When registering a business in the Czech Republic, certain types of activities require Certain qualifications, education or work experience. If the entrepreneur does not meet these requirementshe can assign responsible representative (odpovědný zástupce).
This mechanism is particularly important for craft (řemeslné živnosti) and concession (koncesované živnosti) licenseswhere it is impossible to do business without proven qualifications.
Who is odpovědný zástupce and why do I need it?
Odpovědný zástupce - is a man who takes it upon himself professional responsibility for the company's operations within the scope of a particular license. He is not the owner of the business, but is responsible to the state authorities for compliance.
✅ Who needs a responsible spokesperson?
- Entrepreneurswho have No necessary education or experience to get a license.
- Foreignerswho want to start a business in the Czech Republic, but domiciled in the country.
- CompaniesThe Company's employees work in regulated areas that require special controls.
For example, if you want to open barbershopYou can hire an odpovědný zástupce with the right qualifications, but do not have the appropriate diploma or work experience.
What are the requirements for odpovědný zástupce?
To become a responsible representative, a candidate must meet the following requirements certain conditions:
🔹 Qualification: must have either specialized educationor sufficient experience in this area.
🔹 Citizenship or residence permit: the representative shall be EU citizen or have permanent residence in the Czech Republic (trvalý pobyt).
🔹 No prohibition of entrepreneurial activity: a person should have no restrictions imposed by governmental authorities.
🔹 No criminal recordIf a particular activity requires it.
⚠ It's important: Representative in charge is not a nominee of the business. It carries professional liability onlybut is not responsible for the financial and legal risks of the company.
What are the duties of an odpovědný zástupce?
📌 Ensure compliance with rules and regulations in accordance with the license.
📌 Advise the business owner on compliance issues.
📌 When necessary to represent the company before state authorities (e.g., in the case of inspections).
Often odpovědný zástupce can work on several companies at the same timeif the law allows it.
How to make an odpovědný zástupce?
There are several steps to registering a responsible representative:
1️⃣ Find the right candidate. It can be an acquaintance, a partner or a professional consultant. Some companies offer odpovědný zástupce services for a fee.
2️⃣ Sign the agreement with a representative that spells out his or her responsibilities.
3️⃣ Prepare documents:
- Passport or residence permit of the representative.
- Diploma or credentials.
- A criminal record statement (if required).
4️⃣ Apply to the Živnostenský office (Živnostenský úřad).
5️⃣ Pay the state duty (1,000 CZK).
⏳ Processing time: it usually takes 5-10 business days.
Cost of services odpovědný zástupce
🔹 If it's an acquaintance or a partner - free of charge, except for the state fee.
🔹 If you turn to specialized firms - the cost of services may vary from CZK 5,000 to CZK 30,000 per yeardepending on the type of activity.
Pros and cons of odpovědný zástupce
✅ Pros:
✔ Allows you to start a business even if you don't have the right education.
✔ Simplifies company registration for foreign entrepreneurs.
✔ You can change the representative if necessary.
❌ Minuses:
✖ Requires additional costs.
✖ Supervision of the representative is necessary, as he or she may abdicate his or her duties.
✖ In some areas (e.g. transportation) odpovědný zástupce must be actively involved in the management of the business.
Conclusion
The purpose of odpovědný zástupce is to convenient solution for entrepreneurs who do not meet the requirements for a license. However, it is important go with a trusted representativebecause he is responsible to the state.
If you don't have the right qualifications or experience but want to do business in the Czech Republic, this option may be the best solution. 🔥