regional Development decides on the concession.

Running a travel agency

You need at least a secondary education with a high school diploma in a tourism-oriented field or education outside the field and experience. Alternatively, proof of professional qualification to operate a travel agency and 2 years of experience.

The Ministry of Regional Development decides on the concession.

Security of property and persons and private detective services

A minimum of secondary education with a high school diploma in law, security or similar, and an appropriate length of experience or, where appropriate, a professional qualification for the activity of a security guard or for the activity of a detective trainee. In addition, your reliability must also be proven.

Provision of technical services for the protection of property and persons

A minimum of secondary education with a diploma in mechanical engineering, electrical engineering, telecommunications or computer technology and the appropriate length of experience are required. In addition, the integrity of all employees is also required.

Management of the filing cabinet

A minimum of a secondary education with a high school diploma in any subject and relevant clerical experience is required. Establishment approval and integrity of all employees is also required.

The State Regional Archives of the place of establishment decides on the licence.

Operation of firing ranges and instruction and training in shooting with weapons

A minimum of a secondary education with a high school diploma in military, police or physical culture, physical education and sport and a relevant experience or a licence as a referee or shooting coach and 3 years of experience in shooting range management or operation are required. Evidence of reliability is also required.

Operation of a funeral service

You must have ten years’ experience in the funeral business or a high school diploma and three years’ experience, plus professional qualifications as a funeral arranger and a worker for the arrangement and transportation of human remains. You must also meet the requirements for the establishment.

The licence is decided by the regional health authority.

Carrying out embalming and preservation

You must have at least secondary education with a school-leaving certificate and five years’ experience in embalming and preservation, or secondary and higher education in a medical field, plus professional qualifications as a worker for the treatment and transport of human remains and for the higher hygienic care of deceased bodies. In addition, you must complete specialised training in the field. You also need to have a suitable room and equipment to carry out embalming and preservation.

The licence is decided by the regional sanitary station.

Operation of a crematorium

You must have ten years’ experience in the funeral business, a high school diploma and three years’ experience, plus professional qualifications to operate cremation equipment and be a crematorium administrator. You must also meet the requirements for an establishment.

The licence is decided by the regional health station.

Do you want to start a business in a regulated industry without unnecessary delays? We can help you determine the right type of business, prepare a license application, set up a responsible agent, and review the contracts you will use in your business. That way, you’ll know what you need to accomplish before you start offering services to customers.

Summary

A licensed trade is a form of business that requires special permission from government authorities to carry out activities with potential impact on health, safety, public interest or the environment. The trade must not only demonstrate professional competence, but also meet the specific requirements of the industry. The application fee is set at CZK 1,000, and the approval process can take up to 30 days. The scope of licensed trades covers a wide range of activities from alcohol production to the operation of shooting ranges, with each industry having its own specific requirements for applicants’ education and experience.