COREDO > Securities Dealer Licence in the Czech Republic

Securities Dealer Licence in the Czech Republic

The Czech Republic is an attractive European jurisdiction for obtaining a securities dealer licence with access to the markets of all EEA countries through the passporting mechanism. The licence allows companies to provide a wide range of investment services under EU regulation and the supervision of the Czech National Bank (ČNB).

Since 2016, COREDO has been assisting clients with obtaining investment licences in the Czech Republic, providing full support — from project structuring to communication with the regulator and licence approval.

Get a Consultation

Cost of the service
from 85 000 EUR

Regulatory Framework: MiFID II and Czech Legislation

The activities of securities dealers in the Czech Republic are governed by two principal regulatory acts:

Act No. 256/2004 Coll. on Capital Market Undertakings (Zákon o podnikání na kapitálovém trhu, ZPKT) is the primary national law defining the types of investment services, the conditions for obtaining a licence, and the ongoing obligations of licensees. This Act implements Directive MiFID II (2014/65/EU) — the key European regulatory act governing markets in financial instruments.
Regulation IFR (EU) 2019/2033 establishes prudential requirements for investment firms, including initial capital requirements. The accompanying Directive IFD (EU) 2019/2034 defines the prudential supervision framework. Both acts have applied in the Czech Republic since 26 June 2021 and replaced the CRR/CRD IV provisions that previously applied to investment firms.
Regulation MiFIR (EU) 600/2014 governs the transparency of trading in financial instruments and supplements MiFID II with regard to trading venues and regulatory reporting.

In addition to the above, ČNB applies Commission Delegated Regulation (EU) 2017/1943 and Implementing Regulation (EU) 2017/1945, which define the forms and procedures for submitting applications for an investment licence under MiFID II.

Types of Investment Services and Activities

The securities dealer licence in the Czech Republic covers the investment services listed in Section A of Annex I to Directive MiFID II (2014/65/EU). The core service types include:

Reception and transmission of orders in relation to financial instruments — the company accepts client orders to buy or sell securities and forwards them for execution.

Execution of orders on behalf of clients — the firm directly executes transactions for the purchase or sale of financial instruments on organised and over-the-counter markets.

Dealing on own account — trading in financial instruments using the company’s own funds, which entails the highest regulatory capital requirements.

Portfolio management — discretionary management of client assets on an individual basis under a concluded agreement.

Investment advice — providing personal recommendations to clients regarding transactions in specific financial instruments.

Underwriting and placing of financial instruments — organising the initial placement of securities with or without a commitment to purchase them.

The list of financial instruments with which a licensee may work includes shares, bonds, derivatives (options, futures, swaps), units of investment funds, money market instruments, and other securities as defined in MiFID II.

Initial Capital Requirements

The minimum initial capital for a securities dealer depends on the range of investment services applied for. Requirements are set by Article 9 of Directive IFD (EU) 2019/2034:

Category	Types of Services	Min. Initial Capital
Class 3	Reception and transmission of orders, investment advice (without the right to hold client assets)	EUR 75,000
Class 2	Execution of orders, portfolio management, underwriting	EUR 150,000
Class 1	Dealing on own account	EUR 750,000

ČNB imposes stringent requirements regarding the transparency and legality of the origin of initial capital funds. The applicant must provide audited financial statements, tax declarations of shareholders, and bank statements confirming the legal pathway of capital formation. Capital may be paid in Czech koruna (CZK), with conversion carried out at the ČNB exchange rate on the date of application submission.

In addition to initial capital, an investment firm must comply with ongoing prudential requirements under Regulation IFR: the permanent minimum capital requirement (PMR), the fixed overhead requirement (FOR), and the K-factor requirement (for Class 2 firms). The actual own funds requirement is determined as the highest of these figures.

COREDO Service Fees

The cost of COREDO’s advisory services for obtaining a securities dealer licence in the Czech Republic depends on the scope of investment services applied for and the complexity of the specific project.

Service	Cost
Securities Dealer Licence	from EUR 85,000 + VAT

The stated cost includes analysis of the client’s business strategy, preparation of the full documentation package, development of internal policies and procedures, preparation of the business plan for ČNB, representation before the regulator, and support through to licence issuance.

