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company in czechia

Establishing Company in Czechia

   Czechia has become one of the most attractive locations for entrepreneurs who want to establish a company in the heart of Europe. With a stable legal framework, EU membership, low incorporation costs, competitive tax rates and investor-friendly regulations, the country provides efficient incorporation options for all company types, including s.r.o. (LLC), a.s. (joint-stock company), v.o.s. (general partnership), k.s. (limited partnership) and cooperatives. Between these company types, forming a limited liability company (s.r.o.) is the most common choice for both residents and foreign investors.

   As a law firm, we provide end-to-end legal support for clients wishing to establish a business in Czechia — from choosing the optimal legal structure to drafting incorporation documents, representing clients before the notary, ensuring Commercial Register entry, and assisting with post-incorporation requirements.

What Are the Types of Companies in Czechia?

Limited Liability Company (s.r.o.)
Joint-Stock Company (a.s.)
General Partnership (v.o.s.)
Limited Partnership (k.s.)
Branch Office of a Foreign Company
01
Limited Liability Company (s.r.o. – společnost s ručením omezeným)
It is the most popular structure, suitable for small and medium-sized businesses. It can be incorporated by a single shareholder. Minimum share capital is 1 CZK. Shareholder liability is limited to unpaid capital contributions
02
Joint-Stock Company (a.s. – akciová společnost)
Preferred for larger corporations, this structure requires a minimum share capital of 2,000,000 CZK. It features either a dualistic or monistic management structure, with shares that can be privately or publicly transferable.
03
General Partnership (v.o.s. – veřejná obchodní společnost)
A General Partnership (v.o.s.) requires no minimum share capital but subjects all partners to unlimited, personal, and joint liability for the company’s debts.
04
Limited Partnership (k.s. – komanditní společnost)
A general partner has unlimited liability, while a limited partner is liable only up to their contribution. This creates a flexible partnership structure.
05
Cooperative (družstvo)
It requires a minimum of three members and is used for collective economic activities.

Which Type of Company Should I Choose?

   The appropriate company type depends on your business model, liability preferences, investment scale, and future expansion plans.

  • s.r.o. – Best option for most entrepreneurs, startups, foreign investors, and SMEs due to low capital requirements and limited liability. You don’t need to be in Czech Republic while establishing this type of company.
  • a.s. – Suitable for large-scale investments, corporate governance structures, or businesses planning to raise capital.
  • v.o.s. – Appropriate only when partners accept unlimited liability (e.g., certain professional activities).
  • k.s. – Useful for investment partnerships or mixed-liability structures.
  • Cooperative – Designed for collective and member-driven activities.
Most foreign investors choose s.r.o. because it combines simplicity, flexibility, and legal protection.

What Are the Mandatory Requirements for Opening a Company in Czechia?

   The main legal requirements include:

1. Founder and Managing Director Information
  • Passport/ID details
  • Residential address
  • Criminal record is not required for s.r.o. incorporation
2. Registered Office Address
  • Every company must have a verifiable Czech business address, confirmed by the property owner’s written consent.
3. Share Capital
  • Minimum 1 CZK for s.r.o.
  • Higher thresholds for other company types (e.g., 2,000,000 CZK for a.s.)
4. Notarial Deed
  • The incorporation deed or articles of association must be executed as a notarial deed in Czech.
5. Trade License or Business Activity Selection
  • Some activities require notification only; others require proof of qualification.
6. Commercial Register Registration
  • All documents must be filed with the Czech Commercial Register for the company to gain legal existence.

Step-by-Step Process to Open a Company in Czechia

1
Choose Company Type and Name

Select the appropriate legal structure. Ensure the company name is unique and not confusingly similar to existing entities.

2
Prepare Founder and Director Information

Collect relevant documents and determine the ownership and management structure of the company

3
Secure a Registered Office Address

Obtain written consent from the property owner. Prepare the address documentation for the notary.

4
Draft the Incorporation Documents

Prepare the founding deed or articles of association. Draft managing director declarations and required statements.

5
Execute the Notarial Deed

Sign the incorporation documents before a Czech notary. Foreign investors may incorporate via power of attorney, without traveling to Czechia.

6
Deposit the Share Capital

For simple s.r.o. structures, the managing director may declare capital deposited without bank proof. For higher capital amounts, a bank certificate may be required.

7
Submit Application to the Commercial Register

The notary may file the application directly. Registration usually takes a few days.

8
Obtain Trade Licenses (if applicable)

If your business activity requires, you need to get a trade license, check the regulated professions or special business activities.

9
Post-Registration Steps

Get a tax identification number, open a corporate bank account and set-up accounting

What Are Your Responsibilities After Establishing the Company?

After incorporation, companies must comply with several ongoing legal obligations:

  • Maintaining proper accounting records
  • Filing annual financial statements
  • Paying corporate income tax and submitting tax returns
  • Keeping corporate documentation updated (e.g., address, directors, shareholders)
  • Renewing business licenses, if applicable
  • Registration of ultimate beneficial owners (UBO)
  • Compliance with employment and social security rules, if the company hires employees
  • Failure to fulfill these obligations may lead to penalties or even dissolution proceedings.

What Are the Consequences of Non-Compliance with Legal Obligations?

     Non-compliance under Czech law can lead to several serious consequences for businesses. These may include financial penalties imposed by tax authorities or trade offices, the invalidation of business licenses, and restrictions on a company’s ability to operate. In severe cases, authorities may even decide on forced liquidation or remove the company from the Commercial Register, which can have long-lasting impacts on its operations and reputation.

     In addition to corporate consequences, managing directors can face personal liability if their actions or negligence contribute to the breach of legal obligations. When intentional misconduct is proven, criminal liability may also apply. Because these risks can significantly affect both the company and its leadership, proper legal oversight is essential to ensure compliance and avoid unnecessary complications.

How do we help you?

   For foreign clients, the entire incorporation process can be handled remotely. It means that for some types of company you don’t need to be in Czechia. Especially for s.r.o. formation, no physical presence in Czechia is required. So, we can help you with all the process without you being in Czechia. 

   Our services include:

  • Drafting all incorporation documents
  • Bilingual power of attorney (CZ–EN)
  • Full representation before the notary
  • Corporate declarations and internal documents
  • Registered address consent and documentation
  • Direct entry into the Commercial Register
  • Apostille & certified translations
  • Assistance with bank account opening
  • Tax registration guidance
  • We ensure full compliance with Czech corporate and commercial law throughout the process.

If you want to open a company in Czech Republic

Feel free to reach out!

Contact Now!
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