Czech Company Registration

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Introduction to Czech company formation

Entrepreneurial even during the Communist era, the Czech Republic has seized every opportunity to demonstrate their free-market credentials since joining the EU in 2004. Today the country offers a stable and welcoming home to foreign investors, but to make the most of the opportunities here, you need local knowledge. As specialists in Czech company registration, we provide a wide range of company formation services to help you set up business in the Czech Republic . Please contact us for more information.

Click here to see if your company name is available in the Czech Republic.

What are the main types of Czech company registration?

There are four main types of company for foreign investors to incorporate in the Czech Republic:

  • Limited Liability Company (SRO)
  • Joint Stock Company(AS)
  • Partnership
  • Branch

Speak to one of our Czech company registration experts now.


What are the main features of a Limited Liability Company (SRO)?

  • Total share capital to be at least CZK 200,000 (€7,000), with at least 50% paid up
  • Each shareholder to contribute minimum of CZK 20,000 (€700)
  • An individual may be a sole shareholder in no more than three SROs
  • A reserve fund from the profits should be built up to 10% of the registered capital

We are Czech Company Formation Specialists with a long standing relationship with local businesses in the region.


What are the accounting/audit requirements for a Limited Liability Company (SRO)?

A statutory audit for SROs in the Czech Republic is mandatory if at least two of the following criteria are met:

  • Balance sheet exceeds CZK 40 million (€1.4 million)
  • Net turnover exceeds CZK 80 million (€2.8 million)
  • Number of employees exceeds 50


What are the main features of a Joint Stock Company (AS)?

  • Minimum share capital CZK 2 million (€70,000)
  • If the share capital comes via a public offering, the minimum amount is CZK 20 million (€700,000)
  • 30% of share capital must be paid up
  • Two-tier system comprising management and supervisory boards
  • Reserve fund from the profits to be built up to 20% of the registered capital

Set up business in the Czech Republic today!


What are the accounting/audit requirements for a Joint Stock Company (AS)?

A statutory audit is mandatory for an AS if at least one of the following criteria is met:

  • Balance sheet exceeds CZK 40 million (€1.4 million)
  • Net turnover exceeds CZK 80 million (€2.8 million)
  • Number of employees exceeds 50


What are the main forms of Partnership in the Czech Republic?

There are two main forms of Partnership under Czech Corporate Law:

  • General Partnership – all partners have equal and unlimited liability
  • Limited Partnership – at least one partner has limited liability


What are the main features of a Branch?

  • Branches are not separate legal entities, but part of a foreign parent
  • Branch manager may be Czech or foreign national
  • Branch requires trade licence before it can be registered
  • Accounting records to be prepared in Czech language


Czech Incorporation

How easy is it to recruit staff in the Czech Republic?

The unemployment rate in the Czech Republic is much lower than in neighbouring Poland and Slovakia, although it remains a pressing issue. If you are seeking to hire Czech staff, you should have no trouble finding well-educated and motivated applicants, however, labour laws are complex. If you are considering Czech incorporation and would like advice on the best way forward, please contact one of our recruitment specialists in Prague.


What is the regulatory environment like for those considering Czech incorporation?

The Czech Republic has made strong progress in its efforts to liberalise the business environment; 85% of the economy is now in private hands, Corporate Tax was cut from 26% to 24% in 2006, and foreign investment, reflecting this trend, has soared. However, there is still plenty of red tape around, which is why it is essential to secure expert advice on legal and accounting issues. For more details, please contact us.


Are there financial incentives available?

The Czech authorities offer a wide range of financial incentives for foreign investors looking to establish a company in the Czech Republic:

  • New manufacturing investment can obtain ten years’ full relief of Corporate Tax
  • Technology and business investments can recoup 50% of costs from the state
  • There are also substantial job-creation and training grants available


How easy is it to close a Czech company?

Please click here for further details and services on closing a company.


Czech Company Formation

And what about banking facilities?

Foreign investors are well served by an array of international and local banks now operating in the Czech Republic. It is worth noting, however, that setting up a corporate bank account can be a complex procedure. Make it simple – talk to us if you are considering Czech incorporation and we will arrange everything on your behalf.


To talk to a Czech Republic formation specialist call us on

+44 (0)208 421 7470, 

Speak to us live on Live Chat,

or simply fill in the enquiry form below and we’ll get back to you.



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Company Name Check Service

In the Czech Republics, company names have to be approved first to see if they are acceptable as well as available for use. They will only be rejected if they are the same or similar phonetically or in spelling of an existing company or if the name implies state ownership or sponsorship. Certain words such as Insurance, bank or group may require special permissions. Click here to fill in our form and get your name checked now…