Types of trades under the Trade Licensing Act

The Trade Licensing Act (Act No. 455/1991 Coll., on Trade Licensing) distinguishes between several types of trades, and which category your activity falls into determines what conditions you must meet and whether it is enough to notify the trade or whether you need to apply for a concession. In this article we will guide you through the division under Sections 9 and 19 to 27 and show how it relates to Annexes 1 to 4.

What the Act says

The basic division is set out in Section 9 ("Division of Trades"). According to it, trades are either notifiable, "which, once the prescribed conditions are met, may be carried on on the basis of a notification", or licensed, "which may be carried on on the basis of a concession". This is the most important distinction – it determines how your trade licence arises.

The second level of division is introduced by Section 19, which opens Part Two of the Act, titled "Types of Trades". According to it, notifiable trades are:

• a) craft trades, where the condition for carrying them on is professional qualification under Sections 21 and 22,
• b) regulated trades, where the condition is the professional qualification listed in Annex 2,
• c) the unqualified (free) trade, for which "professional qualification is not laid down as a condition for carrying on the trade".

The individual types are then elaborated by further sections, always with a reference to a specific annex:

• Craft trades (Section 20) are "the trades listed in Annex 1". Professional qualification is governed by Section 21 (apprenticeship certificate, school-leaving examination, higher vocational or university education in the field, recognition of a qualification, or obtaining a professional qualification), and Section 22 allows alternative means – for example, a related field of education with one year of practice, retraining with one year of practice, or "completing six years of practice in the field".
• Regulated trades (Section 23) are "the trades listed in Annex 2". Under Section 24, their professional qualification is laid down directly in Annex 2, or by the special legal regulations listed therein.
• The unqualified (free) trade (Section 25) is "a trade authorising the performance of activities for the carrying on of which this Act does not require proof of professional or other qualification"; it is enough to meet the general conditions under Section 6(1). The unqualified (free) trade and its fields of activity are listed in Annex 4.
• Licensed trades (Section 26) are "the trades listed in Annex 3". Under Section 27, professional qualification is laid down by Annex 3 or by special regulations, and in addition the Trade Licensing Office may set or change the conditions for carrying on the trade for the entrepreneur.

Interpretation and explanation

In practice, then, you have four categories: three types of notifiable trades (unqualified, craft, regulated) plus licensed trades. The logic of the division is graduated according to the degree of risk and professional expertise.

The unqualified (free) trade is the simplest – you do not have to document any education or practice; it is enough to have a clean criminal record and meet the general conditions (age 18, legal capacity, integrity under Section 6). It is a single trade licence with one object of business, "Production, trade and services not listed in Annexes 1 to 3", which encompasses 80 fields of activity under Annex 4. You select from them those you wish to carry on, and you can expand them at any time free of charge.

For craft and regulated trades, you must already prove professional qualification. The difference lies in how it is proven: for craft trades uniformly under Sections 21 and 22 (typically an apprenticeship certificate in the field, but practice is also possible), whereas for regulated trades the requirement is defined individually for each trade directly in Annex 2 (often by reference to a special act, e.g. for design activities or accounting consultancy).

The licensed (concession) trade is the strictest. It is not enough to notify it – the state decides whether to grant you the concession. Many concessions also require the consent or opinion of the relevant state administration authority, and the office may set conditions for carrying on the trade. This includes activities sensitive to the public interest (e.g. taxi services, protection of property and persons, operating a travel agency, or handling hazardous waste).

Watch out for the practical consequence of how the trade licence arises: for notifiable trades the trade licence usually arises on the day of notification, whereas for licensed trades only on the day the decision to grant the concession becomes final (Section 10). This means that with a concession you must allow for a delay due to the proceedings.

Practical implications and examples

• A café or a clothing e-shop – falls under the unqualified (free) trade. You do not document any education; you simply notify the trade and choose the relevant fields (e.g. "Wholesale and retail" or "Provision of personal hygiene and business services"). You can start practically immediately.
• Hairdressing, masonry, plumbing, hospitality services – these are craft trades from Annex 1. You need an apprenticeship certificate in the field under Section 21, or you use a substitute from Section 22 – for example, six years of practice in the field if you do not have an apprenticeship certificate.
• Accounting consultancy, design activities in construction, operating a driving school – these are regulated trades (Annex 2). Here always verify the specific requirement for the given trade, because each has its own qualification condition (often university education or a professional examination).
• Taxi services, licensed production and processing of spirits, road motor transport – these are licensed (Annex 3). You submit an application for a concession, wait for the decision, and often also need a favourable opinion from the authority concerned.

When you want to do business in several areas, the types of trades can be combined – for example, carrying on the unqualified (free) trade (an e-shop) and a craft trade (joinery) at the same time. However, each type has its own notification or concession regime and its own fees.

Related topics

If you are just starting out, go through our guide on how to set up a trade, where we describe the whole procedure from choosing fields of activity, through notification at the Trade Licensing Office, to registration for tax and insurance. You will find specific activities and their classification into craft, regulated, unqualified (free) or licensed trades in our catalogue of trades.

The topic of types of trades connects to further areas: the general and special conditions for carrying on a trade (Sections 6 and 7), the responsible representative for trades where you do not yourself meet the professional qualification (Section 11), and the scope of the trade licence. We always recommend verifying the current wording directly in Act No. 455/1991 Coll., because the annexes with specific trades are amended over time.