Frequently asked questions

Question 1

Warnings and Things to Know Before Opening a Company in the Czech Republic

Accepted Answer

Things to Know Before Opening a Company in the Czech Republic

As of 2026, Czech companies offer several clear advantages: an official and reliable jurisdiction, simple, fast, and relatively inexpensive incorporation, the ability for citizens of any country to register a company, and tax authorities that are quite supportive. These benefits have been widely discussed, and they are indeed real.

However, many clients who contact us fail to consider the disadvantages, which other company registration services often conceal. Once these issues come to light later, the enthusiasm for registering a Czech legal entity disappears, and we all end up wasting valuable time. We prefer to be honest from the very beginning - so that neither of us wastes time unnecessarily. If these factors are not a problem for you, be sure to contact us, and we will arrange the services you need in the best possible way.

Before setting up a legal entity, keep the following factors in mind:

Challenges When Opening a Bank Account for a Non-Resident-Owned Company

Opening a corporate bank account in the country is no longer a mere formality; it is not as simple as the director walking into a bank, signing documents, and receiving the account details. If the director of a Czech legal entity is a non-resident (not a Czech citizen and without a long-term visa, residence permit, or permanent residency), be prepared for significant difficulties in opening a bank account.

To learn more, please read the detailed information on opening a bank account on our website. To summarize briefly: if the director of the legal entity is not a Czech resident, the account-opening process requires submitting applications to Czech banks with a detailed description of the company's business activities. Crucially, the director must be able to submit these applications in person and communicate directly with the bank. In fact, nearly all state banks now insist that the director handle this process personally.

Another key requirement is that a substantial part of the company's business must be conducted in the Czech Republic. This means having actual (or at least prospective) suppliers or clients in the country - real, operational business partners.

If the director of the legal entity is a non-EU citizen without Czech residency, opening a bank account in the country will be extremely difficult (if not impossible). For EU citizens, the process is somewhat easier but still far from straightforward. However, the good news is that Czech legal entities are not required to have a local bank account or payment systems, and many clients successfully operate their businesses this way. In fact, state law does not legally require companies to maintain a bank account at all.

All New Czech Legal Entities Are Initially Non-VAT Payers

Every newly established company in the country is NOT automatically a VAT payer and does not receive a VAT number. Each company must apply separately for VAT registration. Due to widespread VAT fraud schemes involving Czech companies in the past, the state tax authorities now carefully review every new VAT registration application. You will need to provide the tax office with a justification explaining why your company requires a VAT number. There is no guarantee that your application will be processed quickly or that it will be successful.

Unfortunately, we cannot predict how smoothly your VAT registration will proceed, as this largely depends on specific accounting factors. Due to these challenges, pre-registered legal entities with existing VAT numbers are available for purchase on the market. However, they are expensive, starting at EUR 5,000-6,000 in the simplest cases.

Czech Residency Through Company Ownership? Forget About It

You may have read online - even in 2026 - that setting up a business in the Czech Republic makes it relatively easy to obtain Czech residency. We frequently receive inquiries about this, so here is the actual situation. Technically, yes, you can register a company, prepare a simple and inexpensive set of documents, and apply for residency. However, the actual chances of approval are nearly zero. This loophole worked until approximately 2010-2012, but due to the increasing number of foreigners in the country, the state authorities shut it down completely. Immigration officials now routinely reject such applications, and they are legally justified in doing so. We have a dedicated page on our website explaining the current situation with Czech residency permits, including the situation for companies.

If your main goal in establishing a legal entity is to obtain residency, we strongly advise against this idea. You will waste time and money with almost no chance of success.

Question 2

How to Register a Company in the Czech Republic: Step-by-Step Guide for 2026

Accepted Answer

How to Register a Company (s.r.o.) in the Czech Republic: 2026 Guide

If you have decided to handle the registration of a legal entity in the Czech Republic on your own, you will find detailed instructions below. Be prepared for a long read (there is simply no quick solution in this case). We will focus specifically on establishing an LLC ("s.r.o."), as in our practice we have never encountered a situation in which other business structures were necessary. It is very likely that this is the legal form you will need. For a detailed explanation of what an "s.r.o." is and its key parameters, please refer to the dedicated page on our website.

