First year of self-employment: what you must not forget (checklist)

So you've decided to go self-employed? Congratulations — it's one of the boldest and most liberating steps you can take in your professional life. But the first year also comes with a flood of new obligations, deadlines, and paperwork. Miss something or run out of time, and you're looking at fines, back payments, or unnecessary headaches.

This article is your complete guide to the first year of self-employment as an OSVČ in 2026. We'll walk through everything step by step — from setting up your trade licence and completing registrations to filing your first tax return. At the end, you'll find a handy month-by-month checklist.

Step 1: Setting up your trade licence and registering

The Trade Licensing Office and the Unified Registration Form (JRF)

Everything starts at the Trade Licensing Office, which acts as a Central Registration Point (CRM). Thanks to the Unified Registration Form (JRF), you can take care of several registrations in one go:

• registering your trade licence (or applying for a concession),
• registering for income tax at the tax office,
• notifying the OSSZ (District Social Security Administration) that you've started trading,
• notifying your health insurance provider.

You can also submit the JRF electronically — via a data mailbox or with a recognised electronic signature through the application at rzp.gov.cz.

Types of trade licences

Before filling in the form, decide which type of trade licence you need:

Data mailbox

Since 2023, every newly registered entrepreneur is automatically assigned a data mailbox. This means you are required to communicate with public authorities electronically — including submitting tax returns, and filing statements for the ČSSZ and your health insurer.

Step 2: Registration obligations with individual authorities

If you used the JRF at the Trade Licensing Office, the office will forward most of your registrations on your behalf. It's still worth checking that everything went through correctly.

Tax Office

Since 2024, self-employed individuals (OSVČ as natural persons) no longer need to register for income tax separately — submitting a tax return is sufficient. The obligation to register for income tax applies only to legal entities and employers.

However, if your turnover is expected to exceed 2 million Kč over any 12 consecutive months, you will need to register as a VAT payer.

OSSZ (District Social Security Administration)

You must notify your local OSSZ that you have started self-employed activity no later than the 8th day of the calendar month following the month in which you started. If you used the JRF, this happens automatically.

It's important to correctly identify whether you are self-employed as your primary or secondary activity — this determines the level of your advance payments and whether you are obliged to pay pension insurance contributions.

Health insurance provider

You must notify your health insurer within 8 days of starting your activity. Again, the JRF handles this on your behalf.

Step 3: Insurance advance payments — what to pay and how much

Social insurance (pension insurance)

Social insurance advance payments are due monthly, always between the 1st and 20th of the following month (for example, the advance for January is due by 20 February).

Health insurance

Health insurance advance payments are due from the 1st day of the calendar month they relate to, up to the 8th day of the following month.

Total minimum monthly costs

*) Only if the tax base exceeds the threshold amount of 117,521 Kč for 2026. **) No advance payments apply; insurance is settled as a lump sum after filing your statement.

Step 4: Recording income and expenses

As an OSVČ, you are required to keep either tax records or full accounting. Most small business owners opt for tax records, which are simpler.

Tax records include

1. Income and expense records — all cash flows related to your business
2. Asset and liability records — tangible/intangible assets, receivables, debts
3. VAT records — if you are a VAT payer

Flat-rate expenses vs. actual expenses

If you'd rather not track every receipt, you can use flat-rate expenses — a fixed percentage of your income depending on the type of activity:

Mandatory document retention

All tax documents (invoices, receipts, bank statements) must be retained for at least as long as the tax office can carry out an audit — generally 3 years from the end of the deadline for filing the tax return. For VAT purposes, the retention period is 10 years.

Step 5: Invoicing — how to issue invoices correctly

Mandatory invoice requirements

Every invoice must include:

• the name and surname (or trading name) of both the supplier and the customer,
• the supplier's business ID (IČO),
• registered address or place of business,
• VAT identification number (DIČ), if you are a VAT payer,
• invoice number (unique, within a sequential numbering series),
• description of the goods or services supplied,
• date of issue and date of taxable supply,
• total amount due,
• payment details (bank account number).

Payment terms

The law does not prescribe a mandatory payment deadline — it's a matter of agreement between the parties. The standard term is 14 days, or 30 days for larger projects. The maximum legally permitted payment term in commercial relationships is 60 days (unless the parties agree otherwise).

Step 6: Flat-rate tax — a simpler option for straightforward self-employment

If your annual income is below 2 million Kč, you are not a VAT payer, and you operate a single trade, you might want to consider the flat-rate tax regime.

Enrolment in the flat-rate tax regime is possible until 10 January of the relevant year (for 2026 the deadline was 12 January 2026 due to the weekend). Payments are due by the 20th of each calendar month.

Step 7: Key deadlines in your first year

Monthly obligations

Annual obligations (after your first full calendar year of trading)

You'll face the following obligations for the first time in spring, after your first full calendar year of self-employment:

Month-by-month checklist: your first year of self-employment

Let's assume you're starting your business in January 2026. Here's your guide through the entire first year:

January — launch

• Visit the Trade Licensing Office and submit the JRF
• Receive your IČO and extract from the Trade Register
• Activate your data mailbox
• Open a business bank account (not mandatory, but recommended)
• Set up your income and expense tracking system
• Consider the flat-rate tax regime (for 2026 the deadline has already passed, but for 2027 sign up by 10 January 2027)

February

• Pay your first health insurance advance (by 8 February, for January): 3,306 Kč
• Pay your first social insurance advance (by 20 February, for January): 3,575 Kč (new entrepreneur rate)
• Start recording all income and expenses
• Issue your first invoices

March – December

• Pay your advance payments every month according to the deadlines above
• Keep recording income and expenses and archiving documents on an ongoing basis
• Keep an eye on your turnover — if it exceeds 2 million Kč over any 12-month period, register for VAT

January – February 2027

• Gather materials for your 2026 tax return
• Calculate your total income and expenses
• Decide between actual and flat-rate expenses

March – May 2027

• File your 2026 tax return (electronically by 4 May 2027)
• Submit your income and expenditure statement to ČSSZ (by 4 May 2027)
• Submit your income and expenditure statement to your health insurer (by 4 May 2027)
• Pay any outstanding insurance top-up (within 8 days of filing your statement)
• From the month you file your statement onwards, pay revised advance payments based on your actual income

The most common mistakes first-time self-employed people make

Where to get help

If you're not sure where to turn, use the official sources:

• Czech Financial Administration: financnisprava.gov.cz — tax obligations, forms
• ČSSZ: cssz.cz — social insurance, statements, ePortal
• VZP / your health insurer: vzp.cz — health insurance
• MOJE daně: mojedane.cz — electronic tax return submission
• Trade Licensing Register: rzp.gov.cz — trade licence verification, JRF

Master checklist — print it out and tick things off

Conclusion

Your first year of self-employment is demanding — but absolutely manageable, as long as you know what's coming. The most important things are to stay on top of your registration obligations from day one, pay your advance payments regularly, and keep an ongoing record of all your income and expenses.

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This article is based on official information from the Czech Social Security Administration (cssz.cz), the Czech Financial Administration (financnisprava.gov.cz), the General Health Insurance Company (vzp.cz), and the Ministry of Industry and Trade (mpo.gov.cz). All figures are correct as of February 2026.