Step 1: Consultation before Registration
We start with a 1-hour consultation, because from experience with registering 100s of Trade Licenses, we know that new clients usually have very many questions, such as: is the Trade License is something for me, visa / residence permit questions, what about social / health insurance, should I open an sro? What about income from abroad? VAT?
During this hour we also explain the requirements and different options of the Trade License registration package.
You will get more information than a week surfing the Internet!
(and on top of that we offer a: not happy with the consultation, we'll refund the money guarantee)
Step 2: Selecting Trade License types and Registering the Trade License
After we have received the Required Documents from you, and we have selected one or more tradelicenses, we will go ahead and make the actual Trade License Registeration application.
Choose your situation to see steps 3 and 4.
Step 3: We pick up your trade license
After 5 working days we pick up the trade license, the so-called “výpis ze živnostenského rejstříku”. From that moment on you can send invoices to your clients, even though you are not yet registered at the Tax Office, Social Security and Public Health Care. Those registrations may take several weeks (Step 5).
Step 3: Trade license first, without an IČO
After 5 working days we pick up the trade license, but without an IČO (registration number). With this paper you apply for a business visa at a Czech embassy (Step 4).
Once you have the visa (this can take up to 3 months), we return to the Trade License Register for the ‘real’ trade license with the IČO. Before you have the IČO you are officially not allowed to trade.
Step 4: EU residence permit and rodné číslo
Many EU citizens live here without it, but we recommend a Temporary Residence Permit and a rodné číslo (“birth number”):
- It proves you are resident and tax resident in the Czech Republic, useful if your home country tries to tax you.
- One number for all authorities, instead of a different ‘fantasy number’ at each office. You also need it to register a car in your own name.
- You apply after arriving in the Czech Republic; nothing is needed before you come.
- Your landlord must give written permission to register the address. The rental contract alone is often refused, so use this template: Doklad o zajištění ubytování (PDF).
- No work permit is needed, ever (EU law).
- The residence permit alone does not give access to Public Health Care; your trade license (or a job) does.
Step 4: Your current visa or residence permit
If your visa or residence permit (for example for employment, study or family) stays valid, you do not need a business visa. You can have a trade license next to it, as long as the job, study or family reason stays your main purpose of stay.
Changing your purpose of stay to ‘business’ is possible in Prague, without going abroad, only if you have had a visa for at least 5 years and at least 60 days are left on it. Discuss your options with us.
Step 4: Business visa at a Czech embassy
You apply for a D-visa for business purposes outside the Czech Republic, usually at the embassy in your home country (US citizens and a few others can also use embassies such as Vienna, Bratislava or Dresden). A tourist visa or visa-free entry cannot be changed into a business visa here.
What you need:
- Criminal record extract with apostille (or superlegalized), not older than 90 days
- Proof of at least 156,500 CZK for living expenses
- Proof of residence: rental contract plus the landlord’s permission with a notarized signature (Doklad o zajištění ubytování (PDF))
- Commercial health insurance from a Czech insurer (unless you can be in Public Health Care)
- Proof from the trade license office that you are entitled to a trade license (we provide it)
After you receive the visa, two critical steps: within 3 days of arrival, report to the Foreign Police for the red stamp in your passport. Then, within 3 days, show that stamp at the trade license office, or the trade license is de-registered and you start again. Come to us the same day the police stamp your passport and we take care of the trade license office.
Full guide: business visa, extensions and why applications get rejected →
Step 5: Registration at Tax Office / VAT, Social Security, Public Health Care
After you get the trade license with IČO from the Trade License Register, you are able to trade, but you are still not registered completely in the Czech system. To follow are the tax office (for VAT, if required), the Social Security and Public Health Care (for EU and few other nationalities). This process takes several weeks *at least*, or even months if you are completely new to CZ. However, you don't have to wait for these registrations to complete before you can start as self-employed person.
The registrations at Tax / Social / Health is more complicated than the Trade License registration itself, because those systems are not united and require separate registrations for each and produce different registration numbers for each(!). There is an option on the Trade License registration form to forward all information 'automatically' to Tax / Social / Health - but that only works well for people who already have a rodne cislo and are already registered in various systems (in other words: not recommended for newcomers).
Step 6: Consultation after registration
Once all registrations have been done, you (optionally) will have a second consultation. During it, we will explain how much and when to pay Social Charges and Public Health Contributions to which bank accounts, how to invoice clients (in CZ, in EU, outside EU), how to deal with Income Tax and VAT and how to prepare for the extension of your Business Visa (if applicable). Of course we answer any questions you may have.
After it, you will be be fully registered and fully prepared to work as self-employed / freelancer in Czech Republic.
Condition for the second consultation: to be booked within 2 months of Trade License registration. The consultation is about the subjects mentioned above, it can not be 'saved' to be used later for another purpose.