Please note that to complete the company registration process independently, you must meet two conditions:

The founders of the legal entity must either be physically present in the country to visit a notary and the relevant government offices in person, or they must appoint a representative under a power of attorney.
The company founders or their authorized representative must be proficient in Czech. This is standard nationwide notarial practice. Naturally, the person involved must fully understand the procedure, be able to read documents in Czech, and understand what they are signing.

Below, you will find a step-by-step guide on how to proceed.

Step 1: Prepare the Registration Documents and Required Information

Company formation in the Czech Republic is now a one-day process completed during a single notary visit. The notary handles nearly all formalities at once, including entering your legal entity in the Czech Trade Register (the official state company register). However, preparing for this notary appointment is crucial - and, surprisingly, it is the most time-consuming and complex part of the entire process.

Preparing for your notary appointment.

Prepare the following information:

Choose a unique name for your legal entity. You can check its availability through the official website of the Czech Ministry of Justice, or you can use the name-check tool on our website (if our system finds no matches, the name is available). Note that the mandatory suffix "s.r.o." will automatically be included in your chosen name.
Decide on your company's ownership structure, including the number of founders and directors and the distribution of shares.
Provide the founders' details, including their full names, dates and places of birth, and residential and registered addresses. This information will be entered in the Czech Trade Register.
Determine the share capital. Since 2014, the minimum legal requirement for share capital has been CZK 1. If you choose to set the capital above CZK 20,000, you will need to obtain bank confirmation of the deposited amount. This process has become quite complicated in practice, as the funds must actually be transferred to a bank account. In fact, share capital does not affect the company's operations in any way; therefore, we recommend setting it between CZK 1 and CZK 20,000, but no higher.
Specify the business activities for your legal entity. It is important to note that these activities will be formally recorded in the company's charter during registration. In the Czech Republic, business activities are standardized, and you can find a list of unrestricted business activities ("volné živnosti") on our website. At this stage, it is important to determine your future activities because they become part of the company's charter. Although changes can be made later, they require amendments to the charter, which can be expensive. We recommend selecting a reasonable range of standardized activities that cover your company's operations, without including absolutely everything. In addition, be aware that the Czech system includes what are known as "complex" or "certified" activities ("vázané živnosti" or "remeselné živnosti"). These require what is known as a "guarantor". If you plan to engage in such activities, you will need to secure this guarantor in advance. However, most common business activities can be covered by the simpler "free licenses", and the guarantor requirement applies only in rare cases.

We recommend sending all this information to the notary in advance so that they can prepare your legal entity's charter for signing during your visit. In most cases, this can be done by email.

Prepare the following documents for your notary appointment:

Consent to register a legal address ("souhlas s umístěním sídla společnosti"). This is a document from the Czech property owner (or their representative) authorizing the registration of the company's legal address at the property. State law permits legal entities to use a formal legal address, commonly called a "virtual" address. These virtual address services are widely available in all cities in the country. However, please note that once registered, the legal address will determine which local tax office has jurisdiction over your business.
Founders' personal documents for verification (if visiting the notary in person), including passports and residence permits (permanent or temporary, if applicable).
A statement from each director accepting their appointment. Although notaries often prepare this document themselves, we recommend preparing it in advance or at least approving the wording beforehand.
Directors who are neither Czech nor EU residents must provide an original criminal record certificate from their country of citizenship (detailed information on whether a criminal record certificate is required to register a company in the Czech Republic and how to certify it). The certificate must bear an original wet-ink stamp (digital copies are not accepted in the country). For directors from certain countries, the criminal record certificate must also bear an apostille. You can check whether your country requires an apostille here. The certificate must also be officially translated into Czech by an authorized translator. A criminal record certificate is not required for directors who reside in the Czech Republic or are citizens of EU member states.

These are all the documents required by the notary. In addition, prepare payment for the notarial fees (confirm the exact amount directly - it often depends on the parameters of your legal entity).

