Providing Responsible Representatives (Odpovědný zástupce) for Licensed Businesses in the Czech Republic

Licensed Business in the Czech Republic: How to Set It Up Quickly and Profitably

Under the Czech Act on Trade Licensing (Act No. 455/1991 Coll.), there are two primary categories of business activity – licensed and non-licensed. For licensed businesses, a government permit is required to provide business-services in sectors like education, healthcare, construction, transportation, and more.

What needs to be licensed and how?

To obtain a license, you must first register a company and choose its legal form

1. Sole proprietor (OSVČ) – income tax rate: 15%.
2. Limited liability company (s.r.o.) – the most popular form for SMEs, income tax: 21%.
3. Joint-stock company (a.s.) – same tax rate but offers better asset protection and investment options.
4. Holding structure – same tax rate, but with greater capital protection and tax optimization potential. 

ALAR CZ provides business consulting, including preparation of corporate documents, remote company registration, and full assistance in obtaining business licenses (živnostenský list) and permits through an authorized representative. This ensures a strategic foundation for your business, helping to avoid mismanagement, delays, extra costs, or license denial.

Main business license categories in Czech law:

1. Registration:

• Free trade licenses – general conditions apply, no specific education or experience required, valid nationwide.
• Craft and regulated trades – require qualifications or experience.

2. Concession-based trades – require government approval and a more detailed licensing process.

To speed up the licensing process and relieve you from the routine paperwork, our company offers the services of a responsible representative (odpovědný zástupce) for an s.r.o., who will represent your interests at every administrative level. You also have the option to appoint a guarantor, or responsible representative, qualified for the specific field of business. The cost of this service is highly competitive compared to the financial, time, and organizational expenses you would face handling everything on your own – starting from CZK 15,000 per year. At ALAR CZ, we maintain a clear and transparent pricing policy with no hidden fees – all contract terms are discussed in advance and agreed upon.

A responsible representative provides:

• assistance in choosing the legal form and registering the business address;
• full support throughout the licensing application process, including documentation;
• representation and negotiation with Czech authorities.

At a later stage, we can provide your company with tax consulting services (focused on optimizing taxes and expenses within the framework of Czech legislation), legal support (including contract review, drafting, and expert advisory), as well as comprehensive accounting services in the Czech Republic – from reporting optimization to strategic financial planning.

The responsible representative from ALAR CZ can assist you in obtaining a license for any business field, including:

• finance and accounting;
• transportation and logistics;
• chemical and fuel industry;
• construction, renovation, and carpentry;
• car servicing (technical support, repair, training);
• skilled trades (bakeries, meat and sausage production, hair salons, etc.);
• healthcare and social services, work with children;
• tourism and hospitality;
• culture and sports;
• security and protection services.

Our consulting services help you navigate Czech legal complexities, and our experts develop efficient strategies to ensure your business success.

Why choose to work with ALAR CZ?

ALAR CZ provides licensed responsible representatives services for more than 40 types of business activities, as our responsible representatives meet all legal requirements under Czech law:

• education validated in the Czech Republic (a foreign diploma alone is not sufficient);
• proven work experience in the relevant field;
• official contractual engagement that builds trust with our clients.

Benefits of working with ALAR CZ:

• a personalized approach and tailored solutions for your specific company needs;
• many years of experience and high qualifications of our team;
• a broad network of partners in the Czech Republic and abroad;
• responsive support – we are always available to respond quickly to your inquiries.

With us, it's efficient and convenient – our guarantor ensures fast licensing, optimal costs, and comprehensive legal support.