The second stage of starting up your business is the incorporation of the company into the Commercial Register. When this registration is done, your company is finally founded. As of the date of the entry, the established company becomes a legal entity that can acquire rights and obligations.
Trade authorisation
A trade license is an appropriate trade authorisation for a business activity which is regulated by the Trade Licensing Act. This law establishes the types of trades, as well as the terms and conditions for pursuing them.
There are two classes of trades. The first are notifiable trades. These include skill traders who have evidence of training, or evidence of length of experience in a given field. Restricted trades and unqualified trades are also part of this category. The second class of trades consists of concession trades like producing alcohol or managing a travel agency.
There are some trades which do not require a license. These are called liberal professions, such as a lawyer, doctor, notary, tax advisor, interpreter, translator, editor, or journalist. These activities are regulated by specific laws.
An authorised representative
To get a trade authorisation, foreigners who do not have a residency permit for the Czech Republic are required to assign an authorised representative. The representative needs to be free of criminal convictions and legally competent. If they are not a Czech citizen, they must have permanent residency and prove before the Trade Licensing Authority knowledge of the Czech or Slovak language.
One person can be responsible for more than one trade licence of a company, but cannot perform this function for more than four companies. For some types of general business activities, such as unregulated trade, a responsible person is not required.
Where to apply
In order to get a trade license certificate, you must submit an application to a Trade Licensing Office at the relevant local authority. The trade authorisation is issued within 15 days of filing your application form.
Another alternative is to go to a Czech Point – a Single point of contact. They also provide information on where to hire professional services, about grants and loans, the geography of the country, or legal advice.
Administrative fees
The administrative fee for the issue of a trade license is CZK 1,000 and CZK 10,000 for industrial trades. For a concession trade, it is CZK 2,000, and in the case of an industrial concession trade it is CZK 20,000.
Registration with the Commercial Register
The Commercial Register is a list that includes data on entrepreneurs mandated by law, and it is publicly accessible. It is administered by the court authorities. You should approach your regional registration court to register your business. Then the court registers the company within 5 working days.
Application
In order to incorporate into the Commercial Register, you have to deliver these documents:
- Trade authorisation
- Founder's Deed or Memorandum of Association
- Company business name and the address of the registered office
- Lease agreement to the location of the registered office
- List of planned activities
- Specimen signatures of the members of the company
- Bank confirmation of the deposited capital
- Extract from the Criminal Registry for each member – EU citizens must submit an extract from the Criminal Register from their country of origin. Non-EU citizens should provide an extract from the Criminal Register of the country where they spent at least three consecutive months in the three previous years.