Frequently Asked Questions about Czech company formation
Foreign investors have multiple choices when deciding to set up a company in the Czech Republic, namely:
- the limited liability company (which is the most frequently established type);
- the public limited company;
- the joint-stock company;
- the general partnership;
- the limited partnership;
- the branch office (which is a dependent type of business setup and can be created for a parent-company overseas).
The share capital in the Czech Republic depends on the company you want to establish.
- limited liability company (s.r.o.): The minimum amount of registered capital is CZK 1. The minimum contribution of each member to the registered capital is CZK 1.
- joint stock company (a.s.): The minimum amount of registered capital is CZK 2,000,000 or EUR 80,000.
- Societas Europaea: The minimum amount of registered capital is EUR 120,000.
The Business Corporations Act does not set out the amount of minimum registered capital or minimum contribution for other types of companies.
The main steps of company registration are: reservation of the company’s name, depositing the required capital in a special bank account, registering with the Trade Licensing Office for a trade license, registering in the Business Registry and also for taxes with the Tax Office.
Yes, depending on the business activity you want to pursue, your company will require special licenses or permits.
In less than two weeks, a foreign investor should be able to register his/her company in the Czech Republic.