What Is a Czech Trade License (Živnostenský list)?

A Czech trade license (živnostenské oprávnění) is the legal authorization that allows a person or company to carry out activities classified as trades under Czech law. For individuals, it is the standard legal framework used by many freelancers and other self-employed people doing business in the Czech Republic.

The expression živnostenský list is still commonly used to describe a Czech trade license, although the current legal term is živnostenské oprávnění, meaning trade authorization.

What is considered a trade in the Czech Republic?

The Czech Trade Licensing Act defines a trade as a systematic activity carried out independently, in one’s own name, on one’s own responsibility and for the purpose of earning a profit, under the conditions established by the Act.

This means that a Czech trade license is intended for independent business activity, rather than employment performed for an employer.

However, not every type of self-employment is legally classified as a trade. Some professions and activities are regulated by separate legislation and therefore fall outside the Trade Licensing Act.

What does a Czech trade license allow you to do?

A Czech trade license allows you to independently perform the business activities covered by your trade authorization.

Depending on the activity, this can include areas such as IT services, consulting, marketing, design, photography, teaching, retail, crafts and many other forms of business.

The activities you are legally allowed to perform depend on the scope of your trade authorization.

Is a trade license the same as being an OSVČ?

Not exactly.

Trade authorization (živnostenské oprávnění) is the legal authorization to perform activities governed by the Trade Licensing Act.

OSVČ (osoba samostatně výdělečně činná) means a self-employed person.

A freelancer carrying out activities governed by the Trade Licensing Act will commonly operate as an OSVČ with the appropriate trade authorization.

However, OSVČ is a broader concept. Some self-employed professions operate under separate legislation and do not require an ordinary trade authorization.

Is a Czech trade license only for Czech citizens?

No.

Foreign nationals can also obtain Czech trade authorization when they meet the applicable conditions.

The requirements can differ depending on citizenship, residence status and the type of business activity. Different rules may therefore apply to Czech citizens, EU/EEA/Swiss citizens and nationals of other countries.

Are there different types of Czech trade licenses?

Yes.

Czech trades are divided into different categories according to the type of activity and the requirements that must be satisfied.

A free trade generally does not require proof of a specific professional qualification. Craft, regulated and concession trades are subject to additional requirements.

The correct type depends on the business activity you intend to perform.

Do you receive a physical “živnostenský list”?

The expression živnostenský list is still widely used, but it comes from the older Czech trade-licensing system.

Today, the important legal concept is živnostenské oprávnění — trade authorization. Information about an entrepreneur and their trade authorizations is recorded in the Czech Trade Register (živnostenský rejstřík).

This is why someone may still informally say they are “getting a živnostenský list,” even though the current legal terminology is different.

What is the difference between a trade license and an IČO?

They are not the same thing.

An IČO (identifikační číslo osoby) is the identification number used to identify an entrepreneur or other registered entity.

A trade authorization gives you the legal right to perform the relevant trade.

Does a trade license mean you have created a company?

No.

An individual operating under a Czech trade license normally conducts business personally as a self-employed person. This is different from establishing a separate company such as an s.r.o.

An s.r.o. is a separate legal entity. An individual OSVČ is not.

A company may itself also require appropriate trade authorization for activities governed by the Trade Licensing Act.

What happens after you get a Czech trade license?

Obtaining trade authorization is only one part of operating as a self-employed person.

Depending on your circumstances, starting self-employment can also create separate obligations involving:

• income tax,

• social insurance,

• health insurance,

• VAT or identified-person VAT rules,

• invoicing,

• communication with Czech authorities.

These obligations are legally distinct from the trade authorization itself.

Can you have a Czech trade license while employed?

Yes.

A person can be employed and conduct separate self-employed business activities at the same time.

For social insurance purposes, self-employment may be treated as a main or secondary activity depending on the person’s circumstances. This can affect the resulting contribution obligations

Does a Czech trade license expire?

The duration of trade authorization depends on the circumstances under which it was established.

For many entrepreneurs, the authorization can continue without a predetermined end date. In some cases involving foreign nationals, however, the duration can be connected to the conditions under which the authorization was granted.

A trade can also later be suspended or cancelled.

What does having a Czech trade license mean in practice?

For a freelancer, obtaining the appropriate trade authorization means that you can legally conduct the registered trade activities as your own business.

In practice, you operate in your own name, issue invoices for your business activities and are responsible for the tax and administrative obligations arising from your self-employment.

Pexpats’ experience with foreign entrepreneurs also shows an important distinction: trade-license registration and immigration procedures should not automatically be treated as the same process.

Depending on the person’s citizenship and residence status, they may be separate procedures.

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