Sure, it has many advantages. You are independent, you work for yourself, you are the master of your time, you have the freedom,… But everyone keeps telling you that the administration that accompanies the establishment of a business can be quite annoying. Timi is a champion in setting up trades and he certainly will not keep the tips and advice to himself.
How to establish a trade license: What you need
- Criminal record - you can obtain it from Czech POINT. It is a document that is so holy that you must collect it yourself. They don't consider Timi important enough to pick it up for you
- Consent to the location of the company's registered office * - this document can be prepared and pre-filled by Timi easily.
- Identity card - no matter what your photo looks like.
- An administrative fee of CZK 1,000 - we believe that when you start your business, you will never remember the sacrificed beers (sorry, we were going to say a gym pass).
- Identify the trades [.pdf, in Czech] in which you want to perform.
* If the company's registered office is located in the place of appliers' permanent residence, such consent is not necessary. However, if the registered office is at the place of a sublease, you will have to prepare this document. The landlord must agree to locate the registered office at the place of the sublease. The only exception is when the consent to the location of the company's registered office is already included in the lease agreement itself.
Three long-term tasks
How to establish a trade license? What do you have to do?
- All of the above documents should be handed over to the Trade Licensing Office - regardless of whether or not they are in your place of residence.
- Take the order ticket and wait for your turn - yes, most likely you will get the sweetest and most happy office clerk. it is just as likely as a win in the lottery. In fact, it´s hard to say which is more probable?!
- The clerk will take care of completing the application - you will have to answer some additional questions to this cordial lady.
For example, whether you want to automatically apply for health and social insurance as a self-employed person and also be interested in registering with the tax office. If you are registered for both health and social insurance, you will tell so to the clerk. If you are a foreigner who is not insured in the Czech Republic, it is necessary to register with insurance companies personally and then report that you are self-employed.
If you are a previously employed Czech citizen, the secretary will simply let the tax office know. Foreigners have to come to the tax office in the place of temporary residence and register themselves.
After long minutes (or perhaps hours?) spent at the office and completing the application form, you can go home.
- Within 7 days, a notice will be sent - you will receive a notice of registration in the Trade Register within seven days. Surprisingly, the notification is often ready within one working day. The office hours are Monday and Wednesday for Trade Office employees (even we would like to have such a work schedule). If you apply for trade licence on Monday, you will usually receive a confirmation on Wednesday.
- You can have the notification sent by mail - as a rule, you should receive the notification within 7 working days. Writing will be delivered by Czech Post, so the odds are…
The establishment of a trade license completed
A statement from the Trade Register puts you among the self-employed and you are all set to start your business. You will receive a letter from the CSSA (Czech Social Security Administration) in which you will find out what you will have to pay to the state and when. You can expect a similar letter from a health insurance company. You will receive a registration certificate from the Tax Office, including an address of the office where you're listed.
Worries don't stop here
Another obligation is to complete and file a tax return at the beginning of the new year and to communicate about the deposit paid by the self-employed.
Need an assistant?
Not only these annoying tasks can be fulfilled by Timi. Is your head spinning due to all the duties you have to fulfil described by the state? Or maybe you just don't want to spend more time with the office clerks than you do with your partner? Our virtual assistant has advised many clients not only about how to establish a trade license but also for example:
- how to change the registered office
- how to obtain a temporary residence permit, or
- how to create an Inc.
Assign a task to Timi, he is glad to do it.
Free extra 300 CZK for the first tasks. So what are you waiting for?