Annexes 1 to 4 of the Trade Licensing Act: an overview of trades

The annexes of the Trade Licensing Act determine which conditions you must meet for a specific business. It is precisely they that decide whether it is enough to notify the trade, or whether you need education, work experience or even a concession. In this article we explain Annexes 1 to 4 of Act No. 455/1991 Coll. and what follows from them in practice.

What the act says

The act first, in Section 9, divides trades into notifiable trades (which can be carried out "on the basis of notification") and licensed (concession) trades (carried out "on the basis of a concession"). Section 19 then further divides notifiable trades into craft, regulated and the unqualified trade.

The specific content of each group is set out in the annexes:

• Annex No. 1 – craft trades. Under Section 20, "craft trades are the trades listed in Annex No. 1". You prove professional qualification under Sections 21 and 22 (apprenticeship certificate, school-leaving examination, higher vocational or university education in the field, professional qualification, or possibly work experience in a related field or six years of work experience). The annex is divided into parts A, B and C.
• Annex No. 2 – regulated trades. Under Section 23, these are the trades listed in this annex. Under Section 24, "the professional qualification for regulated trades is laid down by Annex No. 2 … or is governed by the special legal regulations referred to in this annex". For each trade you will therefore find the required education, certificate or authorisation set out directly.
• Annex No. 3 – licensed (concession) trades. Under Section 26, "licensed (concession) trades are the trades listed in Annex No. 3". In addition to professional qualification (Section 27), the Trade Licensing Office may also lay down conditions for carrying out the trade, and for a number of activities an opinion of the relevant state authority is required.
• Annex No. 4 – the unqualified (free) trade. Under Section 25(1), the unqualified trade is "a trade authorising the performance of activities for the carrying out 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 subject of business reads "Manufacturing, trade and services not listed in Annexes 1 to 3 of the Trade Licensing Act" and the annex lists 82 fields of activity.

Commentary and explanation

The logic is simple: the higher the risk to customers and the surroundings, the stricter the regime. The unqualified (free) trade (Annex 4) is the most accessible – you do not need any education or work experience, only a clean criminal record, legal capacity and no debts towards the state. Craft and regulated trades already require professional qualification; they differ mainly in where that qualification is described. For craft trades the general rules of Sections 21 and 22 apply, while for regulated trades the requirement is individual for each trade (often a reference to a special act).

The strictest is the concession (licence) (Annex 3). Notification is not enough – the trade licence arises only when the decision granting the concession becomes final (Section 10). The state thereby retains the option to assess the specific entrepreneur and the conditions in advance.

What to watch out for: the classification of an activity into an annex is not up to your choice. If an activity is not in Annexes 1 to 3, it automatically falls under the unqualified (free) trade. And conversely – an activity that actually belongs among craft, regulated or licensed (concession) trades cannot be hidden under "trade and services" in Annex 4.

Practical implications and examples

• A hairdresser wants to start cutting hair: barbering and hairdressing is in Annex 1 (a craft trade), so she needs an apprenticeship certificate in the field, or work experience under Section 22.
• An accountant or a clothing e-shop: these activities are not in Annexes 1–3, and therefore fall under the unqualified (free) trade (Annex 4) – it is enough to notify the trade and pay the administrative fee.
• A real estate agent or a driving school operator: these are regulated trades (Annex 2), where you must document specific education or professional qualification set out directly in the annex.
• A taxi service or operating a travel agency: these belong among the licensed (concession) trades (Annex 3) – you may not do business without a concession that has been granted with final effect.

It is practical that for the unqualified (free) trade you can readily notify all 82 fields at once; the administrative fee for notifying a trade is paid once regardless of the number of fields chosen. You can then extend the scope of your trade licence at any time by notifying a further field.

Related topics

We discuss the individual types of trades and the conditions for obtaining them in more detail in the follow-up articles on craft, regulated, licensed (concession) and the unqualified trade. You will find the specific classification of your activity and the list of fields in our trade catalogue. If you are just starting out, also go through our practical guide on how to set up a trade, where we describe the notification, the documents proving professional qualification and the administrative fees step by step.