Czech Republic Company formation and Registration

Registering a Corporation in the Czech Republic (2025)

Key Steps and Requirements:

• Obtaining a Trade License (Živnostenský list):
  • This is typically the first step.
  • The process is handled by the Trade Licensing Office (Živnostenský úřad).
  • Requirements vary depending on the type of business activity.
• Notarization of Founding Documents:
  • The company's founding documents (e.g., Memorandum of Association, Articles of Association) must be notarized.
• Registration with the Commercial Register (Obchodní rejstřík):
  • This is the official registration of the company.
  • The application is submitted to the relevant Regional Court.
  • Required documents typically include:
    • Notarized founding documents
    • Proof of trade license
    • Proof of deposited share capital
    • Statement of administrators and supervisory board members.
    • Lease agreement or proof of registered address.
    • Identification documents of the founders and administrators.
• Registration with the Tax Authorities:
  • Companies must register with the tax authorities for income tax and VAT (if applicable).
• Social Security and Health Insurance Registration:
  • Companies must also register with the relevant social security and health insurance authorities.

Changes and Important Considerations:

• Electronic Registration: The process has been increasingly digitized, with online registration becoming more common.
• Minimum Share Capital:
  • For a Limited Liability Company (s.r.o.), the minimum share capital is still required, but it is wise to verify the exact amount with the authorities, as regulations can be changed.
  • For a Joint Stock Company (a.s.), the minimum share capital is also required, and it is also wise to verify the amount with the authorities.
• Czech Identity Card: While having a Czech resident with an ID card can simplify some processes, it is not always a strict requirement.
  The rules are more flexible now than they once were.
• Foreign Workers: The process for employing foreign workers is separate and involves obtaining the necessary work and residence permits.
• Company Structures:
  • The common forms of incorporation remain:
  • Limited Liability Company (s.r.o.)
  • Joint Stock Company (a.s.)
  • General Partnership (v.o.s.)
  • Limited Partnership (k.s.)
  • Cooperative (družstvo)
  • Branch Office (odštěpný závod)
• Joint ventures are formed by contractual agreement and are not a separate legal entity.
• Professional Assistance: It is highly recommended to seek assistance from a Czech lawyer or business consultant specializing in company formation.