Quick Overview
- A licensed trade is a business that you cannot start simply by filing a notification. First, you must obtain a license—that is, a permit from the trade licensing office—often following a review by another government agency.
- Typically, these are high-risk sectors, such as trucking, security services for property and persons, operating a travel agency, alcohol production, handling firearms, or funeral services.
- You usually need to provide proof of identity, professional qualifications, work experience, and, if applicable, a responsible representative, as well as a registered office or place of business, along with your application.
- The authority has 30 days to make a decision, and the fee for the first application is generally 1,000 CZK.
Do you need to verify whether your business falls under a licensed trade, or is the authority making your application process difficult? Have a lawyer review your documents before submitting your application—this will often help you avoid requests for additional information and unnecessary delays.
What Is a Trade?
The Trade Licensing Act defines a trade as a regular activity carried out independently, on one’s own initiative, and under personal responsibility for the purpose of making a profit, with the conditions set forth by this very law. 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 for employees, such as fixed working hours or the right to vacation time.
Self-employed individuals must also pay their own social security and health insurance premiums and are responsible for paying taxes, which includes the obligation to file a tax return. These individuals are referred to as self-employed persons (OSVČ).
Within the scope of trades, we distinguish between two main categories: registration-only trades and licensed trades. Registration-only trades are further divided into unrestricted, craft, and restricted trades. In this article, we will focus specifically on licensed trades.
What Is a Licensed Business?
A licensed trade is a specific type of business that requires obtaining a license from the relevant government agency or institution (e.g., a ministry). This type of business differs from other types mainly in that business activities in these fields can have a significant impact on health, safety, the public interest, or the environment. Operating a licensed trade is therefore conditional not only on obtaining a license but also on complying with stricter rules and is more frequently subject to government oversight.
Licensed trades are primarily governed by the Trade Licensing Act. The list of licensed trades and the requirements for professional or other special qualifications can be found in Annex No. 3 of the Trade Licensing Act. However, for certain sectors, it is also necessary to comply with specific legal regulations—for example, regarding firearms, ammunition, transportation, travel agencies, security equipment, or funeral services.
We recommend checking in particular the sectors related to firearms, ammunition, and explosives, as an amendment related to new legislation on firearms, ammunition, and explosives took effect on January 1, 2026. Therefore, when preparing your application, do not rely solely on the old list found online; always verify the current version of Annex No. 3 and any requirements under special legislation.
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How to Obtain a Licensed Trade
To obtain a license to operate a regulated business, you’ll need to either visit the Trade Licensing Office in person or apply online. In both cases, you must provide several basic documents:
- AnID card to verify your identity.
- A completed standard registration form, which serves as the basis for your business license application.
- Proof of your professional qualifications or those of your professional representative (for example, a high school diploma, a certificate of passing a qualification exam, etc.).
- In the case of a professional representative, you must provide a statement from them confirming their consent to this role, along with their notarized signature.
- If you wish to have your place of business somewhere other than your permanent residence, you will need an extract from the real estate cadastre proving ownership of the property or a lease agreement for the property in question.
From a lawyer’s perspective: Errorsin license applications often occur not in the form itself, but in the attachments. For example, a client may provide proof of education but fail to include proof of the required length of professional experience, the responsible representative’s consent, or documentation regarding the business premises. The authority then requests additional information, the process is delayed, and the business owner cannot launch operations by the planned date. Before submitting your application, we therefore recommend reviewing the specific field in Annex No. 3 of the Trade Licensing Act and verifying that you meet not only the general conditions but also the specific requirements for that field.
Not sure exactly what to include with your application? For licensed trades, the requirements vary by field. We’ll verify that you have the correct documentation regarding your education, work experience, responsible representative, and business premises, and we’ll point out any weaknesses in your application before you submit it to the authorities
Licensed Trades and Fees
The fee for submitting a license application is 1,000 crowns. Each additional license application or registration of an additional trade is subject to a fee of 500 crowns. The fee can be paid directly at the Trade Licensing Office, by postal money order, or by bank transfer.
Processing Time
The Trade Licensing Office has 30 days from the date of receipt of your application to decide on the approval of the license. It must then enter the business in the Trade Register within five business days.
Real-life example: An entrepreneur wanted to expand his services to include a field that, at first glance, appeared to be a standard unlicensed trade. It was only upon reviewing the contracts and the description of activities that it became clear that part of the services fell under a licensed trade and that a responsible representative would need to be designated. If he had begun offering the services without a license, he would have risked a penalty as well as issues with the validity of related contracts. In similar situations, it is crucial to consider not just the marketing name of the service, but the actual content of what you will be providing to customers.
Conditions and List of Licensed Trade Categories
Tip from an attorney: If you’re unsure which field your business activity falls under, don’t rely solely on the similarity of the name. For licensed trades, the specific requirements in Annex No. 3 of the Trade Licensing Act—and sometimes the opinion of another authority—are decisive. During a legal consultation, we’ll help you identify the correct category and prepare your application so that it accurately reflects what you actually plan to do.
