Company Registration in Czech Republic

Key Aspects and Risks of Starting a Company in the Czech Republic

Company Structure

A proper company structure facilitates obtaining licenses, interacting with banks, complying with legislation, and managing business effectively.

Company Director

In the Czech Republic, it is allowed for citizens of any country to be directors of companies; however, if the director is not a Czech citizen, the company may be considered high-risk from the banks' perspective.

Ready-made Companies

Ready-made companies, having already gone through the registration process, allow for saving time and avoiding bureaucratic procedures. However, such companies may carry risks as unscrupulous sellers might conceal existing debts that no audit can detect. Additionally, a poor banking history could affect the reputation of the new owner.

Virtual Legal Address

Although purchasing a virtual office is common, banking institutions may view legal addresses hosting numerous companies negatively, which can complicate further company operations.

Contracts

Every company in the Czech Republic must have a checking account, and one of the requirements for opening this account is having contracts with clients and suppliers.

Company Capital

The amount of statutory capital significantly impacts cooperation with banks and partners. A small statutory capital can create a negative impression, whereas a large statutory capital may lead to checks on the origin of funds and necessitate opening a special account for its deposit.

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Starting a Business in the Czech Republic: Step by Step

Over the past year, more than 100,000 new companies have been opened
Of this, more than 2400 have a non-Czech owner

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Selecting the legal form of incorporation for your company

Choose from various options such as a limited liability company (LLC), a general partnership (VOS), a Czech joint-stock company (AS), among others. The most optimal choice typically is a limited liability company.

Preparing the company's articles of association and appointing directors and management

Our team will draft the articles of association, defining fundamental operational rules, shareholders' rights, and management obligations.

Registering a unique name

After the naming procedure, we proceed to officially register the company and confirm its legal address in the Czech Republic.

Conducting registration activities and opening a bank account

Our notary prepares all necessary documents in advance. Subsequently, we register them, open a bank account, and confirm the deposit of the required share capital.

Obtaining a trade license from the Czech Licensing office

We handle document preparation, determine the necessary license category, submit the application, pay the requisite fees, and acquire an approval document from the competent authority.

Registering with the local Commercial court

This step involves the registration process at the company's legal registration location.

Registering the company with the Tax Administration

Acquiring a DIC (Daňové identifikační číslo), a unique tax number for your company, involves filling out the appropriate form and paying the license fee.

Upon completion of these procedures, the company receives a permit to conduct business in specific areas. Non-residents can either register as a legal entity, such as a Limited Liability Company or open a licensed company.

FORMS OF LEGAL ENTITIES WE REGISTER

Limited Liability Company

Limited Liability Company(S.R.O. (společnost s ručením omezeným)) — the most popular form for small and medium-sized businesses. It features limited liability for its members, flexible management, and a relatively simple certification process in the Czech Republic.

Income Tax Rate: 21%

Joint Stock Company

Joint Stock Company(A.S. (akciová společnost)) — suitable for large enterprises planning to attract investments and enter the stock market. It provides a high level of asset protection and extensive opportunities for capital raising.

Income Tax Rate: 21%

Sole Proprietor

Sole Proprietor(Živnostenský list) — a simplified form of business licensing for individual entrepreneurs engaged in crafts, trade, or services.

Income Tax Rate: 15%

Investment Fund

Investment Fund(Investiční Fond) — a form of collective investment designed to accumulate funds from multiple investors and subsequently invest them in various assets. These funds are regulated by legislation and provide professional investment management.

Income Tax Rate: 5%

Trust

Trust(Svěřenecký Fond) — a legal structure created to manage assets in the interest of certain beneficiaries. Trusts allow for asset protection, management, and income distribution at the discretion of the trust's founder.

Income Tax Rate: 19%

Foundation

Foundation(Nadační Fond) — a non-profit organization established for public benefit purposes such as charity, education, science, or culture. These foundations collect and distribute funds for the implementation of various socially significant projects.

Income Tax Rate: 0%

What do customers say about us?

Dmytro Taran

I recently had the pleasure of working with NAWI, and I couldn't be more satisfied with the experience. From the very beginning, their team demonstrated exceptional professionalism and expertise. They are truly dedicated to delivering high-quality solutions tailored to their clients' needs.

