Czech Republic Company Formation
Introduction to Registering a company in Czech Republic
Registered a company in Czech Republic help foreign investors benefits from the country’s trade relationships and commercial ties with most of the business centres in the world. Company formation in Czech Republic ranks in international trade and take advantage for ease of doing business. With establishing a Czech Republic company, it opens wide access to Central and Western Europe as Czech Republic is a part of several associations such as OECD,EU, WTO and NATO.The Czech Republic is small but stable economic in the centre of Europe with a very skilled and educated workforce and a cheaper labour costs.
What are the main types of company in the Czech Republic?
There are four main types of business entity for foreign investors and they are as follows:
- limited liability company (SRO)
- joint stock company partnership (AS)
- branch office
What are the main features of a limited liability (SRO) company?
- At least one director and one shareholder required
- Minimum share capital of CZK 50,000
- Simple Ownership structure
What are the main features of an (AS) joint stock company?
- minimum share capital CZK 2 million (€70,000)
- if via a public offering, minimum share capital CZK 20 million (€700,000)
- 30% of share capital to be paid up
- two-tier system comprising management and supervisory boards (one-tier system also possible)
- reserve fund from profits to be built up to 20% of registered capital
What are the accounting/audit requirements for an (AS) joint stock company?
A statutory audit is mandatory if at least one of the following criteria is met:
- balance sheet exceeds CZK 40 million (€1.4 million)
- net turnover exceeds CZK 80 million (€2.8 million)
- number of employees exceeds 50
What are the main forms of partnership in the Czech Republic?
There are two main kinds of partnership under Czech corporate law:
- general partnership (all partners have equal and unlimited liability)
- limited partnership (at least one partner has limited liability)
What are the main features of a branch office?
- branches are not separate legal entities, but part of a foreign parent =
- branch manager may be Czech or foreign national
- branch requires trade license before it can be registered
- accounting records to be prepared in Czech language
Foreign investors are well served by an array of international and local banks now operating in the Czech Republic. It is worth noting, however, that setting up a corporate bank account can be a complex procedure. Make it simple – talk to us and we’ll arrange everything.
How can I get more information about a Czech Republic Business?
If you want to open a Czech company as swiftly and efficiently as possible, we’re the people who make it happen. Please contact us for more information.Contact US