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How to establish a company in the Czech Republic

Updated: Oct 3, 2023


establish a company

If an entrepreneur is considering the possibility of creating a limited liability company (s.r.o.), they are undoubtedly interested in how much time it will take before they can start their business. The entire process begins with drafting a business plan, coming up with a company name, and preparing the necessary documents for setting up a company.


The usual procedure for establish a limited liability company is as follows: first, it is necessary to draw up the articles of association with a notary public; in case the share capital exceeds 20,000 Czech crowns (Kč), a bank account must be opened; next, the entrepreneur needs to register their business activities, make an entry in the Commercial Register, and register the company with the tax authorities for corporate income tax.


Notary Public

The s.r.o. is established through a notarial deed prepared by a notary public.


Bank Account Opening

If the share capital exceeds 20,000 Kč, it must be deposited into a bank account. To open the account, the bank requires the presentation of an original or certified copy of the articles of association or deed of incorporation, and then the capital can be paid by bank transfer or cash deposit.


Business Activity Registration

Obtaining a trade license depends on the type of business activity. For free trades, there are no specific requirements (except for two exceptions), but for craft and professional trades, the entrepreneur must have the relevant education or experience (or both) to carry out the specific business activity. Licensed trades may require involvement from a relevant authority or ministry.


Commercial Register Entry

When all the documents are ready, the entrepreneur can request the notary or court to make an entry in the Commercial Register. The s.r.o. is considered established on the date of registration in the register, and the entrepreneur can start their business activities.


Corporate Income Tax Registration

The final mandatory step is registration for corporate income tax with the tax authorities. This registration is done through an online system, and after the procedure, the entrepreneur receives confirmation with the assigned tax identification number (DIČ).


The time required for establishing a company depends on various factors. The difference may lie in whether the entrepreneur establishes the company on their own or with the help of a specialist. The processing time also depends on the type of business activity the entrepreneur is engaged in. If they handle everything independently, it is not possible to determine precisely how long they will have to wait at the authorities, how much time will be needed for drafting contracts or discussing the company's name, address, or executives. Ideally, the entrepreneur can start their business in 2-3 weeks, but they should be prepared for the entire process to take up to a month.


By seeking assistance from AMS Europe s.r.o., the entire process of establishing a company can be completed within 7 working days as a standard procedure or within 3 working days in an expedited case.


If you are unsure about how to create a company in the Czech Republic or do not want to deal with this complex process, feel free to contact our specialists.

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