NAWI's innovative approach and deep understanding of the industry set them apart from the competition. Their attention to detail and commitment to excellence are evident in every aspect of their work. Whether it's project management, technical implementation, or customer service, they consistently exceed expectations.

One of the standout features of NAWI is their ability to communicate complex technical concepts in a clear and understandable manner. This makes the collaboration process smooth and efficient. Their team is always available to provide support and answer any questions, ensuring that projects are completed on time and to the highest standard.

In addition to their technical prowess, NAWI also prioritizes building strong relationships with their clients. They take the time to understand your unique needs and offer personalized solutions that drive success. It's clear that they genuinely care about the success of their clients and go above and beyond to achieve it.

Overall, my experience with NAWI has been outstanding. I highly recommend them to anyone seeking top-tier services in their field. They are a true partner in success, and I look forward to continuing our collaboration in the future.

Thank you, NAWI, for your exceptional work and dedication!

Marsel Prokopev

Не первый раз убеждаюсь, что компании можно доверить решение даже самых сложных задач. При любом вопросе обращаюсь в NAWI для решения проблем с компанией, и вопросами взаимоотношений с партнёрами по бизнесу. Профессионалы, для них нет нерешаемых вопросов. Готовы найти максимально возможное выгодное для компании решении. Рекомендую!

Андрій Грицюк

Враження від зустрічі та роботі з компанією - найкраще! Суперпрофесійна консультація. Наполегливо рекомендую всім, кого цікавлять питання бізнесу в Чехії

Max Baikalov

Обратился в Nawi Europe по рекомендации друзей и остался очень доволен качеством предоставленных услуг. Особую благодарность хочу выразить Эдуарду за его профессионализм, внимание к деталям и искреннее желание помочь. Эдуард оперативно и грамотно решил мой вопрос, разъяснил все нюансы и предоставил подробные консультации на каждом этапе.

Theodore Tserni

Great advice from very competent professionals regarding a surprisingly large variety of business related questions! Definitely recommend to anyone interested in finding the most efficient path to solving various challenges.

Ирина Курунськая

Три года я обслуживаюсь в компании. Уже этот факт «говорит сам за себя». За этот период было Очень много разных вопросов и по направлениям, и по сложности, и по нестандартности, неординарности. Но, если вы постоянный клиент, можете рассчитывать на самое «глубокое погружение», изучение, быстрый поиск решения и оперативное исполнение.
Основываясь на собственном опыте, утверждаю, что в лице Эдуарда и сплоченного коллектива, вы найдете надежного партнера. Рекомендую

Артур Луганский

I was recommended to contact NAWI Europe and specifically Eduard for financial matters. We quickly arranged a meeting. Eduard proposed a solution, warned about potential pitfalls that needed to be considered. During the process, he did everything that depended on him and even more: he checked contracts, recommended people to solve issues that did not directly concern him. Everything was done clearly, on time, and within my budget.

Only positive impressions from the cooperation. I recommend NAWI Europe and Eduard personally as a professional and as an honest and responsible person.

Questions&Answers

How to open an account in a Czech bank?

To open an account, prepare for KYC, create a customer profile, and organize your documents. Present your website, provide a detailed business description, and submit an office lease agreement before choosing a banking institution. Ensure the selected bank agrees to the established status fee. Initially, a temporary account is opened, and 50% of the specified amount is deposited. After registration procedures, the second part is deposited, making the account permanent.

How is business taxation in the Czech Republic carried out?

After completing the registration procedures, the company must pay corporate income tax, the standard amount of which is 19% of the business profitability. The tax period can be either a calendar year or a financial year. The taxpayer independently calculates the amount of the contribution and pays it within 1 to 6 months.

Are there any obstacles to starting a company in the Czech Republic by a non-resident?

If a person meets the requirements for starting a business (age, no criminal record, availability of documents), there are no obstacles to starting a company. Equal conditions are created for both Czech citizens and non-residents from different countries of the world, regardless of nationality, religious or ethnic affiliation, health status, gender, or other indicators.

What is the timeframe for completing business registration?

Usually, it takes up to two business days from document submission to a notary for company registration.

How much does It cost to start a business in the Czech Republic?

Fees are calculated on an individual basis and depend on the legal form of the company, the need for legal support, and other related services.

Starting Companies & Foundations in the Czech Republic — Transparently and Effortlessly with NAWI