As mentioned above, a license is granted based on an individual assessment of each case, with the authority taking into account the applicant’s professional qualifications, good character, and other specific requirements for the particular type of business. The specific requirements can be found in Annex No. 3 of the Trade Licensing Act. Let’s take a brief look at them.
| Business Sector |
What Is Typically Required |
When to Be Cautious |
| Alcohol, spirits, fuel |
Education, work experience, special permits, or an official opinion |
if you work with regulated substances or in distribution |
| Weapons, ammunition, explosives |
Professional competence, reliability, special authorization |
if the activity involves weapons, ammunition, or pyrotechnics |
| Transportation |
Professional competence, financial standing, good reputation, established business |
if you transport passengers or cargo for compensation |
| Travel Agency |
Education, experience, insolvency insurance |
if you combine transportation, lodging, or other tourism services |
| Security, detective services, security technology |
Education, experience, good character/reliability |
if you protect property or people, or provide detective services |
| Funeral services, crematoriums, embalming |
Work experience, professional qualifications, business premises, hygiene requirements |
if you handle human remains or operate funeral services |
Production, processing, and sale of fermented or potable alcohol and spirits
To perform this activity, you must have at least a high school diploma with a focus on food technology, chemistry, agriculture, pharmacy, medicine, veterinary medicine, or as a laboratory technician for pharmaceutical production, along with a period of practical experience that depends on the highest level of education attained. For example, if you have a college degree, no work experience is required, whereas if you have a high school diploma, you must have 3 years of work experience in the field.
In this case, the Ministry of Agriculture decides on the license.
Production and Processing of Sulfite or Synthetic Alcohol
To perform this activity, you must have at least a high school education with a high school diploma in chemistry, and the required length of experience depends on the highest level of education attained.
The Ministry of Industry and Trade decides on the license.
Handling of explosives and ammunition and performing blasting operations
The requirements vary depending on how the ammunition and explosives are handled. In some cases, a college degree in a field focused on technical sciences or technology is required. In others, specific certifications are required (e.g., pyrotechnician or blaster).
If you wish to operate a business in this field, you must also demonstrate your reliability. This is proven by a so-called vetting certificate issued by the Ministry of the Interior. This verification determines whether you collaborated with the communist regime in Czechoslovakia. Another important condition is that this activity may only be carried out at the facility specified in the ammunition license.
The Czech Mining Authority or the Czech Office for the Testing of Weapons and Ammunition decides on the issuance of the license.
Handling of Weapons and Ammunition
Here, too, the requirements vary depending on how the weapons and ammunition are handled. You may therefore be required to have a college degree, professional experience in the field, professional certification, or a pyrotechnician’s license. Here, as well, you must demonstrate your reliability.
The Czech Mining Authority or the Czech Authority for the Testing of Weapons and Ammunition decides on the license.
Handling of Security Materials
Security materials include items used for defense and security purposes. To operate this business, you must have at least a high school diploma with a vocational certificate in a technical, economic, military, or police field, and be at least 21 years old. Alternatively, you may have completed retraining and have one year of practical experience. Another requirement is that all your employees must have a clean criminal record.
The regional headquarters of the Czech Police decides on the issuance of the license.
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Production and Processing of Fuels and Lubricants, and Distribution of Motor Fuels
To work in the production and processing of fuels and lubricants, you must have at least a high school diploma with a final exam in a field focused on chemistry, or a vocational qualification as a chemical plant operator, along with the appropriate amount of work experience. For the distribution of motor fuels, you need at least a high school diploma in any field or a vocational qualification as a chemical plant operator, along with the appropriate work experience.
The Customs Office decides on licenses for the distribution of fuels.
Production and Distribution of Thermal Energy (Not Subject to Licensing)
To operate this business, you must have at least a high school diploma with a technical focus and relevant work experience. For less powerful thermal energy sources, a high school education with a technical focus and an apprenticeship certificate, plus 3 years of experience, or a retraining certificate for operating small energy sources is sufficient.
If you do not hold a license for the production of thermal energy or a license for the distribution of thermal energy, you must demonstrate that you have the technical qualifications to perform the licensed activity. Additionally, you must have liability insurance.
The State Energy Inspectorate decides on the concession.
Motor Transport
This includes small- and large-scale freight transport as well as passenger transport. Large-scale transport refers to freight weighing more than 3.5 metric tons or carrying more than 9 people, including the driver. To operate a large-scale transport business , you must meet four basic requirements:
- Establishment: You must have a registered office where you can store company documentation and have at least one truck available.
- Good Reputation: You must have a clean record in accordance with the Trade Licensing Act (i.e., you must not have a criminal record related to the subject of your business, or any other related entries, such as driving under the influence).
- Financial Eligibility: This must be demonstrated through a bank guarantee, insurance, or an opening balance sheet.
- Professional Qualifications: You must have a responsible representative who passes a written exam administered by the transportation authority.
The transportation authority decides on the concession.
Inland Waterway Transport
You must demonstrate your reliability and professional competence. To do so, you must pass an inland waterway transport exam administered by the Navigation Authority and have at least three years of practical experience. Alternatively, you may also provide proof of a high school diploma in the relevant subjects.
