OSVČ is the Czech acronym for osoba samostatně výdělečně činná, which translates to a self-employed person or sole proprietor. It is the official designation for an individual who has income from business or other independent gainful activity and is not in the position of an employee, nor have they founded a business corporation (like an LLC). An OSVČ conducts business under their own name, on their own responsibility, and is liable for their obligations with all of their personal assets. This status is typical for tradespeople, artisans, artists, authors, and independent professionals such as doctors, lawyers, or tax advisors.
Engaging in self-employment comes with a number of legal obligations. Before starting the business, it is necessary to obtain the appropriate authorization (most often a trade license) and register with the authorities—the Financial Office, the Czech Social Security Administration (ČSSZ), and the relevant health insurance company. A self-employed person is responsible for paying their own monthly advances for social security and health insurance and, after the end of the calendar year, for filing a tax return and income/expenditure statements with the ČSSZ and the health insurance company.
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