Registered a company in Czech Republic help foreign investors benefits from the country’s trade relationships and commercial ties with most of the business centres in the world. Company formation in Czech Republic ranks in international trade and take advantage for ease of doing business. With establishing a Czech Republic company, it opens wide access to Central and Western Europe as Czech Republic is a part of several associations such as OECD,EU, WTO and NATO. The Czech Republic is small but stable economic in the centre of Europe with a very skilled and educated workforce and a cheaper labour costs. Companies operating in the Czech Republic can access the non-tariff consumer market through the country’s EU membership and free trade with Iceland, Liechtenstein, Norway and Switzerland through other agreements.

Company Formation in Czech Republic

The legislation available in Czech Republic provides a set of legal entities, similar with the ones available at the level of the European Union (EU). When starting the procedure of company formation in Czech Republic, it is necessary to know the advantages of each business form. Czech Republic provides the following types of companies:
– limited partnership: incorporated by at least two partners, in which one assumes unlimited liability, while the other has limited liability for the company’s debts;
– general commercial partnership: this business form can be set up by minimum two partners, who can be natural persons or legal entities;
branch office – set up by a local or foreign company and which acts as a commercial representation of that company;
– limited liability company (SRO): it represents the most popular business form incorporated in Czech Republic and it needs a capital of CZK 1;
– joint stock company (AS): it can be set up as private or public company and the company’s capital will depend on this aspect (a private joint stock company will require a capital of CZK 2 million, while the public company will require CZK 20 million for incorporation);
– cooperative: incorporated by at least five natural persons; the business form can also be set up by legal entities and, in this case, at least two entities are needed;
– European joint stock company, also known as Societas Europaea, can be set up in Czech Republic under the Council Regulation (EC) No. 2157/2001.

Czech limited liability company

The Czech limited liability company (Spolecnost s Rucenim Omezenym-SRO) is usually preferred for small and medium sized businesses and it is a popular legal entity, due to its requirements. It can be established either by one founder (person or legal entity) or by an association of maximum 50 persons. An SRO with a single shareholder can’t set up or be the sole shareholder of another SRO. At the same time, one individual can be the sole shareholder of only three other limited liability companies.

Czech joint stock company

Setting up a joint stock company (Akciova Spolecnost-AS) requires at least two shareholders or one corporate body, a managing board which is controlled by a supervisory council and must have a local address. There is also a demand for a higher minimum share capital – CZK 2 million (in the case of a private joint stock company) – and this is the reason why it is generally chosen by large companies. In case the company is set up through a public offer of shares, the capital required is CZK 20 million.

Steps for company formation in the Czech Republic

Some of the basic steps for opening a company in the Czech Republic are presented below, and our team of specialists can provide legal advice on each of the following:
– choose the most appropriate business form for conducting a business activity in the Czech Republic (the most popular legal entities are represented by limited liability companies and joint stock companies);
– provide four options for the proposed company name and open a corporate bank account;
– prepare the company’s statutory documents, the memorandum of association and the notarial deed;
– notarize the Czech company’s documents in front of a public notary in the Czech Republic;
– once the company’s documents are signed and notarized, the company’s representatives have to register the legal entity with the Commercial Register;
– in order to register with the Commercial Register, it is necessary to fill in a special form with the Register Court, the entity which administers the Czech Commercial Register;
– it is also possible to register with the Commercial Register through the public notary.

The main requirements for company formation in Czech Republic

The company set up in Czech Republic has to be registered with the Trade License Office and this is a compulsory requirement for company formation in Czech Republic. To obtain the trade license, the following documents are required when starting a company in Czech Republic:
– the statutory document for companies that have not yet been registered with the Commercial Register;
– the excerpt from the Register – this is applicable for companies that have already been established;
– the lease agreement of the office space, which shows that the company has an official business address;
– the payment proof of the administrative fee, imposed to all companies requiring this service.

In no more than 90 days since the company was set up or the trade license was released, the businessmen must register with the Commercial Register of the Regional Commercial Court. Along with the standard application for company formation in Czech Republic, the founders must submit:
– the articles of association – the main statutory documents of a business set up in Czech Republic;
– documents attesting the right to develop business activities on the Czech Republic territory;
– confirmation from the administrator of the registered capital and an extract from the Trade Licenses Register;
– a certificate from the bank stating the deposited capital, which can vary depending on the company’s business form;
– a list with the company managers and their signature and consent for the registration into the Commercial Register;
– clean criminal records for all representatives and members of the company registered here.

The owners must submit an application at the Tax Office for the income tax, withholding tax and payroll tax registration and for the VAT registration no later than 15 days since the company was registered. As a result, the newly formed entity will receive a tax identification number. The last step of incorporation is the registration for social security and health insurance, within eight days after the first employee was hired.

How we can help you

If you are considering forming a business or you need expert help with company registration in Czech Republic, LegalGenius™ is ready to assist you with its skilled team of lawyers, consultants and tax experts. We are committed to making the process as stress-free and streamlined as possible for you, and we will take care of all your document preparation and administrative tasks regarding the registration forms, payment of government fees, local address registration, banking support, etc., whilst always keeping your exact objectives and unique vision in mind throughout the process.

Please use our Company Formation Wizard if you would like to set up your registered company in Czech Republic or if you would like to know the costs involved prior to proceeding with our exceptional services. For other queries and special requests for complex or customised company formation services, please contact us at