For comparison, the costs of other COREDO financial licences in the Czech Republic:

Licence Type	COREDO Cost	Min. Regulatory Capital
Securities Dealer / Investment Fund	from EUR 85,000 + VAT	EUR 75,000–750,000
EMI (Electronic Money Institution)	from EUR 75,000 + VAT	EUR 350,000
PI (Payment Institution)	from EUR 65,000 + VAT	EUR 20,000–125,000
SPI (Small Payment Institution)	from EUR 40,000 + VAT	No minimum
Forex Broker	from EUR 40,000 + VAT	EUR 730,000
ZISIF §15 (Alternative Investment Fund)	from EUR 8,500 + VAT	None
Consumer Credit	from EUR 65,000 + VAT	Individual

Payment Terms

COREDO’s fees are paid in instalments, allowing the client to control expenditure at each stage of the project. The specific payment schedule is agreed individually at the contract stage. As a rule, payment is divided into three tranches: an upfront payment upon signing the agreement, an interim payment after the main documentation package has been prepared, and a final payment after the application has been submitted to ČNB. The exact amounts and payment dates depend on the scope of work and are specified in the commercial proposal. All prices are stated exclusive of VAT, which is charged at the rate of 21% in accordance with Czech tax legislation.

Comparison with Other Licence Types in the Czech Republic

The choice of financial licence type depends on the company’s business model. A securities dealer licence is suitable for companies planning to provide investment services — asset management, brokerage operations, and investment advice. If the business model is focused on payment services or the issuance of electronic money, it is more appropriate to obtain a PI or EMI licence.

Parameter	Securities Dealer	EMI	PI	ZISIF §15
Core Activity	Investment services	Issuance of electronic money	Payment services	Management of alt. investment fund
Regulatory Framework	MiFID II, IFR/IFD	EMD2, PSD2	PSD2	ZISIF (Act 240/2013)
Min. Capital	EUR 75,000–750,000	EUR 350,000	EUR 20,000–125,000	None
Passporting	MiFID II, Art. 34–35	EMD2 + PSD2, Art. 28	PSD2, Art. 28	AIFMD (limited)
Time to Licence	1–1.5 years	6–12 months	3–6 months	1–3 months
COREDO Cost	from EUR 85,000 + VAT	from EUR 75,000 + VAT	from EUR 65,000 + VAT	from EUR 8,500 + VAT

For companies with a limited budget or startups planning to manage a small alternative investment fund, registering a fund under §15 ZISIF may be the optimal option — it is significantly faster and less costly. More details about this option can be found on the Alternative Investment Fund ZISIF §15 page.

Required Documents

To submit an application for a securities dealer licence to ČNB, an extensive documentation package must be prepared. Requirements are defined by Commission Delegated Regulation (EU) 2017/1943 and Czech national legislation.

Corporate documents include the company’s incorporation documents (articles of association, memorandum of association), an extract from the commercial register, confirmation of a registered office in the Czech Republic, and documents on the ownership structure indicating ultimate beneficial owners (UBOs).

Management documents: for each board member (minimum two persons), a CV confirming professional experience in the financial sector, a criminal record certificate, a declaration of conflicts of interest, and confirmation of qualifications must be provided. ČNB conducts an interview (fit & proper test) with key persons.

The business plan must be prepared in the Czech language and contain a description of the planned scope of activities, financial projections for a minimum of three years, income and expenditure forecasts, a description of the target market, a risk management strategy, and information on any potential delegation of functions to third parties.

Internal policies and procedures: AML/CFT policy (anti-money laundering and counter-financing of terrorism), risk management policy, client complaints handling policy, conflicts of interest policy, business continuity plan (BCP), and information security rules.

Financial documents: confirmation of initial capital (bank statement), audited financial statements of the founders, tax declarations, and other documents confirming the lawful origin of funds.

Technical description: characteristics of the software for conducting investment operations, a description of the IT infrastructure, and internal control systems.

Licence Obtaining Procedure

The process of obtaining a securities dealer licence in the Czech Republic consists of several key stages and takes from 1 to 1.5 years.

Analysis and consulting.

The COREDO team conducts a detailed analysis of the client’s business strategy, determines the optimal scope of investment services for licensing, and assesses capital requirements. At this stage, a project roadmap is formed.

01

Registration of a legal entity.

A Czech company in the form of s.r.o. (společnost s ručením omezeným — private limited liability company) or a.s. (akciová společnost — joint-stock company) is required to obtain a licence. When using the s.r.o. form, the establishment of a supervisory board (dozorčí rada) is mandatory. A minimum of two board members must be appointed to manage the company’s activities.

02

Document preparation.

