Craft trade licence

What it means

A craft trade is a notifiable trade for which the law demands professional competence: an apprenticeship certificate or another proof of training in the field. The list of crafts is closed and forms an annex to the Trade Licensing Act.

What separates it from a free trade is that proof; what separates it from a regulated trade is that there a separate statute sets the qualification. Bricklaying, joinery, hairdressing, vehicle repair and catering all belong here.

The authorisation is tied to a precisely defined business activity. A joiner who also wants to resell bought-in furniture or broker installations needs a free trade on top of the craft trade; one licence does not cover related work just because it belongs to the same field.

How it works in practice

It is notified at the single point of contact together with the proof of competence, and filing electronically costs less than on paper. The authorisation arises on the day of notification and is entered in the trade register.

Anyone without the training appoints a responsible representative who has it and genuinely takes part in running the trade. The law also accepts substitutes, such as a certificate of qualification or documented experience in the field.

When setting up an s. r. o. with a craft activity, we ask for the apprenticeship certificate before the application is filed, because without the trade authorisation the company will not be entered in the commercial register. If the managing director meets the qualification personally, they can act as the responsible representative and nobody else needs to be hired.

What to watch out for

Invoicing bricklaying under a free trade licence is unauthorised business. The trade office fines it, the customer can dispute the invoice, and liability insurance generally does not pay out on work carried out that way.

Companies often underestimate the departure of their responsible representative. A new one has to be appointed and notified to the trade office within the statutory period so that the change reaches the trade register; a company that misses it carries on the craft without authorisation and risks a fine and cancellation of the trade.