Czech Republic Company Formation

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Czech Republic

Company Formation and Related Services



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Whenever you need to start doing business immediately in a European country and you need a company with a VAT number, you don’t have to wait for the bureaucratic procedures.

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Set up a Czech company

June 21, 2010, 12:42 pm

Czech Republic can become an interesting objective for business development, due to the modernizations accomplished in many sectors, including infrastructure and new potent area to invest, beside tourism, telecommunication and banks.

The most common business types established on the Czech territory are the limited liability and the joint stock company. In order to set up a company in Czech Republic, for both forms there must be obtained 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 in setting up a Czech company is obtaining the criminal records for the founders and records of the owned real estates from the Czech point Offices.

After that, a proof that the company’s capital was deposited in a bank must be obtained. To set up a Czech Company, the entrepreneur must deposit as share capital a minimum of 200,000 CZK for a Limited Liability Company. The share capital is deposited into a blocked bank account.

Another important aspect is the notarizing of the articles of association, procedure that implies certain costs that depend on the amount of the share capital deposited. In this sense, the fees start from 4,000 CZK to a maximum of 113,000 CZK, including the VAT.


Register with the Trade Licensing Office

An essential phase needed to set up a Czech company consists in the registration procedure for a trading license. This is made based on an application filled and submitted at the one stop shop and having attached a clean criminal record, a proof that the property can be used for conducting that sort of business and an administration fee. If the business is established by a foreign investor, it has to attach a residency proof and a translation in Czech of all the documents. As a result, the entity is receiving a trade license statement.



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.

Since January 2013, the income tax and general registration must be performed in 30 days from the registration with the Commercial Register. 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).

The sale ruling issued in January 2013 also provides an eight day deadline for depositing the withholding tax and payroll registration.

A company must register for VAT purpose within 15 days from the end of the month in which the company becomes eligible for VAT.


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.


Set up a Czech company from abroad

A Czech company can be set up 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 required to set up a Czech company 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 20 days if all the documents are properly submitted on time.


BridgeWest offers Company Formation in Czech Republic.

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Company Formation in Czech Republic


BridgeWest offers company incorporation services in the Czech Republic. Our services include:

- drawing up the articles of association that can be signed through power of attorney (Czech laws require powers of attorney for any public ... [More]

Lawyers in Czech Republic


BridgeWest provides a wide range of legal services in Czech through our affiliated Czech lawyers and Law Firms in Prague and other major cities in Czech. We are mainly specialized in the main aspects of Czech Commercial Law, including Company Form ... [More]