Company
registration
in Czech

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

Benefits of doing business in the Czech Republic with Finevolution

• Full company registration within agreed timeframes
• Assistance with opening a payment account
• Post-registration maintenance
• Accounting & legal support

Czech companies structures

There are two popular business forms in the Czech: 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, with essential information about owners accessible: business name, legal address, capital size, and details on shareholders, directors, and financial reports.
• SRO in Czech requirements include having local business connections, such as partners, an office, warehouse, or staff, to open a local bank account. A physical office is also needed for obtaining a VAT number. The company’s legal address must be in the country of registration.
• Two types of registration are available for SROs: full & simplified. Purchasing a ready-made company is also an option.

Steps for registering SRO in Czech

• Consultation with Finevolution specialists
• 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

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.

Documents needed for full 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.

SRO registration period

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

Simplified SRO registration

• Only one founder & one director (100% ownership)
• Share capital up to 810 EUR
• No special bank account 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. If the share capital is less than 20,000 CZK (795 EUR), a special account is not required. 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%. Investment funds can benefit from a reduced rate of 5% under certain conditions.

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 during VAT registration.

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:

• Annual 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.

All individuals and businesses must submit income tax declarations if their annual income exceeds 15,000 CZK. 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 up to 100,000 CZK.

If you ready to registering Czech company, we advise starting process as soon as possible. Send a request through the form below or a message on Telegram bot/Viber, WhatsApp chat, for consultations. Our working hours are 9:00-19:00 from Monday to Friday.