You must register with the Commercial Register within 90 days offormation of the company, i.e. signing of the Memorandum, or the datewhen the trade authorisations were issued. Before registering in theCommercial Register, you must obtain a trade license or another type of business license.
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.
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.
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.
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.
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.
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.
In order to incorporate into the Commercial Register, you have to deliver these documents: