Starting a Business as a Sole Trader (OSVČ) in the Czech Republic means not only gaining financial independence, but also taking on certain obligations to the state. In 2025, the registration process has become slightly easier, but there are still many nuances that can be confusing: which authorities must be notified when starting self-employment, what contributions you are required to pay, and in which cases your business activity can qualify as secondary (vedlejší činnost) to reduce mandatory payments — and when this option is not available.
In this article, we provide a step-by-step guide to registering as a sole trader (OSVČ), choosing the appropriate activity status — either primary (hlavní činnost) or secondary (vedlejší činnost) — and properly notifying the social security and health insurance authorities.
How to Register as a Sole Trader (OSVČ) in the Czech Republic in 2025
Registering as a sole trader (živnost) in the Czech Republic starts with entering your business into the Trade Licensing Register and obtaining an identification number (IČO). You can do this at any trade licensing office (živnostenský úřad) — either in person or online. Once this step is completed, you are officially recognized as self-employed (OSVČ).
Since 2024, the process has been simplified: if you’re not applying for additional tax registrations (such as VAT), you no longer need to register separately with the tax office, and a tax identification number (DIČ) is not assigned.
However, even after obtaining your trade license, you are still required to notify two institutions about the start of your self-employment:
- The district social security administration (Územní správa sociálního zabezpečení) — within 15 days
- Your health insurance provider (zdravotní pojišťovna) — within 8 days
Notifications can be submitted:
- In person
- By post
- Or online — using a data mailbox (datová schránka) or bank identity
If you register your trade using the Unified Registration Form (Jednotný registrační formulář) — for example, directly at the živnostenský úřad — both notifications (to social security and health insurance institutions) can be submitted at the same time, without any additional steps.
Primary Self-Employment (hlavní činnost) or Secondary (vedlejší činnost) — What’s the Difference?
When registering as self-employed in the Czech Republic, it’s important to decide whether your activity will be classified as primary self-employment (hlavní činnost) or secondary self-employment (vedlejší činnost). This decision affects not only the amount of social and health insurance contributions you’ll be required to pay, but also when those payments begin.
If your business is registered as primary activity, you are required to start paying monthly advance contributions for both social and health insurance from the very first month — even if you have no income yet.
If you are eligible for secondary activity, you don’t have to make advance payments in the first calendar year. Instead, your contributions are calculated at the end of the year based on actual income. If your income is low, the final amount may be symbolic or even zero. Unlike the primary status, you are not obliged to top up your payments to meet any minimum threshold.
Important: To benefit from the secondary status, you must not only declare it but also submit proper documentation. Otherwise, the authorities will automatically classify your activity as primary (hlavní činnost), which comes with higher mandatory contributions.
When Can You Qualify for Secondary Self-Employment (vedlejší činnost)?
Secondary self-employment (vedlejší činnost) is an official status under which your business activity is not considered your main source of income. This status allows you to avoid paying advance contributions for social insurance (sociální pojištění) and health insurance (zdravotní pojištění) during your first calendar year. If your income remains low, you may also avoid minimum mandatory payments after the annual reconciliation.
You may qualify for secondary self-employment in the following situations:
- You have an employment contract, and your employer pays social and health insurance contributions on your behalf (sociální a zdravotní pojištění).
- You are a full-time student (prezenční studium) at a secondary or higher education institution in the Czech Republic — up to the age of 26.
- You personally care for a child under the age of 4 — as of 2024, this applies even if you’re not receiving the parental allowance (rodičovský příspěvek), which used to be a required condition.
- You receive a pension — either an old-age pension (starobní důchod) or a disability pension (invalidní důchod).
- You care for a person officially recognized as dependent (osoba závislá na péči jiné osoby), in dependency level II, III, or IV. This can be a relative or another person living in your household.
- You provide daily personal care for one child under 7 or two children under 15 — this applies only for health insurance purposes (zdravotní pojištění), not for social insurance (sociální pojištění).
Important: In the Czech Republic, the social insurance system (administered by Česká správa sociálního zabezpečení — ČSSZ) and the health insurance system (zdravotní pojišťovna) operate independently and apply different criteria for recognizing secondary status. This means you might be considered as having secondary status under one system and primary status under the other.
To avoid misunderstandings or penalties, you must notify both the Social Security Office (ČSSZ) and your health insurance provider (zdravotní pojišťovna) separately — and provide documents confirming your eligibility for secondary status where required.
What You Need to Confirm Secondary OSVČ Status (vedlejší činnost)
Simply being eligible for secondary self-employment (vedlejší činnost) does not automatically mean that the authorities will recognize this status. Both the Social Security Administration (Česká správa sociálního zabezpečení – ČSSZ) and your health insurance provider (zdravotní pojišťovna) are required to verify your eligibility. If your status is not visible in official records, you must submit supporting documents manually.
Here’s what is required depending on your situation:
- Employment (work contract): no confirmation is needed, as both systems automatically detect your employment status through mandatory registration by your employer.
