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Illegal business in the Czech Republic

  • George Brookman

Have you ever encountered an unauthorized business? If so, you know that this is an illegal activity, which is guarded and regulated by, for example, a trade or criminal law. In this article, we look at what it is, what sanctions are for them, and what is the difference between a physical person and a legal person.


What is it?

Unauthorized business is an important offense, and it is an activity that is the subject of a trade, but the tradesman does not have a trade license for that activity. If you are not sure whether you happen to be doing this business, you may want to look into the Trades Licensing Act which defines and defines legitimate and unjustified business.

Characters and penalties for unauthorized business

The law speaks that "an offense of an unauthorized business is committed by one who unduly delivers services or operates a productive or other gainful business to a greater extent." The offender is at risk of imprisonment for up to one year or a financial penalty. The "hard" penalty is assessed between 6 months and 3 years. Another sanction is, for example, a ban on activity or a fine that can be set by the Trade Licensing Office up to 50,000, - (free trade), up to 100,000, - (craft and tied trade), up to 200,000, - CZK (traded). The perpetrator of an unauthorized business may be a natural person who carries out a business activity without a trade license.

It is also possible to suffer legal entities who operate in an unlawful manner and fines are higher than for natural persons. Fines can be stored up to 500 000, - (free trade), up to 750 000, - (craft and tied trade), up to CZK 1,000,000 (traded).


To avoid unauthorized business

It is always better to avoid this torture and prefer to do business with a non-bank loan for companies rather than committing an unlawful business. In general, if you are a legal person, you are subject to a trade law. Otherwise, if you are a natural person, you are mostly punished:

  • in the offense proceedings under the Trades Licensing Act,
  • criminal proceedings (imprisonment for a maximum of 3 years).
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