OSVČ (osoba samostatně výdělečně činná) is the Czech term for a self-employed person, similar to a sole proprietor. You do not need any share capital, and registration takes from a few days. Here is how to get from the idea to your first business account without avoidable mistakes.
Who can register as an OSVČ as a foreigner
EU citizens register on the same terms as Czechs. Citizens of non-EU countries can run a business if their type of stay allows it: some long-term visas and residence permits permit business activity, others do not. Ukrainians with temporary protection in the Czech Republic can also obtain a trade licence. Before paying any fee, check that your document allows business activity — this is the most common reason for rejection.
Step 1. Choose your activity
Trade licences (živnosti) fall into four groups:
- volná — free, no special qualification (consulting, marketing, IT services, trading);
- řemeslná — craft, qualification required (electrician, hairdresser, repair specialist);
- vázaná — bound, special qualification and permit required;
- koncesovaná — licensed, issued as a separate permit (for example passenger transport).
For most “office” professions a free trade licence is enough, and you can include several activities in it.
Step 2. File the application with the trade licensing office
The single registration form is filed with the trade licensing office (živnostenský úřad) — in person, by power of attorney or electronically. The official fee for the first licence is about CZK 1,000; we confirm the current amount when filing. A licence is usually issued within a few working days.
Step 3. Registrations after you get the licence
Your data is passed on to the tax office, but you need to check your obligations to social security and health insurance yourself: notify ČSSZ and your chosen insurer within 8 days. If OSVČ is your main activity, insurance contributions are paid on a minimum base even with low income; secondary activity has its own thresholds.
Step 4. Choose a tax regime
- Actual expenses — you document your expenses and pay tax on the difference.
- Flat-rate expenses — part of your income is treated as expenses without documents (80, 60, 40 or 30 % depending on the activity).
- Flat-rate tax — one monthly payment instead of tax and contributions, suitable for lower incomes.
Personal income tax is 15 % of the base. The regime you pick affects your payments for years, so we calculate all options for your data during the consultation.
Step 5. Account, bookkeeping and deadlines
Open a separate business account, set up invoicing and keep records of your income. The return for the previous year is due by 1 April (1 May if filed electronically). Details are in the article annual tax return for OSVČ.
When an accountant helps
We register OSVČ turnkey: we check your right to do business, file the application, register you with the tax office and insurers, choose the regime and set up reporting. More on the OSVČ registration page.
