Today a lot of Ukrainians would like to launch their own business, especially abroad. Among countries of the European Union, the Czech Republic is one of the best choices. This article will outline the main requirements for opening a business in the Czech Republic.
There are several types of businesses there. The most typical are self-employed occupations, so you act as an individual on a freelance, and running a business as a juridical person.
To be a self-employed person in the Czech Republic you have to obtain permission to trade.
Trade licence
Nonnatives are required to have a trade license granted in conformity with the Trade Licensing Act.
Two categories of commerce are defined under this act:
- Trade that can be registered freely
It is a craft and professional trading, a trade that doesn’t require special skills. It can be practiced by notification if the essential requirements are satisfied.
It is not essential to verify the relevant professional degree to get a trade license.
- Trade for which a special license is needed
The permission of the relevant state body is required to do business based on a special trade license.
Requirements for entrepreneurs
- A person has reached the age of majority
- A person doesn’t have criminal records (certificate of good conduct)
- A person has an occupational qualification if it is necessary
The registration application
To register the trade or apply for a special trade license, a single registration application form is needed.
You must have
- verification of professional credentials depending on the type of trade (validation of education and experience).
- a document stating that the principal place of business has permission to use the space if the registered office’s address and the foreigner’s residence are dissimilar. For this, a documented declaration from the owner of the building, whether it be an apartment or a non-residential building, detailing the owner’s approval of the office’s placement, is enough.
- a certificate of good conduct or comparable document issued by the country of the foreigner’s citizenship, if the latter has no permanent resident status permit in the Czech Republic.
- confirmation of acquiring a long-term residency permit or a long-stay visa (more than 90 days).
A 1,000 Czech crown administrative charge is required for both the trade notice and special trade license applications.
The trade licensing authority must make a corresponding entry in the trade register and give an extract from this register to the businessman within 5 working days of receiving the trade notification if a foreigner satisfies all requirements for obtaining a trade license.
A foreigner must meet all requirements for trade based on a special trade license, there must be no barriers in the way of foreigners carrying out trade and a special trade license must have been approved by the appropriate state government (it usually takes about 30 working days to make a decision)
Permission to live
- a visa for stay with connected with temporary protection
The most recent information indicates that for the purposes of the Trade Licensing Act, a long-term temporary protection visa issued in compliance with new laws covering specific measures relating to the war in Ukraine is regarded as a residency permit. Any trade licensing body will accept a trade notification or application for a special trade license from foreign nationals who have this visa.
- a visa that allows for a stay of more than 90 days for working abroad
The visa is given for a period of one year and can be prolonged.
The application for such a long-term visa must be sent to the Czech Republic’s embassy in the nation of the foreigner’s citizenship, the nation that issued the travel document, or the nation where the foreigner maintains a long-term or permanent residence. Annually, only a certain quantity of applications can be accepted by each embassy.
A visa application requires an administrative charge of 1,000 Czech crowns.
The fully filled application must be presented with the original papers or their certified duplicates. Every document provided must be in Czech or have a certified translation into Czech (apart from the travel document).
The minimum amount of funds required for a stay in the Czech Republic is 50 amounts of the subsistence minimum, which must be confirmed by an extract from the bank or another official source.
It is also necessary to have a travel document, a document confirming the purpose of the stay (a document about making an entry in the appropriate register, for example, a trade or commercial register) and a photo (on request).
Moreover, in some cases, the foreigner ought to provide a certificate of compliance with the requirements set forth by policies intended to stop the transmission of infections and a certificate of good conduct.
- long-term permission for living with the intent to do business
A long-term residency visa for business purposes is given for a period of two years and may be prolonged several times.
A long-term residency permit for commercial purposes requires an administrative fee of 2,500 Czech crowns to be submitted.
The application form must also include a document confirming a certain total monthly income of the foreigner, a document on making an entry in the relevant register, a certificate of travel medical insurance for the duration of the stay and payment of the associated expenses, confirmation of the absence of debt, confirmation of the absence of debt in the legal entity if the foreigner is a member of the entity, a travel document, and a photo (on request).
Also, it can be required to have a certificate of good conduct and an income tax assessment document.
Although there is a 60-day consideration period for applications, the actual application process typically takes twice that long.
Please contact us to get more information.
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