Setting up a Czech company

The most common business types established on the Czech territory are the limited liability and the joint stock company. In order to function, both company types must obtain a commercial license through the Companies Registrar.

Preliminary activities before registering A Czech Limited liability (LLC) and Czech joint stock companies (JSC)
Before a Czech company is eligible for registration with the Companies Registrar, the founders must adopt a company charter for JSC, or a document proving the association for LLC, functioning as a guideline for the structure, role, capital and purpose of the activities of the company. Here the founders should enlist their names, address, occupation within the company and amount or value of their contributions. The company must decide and obtain a certificate for a unique trade name. The next step includes obtaining extracts at Municipal Office, Czech Post Office and at Czech Chamber of Commerce. The company needs to open a bank account and to notarize the confirmation, along with a clean criminal record, and an affidavit from the company managers.
 
Register in the Czech Business (Commercial) Registry of the Regional Commercial Court
The founders of a Czech company must apply for registration at the Business Registry of the Regional Commercial Court. In their application the founders must submit the company's articles of association, documents attesting the right to develop business activities at a certain address, on the Czech Republic territory, confirmation from the administrator of the registered capital and a confirmation from the chosen bank, that the capital is held in the company's bank account. Attached to the application, the founders must also include documents on the company managers and their signature, along with their consent to their registration into the Commercial Register.

Registration for taxes in the Czech Republic
After registering the Czech LLC or JSC with the Companies Registrar, the founder must submit an application at the Tax Office for the income tax, withholding tax and payroll tax registration and for the VAT registration. This must be done in a deadline of 15 days. Upon submitting the application for income tax registration, the company receives a tax identification number (same number as for the VAT and the income tax).
 
Register for social security and health insurance
 In conformity with the Czech law every registered company must also be registered for social security, within 8 days after the first employee is hired. The same rules apply for registering with health insurance.

Founding a Czech company from abroad
A Czech company can be formed from abroad with the help of an assignee who conducts the required activities for registration. A local law firm may be the best choice, assigning an attorney to handle the necessary documents.

How long does it take to found a Czech company?
Most of the procedures take one or two days to finish, except the registration at the Companies Registrar, which takes about a week. A Czech company is established in approximately 17 days.