COREDO > Company Formation in the Czech Republic

Company Formation in the Czech Republic

Why Register a Company in the Czech Republic

The Czech Republic is a stable and attractive EU jurisdiction with a developed economy, strong infrastructure, and a strategic location in the heart of Europe. It provides access to the EU single market, transparent company registration, 100% foreign ownership, and a favourable tax environment supported by an extensive double taxation treaty network.

COREDO is based in Prague and ensures efficient support for company formation and business structuring for international clients.

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Cost of the service
from 1 250 EUR

Types of Companies in the Czech Republic

The legislation of the Czech Republic provides for several legal forms for conducting business, regulated by the Act on Business Corporations (Zákon o obchodních korporacích, Act No. 90/2012 Coll.).

S.r.o. (společnost s ručením omezeným)

The most common form of doing business in the Czech Republic. A minimum of one participant is required for incorporation. The minimum share capital is CZK 1, and the minimum contribution of each participant is also CZK 1. The liability of participants is limited to the amount of their contributions. This form is optimal for small and medium-sized businesses, startups, and foreign investors seeking a simple management structure with limited personal liability.

A.s. (akciová společnost)

Suitable for large-scale projects and companies planning to attract significant investments. The minimum share capital for a private joint-stock company is CZK 2,000,000 (approximately EUR 80,000), and for a public company — CZK 20,000,000 (approximately EUR 800,000). Management is carried out by a board of directors and a supervisory board.

K.s. (komanditní společnost)

Includes general partners (komplementáři) with unlimited liability and limited partners (komanditisté) whose liability is limited to their contributions. This form is used in projects where some participants contribute management expertise while others contribute capital.

V.o.s. (veřejná obchodní společnost)

Requires a minimum of two participants, each of whom bears unlimited liability for the obligations of the partnership. This form is used primarily for professional consulting practices, audit firms, and small joint ventures.

Branch of a foreign company

A foreign company may open a branch in the Czech Republic without minimum capital requirements. A branch is not an independent legal entity and acts on behalf of the parent organisation. This option is suitable for companies wishing to test the Czech market or commence operations in the Czech Republic without establishing a separate legal entity.

Company Registration Procedure

Registration of a legal entity in the Czech Republic is carried out through an entry in the Commercial Register (obchodní rejstřík) at the regional court (krajský soud). The procedure includes the following main stages.

The first stage

Involves the preparation of founding documents. For a company with multiple founders, a společenská smlouva (memorandum of association) is drawn up; for a sole founder — a zakladatelská listina (deed of establishment). Both documents require notarial authentication.

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The second stage

Involves obtaining a trade licence (živnostenský list) from the trade licensing office (živnostenský úřad). The type of licence depends on the chosen field of activity.

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The third stage

Involves depositing the share capital into a special bank account and submitting the application for registration with the Commercial Register. When using direct notarial registration, the process can be completed within one business day.

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The fourth stage

Involves registration with the tax authorities (Finanční úřad), which must be completed within 15 days of the entry in the Commercial Register. The company is also required to register its beneficial owners in the Register of Beneficial Owners (Evidence skutečných majitelů), which has been mandatory since 2018.

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The fifth stage

Involves registration as a payer of social and health insurance contributions (if the company has employees) and, if necessary, registration as a VAT payer. Companies with a turnover exceeding CZK 2,000,000 over 12 consecutive months are required to register for VAT.

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Required Documents

The following documents are required for company registration in the Czech Republic: a memorandum of association or deed of establishment in notarial form specifying the company name, registered office address, share capital amount, and distribution of shares among participants; identity documents of the founders and directors; proof of a registered office in the Czech Republic (consent of the property owner); confirmation of share capital deposit; and an extract from the commercial register of the founder’s country of origin (for foreign legal entities). Documents in foreign languages must be translated into Czech by a sworn translator and apostilled in accordance with the Hague Convention (for member states) or legalised through diplomatic channels.

Registration Timeline

With direct registration through a notary, the company can be entered in the Commercial Register within one business day. The standard procedure takes 1 to 5 business days, provided that a complete set of documents is submitted. After entry in the Commercial Register, the company receives an identification number (IČO) and can immediately commence business operations. Information about the registered company becomes publicly available through the electronic Commercial Register (or.justice.cz), ensuring transparency of business operations in the Czech Republic.

Timelines may be extended if specialised licences are required (for example, for financial activities) or if additional documents are requested from foreign founders.

