Company Registration in the Czech Republic

Registration fee is from 2500 €

Registration period — 2 weeks

Minimum authorized capital - 1 CZK

Remote opening — yes

Financial statements — yes

Company Registration in the Czech Republic for Doing Business in the EU

The Czech Republic is an independent country in Central Europe that became a member of NATO in 1999 and joined the EU in 2004. Its capital is Prague.

Registering a company in the Czech Republic can be an attractive solution for entrepreneurs planning to do business in the European Union. Maira Consult recommends opening a company in the Czech Republic for conducting international trade, organizing production processes, and working with European counterparts. Registering a Czech company can also be one of the elements of planning a relocation and obtaining a residence permit in the Czech Republic, provided the established immigration requirements are met.

Company Registration in the Czech Republic

For most types of business activity in the Czech Republic, it is necessary to obtain the relevant trade license (živnostenské oprávnění).

The legislation provides for four main categories:

  • free trades (volná),

  • craft trades (řemeslná),

  • regulated trades (vázaná),

  • and licensed trades (koncesovaná).

Free trades, which cover 82 fields including trade, consulting, software development, and advertising, do not require confirmation of professional qualification.

For craft and regulated trades, professional competence must be confirmed, while for licensed trades a separate permit from a state authority must be obtained.

If a company does not have a person who meets the professional competence requirements for the relevant activity, it may appoint a responsible representative (odpovědný zástupce) who meets the established requirements and ensures the proper conduct of the relevant activity.

A company in the Czech Republic can also be opened remotely through an authorized representative, provided the necessary documents are properly executed. The document requirements and the method of their certification depend on the specific structure of the company and the citizenship of its founders.

Maira Consult provides full support for company registration in the Czech Republic, offers the necessary consultations, and helps you through the registration procedure at every stage.

Czech Republic advantages

1

Remote registration procedure

2

Possibility of obtaining complex licenses

3

Possibility of obtaining a residence permit, provided the established immigration requirements are met.

General Information

Registration Features

To operate in the Czech Republic, a Czech company must obtain a trade license (živnostenské oprávnění). Most common types of activity, such as trade, consulting, and IT services, fall under free trades (volná živnost) and do not require proof of qualification; for other categories, a responsible representative (odpovědný zástupce) may be required.

Company Name

The company name must end with a designation of its legal form, such as "s.r.o."

Authorized Capital

The minimum registered capital for an s.r.o. company is 1 CZK. In practice, founders may set a higher registered capital depending on the needs of the business and the requirements of banks or counterparties.

Director

The director (jednatel) must be at least one natural person. As a general rule, there are no residency requirements.

Shareholders

At least one natural or legal person is required, with no restrictions on residency.

Financial Reporting

All companies in the Czech Republic are required to keep accounting records and file annual reports. In addition, an audit becomes mandatory if the company meets two of the following conditions:

  • annual turnover exceeds CZK 80,000,000, - the value of assets exceeds CZK 45,000,000, or - the number of employees exceeds 25.

Taxation

The corporate income tax rate is 21%.

The standard VAT rate is 21%. Mandatory VAT registration depends on reaching the turnover thresholds set by law. There are two registration thresholds, CZK 2,000,000 and CZK 2,536,500, which have different implications for when VAT payer status arises.

Confidentiality

The state register is publicly available, providing open access to data on the company's director, owner, beneficial owner, and the amount of its registered capital.

Stages of company registration

01

Choosing the name and form of the company

To register a business in the Czech Republic, you must first submit a request to the Czech Commercial Register to verify the uniqueness of the company name. Once the name is confirmed, preparation of the corporate documents begins.

02

Preparation and collection of documents

Each company founder is required to provide a passport, a document confirming their residential address (such as a utility bill), and a certificate of no criminal record issued in their country of citizenship.

03

Identification of company participants

To register a company in the Czech Republic without the founders' personal attendance, a notarized power of attorney is issued for carrying out the registration actions. The originals of the founders' notarized documents and the notarized power of attorney are sent to the Czech Republic by courier service. All documents are translated into Czech by a certified court translator, and the company's articles of association are drawn up before a notary. After that, it is possible to obtain a simple trade license right away and submit the full package of documents to the Commercial Court for registration of the s.r.o. company.

04

Formation of the share capital (if necessary)

The share capital is formed in accordance with the terms set out in the founding documents. If required, a special account is opened for depositing the capital.

05

Company registration

Registering a company in the Czech Republic usually takes between 7 and 14 business days, depending on document preparation, obtaining the necessary permits, and the workload of the registration authority.

06

Receiving of corporate documents

Once the company is registered in the Czech Republic, the Commercial Register provides all the corporate documents bearing the necessary markings.

07

Legalization of documents (if necessary)

If needed, the Czech company's documents are sent for apostille and legalization.

08

Delivery of corporate documents

The originals of the Czech company's documents are handed over for courier delivery.

Answers to the Most Common Questions:

The Czech Republic is attractive for doing business thanks to its location in Central Europe, EU membership, stable economy, and favorable conditions for entrepreneurship.
To register a company in the Czech Republic, it is necessary to choose a unique name, determine the legal form, prepare the founding documents, appoint a director, obtain the required licenses, and submit the documents to the Commercial Register. The process can be carried out remotely.
The cost of registering a company in the Czech Republic starts at 2,500 euros, including document processing and the state fee.
Registering a company in the Czech Republic takes about two weeks from the moment all the required documents are submitted.
To open a company in the Czech Republic, you need a unique name, a determined legal form, prepared founding documents, an appointed director and founders, obtained licenses, and documents submitted to the register.
The corporate tax rate in the Czech Republic is 21%. The standard VAT rate is 21%, and VAT registration is mandatory once annual turnover exceeds CZK 2 million.
Liquidating a company in the Czech Republic costs from CZK 50,000 (about 2,000 euros), depending on the scope of work and the specifics of the process.
The Czech Republic does not offer offshore status, but it is possible to purchase a ready-made company with a history, which speeds up the start of operations.
The Czech Republic offers such forms as a limited liability company (s.r.o.), a joint-stock company (a.s.), a sole proprietorship, and others.
Yes, registering a company in the Czech Republic can be done remotely using notarized documents and a power of attorney.

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