Are you thinking about starting a business and want a simple guide in a few steps? What is good to prepare for, and what should you think through before you go to the trade licensing office (živnostenský úřad)? What categories and types of trade licences exist? What should you not forget once your business is already up and running? We have put together everything important so that you do not forget anything.
What does the abbreviation OSVČ mean?
OSVČ stands for self-employed person (osoba samostatně výdělečně činná), someone who has income from business activity or other self-employed activity. Other self-employed activity can be, for example, licensing copyright. You can carry out self-employed activity as your main activity, in which case the income from the business is your main income, or as a secondary activity. With a secondary activity, alongside your job, where you are a regular employee on a main employment contract, you can also have extra income on the side where you invoice clients, for which you need a business ID number (IČO). Even at that point, under the law, you already count as self-employed (OSVČ).
Now, the 5 steps we mentioned in the introduction
Step 1
It is definitely essential to think about what field you will do business in and which category your line of business falls into. There are 4 categories of trade licences (živnosti), namely:
- free trades (volné)
- craft trades (řemeslné)
- qualified trades (vázané)
- licensed trades (koncesované)
Different conditions apply in each category, which you must meet before you can start your trade.
Step 2
Check whether you meet the conditions for the specific category.
Conditions for a free trade licence
For a free trade licence, meeting the conditions is the simplest. It is enough to have a clean criminal record, which the officials at the trade licensing office will verify themselves. The other condition is full legal capacity, meaning you must be over 18.
Conditions for craft and qualified trade licences
In addition to the 2 conditions mentioned above, for a craft or qualified trade licence you also have to submit proof of professional qualification. In practice, this means showing that you completed a school or field of study proving you are an expert in the specific field. Alternatively, you can submit a certificate of completing a retraining course. If you do not meet either of these conditions, you can use the services of a professional guarantor (odborný garant), who takes responsibility for your business because they meet the qualification requirement.
Licensed trades and their conditions
For this type of trade, you need to obtain a special licence to operate (a concession, koncese). This permit is issued by the state or a municipality, and the conditions for granting a concession differ from field to field. The details are set out in the Trade Licensing Act (živnostenský zákon).
Step 3
The next, essential step is setting up the trade itself. You can do this in person, so it is enough to go to any trade licensing office. It does not have to be at the office in the place of your permanent residence. Another option is filling in the online form in the Trade Licence Register (Registr živnostenského oprávnění) or you can fill in the Registration Form in pdf and send it by post to the office. The fee for setting up a trade licence is 1,000 CZK (about 46 USD).
Step 4
Think about whether to register several fields at once. It makes no difference whether you have, for example, 3 fields of business, because the fee is still 1,000 CZK (about 46 USD). If you want to expand your business in the future or start doing business in a different field, you will not have to deal with anything further. However, if you decide to expand your business later and did not have the fields set from the start, each additional item carries a fee of 500 CZK (about 23 USD).
Step 5
Find out the account numbers to which you will send regular monthly payments for social security and health insurance. You have to register yourself with these two institutions, namely the District Social Security Administration (Okresní správa sociálního zabezpečení, or the Prague Social Security Administration in Prague) and your health insurance company. You will be given the account numbers and variable symbols. You must pay these amounts on time every month.
Last but not least, we have to mention the tax office (finanční úřad), though the trade licensing office should already register you there. Just do not forget to file your tax return by 31 March of the year following the one for which you are filing it. Also, do not forget to submit the statement of income and expenses, which you submit to your health insurance company and the Social Security Administration (OSSS/PSSZ).
Tip: Do you know how to set your pricing correctly as a beginning entrepreneur? We will show you how to do it step by step.
Also read examples of the Pareto principle or how to make money on your phone.
USD amounts are approximate, converted at the Czech National Bank rate of 21.80 CZK per USD on 2 October 2026.