Requirements for Directors and Founders

Czech legislation does not impose residency requirements on founders and directors — foreign citizens may serve in both roles without restrictions. A director (jednatel) of an s.r.o. must be a natural person who has reached the age of majority and has no criminal record for economic offences. For the appointment of a non-resident director, an extract from the criminal records register of the country of citizenship is required, translated into Czech.

Founders of an s.r.o. may be natural persons as well as legal entities, including foreign companies. A sole founder may simultaneously serve as the sole director, simplifying the management structure for small enterprises. There is no statutory limit on the maximum number of participants in an s.r.o. Decisions of participants are adopted at the general meeting (valná hromada), with each participant having a number of votes proportional to the amount of their contribution.

Cost of COREDO Services

Service	Cost
Company formation in the Czech Republic (s.r.o.)	from EUR 1,250 + VAT

The Czech Republic is COREDO’s home jurisdiction, ensuring deep knowledge of local legislation and prompt interaction with government authorities. The package includes: preparation of founding documents, notarial authentication, registration in the Commercial Register, registered office for 12 months, obtaining trade licences (živnostenský list), state fees, and necessary document translations. Remote registration is available — the director and founder do not need to be physically present in the Czech Republic. The minimum share capital for an s.r.o. is CZK 1 (since 2014), and there is no requirement to open a separate bank account for the share capital deposit. Standard timeframe: up to 1 week from receipt of all required documents.

Tax System of the Czech Republic

The tax system of the Czech Republic is transparent and competitive. The standard corporate income tax (CIT) rate is 21%. The standard value-added tax (VAT) rate is 21%, with a reduced rate of 12% (applicable to food products, medications, and a number of other goods and services). The dividend tax rate for residents is 15%. A preferential CIT rate of 5% is provided for investment funds.

The tax year coincides with the calendar year — from 1 January to 31 December. The annual tax return must be filed by 1 April of the following year (if filed through a tax advisor — by 1 July). The Czech Republic has concluded double taxation agreements with more than 90 countries, creating favourable conditions for international business structuring.

Employers are required to pay social insurance contributions of 24.8% of the payroll (pension, health, and unemployment insurance). Employee contributions amount to 11%. Tax reporting is submitted electronically, simplifying administration and reducing operational costs. Mandatory paper reporting was abolished in 2015, with all returns filed through the electronic portal of the financial administration (EPO).

Our Experts

The COREDO team has been operating since 2016 and is based in Prague — the capital of the Czech Republic. The Czech Republic is COREDO’s home jurisdiction, ensuring deep understanding of local legislation and prompt interaction with government authorities.

Nikita Veremeev

Founder & NED of COREDO. Founded the company in 2016 and personally oversees the strategic development of the business across dozens of jurisdictions.

Pavel Kos

Head of Legal. Has been part of the COREDO team since June 2017, responsible for legal support of corporate projects and company registration.

Daniil Saprykin

Head of Customer Success. Ensures coordination of processes and client support at all stages of registration.

Frequently Asked Questions

What is the minimum share capital for an s.r.o. in the Czech Republic?

The minimum share capital for a limited liability company (s.r.o.) is CZK 1. This rule has been in effect since 1 January 2014 in accordance with the Act on Business Corporations (Act No. 90/2012 Coll.). The minimum contribution of each participant is also CZK 1.

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

With direct notarial registration, the company can be entered in the Commercial Register within one business day. The standard procedure takes 1 to 5 business days, provided that a complete set of correctly executed documents is submitted.

Does the founder need to be a resident of the Czech Republic?

No, Czech legislation does not impose residency requirements on founders and directors. Foreign citizens may register a company in the Czech Republic on general terms.

What tax advantages does the Czech Republic offer for business?

The Czech Republic holds one of the leading positions in the EU in terms of tax system competitiveness. In addition to the standard CIT rate of 21%, the country provides a preferential rate of 5% for investment funds and 0% for pension funds. The Czech Republic has concluded double taxation agreements with more than 90 countries, enabling the optimisation of international tax obligations.

What makes the Czech Republic special as a jurisdiction for COREDO?

The Czech Republic is COREDO’s home jurisdiction. The company’s headquarters are located in Prague, and the company is registered in the Czech Republic. This ensures direct access to local government authorities and deep knowledge of Czech legislation.

Order a Consultation

COREDO specialists provide full support for the company registration process in the Czech Republic — from preparation of founding documents to entry in the Commercial Register and tax registration. We have been operating since 2016 and are based directly in Prague, ensuring the most prompt and high-quality service. Our team handles interaction with notaries, trade licensing offices, and tax authorities, providing full support at every stage.