The Ministry of Transportation decides on the license.
Inspection Testing of Professional Equipment for the Application of Plant Protection Products
You must have at least a high school diploma with a focus on plant pathology, plant protection, crop production, horticulture, hop growing, viticulture, forestry, agricultural or forestry engineering, or general agriculture, and three years of practical experience in operating and adjusting equipment for the application of plant protection products; or at least a secondary education with a high school diploma and four years of practical experience in operating and adjusting equipment for the application of plant protection products. You must also have an approved facility.
The Central Agricultural Control and Testing Institute decides on the license.
Conducting Pyrotechnic Surveys
You must hold a pyrotechnician’s license or a certificate of professional competence to conduct pyrotechnic surveys. You must also demonstrate your reliability.
The Mining Authority decides on the license.
Conducting Public Auctions
You must have an education in the field of auctioning or real estate and relevant work experience.
The Ministry of Regional Development decides on the license.
Operating a Travel Agency
You must have at least a high school diploma with a final exam in a field focused on tourism, or education in a related field plus relevant experience. Alternatively, you may provide proof of professional qualification to operate a travel agency and two years of experience.
The Ministry of Regional Development decides on the license.
Property and Personal Security and Private Detective Services
A minimum of a high school diploma in a field related to law, security, or a similar discipline is required, along with an appropriate length of practical experience or, alternatively, a professional qualification for working as a security guard or a trainee private investigator. In addition, you must demonstrate your reliability.
Provision of technical services for the protection of property and persons
A minimum of a high school education with a vocational certificate in mechanical engineering, electrical engineering, telecommunications, or computer science is required, along with an appropriate length of practical experience. Furthermore, all employees must have a clean criminal record.
Management of a Records Office
You must have at least a high school diploma in any field and relevant administrative experience. Approval of the business premises and a clean criminal record for all employees are also required.
The State Regional Archives with jurisdiction over the facility’s location decides on the license.
Operation of Shooting Ranges and Instruction and Training in Firearms Use
A minimum of a high school diploma with a focus on military studies, police work, or physical education, sports, and related fields is required, along with relevant work experience or a shooting referee or coach certification and 3 years of experience in supervising shooting activities or operating shooting ranges. Proof of good character is also required.
Operating a funeral service
You must have ten years of experience in the funeral industry or a high school diploma with a final exam and three years of experience, as well as professional qualifications as a funeral director and a worker for the preparation and transport of human remains. Furthermore, you must meet the requirements for the business premises.
The regional public health office decides on the license.
Performing Embalming and Preservation
You must have at least a high school diploma and five years of experience in embalming and preservation, or a secondary or higher education in a healthcare field, along with a professional qualification as a worker for the preparation and transport of human remains and advanced hygiene care for the deceased.. Furthermore, you must complete specialized professional training in the field. You must also have a suitable room and equipment for performing embalming and preservation.
The regional public health office decides on the license.
Operating a Crematorium
You must have ten years of experience in the funeral industry, a high school diploma with a final exam, and three years of practical experience, as well as professional qualifications for operating cremation equipment and serving as a crematorium administrator. You must also meet the requirements for the facility.
The regional public health office decides on the license.
Do you want to start a business in a regulated industry without unnecessary delays? We’ll help you determine the right type of business license, prepare your license application, appoint a responsible representative, and review the contracts you’ll use in your business. This way, you’ll know what you need to do before you even start offering services to customers.
Summary
A licensed trade is a form of business that requires special authorization from state authorities to carry out activities with a potential impact on health, safety, the public interest, or the environment. The business owner must not only demonstrate professional competence but also meet the specific requirements of the given field. The application fee is set at 1,000 crowns, 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 field having its own specific requirements regarding applicants’ education and experience.
Frequently Asked Questions
How do I know if I need a business license?
What matters is the actual nature of the activity, not its name. If your business falls under Annex 3 of the Trade Licensing Act, you need a license. These are typically regulated industries, such as trucking, travel agencies, property security, detective services, funeral services, or activities related to weapons and ammunition.
Can I start my business right after I submit my license application?
No. For a licensed trade, you can’t start doing business until the license is granted. Simply submitting the application isn’t enough. If you were to start operating before then, you’d risk doing business without the necessary authorization.
What if I don't meet the professional qualifications?
In some cases, you can appoint a responsible representative who meets the required qualifications. This person must agree to the role, and you will usually need to provide a statement from them with an officially certified signature. However, this is not a one-size-fits-all solution for every field.
Can a licensed business be registered online?
Yes, you can also submit your application online using the standard registration form. However, even when submitting online, you must provide the required supporting documents for your specific field. If the supporting documents are incomplete, the office will ask you to provide the missing information, and the process will be delayed.
How long is a licensed business valid?
A license is generally granted for an indefinite period, unless otherwise specified by law or by a decision of the relevant authority. However, the business owner must continue to meet the conditions even after the license is granted. If the business owner later fails to meet these conditions, it may affect the business’s authorization to operate.
