Provision of software, IT consultancy, data processing, hosting and web portals

An unqualified (free) trade (field no. 56) covering software development and provision, IT consultancy, data processing, hosting services and the operation of web portals. No professional qualification is required - it is enough to meet the general conditions under Section 6 of the Trade Licensing Act, and the licence arises on the very day of notification.

Examples of activities

• bespoke programming and software development (web, mobile and desktop applications)
• advice and consultancy in the field of information technology
• creation, administration and maintenance of websites and e-shops
• provision of web hosting, server hosting and cloud storage
• administration of servers, networks and IT infrastructure (administration, monitoring, maintenance)
• data processing, data analysis and database operation
• operation of web portals, search engines and internet directories
• sale of software and software licences (SaaS, boxed and licensed software)

What the trade is and what it is for

The trade "Provision of software, advice in the field of information technology, data processing, hosting and related activities, and web portals" is field no. 56 within the single unqualified (free) trade (Annex 4 to Act No. 455/1991 Coll., the Trade Licensing Act). It is one of the most frequently notified fields of all - it covers practically the entire spectrum of activities in IT.

This field encompasses the development and supply of software, professional advice in the field of information technology, the processing and management of data, the operation of hosting services and the operation of web portals. It is a field for programmers, developers, IT consultants, web creators, server administrators and operators of internet services. If you do business in IT and do not carry out an activity falling under another regime, this is precisely the field you notify.

What falls under this trade (and what does not)

Field no. 56 includes in particular:

• programming, development and provision of software and software licences (including the SaaS model),
• advice and consultancy in the field of information technology,
• creation, administration and maintenance of websites, e-shops and web applications,
• web hosting, server hosting, cloud services and data storage,
• administration and maintenance of servers, networks and IT infrastructure,
• data processing, data analysis and database operation,
• operation of web portals, search engines and internet directories.

What, on the other hand, does not belong here (the boundary against neighbouring fields and trades):

• The sale of computer equipment and hardware (computers, components) is a commercial activity - field no. 48 "Wholesale and retail".
• Graphic design and visual design (web design as the creation of graphics) falls rather under field no. 67 "Design, styling and modelling activities", or possibly field no. 62 "Preparation and drafting of technical proposals, graphic and drawing work".
• Advertising and online marketing belong under field no. 66 "Advertising activities, marketing, media representation".
• Operating a telecommunications network or providing an electronic communications service (e.g. internet connection as a provider) is governed by the Electronic Communications Act and requires notification to the Czech Telecommunication Office - this is not the substance of this trade field.

If you carry out several of these activities at once, you may notify several fields of the unqualified trade in a single notification for one fee.

Conditions for obtaining the trade under the law

Because this is an unqualified (free) trade, professional qualification is not evidenced. You need no education in IT, no certification and no experience. It is enough to meet only the general conditions for operating a trade under Section 6 of the Trade Licensing Act:

• full legal capacity (as a rule from the age of 18; exceptionally one may do business from the age of 16 with the court's consent),
• a clean criminal record (for Czech citizens the office obtains the extract from the Criminal Records Register itself).

That is all. No chambers, examinations or recognition of qualifications are dealt with here.

If you do not personally meet one of the general conditions (or the trade is notified by a legal entity), you may appoint a responsible representative under Section 11 of the Trade Licensing Act - a natural person who is responsible for the proper operation of the trade. One person may be a responsible representative for at most 4 entrepreneurs.

How to notify or obtain the trade step by step

1. Fill in the Unified Registration Form (URF). In it you select the unqualified trade and tick field no. 56 (and possibly other fields you wish to operate).
2. Submit the notification. There are three options: in person at any municipal Trade Licensing Office (the office of a municipality with extended powers) anywhere in the Czech Republic, electronically via the rzp.gov.cz portal (by data box or with the Citizen's Identity), or at a Czech POINT contact point.
3. Provide the necessary details - identity, and where applicable a document on the responsible representative and consent to the location of the registered office, if it is not at your address.
4. Pay the fee. For the first notification of a trade it is CZK 1,000, and CZK 800 for electronic submission. Notifying several fields at once is for a single fee.
5. Wait for the entry. The office enters you in the Trade Register and issues the extract within 5 working days (Section 47). The licence, however, arises already on the day of notification (Section 10), so you may do business before the extract arrives.

You will find a detailed universal procedure in the guide How to set up a trade.

Documents and fees

• Type: unqualified (free) trade, field no. 56 - expertise is not evidenced.
• General conditions: legal capacity and a clean criminal record (Section 6).
• Form: Unified Registration Form (URF).
• Where to submit: Trade Licensing Office, rzp.gov.cz, Czech POINT.
• Fee: CZK 1,000 for notification, CZK 800 electronically; extension by a further field of the unqualified trade CZK 0.
• Time limit: entry and extract within 5 working days (Section 47); the licence arises on the day of notification (Section 10).

Frequently asked questions

Do I need education or certification for an IT trade?

No. This is an unqualified (free) trade, and with it professional qualification is not proven. It is enough to meet the general conditions under Section 6 (legal capacity and a clean criminal record). The office requires no diploma, apprenticeship certificate or IT certificate.

Is this one field enough for both programming and web hosting at the same time?

Yes. Field no. 56 covers the provision of software, IT consultancy, data processing, hosting services and web portals. You may therefore carry out all of these activities under a single field.

May I do business immediately after submitting the notification?

Yes. For notifiable trades the trade licence arises on the day of notification (Section 10), not only upon issue of the extract. You may therefore start invoicing before the extract physically reaches you (the office issues it within 5 working days).

Do I need a trade if I only want to sell software as SaaS?

Yes, for a continuous gainful activity you need a trade licence. The provision of software including the SaaS model falls directly under field no. 56. The software licence itself is not evidenced here.

Does this field also cover the provision of internet connectivity?

No. Operating an electronic communications network or providing internet connectivity as a provider is governed by the Electronic Communications Act and requires notification to the Czech Telecommunication Office. If you are not sure how to classify your activity, verify it with the Trade Licensing Office.

Sources

• Act No. 455/1991 Coll., on trade licensing (the Trade Licensing Act)
• Ministry of Industry and Trade