Licensed trade – conditions and fields

The licensed trade is associated with a number of conditions that must be met by the applicant. These are activities that may have a significant impact on human health and the overall safety of society. This includes, for example, the handling of explosives or the production of alcoholic beverages, which could cause a lot of damage in the wrong hands. In this article, we’ll look at how to process a licensed trade, how much you’ll pay for it and how long you’ll wait for processing. Finally, we also provide you with a list of licensed trades and the basic conditions for their exercise.

12 minutes of reading

Chapters of the article

What is a trade

TheTrades 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.

Tip: We have covered free, craft and tied trades in detail in our other articles.

What is a licensed trade

A licensed trade is a specific type of business that requires a licence 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.

Do you have a problem with obtaining a concession or need legal assistance in the field of business?

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How to arrange a licensed trade

In order 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.

Licensed trade and fees

There is a fee of 1000 crowns for applying for a concession. For each additional application for a concession or declaration 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.

Tip: We’ve explained how to set up a trade licence, including a licensed trade, in five easy steps for setting up a trade.

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.

Terms and conditions and list of branches of the licensed trade

As mentioned above, a concession 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 here as well:

Manufacture, preparation and sale of fermented or potable alcohol and spirits

In order 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 needed, 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.

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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 at least 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 matriculation examination with a technical focus and relevant experience is required. In the case of less powerful thermal energy sources, secondary education with a school-leaving certificate with a technical focus 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.

Tip: Liability insurance or crap insurance pays off in many cases. When and how to make the right choice, see our article.

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 preparations

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.

Summary

A licensed trade is a form of business that requires a special permit 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 trade. 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.

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Author of the article

JUDr. Ondřej Preuss, Ph.D.

Ondřej is the attorney who came up with the idea of providing legal services online. He's been earning his living through legal services for more than 10 years. He especially likes to help clients who may have given up hope in solving their legal issues at work, for example with real estate transfers or copyright licenses.

Education
  • Law, Ph.D, Pf UK in Prague
  • Law, L’université Nancy-II, Nancy
  • Law, Master’s degree (Mgr.), Pf UK in Prague
  • International Territorial Studies (Bc.), FSV UK in Prague

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