Starting a business in a new country can feel complicated. In the Czech Republic, the most common way for expats to become self-employed is through a živnost – a trade license. It allows you to work as a freelancer, consultant, or small business owner without setting up a company.

What is a Trade License (Živnost)?

A trade license is the official permit that allows you to run a business activity in the Czech Republic. It is required for almost all types of services and freelance work.

There are two main categories:

• Notifiable trades (ohlašovací živnosti) – the most common option.
• Concession trades (koncesované živnosti) – reserved for more sensitive business areas.

Notifiable Trades

1. Free trades (volné živnosti)

• No professional qualification is required.
• Popular among freelancers, consultants, translators, IT specialists, designers, marketing experts, or people selling goods and services.
• For many expats, this is the easiest way to start working independently.

2. Craft trades (řemeslné živnosti)

• Based on a specific skill or craft.
• You usually need to prove vocational training, experience, or a certificate.
• Examples: carpentry, plumbing, hairdressing, bakery, car mechanics.
• If your qualification was obtained abroad, it often has to be recognized in the Czech Republic.

3. Regulated trades (vázané živnosti)

• For activities where the state requires special authorization or knowledge.
• Examples: accounting services, driving schools, real estate agents, or running a travel agency.
• These trades often involve submitting additional documents or approvals.

👉 You can find the official list of all types of trades on the Czech Trade Licensing Register (RŽP)

Concession Trades

• Concessions apply to activities with higher legal or safety risks. They require explicit approval from authorities before you can start.
• Here the state may require you to prove that you have specific facilities, equipment, or agreements in place (e.g. a cooling facility for funeral services, vehicles that meet safety standards for passenger transport, or certified storage for hazardous materials).
• Examples include: passenger transport, private security services, production of alcohol or weapons.
• The process is more demanding and can take longer.

Conditions for Expats

Foreigners can apply for a trade license, but the requirements depend on their nationality and residence status:

• EU citizens can usually register under the same conditions as Czech nationals.
• Non-EU citizens must have a visa or residence permit that allows self-employment.

In addition to this, all applicants need to prove a clean criminal record and a legal address in the Czech Republic.

Why It Can Be Challenging

The system is not always straightforward:

• Forms and documents are in Czech.
• Some professions require recognition of foreign qualifications.
• Different types of trades mean different rules.
• Offices may require official translations or additional confirmations.

For many expats, this process can be time-consuming and confusing – especially if they don’t speak Czech or don’t know exactly which type of license they need.

Expat-Friendly Solution

Instead of navigating Czech bureaucracy on your own, you can rely on a local partner. At ExpatHub, we help foreigners:

• Choose the right type of trade license for their activity.
• Handle all communication with authorities.
• Prepare and submit the required documents.
• Make sure their residence status matches their business plans.

This way, you can focus on growing your business while we take care of the paperwork.

Conclusion

A Czech trade license (živnost) is a great way for expats to work independently, but the rules can be complex. Whether you’re planning to freelance, open a small business, or compare options with setting up a company, the safest approach is to get professional guidance.

👉 Thinking about starting a business in Czechia? Contact ExpatHub and let us handle the process for you.