Business entities in Czech Republic

Business entities in Czech Republic

Setting up business in Czech Republic, guide for foreignersHealy Consultants continues to provide our Clients with the best optimal corporate structures in Czech Republic. There are several ways of doing business in Czech Republic, the most common being the setting up of a limited liability company (SRO) or a public limited company (SA). Alternatively, foreign companies have the option of setting up a Branch Office or a Representative Office.

The Czech Republic limited liability company (SRO)

  • The Czech Republic LLC is the most common business form used by entrepreneurs to setup an SME. An LLC requires at least 1 director and 1 shareholder (who can be of any nationality) to be incorporated. The director and shareholder can be the same individual. The minimum paid-up share capital of €1 will also be required to complete the incorporation process;
  • Czech LLCs with total assets exceeding US$1.8 million are subject to statutory audits. Additionally, the director of an LLC can be resident in any country.

The Czech Republic joint stock company (SA)

  • This Czech Republic business setup is recommended for investors with large projects and those who intend to publicly list the company in the Prague Stock Exchange. A Czech JSC can be incorporated by a single individual or a legal entity. The minimum share capital required to incorporate this entity is US$80,000;
  • Czech JSCs with i) more than 50 employees or ii) an annual net turnover exceeding US$3.2 million or iii) total assets exceeding US$1.6 million are subject to statutory audit.

The Czech branch

An alternative to the LLC and JSC, foreign companies can choose to open branches in the Czech Republic. While the branch is allowed to conduct business in the country, its scope of operations will be defined by the parent company. For this Czech Republic business setup, a resident individual must be appointed. This individual can be a Czech citizen or a foreigner with Czech residency.

 LLCJSCBranch office
Also known as?SROSABranch
How long to set the company up?4 weeks6 weeks6 weeks
How long to open company bank account?4 weeks4 weeks4 weeks
Legal liability?LimitedLimitedUnlimited
Wholly foreign owned?YesYesYes
Minimum share capital?€1US$80,000US$0
File annual tax return?YesYesYes
Tax registration certificate required?YesYesYes
Recommended corporate bank account?UniCredit BankRaiffeisen BankSberbank CZ
Does our Client need to travel?NoNoNo
Resident director required?NoNoNo
Resident shareholder required?NoNoNo
Minimum directors allowed?111
Minimum shareholders?111
Tax identification code (TIN) needed?YesYesYes
Czech Republic resident company secretary required?NoNoNo
Corporate shareholders allowed?YesYesYes
Corporate director(s) allowed?YesYesYes
Czech Republic corporate tax rate?19%19%19%
Annual financial statements required?YesYesYes
Statutory audit required?YesYesNo
Regulated by?Ministry of Industry & TradeMinistry of Industry & TradeMinistry of Industry & Trade
Allowed to issue sales invoices?YesYesYes
Allowed to sign contracts?YesYesYes
Allowed to import and export goods?YesYesYes
Can rent an office space in Czech Republic?YesYesYes
Can buy Czech Republic property?YesYesYes
Can own equity in other Czech companies?YesYesYes
Total Czech Rep. business setup costs in Yr. 1€8,660€12,410€10,010
Subsequent annual costs (incl. accounting and tax fee)€2,355€2,355€2,355
Sample engagement invoice

Contact us

For additional information on our company setup services in Czech Republic, please email us at email@healyconsultants.com. Alternatively please contact our in-house country expert, Mr. Petar Chakarov, directly:
client relationship officer - Petar
czech Chamber of Commerce czech national bank CNB Government of the Czech Republic discover czech Republic czech Ministry of Finance czech ministry of foreign affairs