A practical guide to trade licences, self-employment and business in Czechia

Running a trade

Suspending vs. cancelling a trade licence: what to choose

Facing a break in your business and unsure whether to suspend your trade licence or to cancel it outright? Put simply: suspension is temporary and reversible — the licence stays with you and you can return at any time. Cancellation is final — the licence ceases to exist and, to do business again, you must re-register the trade and pay a fee. Both actions are free at the trade licensing office (živnostenský úřad); the difference lies mainly in what happens next.

both actions 0 Kč ČSSZ by the 8th day of the following month health insurer within 8 days tax office within 15 days

Which suits you better?

I want to suspend

temporary · 0 Kč · reversible

You plan to return to business (parental leave, illness, seasonal work, a trial job). The licence stays with you and the law does not limit the length of the suspension. Just keep an eye on your health insurance.

How to suspend a trade

I want to cancel

final · 0 Kč

You are ending your business for good. The licence ceases to exist and, for a fresh start, you would register the trade again (the first trade costs 1,000 Kč). Afterwards you deal with OSSZ (district social security office), the health insurer, the tax office and the overview reports.

How to cancel a trade

Suspension vs. cancellation: the main differences

Before you decide, go through how the two actions differ. If you are hesitating, it is usually safer to suspend — you can then resume at any time without a new fee, simply by notifying the office.

  • Suspension — a temporary halt for a fixed period. The licence remains valid and you can return at any time. The law does not limit the length of the suspension (it can be for a month or for many years).
  • Cancellation — final termination of the licence. To do business again, you must re-register the trade and pay a fee (1,000 Kč for the first trade, Act No. 634/2004 Coll. — verified 2026).
  • Common to both — the action at the trade licensing office is free, you notify it using the change sheet / JRF (Single Registration Form) and it takes effect on the day it is delivered to the office (or on a later date that you state). It cannot be done retroactively.
  • Insurance and taxes — with both you then deal with OSSZ, the health insurer and the tax office. With suspension, additionally watch out for health insurance (see below).

How to do it step by step

  1. Fill in the change sheet (JRF) For suspension, the action is for a fixed period — state until when you are suspending the trade. For cancellation, you submit a notice of termination of the trade. Both are free.
  2. Submit it to the trade licensing office In person at any municipal trade licensing office, by data box (datová schránka) or online via rzp.gov.cz. → detail
  3. The action takes effect on the day it is delivered to the office Both the suspension and the termination take effect on the day the notice is delivered, or on a later date that you state in the notice. Neither suspension nor cancellation can be done retroactively (§ 31 paras 11–13 of the Trade Licensing Act).
  4. The office records the change in the register Usually within 5 working days of delivery.
  5. Report it to the relevant authorities OSSZ, the health insurer and the tax office — each has its own deadline (see the table below). In the JRF you can let the office inform all three for you.
  6. For suspension: if you want to resume earlier If you want to return earlier than you stated in the notice, you must notify the office in advance. You can resume the business no earlier than the day this notice is delivered (or a later date that you state).

Where and by when to report it (and how much it costs)

Where / whatDeadlineFee
Trade licensing office — suspension or cancellation (change sheet / JRF)any time; effective on the day of delivery0 Kč
OSSZ — notice of suspension / termination of activityby the 8th day of the calendar month following the month of the change0 Kč
Health insurer — notice of suspension / terminationwithin 8 days0 Kč
Tax office — notice of change of registration detailswithin 15 days0 Kč
New trade notification (only if you cancelled the trade and want to do business again)at any time later1,000 Kč (first trade)

The suspension and the cancellation themselves at the trade licensing office are free (Act No. 634/2004 Coll.). The OSSZ notification deadline derives from § 48 of Act No. 582/1991 Coll.; failure to fulfil the notification duty towards OSSZ carries a fine of up to 10,000 Kč. In the JRF you can have the trade licensing office inform the tax office, ČSSZ (Czech Social Security Administration) and the health insurer all at once. Verified 2026.

After suspension, watch out for health insurance

After suspending your trade, no one automatically pays your health insurance for you. If you are also neither employed nor in a category for which the state pays the premium (pensioners, students up to 26 years of age, parental leave, registration at the labour office), you become a person without taxable income (OBZP) and must pay a fixed premium of 3,024 Kč per month (2026, 13.5% of the minimum wage, verified 2026) — due by the 8th day of the following month. Social insurance advance payments, on the other hand, cease from the month following the suspension. Verify the current amount with your health insurer.

Handle it in a single submission

In the Single Registration Form (JRF / change sheet) you can tick a box so that the trade licensing office informs the tax office, ČSSZ and the health insurer for you all at once. After the year ends, though, do not forget to file your tax return and the overview reports for OSSZ and the health insurer (within 1 month of the tax return deadline) — you must keep track of any insurance underpayments and overpayments yourself.

Frequently asked questions

How long can I suspend my trade for?
The law does not limit the length of the suspension — you can suspend for a month or for many years. The suspension, however, is notified for a fixed period, so in the notice you state until when you are suspending the trade. The only exception is a licence issued for a fixed period, which cannot be suspended for longer than it itself lasts.
How do I resume the trade after a suspension?
If you want to return exactly on the day you stated in the notice, you do not need to do anything. If you want to resume earlier, you must notify the trade licensing office in advance (using the change sheet / JRF) — you can resume the business no earlier than the day this notice is delivered, or on a later date that you state. Resumption is free. So you do not have to set up a new trade; the licence remains with you the whole time.
What do I have to pay when my trade is suspended?
Social insurance advance payments cease from the month following the suspension. With health insurance, however, no one automatically pays for you — if you are neither employed nor insured by the state, you become a person without taxable income and pay a fixed premium of 3,024 Kč per month (2026). If you are employed or the state pays the premium for you, you pay nothing extra during the suspension.
Is it better to suspend or to cancel a trade?
If there is a chance you will return to business, it is usually more advantageous to suspend — the licence stays with you and resumption is free, just by notifying the office. Cancellation makes sense when you are ending for good and do not want to deal with insurance during a suspension. Note: after cancellation you must, for new business, re-register the trade and pay a fee of 1,000 Kč for the first trade.
Does suspending or cancelling a trade cost anything?
No, both actions are free at the trade licensing office (administrative fee 0 Kč, Act No. 634/2004 Coll.). Resuming a suspended trade is likewise free. You only pay for a new trade notification if you cancelled it and want to do business again (1,000 Kč for the first trade).
Can I suspend or cancel a trade retroactively?
No. Both the suspension and the termination of the licence take effect on the day the notice is delivered to the trade licensing office, or on a later date that you state in the notice. Backdating to an earlier day is not possible (§ 31 paras 11–13 of the Trade Licensing Act). That is why you should not postpone the action.

Related articles

Where to submit a suspension or cancellation in person

A suspension and a cancellation are accepted by any municipal trade licensing office in the Czech Republic — you are not tied to your place of residence. Find the nearest one.

Directory of trade licensing offices