How to Open a Bank Account in the Czech Republic

1. Why Opening an Account Is Not a Formality

Czech banks are extremely cautious when onboarding foreign-owned companies. Besides fulfilling legal requirements (especially AML laws), they also apply strict internal risk policies. Their goal is to prevent financial crime, tax evasion, or reputational damage.

This means that even a properly registered company may be rejected if it fails to demonstrate transparency, clear ownership, and a legitimate business connection to the Czech Republic.

2. What Banks Typically Evaluate

– Business Activity – Industries such as IT, crypto, online marketing, or consulting are often considered “high-risk” if there is no physical or contractual presence in the Czech Republic.
– Ownership Structure – Complex chains or offshore entities dramatically reduce the chance of success.
– Funding Sources – Banks will ask to explain the origin of startup capital and future cash flow.
– Link to the Czech Republic – Ideally proven by contracts, office lease, employees, or local projects.
– Personal Presence of Director – Banks almost always require an in-person meeting with the authorized representative.

NAWI TIP: Country of Incorporation & Business Sector Matter

Czech banks maintain internal risk rankings for different countries and industries. Even if your company is registered in the EU, that doesn’t automatically mean you’ll be viewed as low-risk.

– A company from Germany or Switzerland is perceived more favorably than one from Cyprus, Bulgaria, Romania, or Malta.
– Likewise, businesses in manufacturing or service industries with a real presence in the Czech Republic have a better standing than virtual businesses with no local operations.

Our Recommendation: If your goal is to open a Czech account, carefully consider the choice of jurisdiction and business model in advance. Optimizing this early can save you time, effort, and repeat rejections.

3. What Documents Will Be Required?

– Company formation documents and trade register extract
– Identification of all Ultimate Beneficial Owners (UBOs)
– Business model description and activity overview
– Contracts with clients or local partners
– Proof of Czech connection (e.g. lease agreement, local staff, Czech-language invoices)

Top 5 Reasons Banks Reject Account Applications

1. Negative Banking History of Individuals Involved – Individuals in the ownership or management structure may be flagged by banks for prior financial issues, defaults, or red-flag transactions.
2. Non-transparent or Complex Ownership Structures – Offshore entities, trusts, or nominee shareholders with unclear UBOs significantly decrease the likelihood of approval.
3. Lack of Economic Ties to the Czech Republic – If the company has no Czech employees, clients, contracts, or premises, the bank may consider the application unjustified.
4. High-Risk Business Activity (AML Perspective) – Crypto, forex, online gambling, dropshipping, or tax advisory often trigger enhanced due diligence or automatic rejection.
5. Poor Preparation or Communication – Vague documentation, missing details, or an unconvincing presentation during the interview can undermine the entire application.

4. How NAWI Can Help

We offer comprehensive support:
– Strategic structuring before the bank application
– Document preparation and audit based on bank expectations
– Direct communication with banking advisors
– In-person guidance and translation support at meetings
– Alternative banking setups (EMIs, fintechs, foreign EU banks) if needed

Final Thoughts

Opening a bank account in the Czech Republic can absolutely be done – if you know what the banks are looking for and how to present your case. At NAWI Europe, we know how to explain that effectively and guide you through the process step-by-step.