Registration of an individual entrepreneur license in the Czech Republic

How to register an individual entrepreneur in the Czech Republic: a step-by-step guide

The individual entrepreneur registration process ("Živnostenský list") is relatively simple. The main challenge is securing permission for a legal address, while other steps are simple formalities.

The main requirement for individual entrepreneur registration is current residency in the Czech Republic or the European Union. This requires either a long-term visa, a temporary or permanent Czech residence permit, or citizenship of the country or any other EU member state. Unfortunately, registration is NOT available to non-residents of the state or the non-residents of EU.

If you meet this requirement, you can proceed with the registration procedure described below.

Information and document preparation

Before registering an individual entrepreneur license, you must prepare the following documents and information:

• Permission for the legal address of the individual entrepreneur ("Souhlas s umístěním sídla"). Surprisingly, this is the most challenging document to obtain. This permission can be issued by any owner of residential or commercial real estate in the Czech Republic, or their authorized representative. Many organizations in the country provide such legal addresses on a paid basis, available in all major cities. This service is known as a "virtual office" ("virtuální sídlo"). You can find such providers in most cities, with prices for the address permission typically ranging from 70 to 250 EUR per year. The address providers will prepare and certify the permission document for you, specifying the licensee's name and the validity period of the address. Note that the entrepreneur will be linked to the corresponding territorial tax authorities based on this legal address location.
• Select specific business activities ("Obory živnosti", sometimes also called "Obory činnosti") in advance. The Czech Republic has an extensive list of unrestricted business activities ("volné živnosti") that any entrepreneur can conduct simply by applying, without requiring additional verification. You can typically adapt almost any business to fit within these categories. Review the list using the link above and select the numbers corresponding to the activities you plan to engage in. Please note that the Czech Republic also has so-called restricted licenses ("Vázaná živnost and řemeslná živnost"), which are more difficult to obtain and require verification. However, these apply to highly responsible sectors, such as residential construction or waste management. In the vast majority of cases, unrestricted business activities will be sufficient.
• Get a certificate of no criminal record from the Czech Republic. While the Trade Licensing Office has access to the criminal record database and conducts its own verification, we still recommend getting a certificate of no criminal record from the state criminal record register. You need to get the certificate specifically from the Czech Republic, as registration of an individual entrepreneur license is currently only available to residents of the Czech Republic and the EU. Additionally, this certificate also includes a check of the person's criminal record in other EU countries. Frankly speaking, there's currently no clear consensus on whether this certificate is mandatory. In any case, we recommend obtaining it to resolve any potential questions. It's not difficult to obtain one; we can also assist in getting the Czech criminal record certificate.
• Prepare 1000 CZK for the administrative fee payment.

Once you have everything prepared, you can move on to the next step.

Submit the application for individual entrepreneur registration

Once the documents and information are ready, you can visit the nearest Trade Licensing Office ("Živnostenský úřad") to submit your application for individual entrepreneur registration. You will easily find one by searching for "Živnostenský úřad" in your city. These offices are located in almost all municipal and district administrations (for example, in Prague, they're located in all district offices and marked as "Živnostenský odbor").

These offices generally accept applications on Mondays and Wednesdays. You can submit your individual entrepreneur registration application at ANY office, in any city or municipality in the Czech Republic where one operates, regardless of your personal registered address or the location specified in your legal address permission.

At this office, you submit your license registration application. You must provide documentation confirming your residency in the Czech Republic or another EU country (visa, residence permit, or passport). Staff usually help you with the application. You will need to present the permission for the legal address, the criminal record certificate, and indicate the business activities you have selected. The 1000 CZK administrative fee is also paid there.

Your application will then be processed. Current processing times vary depending on the specific office, but typically it takes one week from the application date. However, it can be faster if workload permits; in some situations, the approved individual entrepreneur license is issued immediately. In summary, you will receive your license either immediately or within one week.

Final step: verifying IČO/DIČ and Datová schránka

After your application is processed, you will be automatically assigned an entrepreneur identification number ("IČO") and a tax registration number ("DIČ"). Both are issued automatically, requiring no additional action from you.

You can check your individual entrepreneur registration in the Czech Trade Licensing Register on the official website rzp.gov.cz or using our Czech entrepreneur verification system (please note that our system may sometimes update with a delay). Your license can be found on both platforms by searching your name/surname (in Latin characters) or using the assigned identification number (IČO). Once it appears in the register, you are officially registered as an individual entrepreneur and you may start business activities.

If necessary, you may obtain a certified paper extract of your license from the Trade Licensing Office (either where you submitted your application or any other branch in the Czech Republic), from any notary public, or at a CzechPoint location. While this document is rarely required, it's still available.

After registration, you will be automatically assigned a Datová schránka (read more about Datová schránka), which is important for your future accounting activities, tax reporting, and all interactions with official authorities in the state.

It is also a good idea to find an accountant who will manage your financial records, formally enroll your business, and clarify all accounting procedures and tax details.

This step completes the individual entrepreneur registration process.