How difficult is it to register an IT company in the Czech Republic?

In short, the Czech Republic offers highly favorable conditions for company registration, including for foreigners, and has a very simple licensing process for IT businesses. However, there are also downsides, such as difficulties opening a corporate bank account and obtaining a residence permit.

The minimum requirements for operating an IT business are:

• Registering a legal entity in the Czech Republic
• Obtaining the necessary permits and licenses for IT activities

See below for detailed information.

Company registration

In this area, the Czech Republic continues to offer very favorable conditions in 2026, specifically:

• Foreigners can register a company without needing a visa or residence permit
• The registration process is simple, fast (1-2 business days), and relatively inexpensive, and can be completed remotely (directors and shareholders do not need to be physically present)

IT licensing and business permits in the Czech Republic

Czech law regulates the so-called “80 unrestricted trade licenses,” which cover a wide range of business activities. Nearly any IT activity can be covered by one of these 80 licenses.

For our IT activities, we need license number 56, described as follows:

56. Provision of software, IT consulting, data processing, hosting and related activities, and web portals.

For reference, the original Czech title is: "Poskytování software, poradenství v oblasti informačních technologií, zpracování dat, hostingové a související činnosti a webové portály".

The good news is that this qualifies as an unrestricted trade license in the Czech Republic. Any locally registered business entity (a legal entity or a sole proprietor) can obtain this IT license simply by submitting an application — no additional supporting documents are required. We successfully secure this IT license for all clients who register Czech legal entities or register as sole proprietors through us.

As you can see from the license description, it covers almost any IT activity, including:

• Software development and provision (both sales and subscription-based models)
• All types of IT consulting, which can easily include IT analytics and testing
• Data processing and analysis
• Hosting and any hardware solutions
• Website and web portal development and maintenance

Even activities not explicitly mentioned in this list can generally be covered by this license.

Here you can find the complete list of 80 unrestricted trade licenses, which includes many other potentially relevant business activities.

Important: What you MUST keep in mind

We strongly advise taking into account certain challenges associated with Czech company registration. Czech companies currently face some difficulties, particularly when opening a business bank account if the founders are non-residents. Additionally, new companies are not automatically registered for VAT. Finally, and more importantly for the IT sector, obtaining long-term visas (residence permits) in the Czech Republic for company owners and employees has become very difficult, which is crucial to consider if you are actually planning to relocate your office to the country. For more detailed information, please see the link provided above. In short, a Czech IT company can be an excellent and straightforward way to formalize your IT business. However, if you plan to open a physical office in the Czech Republic and relocate employees from abroad, be prepared for challenges.