We facilitate the formation of Czech legal entities with corporate founders, including foreign ones. Contact us to learn how we can proceed.
Can another legal entity be the founder of a Czech company?
Yes, a Czech company can be founded by another legal entity, including a foreign one.
Czech law allows other legal entities to purchase shares in existing Czech firms and establish new ones. In simple terms, a corporate entity (including a foreign one) can be the founder of a Czech company without restrictions based on its jurisdiction.
This founding legal entity is always represented by its company director, who signs all necessary documents. For the registration process, you must provide proof of the corporate founder's legal existence and identify its director, confirming that this person has the authority to represent it.
There are two scenarios:
- The founding legal entity is also registered in the Czech Republic. In this case, the procedure is simple: the Commercial Register will automatically verify the company's details during the registration process, so you won't need to submit any extra paperwork.
- The founding legal entity is foreign. The process here is more complicated: you must provide documented proof of the foreign company's legal existence and the identity of its director. This is usually done with a register extract listing all of the company's details. The Czech authorities require a physical copy bearing a wet-ink stamp (digital documents from abroad are rarely accepted). Additionally, an apostille is often needed (check the requirements for your country here). In our experience, obtaining a simple, comprehensive extract is not possible in every jurisdiction, which can create difficulties. It is also important to note that having a foreign entity as a founder can be expensive because of the costs of obtaining the documents and having them translated.
If you are considering using another firm as the founder of your Czech legal entity, please get in touch with us. We can advise on the best course of action for your case.
Incorporation of a Czech legal entity
(the author of this page, prepared the answer to this question)
Specialist in Company Registration in the Czech Republic
- Regularly assists clients with the registration of legal entities in the Czech Republic
- Practical experience in company registration since 2011, with more than 60 companies successfully registered
- Direct interaction with all relevant Czech authorities and institutions involved in the registration process, including Czech notaries, the Commercial Register, tax authorities, and the Trade Licensing Office (Živnostenský úřad)
- Works directly with RusCzech clients seeking company registration services and has practical knowledge of the current requirements and specifics of establishing Czech companies
- When preparing the materials for this page, relies on personal practical experience, Czech corporate legislation (Zákon o obchodních korporacích), and official information published by the Ministry of Justice of the Czech Republic (Ministerstvo spravedlnosti České republiky)
- Regularly updates this page to reflect changes in Czech legislation as well as practical changes in the administrative procedures for company registration
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