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.

To operate an IT business, the minimum requirements are:

• Register a legal entity in the Czech Republic
• Obtain 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 requiring a visa or residence permit
• The registration process is simple, fast (1-2 business days), and relatively low-cost, and can be completed remotely (no physical presence required for directors and shareholders)

IT licensing and business permits in the Czech Republic

Czech law regulates the so-called “80 unrestricted 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 will require license number 56, defined as:

56. Software provision, IT consulting, data processing, hosting and related services, 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 license in the Czech Republic. Any locally registered business entity (legal entity or individual entrepreneur) 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 registering Czech legal entities or individual entrepreneurs with 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 licenses, which includes many other potentially relevant business activities.

Important: What you MUST keep in mind

We strongly advise considering certain challenges of 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 as VAT payers by default. 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 something 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 simple solution 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.