Czech Republic LLC Formation

Czech Republic Limited Liability Company Formation (s.r.o)

Formation of Czech s.r.o. company with limited liability of shareholders, low registered capital, simplified corporate and administrative requirements.

Incorporation: 1 week + delivery time for the courier


Minimum paid up capital: The minimum contribution of each shareholder to the registered capital is CZK 1, however it is recommended to set-up an s.r.o with a minimum of CZK 1,000

 

Overview

Czech Republic is a member country of European Union located in its center with developed infrastructure and services. Czech Republic has stable political system supporting business activities and potentially low employees’ salary. It is one of the top locations in Europe to open up a business.

Czech Republic attracts foreign investors worldwide due to its great location. Prague, which is the capital city, is fast developed city with historical and cultural name which could create perfect sound for your company.

A limited liability company is the most common type of business entity. The s.r.o. Czech is a very popular legal form especially for small and medium sized business. Shareholders are not liable for the company’s obligations if their contributions are fully paid up and registered in the Commercial Register. The s.r.o. Czech is liable for breaching its obligations with its entire property. Czech s.r.o. has its registered capital usually from CZK 200,000, but it is possible to form a company with sole member and his contribution from CZK 1,- therefore the registered capital amounts to CZK 1,-. The registered capital in any amount is fully usable and the company do not have to keep it on the account. Czech s.r.o. is managed by one or more managing directors. It is not necessary to have the supervisory board or auditor. The general meeting is held once a year and shareholders can vote on or out of general meeting in a distant way. Right on share can be represented by share deed similar to the stock at joint stock company. Czech s.r.o. can be formed by one or more partners, no matter if legal entities or individuals. One person may be a sole member of another companies, there are not any legal restrictions. The maximum amount of company members is not limited.
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Name check + + +
Company incorporation
+ + +
  • Name check and approval
  • Drafting of Articles of Association
  • Notary Public and stamp duties fee
  • Submission of company documents to the Trade Register
  • Payment of Share capital (EUR 200)
  • Provision of a standard set of original corporate documents
  • Provision of registered office for one year
Local secretary + + +
Government fees + + +
Registered office for 1 year + + +
Delivery of original documents - + +
Apostilled documents
- + +
  • If applying for a corporate bank account, you will need to order a full set of apostilled company documents when the account is opened outside of the country of Company.
Nominee director and shareholder
- - +
  • This service is required if you do not want your name to appear in the corporate documents or in the government registry. For this purpose, we will appoint another person or entity that will act on your behalf and for your interests and benefit. Such a relationship will be legally based on Power of Attorney and Trust Declaration. Despite Power of Attorney not being publicly available, such service does not guarantee 100% confidentiality. In case of request from public authorities the information about actual beneficial owner may be disclosed.

N.B.: Nominee Director services will be provided after receipt of details of business and accounting information from the Client
Total amount:
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Facts & Info for Czech Republic Limited Liability Company Formation (s.r.o)

Company
Services
Requirements

General information

Company structure

  • Only one shareholder (can also be a legal person, no nationality restriction or residency restrictions)
  • Only one executive director (natural person, no nationality or residency restrictions)

Confidentiality

  • Beneficial owners' details – disclosed to the authorities
  • Shareholders' details – part of the public record
  • Directors' details – part of the public record

Taxation

  • All companies registered in the Czech Republic are liable to corporate income tax. It is payable on worldwide taxable income and capital gains. The tax base is calculated from the accounting profit/loss shown on the relevant financial statements, prepared according to the Czech accounting legislation. A corporate income tax rate is 19%. A corporate income tax rate of 5% applies to investment funds, unit funds and pension funds. Czech legislation allows taxpayers to change their accounting period from calendar year to fiscal year, and vice versa by simply notifying the Tax Authority.

Other benefits

  • There is no restriction on form of meeting for shareholders and directors and no restriction for place of meeting.

Accounting requirements

Legal regulations regarding accounting and audit in the Czech Republic are in compliance with the legislation of the European Community. All accounting records must be in the Czech language. Companies registered with the Commercial Register are obliged to use double entry bookkeeping. Single-entry accounting will be no longer used. The Act No. 563/1991 Coll., on Accounting, as amended (the “Accounting Act”) requires that consolidated financial statements must be prepared for an accounting unit that is a managing or controlling entity.

There is no obligation to file an annual return and to pay annual government fees. However, it is necessary to prepare financial statements and file a corporate income tax return every year, within three months after the end of the accounting year. As the accounting year usually corresponds to the calendar year, the deadline for filing the CIT and paying the income tax (19%) is March 31st.

Secretary

Not Required

Registered Agent

Not Required

Registered office

Required

Company name

  • Language: Any
  • Letters: From Roman alphabet
  • Company name will end with suffixes or their abbreviations:r.o
  • Names Requiring Consent or a Licence: Bank, building society, savings, loans, insurance, assurance, reinsurance, fund management, investment fund, trust, trustees, Chamber of Commerce, university, municipal

N.B.

  • Restricted connections for company name: name of state, national or local government.
  • Any name that implies illegal activity or implies royal or government patronage is restricted.
  • Registrar may reject any name which it considers undesirable or contrary to the public interest.
  • Company name is restricted to be identical or similar that of an existing company.
  • In case when foreign language is used for company name the translation must be provided to Registrar which will ensure conformity to above listed restrictions.

Incorporation

  • Name check and approval
  • Drafting of Articles of Association
  • Notary Public and stamp duties fee
  • Submission of company documents to the Trade Register
  • Payment of Share capital (EUR 200)
  • Provision of a standard set of original corporate documents
  • Provision of registered office for one year

Please provide us with the following documents and data: 

 Incorporation

  • A notarized copy of valid passport (of each Shareholder, Director, Beneficial Owner, Authorized Signatory)
  • A copy of proof of residential address (ex. utility bill of each Shareholder, Director, Beneficial Owner, Authorized Signatory that is not older than 3 months) in English
  • Optional: A notarized copy of Bank reference (of each Shareholder, Director, Beneficial Owner, Authorized Signatory)
  • Optional: CV (of each Director and Shareholder)

N.B.

  • If Shareholders and/or directors are legal persons, then it is required to submit full set of apostilled company documents and if company is operating more than 1 year it is required to submit certificate of Good Standing.
  • If documents are not in English language or language of particular country, then they must be accompanied by a notarized translation.

 Capital

  • Amount of paid up capital

 Company name

  • Three company names in order of preference