Step 2: Find a Notary

In the Czech Republic, the incorporation of a legal entity is completed through a notary. The notary prepares and certifies the company's charter and registers the legal entity in the Czech Trade Register. Once you have gathered all the required information and documents from the previous steps, you can coordinate the entire establishment process with your chosen notary. Notaries are available in cities throughout the country, and most offer appointments quickly.

During your scheduled appointment, the notary will draft the company's charter and submit the registration directly to the Czech Trade Register. In many cases, the notary will immediately provide an official extract confirming incorporation, which contains the assigned registration number (IČO), legal name, and other details of the legal entity. The information appears in online registers the following day. You can verify the successful registration through the Czech Ministry of Justice website or through our verification system. At this stage, your company is fully registered.

Step 3: Final Procedures, Licenses, Tax Office, and Datová schránka

After visiting the notary, your legal entity will be listed in the Trade Register, but several essential steps remain.

Obtain the actual business licenses and permits from the Trade Licensing Office ("Živnostenský úřad"). This step is VERY IMPORTANT because, although your company is legally registered, it cannot conduct business without these licenses and permits ("živnosti"). The director of the legal entity must visit any Trade Licensing Office ("Živnostenský úřad") - the location does not need to correspond to the company's registered address - to submit the license application. Processing times can vary significantly, sometimes taking up to one week.
Obtain access to Datová schránka. Securing access to this platform is extremely important for proper company administration. After registration, the state authorities will automatically send the login details to each director's address as recorded in the Trade Register. You can also obtain these login details at any Czech POINT office.
Register for corporate income tax and obtain a tax identification number (in Czech, "DIČ"). You can apply for this registration when obtaining the business licenses (see above), but the request is not always submitted correctly to the tax office. If the request was submitted correctly, the tax office will send confirmation of registration to your Datová schránka. It is advisable to check that the tax registration document has arrived. If the registration confirmation has not arrived within two weeks of the company registration date, it is better to submit a separate application for corporate income tax registration and the assignment of a tax identification number (DIČ). This application can be submitted by the company director in person at the tax office corresponding to the company's registered address or through the company's Datová schránka (including through the Czech tax office portal). It is important to ensure that the tax registration was successful; otherwise, the tax office will complete the registration itself but will impose a fine (a relatively small one, but still a fine).

Once this step has been completed, the company establishment process is complete. The legal entity is now authorized to conduct business activities.

As you can see, registering a Czech legal entity is not that simple. We can assist you with the entire registration process if you are not ready to handle it yourself. Detailed information about our services is available on our website; click the button below.

Question 3

What Documents Are Required for Company Formation in the Czech Republic?

Accepted Answer

The following documents are required to register a Czech company:

A power of attorney from each founder (if registering remotely)
A signed consent form from each director accepting their appointment
A criminal record certificate from the director's country of citizenship (if the director is not an EU or Czech resident). This must be an original document bearing a wet-ink stamp and, in some cases, an apostille (detailed information on whether a criminal record certificate is required to register a company in the Czech Republic).

Our service includes the preparation of all documents: we provide the specific wording and instructions for their certification (including information about what we need from you). Your task will be to have the documents notarized.

Both the power of attorney and the director's consent require notarization. The appropriate place to complete this depends on your location - it is generally done through a local notary or at the nearest Czech consulate (Czech consulates are available in many locations).

Question 4

When Is It Better to Start a New Company from Scratch?

Accepted Answer

Unfortunately, there is no straightforward answer. That said, it is often the preferable choice in several specific situations.

You would benefit from establishing a new company from scratch if:

You need a completely new legal entity in the Czech Republic with no history, which guarantees the absence of any hidden liabilities or past problems.
You need a company tailored strictly to your requirements, including its name and specific corporate structure.
You need a company with the most recent possible registration date.
You have urgent timing requirements, as the new legal entity can be registered in a single day.

Please note that, in 2026, this process involves a higher cost, typically around EUR 1,600-1,700, which is its primary disadvantage. Ready-made companies are much more affordable.

Company registration in Czech Republic