Company Formation in Czech Republic

In recent years Czech Republic simplified the process of company formation. Now the whole process is shorter (it takes about 14-18 working days to form company) and accessible even for non-residents. The costs of assisted company formation are 990 eur.

When talking about company, we mean Limited liability company (in Czech “” or “spol. s r.o.). This type of company is very popular, because company´s partners are not responsible for its debts. Formation of other types of companies (Partnerships, Limited Partnerships) is very similar.

Below we summarize the process of company formation in Czech Republic

  1. All the partners of the company must sign Memorandum of association. If there is only one partner, he/she must sign Deed of establishment. This is company´s main document and it must contain these basic information about company: business name, address of registered seat, identification of partners and executive directors, scope of business and the value of the stock capital. Document must be signed by all partners and their signatures must be officially authenticated.

Partners are legal or natural persons who own a share in a company. The profit of the company is divided between them.

Executive directors are statutory body of the company, which means they act in the name of the company. Normally they are natural persons, but it is allowed for legal person (for example another company) to become an executive director.

EXAMPLE: Company A is an executive director of company B. Company A must designate person to act in the name of the company B. If company A decides to replace the person acting in the name of company B it is sufficient to designate another person to the position of executive director. It is not required to change the Memorandum of association.

It is allowed for one person to be both: an executive director and a partner.

  1. Executive directors must obtain their criminal records extract not older than 3 months.

Executive director – EU citizen must obtain criminal records from his country.

Executive director – citizen of non EU-country must obtain criminal records from his country and from Czech Republic.

Except this, all executive directors must give declaration on oath, that they fulfill all conditions laid down by the law. Declaration must be officially authenticated.

  1. The right of the company to use the property as its registered seat must be proved. The company needs to acquire property ownership title or consent of the owner. Signature of the owner must be officially authenticated and can not be older than three months.

In the Memorandum of association, it is not needed to include the exact address of the property; it is sufficient to include the city. This way company can change its seat within the city without changing the Memorandum of association. In the business register, the exact address must be included.

  1. Company needs to obtain a Trade license (a license to carry out business). There are two kinds of licenses:
  • Unqualified licenses – these licenses are accessible for everyone,
  • Professional (qualified) licenses – higher education or other qualification is required for these licenses to be granted. Company´s partner, executive director or company´s employe (at least one of them) must have such qualification or education (person with such qualification or education is responsible representative).

The costs of the license registration are 1 000 CZK (about 38 eur) per one registration (irrespective of the number of licenses). Later the costs of the registration are only 500 CZK (19 eur) per registration (irrespective of the number of the new licenses)

  1. Stock capital must be paid. The minimum value of stock capital is only 1 CZK (40 eurocents)

Stock capital must be paid to custodian of contributions (it is allowed for one of the partners to be custodian of contributions). Custodian of contributions opens a separate bank account and partners are obliged to pay their contributions to this account. Custodian of contributions issues a Declaration of paid contribution for each partner.

  1. On the basis of the application signed by all of the executive directors (not partners), competent court shall incorporate the company into business register and issues Declaration of incorporation. After this declaration is submitted to bank, it releases financial resources located on a separate bank account (see previous paragraph).

The application must be submitted on a standard form available at Ministry of Justice´s website ( It can be submitted online (advanced electronic signature is needed) or by postal service (authentification of signatures is needed).

  1. Finally, all that is left is registration for corporate income tax. The company must apply for such registration at a financial office. After such application is submitted, the financial office will issue Declaration of registration. To simplify the process, this registration can be done together with registration for trade license. At this point, company formation process is over and the company is ready to run.
  1. Registration for value added tax is voluntary in Czech Republic. Registration is obligatory if the turn-over of the company crosses 1 000 000 CZK (about 37 000 eur).

Existing Czech legislation offers several advantages for entrepreneurs:

  • Relatively simple corporate VAT registration without the need for providing financial collateral
  • A lower income tax rate of 19% in comparison to Slovakia (22%)
  • No tax licences to buy
  • A member’s contribution to the registered capital can be as little as CZK 1.00
  • Consent is not required from the tax administrator for the sale of a company or transfer of equity interest.
  • Low vehicle registration fees

The process of forming a company in the Czech Republic is as follows:

  • During the initial consultation, you will tell us about your business vision. We will help you select suitable core business activities, an address for the company’s registered office, a trading name and other essential particulars required to form a company. Consultations can be in person, by telephone or by e-mail.
  • We will prepare all the documentation required to form a company in the Czech Republic.
  • Once the documentation is signed, you will give us authorisation to represent you at the Commercial Register, Trade Licence Register and the Tax Office.
  • We will open a bank account where the registered capital will be deposited.
  • We will pay all the required fees at the Commercial Register and Trade Licensing Office.
  • Once the company has been registered in the Commercial Register, we will give you the entire documentation, including an extract from the Commercial Register of the Czech Republic.

What does it cost to form a company in Czech Republic?

How long does it take to incorporate the company in Czech Republic?

  • Total cost: EUR 990
  • 14 - 18 business days

Optional company formation services in Czech Republic:

  • Virtual registered office for your company in the Czech Republic from EUR 30/month

  • Accounting for your company in the Czech Republic from EUR 70/month

Our services are contractually guaranteed:
  • Fixed price with no hidden fees.
  • Your company will be registered in the Commercial Registry within the agreed time, guaranteed.
  • Services throughout the SlovakRepublic, CzechRepublic and Hungary are provided by a contracted partner of, FONTIONNEL s.r.o., which has already served more than 2,500 satisfied clients.

Contact form - corporate services

Your Name *
Your Email *
Your Phone Number *
Type of service you are interested in *
Your message for us
Verify *