Manufacture and distribution of sound and audiovisual recordings

An unqualified (free) trade (field no. 15) covering the manufacture, reproduction, distribution, sale and rental of sound and audiovisual recordings as well as the manufacture of unrecorded media. It requires no professional qualification - it is enough to meet the general conditions under Section 6 of the Trade Licensing Act. The licence comes into existence on the day of notification.

Examples of activities

• Pressing and manufacture of CD, DVD and Blu-ray media
• Manufacture of gramophone records (vinyls)
• Reproduction (copying) of music and film recordings
• Distribution and wholesale of sound and audiovisual media
• Retail sale of music and film recordings (bricks-and-mortar shop and e-shop)
• Rental and lending of films and music recordings
• Manufacture of unrecorded (blank) data and recording media
• Operation of online distribution of music and video on media

What the trade is and what it is for

The trade "Manufacture, reproduction, distribution, sale, rental of sound and audiovisual recordings and manufacture of unrecorded data and recording media" is field no. 15 of the unqualified (free) trade (Annex 4 to Act No. 455/1991 Coll., the Trade Licensing Act). By law there is only one unqualified trade - it is called "Manufacture, trade and services not listed in Annexes 1 to 3 to the Trade Licensing Act" - and it is divided into fields of activity. This field covers the entire chain of work with sound and visual recordings: from their physical manufacture and reproduction, through distribution, sale and rental, to the manufacture of blank (unrecorded) media onto which data is yet to be recorded.

It suits you if you press CDs, DVDs or vinyls, copy recordings for a publisher, sell music and films in a shop or e-shop, lend films or manufacture blank data media. Because this is an unqualified trade, you do not have to document any education or experience - it is enough to meet the general conditions under Section 6.

What falls under this trade (and what does not)

Field no. 15 covers in particular:

• manufacture and pressing of sound and audiovisual media (CD, DVD, Blu-ray, gramophone records, cassettes),
• reproduction (copying, multiplication) of existing recordings,
• distribution, wholesale and retail of these media, including sale via e-shop,
• rental and lending of music recordings and films,
• manufacture of unrecorded media for data and recordings (blank media).

What does not belong here and where the boundary with neighbouring trades lies:

• Publishing activities, polygraphic production, bookbinding and copying work fall under field no. 14 of the unqualified trade, not under field 15.
• Manufacture of musical instruments is a craft trade (Annex 1).
• One's own artistic or authorial creation (composition, acting or musical performance) is not a trade under Section 3(1) of the Trade Licensing Act.
• Copyright and related rights (licences, royalties) are not governed by the Trade Licensing Act but by Copyright Act No. 121/2000 Coll.; when manufacturing and reproducing recordings you must have the rights settled, and where applicable deal with collective managers (OSA, Intergram). The trade licence does not relieve you of obligations towards copyright.

Tip: The sale and distribution of recordings fall directly under field no. 15 (they are part of its name). If you want to sell other goods unrelated to recordings, additionally register the general field no. 48 (Wholesale and retail). You can register both fields at once when setting up, at no extra charge.

Conditions for obtaining it under the law

As with every unqualified trade, it is enough to meet only the general conditions under Section 6 of the Trade Licensing Act:

• full legal capacity (Section 6(1)(a)) - usually from the age of 18; it may be replaced by a court's approval of the legal representative's consent for a minor to carry out business activity independently,
• a clean criminal record (Section 6(1)(b)) - for Czech citizens the office obtains the extract from the Criminal Records Register itself (Section 6(3)).

Professional qualification is not documented. For an unqualified trade no education, apprenticeship certificate or experience is proven (the special conditions under Section 7 do not apply here). This is the main advantage compared with craft, regulated or licensed trades.

A responsible representative under Section 11 is not mandatory. You may appoint one voluntarily (for example when you operate the trade but it is physically run by someone else), but the Act does not require it. One person may hold the office of responsible representative for no more than 4 entrepreneurs.

The licence comes into existence already on the day of notification (Section 10(1)(a) of the Trade Licensing Act) - you do not have to wait for delivery of the extract.

How to notify or obtain the trade step by step

1. Fill in the Unified Registration Form (JRF). As the subject of business you choose the unqualified trade and within it field no. 15 (you may add other fields at once).
2. Submit the notification. You have three options: in person at any municipal Trade Licensing Office (the office of a municipality with extended powers), electronically via the rzp.gov.cz portal (logging in with Citizen Identity or a data box), or at a Czech POINT contact point.
3. Provide the documents and pay the fee. A Czech citizen submits proof of identity and proof of payment; a registered office other than the place of residence requires proof of the legal grounds for using the premises.
4. Wait for the entry. The Trade Licensing Office enters you in the Trade Register and issues the extract within 5 working days of delivery of a flawless notification (Section 47(1)) and assigns a company ID number (ICO).

A detailed procedure can be found in the guide How to start a trade step by step.

Documents and fees

• JRF (Unified Registration Form) - for a natural person.
• Proof of identity (identity card).
• Proof of the legal grounds for using the premises - only if the registered office is not identical with the place of residence.
• Proof of payment of the administrative fee.
• No documents of qualification - these are not submitted for an unqualified trade.
• Fee for notification: CZK 1,000 (CZK 800 for an electronic filing).
• Extension by a further field of the unqualified trade later: CZK 0 (free).
• Entry and extract: within 5 working days (Section 47(1)).

Frequently asked questions

Do I need any education or experience for this trade?

No. This is an unqualified trade for which professional qualification is not documented. It is enough to meet the general conditions under Section 6 - full legal capacity and a clean criminal record.

Can I add the sale of other goods to field no. 15?

Yes. When notifying you can register several fields of the unqualified trade at once (for example no. 48 Wholesale and retail) for one administrative fee. A later extension by a further field is free.

Does the trade licence also settle copyright in the recordings?

No. The trade entitles you to business activity, but the settlement of copyright and related rights is governed by Copyright Act No. 121/2000 Coll. When manufacturing and reproducing recordings you must have the rights dealt with, where applicable through collective managers.

How long does it take and when can I start trading?

The office enters you within 5 working days of delivery of the notification (Section 47(1)). However, you can trade already on the day of notification - the licence comes into existence under Section 10(1)(a) at the moment of notification, not only upon issue of the extract.

Do I need a responsible representative?

No, it is not mandatory. You may appoint one voluntarily under Section 11, but the Trade Licensing Act does not require it for this trade.

Sources

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