The Czech Republic offers significant business benefits, thanks to its stable economy and high level of development. The country is known for its low corruption levels compared to many neighboring nations, creating a transparent and reliable environment for investors. For IT companies, the Czech Republic is especially attractive due to its pool of highly skilled professionals, advanced technological infrastructure, and government support for innovation sectors.

Czech companies structures

Two popular business forms in the Czech Republic are AS (Joint Stock Company) and SRO (Limited Liability Company). Our team assists with registering the latter.

Conditions for registering SRO in Czech:

Share Capital: No minimum amount is required, but typically, companies start with 100,000 CZK (~4,000 EUR). Shareholders can be at least one individual or legal entity of any residency. A minimum of one director is also needed, without nationality restrictions. Appointing a secretary is optional.
The Register of Beneficial Owners is public, and essential information about owners is accessible: business name, legal address, capital size, details on shareholders, directors, and financial reports.
SRO requirements in Czech include having local business connections, such as partners, an office, a warehouse, or staff, to open a local bank account. A physical office is also needed to obtain a VAT number. The company’s legal address must be in the country of registration.
SROs can be registered in two types: complete and simplified. Purchasing a ready-made company is also an option.

Documents needed for complete SRO registration

This is the most comprehensive and legally correct method of registering Czech company. Standard SRO registration requires:

From the director: A criminal record certificate from their home country, translated into Czech. Translation services are available for an additional fee.
From founders: Notarized power of attorney for registration and passport copies
Proof of payment for state fees
Maiden name of the founder/director

This list may change depending on requests from government authorities.

Steps for registering SRO in Czech

Initial consultation with Finevolution experts

Payment of fees and capital

Creation of the company’s Articles of Association in the form of a notarial deed

Document preparation and company registration

Preparation of documents and obtaining selected licenses

Registration with the tax authority

Opening a special account for depositing share capital if it exceeds 795 EUR

Opening a bank account and VAT registration

Initial consultation with Finevolution experts

Creation of the company’s Articles of Association in the form of a notarial deed

Preparation of documents and obtaining selected licenses

Opening a special account for depositing share capital if it exceeds 795 EUR

Payment of fees and capital

Document preparation and company registration

Registration with the tax authority

Opening a bank account and VAT registration

Order consultation

Legal consultations for business

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Opening a payment account for business

Choosing a modern NEObank payment account for business

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VAT consultations in Europe

Our team will be glad to help with VAT issues

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Due to bank checks, SRO registration period can vary significantly, ranging from 20 to 60 days, depending on the quality of your documentation and the bank’s processing speed.

SRO registration period

The duration depends on how quickly the bank processes the request, typically 20 to 60 days.

Simplified SRO registration

Only one founder & one director (100% ownership)
Share capital up to 810 EUR
No special bank account is required
No need for a formal partnership agreement
Approximate registration time is 14 business days

Cost of business registration in the Czech

The service package includes:

Complete support
Preparation of all documents
Standard accounting package
Opening an account & submitting documents to up to three banks
Special bank account setup for depositing share capital, which should later be converted to a standard current account
Legal address for one year is billed separately

Special current account

A special account is only opened if the share capital is 20,000 CZK (795 EUR) or more. Proof of funds must be documented for capital contributions. A special account is not required if the share capital is less than 20,000 CZK (795 EUR). The notary will record the capital based on an affidavit. When opening a regular account, the bank will verify connections.

Purchasing a ready-made Czech company

This option is faster than full registration since company is already established, and only the ownership needs to be changed. Re-registration takes approximately 14 days. Cost depends on whether the company is VAT-registered.

Taxation for businesses in the Czech Republic

Corporate tax: 21%
Income tax: 15% & 23%
Capital gains tax: 19%
VAT: Standard rate 21%, reduced rate 12%
Dividends, interest, royalties: 15%
Social contributions: 33%
Pension contributions: 2%

Resident and non-resident companies are taxed at a unified corporate tax rate of 21%. Under certain conditions, investment funds can benefit from a reduced rate of 5%.

Passive income (dividends, interest, royalties) is taxed at 15%, which can be reduced by bilateral tax agreements. Dividends sent to countries without a double taxation agreement are taxed at 35%.

VAT registration is mandatory if the annual turnover exceeds 1,000,000 CZK. Czech tax authorities may require proof of a physical office when registering for VAT.

Reporting and accounting for Czech companies

All Czech businesses must maintain accounting records and submit annual financial statements by March 31 each year. Large businesses must undergo audits if they meet two of the following criteria:

Yearly turnover exceeds 80,000,000 CZK
Assets exceed 45,000,000 CZK
Average number of employees exceeds 25

VAT-registered companies must submit monthly reports. Businesses with employees must report to social agencies and submit income tax reports monthly.

If their annual income exceeds 15,000 CZK, all individuals and businesses must submit income tax declarations. Alongside the tax return, two reports must be submitted to Social Security and the health insurance company.

Filing deadlines

Income tax returns: March 31 of the following year
VAT: 25th of the following month
Social contributions: 20th of the following month

Taxes can be paid in cash at the tax office, by mail, or via bank transfer. Failure to pay taxes can result in penalties of up to 100,000 CZK.

If you are ready to register a Czech company, we advise starting the process as soon as possible. Business Hours: Monday to Friday, 9:00 AM — 7:00 PM. Contact us via WhatsApp, Telegram, or Viber, or submit an inquiry through our online form.

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