Setting up a company in the Czech Republic
If you’re setting up a company in the Czech Republic, you’re probably not doing it for the beer, the delights of Prague or the country’s multiple UNESCO sites.
They are just an added bonus.
The country, officially dubbed as the ‘heart of Europe’, is a perfect base in the EU with a highly educated and great value workforce.
How to set up a business in the Czech Republic
Even if you’re not a Czech citizen, you can still set up a company or a branch office and conduct business activities.
Step 1: Decide on the company name and what kind of company structure you want. At the moment, several types of businesses are allowed to operate in the Czech Republic — LLCs, limited partnerships, joint stock, and commercial partnerships are the most common ones. LLCs and joint stock companies require you to create a notary deed by a Czech authority. LLC (s.r.o. in Czech) is the most frequent type of company in the Czech Republic, it’s easy to establish and run.
Step 2: If you opt to create capital companies like LLC, you’ll need to open up a bank account (a separate bank account would be required to add minimum share capital of CZK 20,000 or more — the minimum amount being CZK 1/member for an LLC, and CZK 2,000,000 for a joint stock company.
Step 3: Once done, ensure you have the following documents at hand so you can register your company with the Commercial Register:
- Address of registered office and company name
- Consent of the owner of property, where the registered office will be located (with officially verified signature)
- Proof of minimum share capital in the bank (for share capital higher than CZK 20,000)
- Consent forms/affidavits from company executives
- Powers of attorney (if someone else is signing for you)
- Trade licence registration (you may require a representative for trade licence clearances depending on the type of business)
- Company memorandum and articles of association (these need to be notarised, too)
Step 4: If your application is approved, the next step would be to get a tax identification number (you can get it when you register for income taxes), to create a business account and to create a company data box.
Your local champion
The process is difficult, especially if you are not familiar with the Czech legal system, and it’s easy to make mistakes - which would not be a great start for your Czech company.
You’ll need someone who understands the ins and outs of company law, registration, and the advantages of opening a company in the Czech Republic to be able to smoothly navigate the process.
Luckily for you, we have the expertise you need. If you wish to learn how we can help you, get in touch.