In the Czech Republic, the simplest way to start is as a sole trader (OSVČ – osoba samostatně výdělečně činná), also called a “živnostník.” Setting up as an OSVČ is straightforward today – most steps can be completed in one place, often online.
1. Decide what type of trade you want
To register as an OSVČ, you need to meet two basic requirements: Be of legal age and have a clean criminal record.
Then, choose the type of trade (živnost):
- Free trade (Volná živnost) – the simplest option; only basic requirements must be met.
- Regulated or craft trade (Vázaná / Řemeslná) – requires proof of professional qualifications or experience.
- Concession trade (Koncesovaná) – requires special government or municipal permission, depending on the field.
For most beginners, a free trade is ideal because it’s the easiest to set up.
2. Fill out the Unified Registration Form (JRF)
To become an OSVČ, you need to complete the Jednotný registrační formulář (JRF). You can submit it in person – at any trade office (živnostenský úřad or online – via the Trade Licensing Portal or submit a form and send it via the post.
Fee:
- 1,000 CZK for the first registration (both in-person and online)
- If you register online, an additional service fee of 800 CZK may apply
Once your JRF is submitted and approved, you officially become an OSVČ and can start your business immediately.
3. Registration with Tax Office, Social Security and Health Insurance
Good news: since 2024, you don’t need to visit multiple offices. When you submit the JRF:
- ČSSZ (Social Security) and your health insurance are automatically informed
- Tax Office is also notified – for income tax and, if applicable, VAT
This makes the registration process faster and simpler.
4. Obligations after starting as an OSVČ
Once you become an OSVČ, you must:
- Pay social and health insurance contributions – mandatory for full-time OSVČ; optional for part-time depending on income
- Submit an annual tax return
- Submit reports to Social Security and health insurance
Since 2021, you can also opt for the flat-rate tax (paušální daň) – a single monthly payment covering income tax, social, and health insurance.
Summary
Starting as an OSVČ is a fast and accessible way to launch your business. Simply fill out the JRF, pay 1,000 CZK, and you’re ready to go.
Don’t forget your ongoing obligations to avoid fines. For easier management of taxes and invoicing, consider using a modern POS system like Gokasa, which keeps everything organized in one place.