- Receiving a pension (old-age or disability): no confirmation is needed, as data is provided directly to ČSSZ. Exception: if you receive a pension from abroad, you must submit proof yourself.
- Student status: a certificate of study (potvrzení o studiu) from your educational institution is required.
- Caring for a dependent person: official confirmation of the dependency level (II–IV) is required, along with proof that you are the caregiver.
- Caring for a child under 4: submit a statutory declaration (čestné prohlášení) confirming personal daily care.
- Caring for one child under 7 or two children under 15 (for health insurance only): submit a statutory declaration (čestné prohlášení) to your health insurance provider.
- Receiving foreign benefits: any income such as a pension or parental allowance paid from outside the Czech Republic must be confirmed by the recipient.
Tip: even if you believe your eligibility is known to the authorities, it is advisable to confirm with your assigned inspector that your secondary status has been properly recorded. This helps avoid unexpected payments or disputes with ČSSZ or your health insurance company.
What to Do If Your OSVČ Status Changes During the Year
During the calendar year, a self-employed person may switch from secondary to primary activity, or vice versa. For example, you may leave your job where you were employed, finish your studies, or start receiving a pension. In such cases, it is important to notify the relevant authorities without delay and update your status accordingly.
The Social Security Administration (Česká správa sociálního zabezpečení – ČSSZ) and health insurance companies (zdravotní pojišťovna) monitor your status based on calendar months. This means that in one month you may qualify as a secondary self-employed person, and in the next as primary.
There is, however, one important nuance:
- For social insurance purposes (sociální pojištění), if the conditions for both primary and secondary status apply within the same month, the month is considered secondary.
- For health insurance purposes (zdravotní pojištění), the opposite applies: if there is a mixed situation, the month is treated as primary.
Example: if you leave your job halfway through the month and begin working as a full-time entrepreneur, ČSSZ will count that month as secondary, while your health insurance company will treat it as primary. As a result, you will have to pay the full monthly contribution.
What you should do:
- Notify both ČSSZ and your health insurance provider as soon as your situation changes.
- Submit any new supporting documents (or notify if your previous basis no longer applies), if required.
- Track how each calendar month is classified — this affects the calculation of your annual obligations and any required payments.
In 2025, the minimum mandatory contributions for self-employed individuals in the Czech Republic increased significantly. The increase applies to both social and health insurance, as well as the flat-rate tax for those under the simplified tax regime (paušální daň). We have explained these changes in detail in a separate article, but here is a brief overview:
- A self-employed person under primary status (hlavní činnost) in 2025 must pay at least CZK 4,759 in social insurance and CZK 3,143 in health insurance monthly.
- For those under secondary status (vedlejší činnost), no advance payments are required during the first calendar year — provided the eligibility conditions are met.
Note: if you have already been self-employed at any time in the past 20 years, and you re-register as an OSVČ in 2025, your social insurance base will be calculated using the full rate (35% of the average wage), instead of the reduced 25% base granted to newly registered entrepreneurs. This means your monthly contributions will be higher than those of first-time OSVČ.
How Much Does a Sole Trader Pay in 2025 — Summary
From 2025, the mandatory contributions for self-employed individuals in the Czech As of 2025, mandatory contributions for self-employed individuals (OSVČ) in the Czech Republic have increased. This applies to social and health insurance, as well as the flat-rate tax (paušální daň). A full overview is available in a separate article — here are the key figures:
- If you are registered under primary activity status (hlavní činnost), the minimum monthly contributions in 2025 are CZK 4,759 for social insurance and CZK 3,143 for health insurance.
- If you qualify for secondary activity status (vedlejší činnost), no advance payments are required during the first calendar year — provided that you meet the eligibility criteria.
Important: If you have been self-employed at any time in the past 20 years and re-register as an OSVČ in 2025, your social insurance contributions will be calculated based on the full assessment base (35% of the average wage), instead of the reduced 25% base applied to newly registered entrepreneurs. This means your monthly payments will be significantly higher.
Conclusion
Registering as a sole trader (OSVČ) in the Czech Republic is not a complicated process, but it does require precision. One of the most important steps is deciding whether your activity will be classified as primary (hlavní činnost) or secondary (vedlejší činnost), as this directly affects your social and health insurance obligations and how you communicate with state institutions.
Here are the key points to remember:
- You do not need to register with the tax office unless you are applying for additional types of taxation.
- You must notify both the Social Security Administration (ČSSZ) and your health insurance provider (zdravotní pojišťovna) about the start of your self-employment.
- Secondary status is only available under specific conditions — and in most cases, supporting documentation is required.
- Minimum contributions increased in 2025, especially for those re-registering as OSVČ after a previous period of activity.
- If your status changes during the year, always notify both institutions promptly.
If you’re unsure which status applies to you, how to handle the notifications, or simply want everything set up correctly from the start — feel free to reach out for a consultation. At DoMyTax, we assist entrepreneurs across the Czech Republic with everything from OSVČ registration to bookkeeping and communication with public offices.
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