Entrepreneurial even during the Communist era, the Czech Republic has seized every opportunity to demonstrate their free-market credentials since joining the EU in 2004. Today the country offers a stable and welcoming home to foreign investors, but to make the most of the opportunities here, you need local knowledge.
As specialists in Czech company registration, we provide a wide range of company formation services to help you set up business in the Czech Republic .
Company Formation FAQs
What are the main types of Czech company formation?
- Limited Liability Company (SRO)
- Joint Stock Company(AS)
- Partnership
- Branch
What are the main features of a Limited Liability Company (SRO)?
- Total share capital to be at least CZK 200,000 (€7,000), with at least 50% paid up
- Each shareholder to contribute minimum of CZK 20,000 (€700)
- An individual may be a sole shareholder in no more than three SROs
- A reserve fund from the profits should be built up to 10% of the registered capital
We are Czech company formation specialists, with a long standing relationship with local businesses in the region.
A statutory audit for SROs in the Czech Republic is mandatory if at least two of the following criteria are met?
- Balance sheet exceeds CZK 40 million (€1.4 million)
- Net turnover exceeds CZK 80 million (€2.8 million)
- Number of employees exceeds 50
What are the main features of a Joint Stock Company (AS)?
- Minimum share capital CZK 2 million (€70,000)
- If the share capital comes via a public offering, the minimum amount is CZK 20 million (€700,000)
- 30% of share capital must be paid up
- Two-tier system comprising management and supervisory boards
- Reserve fund from the profits to be built up to 20% of the registered capital
What are the accounting/audit requirements for a Joint Stock Company (AS)?
A statutory audit is mandatory for an AS if at least one of the following criteria is met:
- Balance sheet exceeds CZK 40 million (€1.4 million)
- Net turnover exceeds CZK 80 million (€2.8 million)
- Number of employees exceeds 50
What are the main forms of Partnership in the Czech Republic?
- General Partnership – all partners have equal and unlimited liability
- Limited Partnership – at least one partner has limited liability
How easy is it to recruit staff in the Czech Republic?
The unemployment rate in the Czech Republic is much lower than in neighbouring Poland and Slovakia, although it remains a pressing issue. If you are seeking to hire Czech staff, you should have no trouble finding well-educated and motivated applicants, however, labour laws are complex.
What is the regulatory environment like for those considering Czech incorporation?
The Czech Republic has made strong progress in its efforts to liberalise the business environment; 85% of the economy is now in private hands, Corporate Tax was cut from 26% to 24% in 2006, and foreign investment, reflecting this trend, has soared.
Are there financial incentives available?
The Czech authorities offer a wide range of financial incentives for foreign investors looking to establish a company in the Czech Republic:
- New manufacturing investment can obtain ten years’ full relief of Corporate Tax
- Technology and business investments can recoup 50% of costs from the state
- There are also substantial job-creation and training grants available
And what about banking facilities?
Foreign investors are well served by an array of international and local banks now operating in the Czech Republic. It is worth noting, however, that setting up a corporate bank account can be a complex procedure.
Make it simple – talk to us if you are considering Czech incorporation and we will arrange everything on your behalf.