COREDO develops the full documentation package for ČNB: internal regulatory policies in accordance with Czech legislation, a detailed business plan in the Czech language, a description of operational processes, risk management systems, and financial controls.

03

Submission of the application to ČNB.

The COREDO team prepares the application and submits it to ČNB. By law, the regulator has six months to review the application; however, this period only begins once the application is deemed complete. If ČNB requests additional information or clarifications, the period is suspended until the requested materials are provided.

04

Post-licence support.

After the licence is issued, COREDO assists with opening bank accounts, selecting and hiring personnel, communicating with the regulator, and resolving other operational matters.

05

EEA Passporting of Investment Services

One of the key advantages of a securities dealer licence in the Czech Republic is the ability to passport investment services across the entire European Economic Area. The passporting mechanism is established by Articles 34 and 35 of Directive MiFID II (2014/65/EU).

A licensee may provide investment services in other EEA states in two ways: through the freedom to provide services — without a physical presence in the host country, or through the establishment of a branch — with a permanent presence in another jurisdiction.

The passporting procedure is carried out on a notification basis: ČNB, as the home regulator, sends a notification to the host regulator of the receiving country. This significantly simplifies and accelerates entry into new markets compared to obtaining a separate licence in each jurisdiction.

Our Experts

The process of obtaining a securities dealer licence in the Czech Republic requires a deep understanding of both national legislation and the European regulatory environment. The COREDO team for this area is led by:

Pavel Kos

Head of Legal — has been with COREDO since 2017, with many years of experience supporting financial licensing projects in the Czech Republic and the European Union. Specialises in strategic planning, interaction with regulators, and client business development.

Basang Ungunov

Lawyer — specialist in civil and financial law, has been with COREDO since 2022. Participates in preparing documentation for ČNB, developing internal policies, and providing legal support for licensing processes.

Frequently Asked Questions

What investment services can be provided with a securities dealer licence in the Czech Republic?

The licence permits the full range of investment services provided for under MiFID II: reception and transmission of orders, execution of orders on behalf of clients, dealing on own account, portfolio management, investment advice, and underwriting and placing of financial instruments. The specific list of services is determined upon submission of the application to ČNB.

How long does it take to obtain the licence?

The full project cycle — from business strategy analysis to licence issuance — takes from 1 to 1.5 years. The document preparation stage takes several months, after which ČNB has six months to review the complete application. The actual timeframe depends on the complexity of the project and the speed with which responses to regulator queries are provided.

What is the minimum capital required to obtain the licence?

The minimum initial capital ranges from EUR 75,000 to EUR 750,000 depending on the scope of investment services applied for. For firms providing only advisory services and order reception without holding client assets, the requirement is EUR 75,000. For firms with a dealing-on-own-account function — EUR 750,000.

Can other EU countries be served with a Czech licence?

Yes, the licence grants the right to passport investment services across all 30 countries of the European Economic Area in accordance with Art. 34–35 of MiFID II. This is carried out on a notification basis through ČNB without the need to obtain an additional licence in each country.

What legal form is required for the company?

The company must be registered in the Czech Republic as an s.r.o. (private limited liability company) or a.s. (joint-stock company). In the case of an s.r.o., the establishment of a supervisory board is mandatory. A minimum of two board members must manage the company’s activities.

How does a securities dealer licence differ from a ZISIF §15 fund registration?

ZISIF §15 is designed for the registration of small alternative investment funds under a simplified regulatory regime — with no minimum capital requirements, a registration period of 1–3 months, and a cost starting from EUR 8,500 + VAT. A securities dealer licence is a full MiFID II investment licence granting the right to a wide range of services, including brokerage operations and portfolio management, with passporting rights across the entire EEA.

Is the licence issued for a fixed term?

A securities dealer licence in the Czech Republic is issued for an indefinite period. No annual licence renewal fee is charged. However, the licensee must comply with ongoing prudential requirements and submit regular reports to ČNB.

What ongoing obligations arise after the licence is obtained?

The licensee must comply with prudential standards (own funds not below the established minimum), submit regular reports to ČNB, ensure compliance with AML/CFT requirements, maintain the qualifications of key personnel, and observe client protection rules in accordance with MiFID II.

Submit Application

COREDO has been providing comprehensive services for obtaining a securities dealer licence in the Czech Republic since 2016. Our team of lawyers has practical experience of working with ČNB and knowledge of all procedural nuances. We support clients at every stage — from initial analysis of the business model to licence issuance and the start of operational activity.