Do I Need a Trade Licence? Interactive Test (2026)
Find out whether your activity needs a trade licence, when occasional income up to 50,000 Kč is enough, and how to spot disguised employment (Švarc system).
What turns an activity into a business
The law does not distinguish by the amount of income, but by the nature of the activity. A trade is defined in § 2 of Act No. 455/1991 Coll., the Trade Licensing Act, by five criteria:
- regularity – you do it repeatedly, or plan to, not just once,
- independence – you decide the time, place and method yourself,
- in your own name – you act for yourself, not on behalf of an employer,
- at your own responsibility – you bear the risk of the outcome and any damage,
- for profit – the aim is earnings, not a free hobby (the intention is enough; actual profit is not required).
Similarly, § 420 of Act No. 89/2012 Coll., the Civil Code, defines an entrepreneur – with the additional element of acting “in the manner of a trade or a similar manner”, which itself suggests that one can do business outside the trade-licensing regime. If all five criteria apply at the same time, it is a business. Beware: not every business requires a trade licence – § 3 of the Trade Licensing Act excludes, for example, authors' creative work, agricultural production (registration as an agricultural entrepreneur is enough), renting out real estate without additional services, and the liberal professions. If even one criterion is missing – say, regularity in a one-off sale – you usually need no authorisation at all. A trade is notified in the Trade Register.
Test your situation in both tests below.
Are you already in business under the law? Check the five signs
Tick what applies to your activity. If all five points apply at the same time, it is a business – whether you need a trade licence specifically still depends on the type of activity.
An indicative assessment, not binding legal or tax advice. Verify your specific situation with the authority or an adviser.
Result
It is a business – you will need an authorisation
Your activity meets the criteria of a business (§ 420 of the Civil Code, § 2 of the Trade Licensing Act). For most activities this means notifying a trade licence – for an unrestricted trade you can even do this online in a few days. Exceptions under § 3 of the Trade Licensing Act: authors' creative work, agricultural production (registration as an agricultural entrepreneur is enough), renting out real estate without services, and the liberal professions do not need a trade licence.
How to set up a trade licence step by stepResult
You most likely don't need a trade licence yet
You do not meet all the criteria of a business at the same time. For an occasional side income, this is occasional activity (exempt from tax up to 50,000 Kč per year). Beware: if the point you left unticked is mainly "I act in my own name", you are in fact working as an employee and invoicing would be the Švarc system (disguised employment). Check the limits and the difference from an IČO for extra income.
Extra income without a trade licence and IČOBorderline cases: do you need a trade licence or not?
Five common situations where people are unsure. Answer to find out which way your situation leans – this is a rough guide, not legal advice.
Guidance only — not binding legal or tax advice. Double-check the figures in the calculator or with an adviser.
Your recommendation
You probably need a trade licence
Your answers point to a regular, independent activity with several clients or an expanded scope of services (e.g. Airbnb, work for several clients). These are already signs of a business – you should have an authorisation. Only for the regular sale of processed products from your own harvest (jams, syrups) may registration as an agricultural entrepreneur at the municipal office suffice instead of a trade licence.
How to set up a trade licenceYour recommendation
Borderline – it depends on the details
Your answers do not lead to a clear-cut conclusion – assess each situation separately. Invoicing a single client who directs your work is the Švarc system (illegal disguised employment): the solution is an employment contract, or several independent clients. Creating your own copyrighted works needs no trade licence (§ 3 of the Trade Licensing Act), while commissioned services (ordinary copywriting, photography to order) usually do.
Business without a trade licence – overviewYour recommendation
You probably don't need a trade licence
Your answers correspond to income that does not require a trade licence – rental income under § 9 ZDP, occasional sale of unprocessed surplus, author's fees for media contributions up to 10,000 Kč per month (taxed by the payer via withholding tax), or employment under DPP/DPČ. You do not need a trade authorisation yet.
Extra income without a trade licence and IČO