Company
Setting up a Czech s.r.o. (limited company)
The s.r.o. (spolecnost s rucenim omezenym) is the Czech workhorse legal form. Minimum share capital is a symbolic 1 CZK per shareholder, though most banks want at least 20,000 CZK for a working account.
Steps
- Reserve a company name and confirm it is not already taken via the commercial register (justice.cz).
- Prepare the founding deed. For a single shareholder it is a notarial deed (zakladatelska listina). For two or more, a memorandum of association (spolecenska smlouva). Both are signed at a Czech notary.
- Open an escrow account, deposit the share capital, obtain the bank confirmation.
- Get trade licenses at the zivnostensky urad for the planned activities.
- Register in the commercial register (obchodni rejstrik) through the notary or the registration court.
- The company gets an IC (business ID), tax ID and a data box automatically.
Total elapsed time is usually two to four weeks. All-in cost including notary fees, court fees, translations and an accountant to set things up is typically 15,000 to 30,000 CZK.
Foreign founders and directors
Non-EU founders need a criminal record extract from their country, translated by a court-sworn translator (soudni prekladatel) and apostilled or legalized depending on the country of origin. EU citizens can substitute a certificate of good conduct from their home country. A jednatel (managing director) does not need Czech residence but does need a registered address that can receive mail.
First-year duties
- Keep double-entry bookkeeping from day one.
- File the annual financial statements in the collection of documents (sbirka listin) at the registration court, publicly visible.
- File corporate income tax return by April 1 (or May 2 electronically, or July 1 with a tax advisor).
- Register for VAT if you cross 2,000,000 CZK turnover or want to voluntarily.