Setting up a trade license online with an electronic signature

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What is a trade license and what are the conditions for operating a trade??

A trade license is a legal authorization that allows individuals or companies to operate a business. This form of entrepreneurship is popular because it is quick, relatively inexpensive, and easy to establish. The law allows both natural and legal persons to start a business based on a trade license, and the conditions for operating a trade are defined mainly in Act No. 455/1991 Coll. – the Trade Licensing Act. Additional regulations for specific types of trades can also be found in other legal acts.

According to the Trade Licensing Act, a trade is an activity that meets the following conditions:

• It is performed regularly and independently,

• It is performed under one’s own name,

• It is performed on one’s own responsibility,

• It is performed with the intention of making a profit or achieving another measurable positive social impact.

Example:

The Act requires that a trade activity be carried out on a regular basis. For instance, if you perform a service once a year for someone, you don’t need a trade license. However, if you carry out similar activities at regular intervals, it may be considered business activity under the law.

In that case, you must either register a trade or establish a limited liability company (or another business entity) to operate legally. Conducting business activities without any legal form is considered a criminal offense.

To operate a trade, you must also meet the following legal requirements:

• Be at least 18 years old,

• Have legal capacity,

• Be of good repute,

• Meet any other conditions set by the Trade Licensing Act.

Submitting your application online

If you decide to start a trade, your first step can be to visit the Client Center (Single Contact Point) at the local District Office, Department of Trade Licensing, to file your application in person. However, as we mentioned earlier, this process can now be completed fully online without visiting the office.

Before submitting your trade registration electronically, you’ll need to prepare the following:

• A new ID card with an electronic chip (eID) – the card must be activated,

• A smart card reader,

• Installed software applications used for electronic signing of the online form,

• A qualified electronic certificate.

Our recommendation:

Replacing your old ID with a new electronic ID card is free of charge. The replacement must be done in person at the Client Center of the Ministry of Interior or the District Police Directorate in your place of residence.

Although the setup might seem complicated at first, once you complete these steps, you’ll be able to communicate electronically with the Trade Licensing Office and other authorities at any time. You’ll also be able to sign applications, changes, and inquiries electronically. Since electronic communication is now mandatory for entrepreneurs (including sole traders) with many state offices and institutions, the time you invest in preparation will definitely pay off.

When registering a trade, you’ll also need:

• The name of your trade, which must be unique and not duplicate any existing business names,

• The registered address of your business,

• A list of business activities (trade types),

• Any additional documents required by law, depending on the type of trade (for example, proof of education or work experience).

Qualified electronic signature for online trade registration

When registering your trade online, the law requires that the electronic form be signed using a qualified electronic signature (QES). Under Slovak law, the QES fully replaces a handwritten signature, reliably identifying the person signing the document.

Using a QES in electronic communication ensures authenticity, integrity, and non-repudiation. A QES also guarantees that the signed document has not been altered and that the signer cannot deny having signed it.

Advantages of using a Qualified electronic signature from the NFQES platform, a trusted service provider under the European eIDAS Regulation:

• Authenticity, speed, and efficiency,

• Remote access and the ability to handle all administrative tasks online,

• Reduced costs,

• High level of security and international recognition,

• Possibility of batch signing and access to integrated services under one platform.

If you have any questions or would like to obtain a qualified electronic signature from NFQES, you can find more information here. You can also contact us directly, and we’ll be happy to guide you through the process.

In conclusion, we would like to draw your attention to the fact that with a qualified electronic signature, you can handle not only the registration of your trade online but also other common administrative tasks that entrepreneurs encounter during the operation of their trade.

Use the qualified electronic signature also for the following activities:

• registering (starting) a trade,

• changing the scope of business activities (deleting and/or adding new trades),

• changing the trade name,

• changing the business address,

• suspending (pausing) the operation of a trade,

• resuming a trade after suspension (pause) of operation,

• cancelling a trade,

• other services within the trade register.

Final recommendation:

When visiting the Client Center or the District Office, Department of Trade Licensing, in person, you will pay €22 for trade registration. For electronic submission, the fee is half that amount – €11. The same applies to other administrative fees, and in some cases, you do not pay certain fees for electronic submissions at all.