Establishing a business in the Czech Republic requires understanding the various types of trade permits, which are essential for operating legally within the country. Whether you’re a citizen of the EU, EEA, Switzerland, or a non-EU country, knowing which permit your business requires is the first step in ensuring smooth operations and compliance with local regulations.
This guide provides a clear overview of the four main categories of licensed trade permits in the Czech Republic. We’ve summarized the key differences in a table below for quick reference. For a more detailed understanding of each permit type, keep reading!
Basic Summary of Trade Permits
Permit Type | Description | Requirements for EU/EEA/Swiss Citizens | Requirements for Non-EU Citizens |
Volná (Unrestricted) | For businesses that do not require specific qualifications (e.g., retail, consulting). | No professional qualifications needed; just administrative requirements. | Must have legal residence and comply with local business regulations. |
Vázaná (Restricted) | For businesses requiring specific qualifications (e.g., finance, architecture, legal services). | Must provide proof of relevant qualifications and meet legal criteria. | Must provide recognized foreign qualifications and meet additional requirements such as legal residence. |
Řemeslná (Craft) | For trades requiring vocational training or craftsmanship (e.g., plumbing, carpentry, hairdressing). | Must have vocational qualifications or relevant experience. | Must provide proof of vocational training or experience, possibly recognized by authorities. Legal residence required. |
Koncese (Concessions) | For businesses in highly regulated sectors (e.g., casinos, hazardous materials, waste management). | Must meet specific regulatory conditions and apply for a concession. | Must provide detailed documentation, including a business plan and proof of financial capacity. Legal residence required. |
Detailed Information About Each Permit
1. Volná (Unrestricted) Trade Permit
The Volná (Unrestricted) trade permit is the easiest type of license to obtain. It is designed for businesses that do not require specialized qualifications or training. This category typically includes sectors like retail, hospitality, consulting, and other general services.
- Requirements for EU/EEA/Swiss Citizens: No specific professional qualifications are required to apply for this permit. You’ll need to fulfill basic administrative requirements, such as registering your business with the appropriate authorities and adhering to general business laws.
- Requirements for Non-EU Citizens: Non-EU citizens must also meet the legal and administrative requirements, including proving legal residence in the Czech Republic and ensuring compliance with local business regulations.
2. Vázaná (Restricted) Trade Permit
The Vázaná (Restricted) trade permit applies to businesses that require professional qualifications. These include fields such as finance, law, engineering, and architecture, where specialized education or vocational training is essential for practice.
- Requirements for EU/EEA/Swiss Citizens: To apply for this permit, you must provide evidence of relevant qualifications, such as diplomas, licenses, or professional certifications. In addition, you will need to meet any specific legal criteria for operating in the regulated sector.
- Requirements for Non-EU Citizens: Non-EU citizens must present their foreign qualifications, which may need to be recognized by Czech authorities. This process can take longer than for EU citizens, as additional documentation may be required. Legal residence in the Czech Republic is also required.
3. Řemeslná (Craft) Trade Permit
The Řemeslná (Craft) trade permit is for businesses that involve skilled trades or craftsmanship. Examples include carpentry, electrical work, plumbing, hairdressing, and other services requiring vocational training or craftsmanship.
- Requirements for EU/EEA/Swiss Citizens: You must have relevant vocational qualifications or significant professional experience in the specific trade. These credentials must be provided as part of your application.
- Requirements for Non-EU Citizens: Similar to EU citizens, non-EU citizens must prove their qualifications or work experience in the craft. These qualifications may need to be assessed or officially recognized by Czech authorities. Legal residence in the Czech Republic is also required.
4. Koncese (Concessions)
The Koncese (Concessions) permit is required for businesses operating in sectors that are highly regulated or have a significant impact on public safety or health. Examples include casinos, waste management, and handling hazardous materials. These types of businesses require additional regulatory oversight and permit approval.
- Requirements for EU/EEA/Swiss Citizens: Obtaining a concession involves submitting a detailed application that demonstrates compliance with strict regulatory conditions. This often includes meeting financial stability requirements, submitting a business plan, and possibly undergoing an inspection.
- Requirements for Non-EU Citizens: Non-EU citizens applying for a concession must provide detailed documentation, including a business plan, proof of financial capacity, and other relevant documents. They may also be required to submit additional paperwork to meet the regulatory standards set by the Czech authorities. Legal residence in the Czech Republic is also required.