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Is your work your hobby? How to register your activity.

Posted by

wizpex.cz

January 7, 2026

On December 2, 2024

Hobby or business?

Imagine: you enjoy making beautiful jewelry with your own hands, photographing friends' weddings or selling cute knitted toys. This brings you joy and sometimes a small income. But here's a question: do you need to officially register as self-employed ( OSVČ or osoba samostatně výdělečně činná)if you make money from your hobby? Let's find out!

When is registration not necessary?

Good news for those who do things "for the soul". If your hobby

- - - is not a regular source of income,
    - not for the purpose of making an ongoing profit,
    - the annual income from the hobby does not exceed 50,000 CZK,

you do not need to register self-employment (živnost). Such earnings fall under the category of "other income" (§7 and§10 of the Income Tax Act №586/1992). However, if the amount is more than 50,000 CZK, you will have to declare it on your tax return (daňové přiznání, §38 №586/1992).

Example:
You painted a couple of paintings and your friends wanted to buy them. You received 60,000 CZK for the paintings, which is above the tax-free threshold of 50,000 CZK. In this case, you will need to declare the income and pay tax (usually 15%). However, expenses related to your business (e.g. materials) can be deducted to reduce the taxable base.

When does a hobby become a business?

If your business ceases to be an occasional income but becomes regular and systematic with the aim of making a profit, then it is more than just a hobby. And you need to register self-employment . Even if your income is less than 50,000 CZK, regularity and systematicity may require official registration as self-employed . (§7 №586/1992).

OSVČ registration is easy! The choice depends on the type of activity, which is divided into

- - - Volná živnost (free): does not require proof of qualification. This type is suitable for providing services without special obligations.
    - Řemeslná živnost (craft): requires proof of qualification or experience.
    - Vázaná živnost (connected): includes specific services with special requirements.

Attention! According to the legislation of the Czech Republic, the production of gastronomic products for sale is prohibited in the home. It requires a room that complies with sanitary norms and is approved by the hygiene service ( § 13, § 84 and § 85 Act on the Protection of Public Health No. 258/2000 Sb.). In addition, it is necessary to comply with product quality and safety requirements ( § 3, § 10 and § 11 of the Food Act No. 110/1997 Sb.). A person engaged in the manufacture of foodstuffs is obliged to possess a professional qualification in the field of gastronomy. The qualification may be obtained personally or confirmed through a hired guarantor ( § 7 and § 17 Business Act No. 455/1991 Sb.). Home kitchens generally do not meet established standards of hygiene, so their use for commercial production is prohibited.

Types of OSVČ

Volná živnost: simple and fast

Suitable for services that do not require proof of qualification, e.g. cleaning, sewing, delivery of goods. Basic requirements (§6 and §31 of the Law on Entrepreneurship No. 455/1991 Sb.):

- - - Being of legal age (18+).
    - No criminal record (citizens of the Czech Republic do not need a certificate, the data is checked automatically).
    - Legal address (sídlo) - can be your place of residence or rented from special companies.

To register, please fill in the form Jednotný registrační formulář online (800 CZK), in person at Trade License Office (Živnostenský úřad, 1000 CZK) or by using CzechPoint. We recommend that you register for self-employment in person at the office, because when you register in person you can always correct mistakes if you fill in the form incorrectly or advise you how you can prove your qualifications if required. If you do not speak Czech well, you will need an interpreter for this service.

Řemeslná živnost: if qualifications are needed

Suitable for professions such as baker, electrician, plumber, beautician, etc. In order to obtain this type of license, in addition to legal capacity, criminal record and a prepared address, it is necessary to have proof of qualification to perform the activity.

You can prove your qualifications in one of the following ways (§ 21 No. 455/1991 Sb.):

- - - Proof of education in the field. It can be an accredited course or a full-fledged education. If the education was not obtained in the Czech Republic, you can try to confirm the document at the Ministry of Education.
    - Sometimes it is enough to prove your experience in the field. If you have worked officially, e.g. as a carpenter, it will be sufficient to take proof of your experience from your place of work).
    - In some cases you can find a guarantor who is a professional in the field, who after signing a special form takes responsibility that you are trained in the field and are able to work independently. This imposes some restrictions on the guarantor, and also, if he closes his OSVČ, your OSVČ is automatically canceled. But if you do not have the proper qualifications on paper, this is the fastest way to prove your knowledge.

IMPORTANT: Confirmation of qualifications may vary depending on the type of activity!

Vázaná živnost: special services

This category includes specific services such as pest control and disinfection, babysitting a child under 3 years of age, massage, activities in which the integrity of the skin is compromised (§ 24 No. 455/1991 Sb.). A full list of the various activities is provided here. The requirements are similar to craft activities, but special conditions may be added depending on the type of activity.

Why is it important to formalize OSVČ?

Czech legislation requires business registration if the activity becomes regular and is aimed at making profit. By registering OSVČ, you will be able to:

- - - Work legally and avoid fines.
    - Pay taxes and pension contributions.
    - Get official orders and grow your business.

The OSVČ registration terms remain simple, but laws can change. Therefore, if you are in doubt, it is worth contacting a tax advisor or directly to the Office of Trade Licenses.