A freelancer can choose where and when they work, on what projects and how much they earn. Especially in the world of IT, this type of work is popular with professionals as well as companies seeking the best professionals for their projects.
When you are leaving employment to start earning as a freelancer, i.e an own-account worker, it is necessary to request the following documents which will be needed for tax declaration.
Our next steps on the way to freelancing lead to the Trade Licensing Office where you must get a trade licence for a free trade. To set up a free trade licence, it is necessary to fill in the Universal Registration Form which will take half an hour at most.
This service costs CZK 1000 and you can pay for at the filing room in case of an in-person registration, by a bank transfer or a money order.
TITANS TIP: It is always better to tick as many activities related to your future trade as possible. Each additional amendment of the trade license will incur a CZK 500 administration fee.
Documents necessary for setting up a free trade:
TITANS TIP: You can choose any Trade Licensing Office to register. There is no need to register at your local branch or that of the place you will work from.
The filling in and delivery of the registration form, delivery of all the documents and the payment of the administrative fee is called “declaring a free trade”. The whole process you can complete in several ways:
Once a person becomes a free trader, they take care of themselves. Mainly as regards the things hitherto dealt with by the employer – insurance and taxes. It is necessary to register to pay your own health and social security insurance and to pay income tax.
This you can do when filling in the Universal Registration Form. In case of an in-person registration, it is necessary to notify your assigned employee about this:
You will need to have your insurance card with you. After you register your trade, you will have 15 days to register to pay your income tax.
You can also do this online at the Financial Administration website
A statement of an entry in the Trade Register is a summary of data about the relevant trader contained in the Trade Register and basic identification data. You can request a partial or a complete statement.
Attention: After the registration, you may receive a letter from the Trade Register requesting you to pay a listing fee – do not pay this fee as the listing in the register is automatic and free of charge.
And that’s it! Most of the paperwork is done but you will still need to make all the recurring payments…
Setting up a trade might look like a difficult process but ultimately requires just one visit to the Trade Licensing Office and possibly to an insurance company. You can become a freelancer in a day. After that, you can choose from the list of current IT projects. And if anything goes wrong, just let us know and we will gladly help you.
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