Company formation in the Czech Republic

Embark on a transformative journey to establish your business in the Czech Republic with the unparalleled expertise and support of Regulated United Europe. Our comprehensive services are meticulously designed to guide you through the entire company formation process, unlocking the strategic advantages inherent in this central European hub.

Choosing the Czech Republic as your business destination places you in the heart of Europe, providing strategic access to neighbouring markets and fostering efficient trade and distribution across the continent. Regulated United Europe ensures that your company’s establishment aligns seamlessly with local regulations, offering a secure and conducive environment for businesses of all sizes.

The Czech Republic stands out for its stable political environment and business-friendly policies, providing an ideal foundation for your company’s operations. Our team at Regulated United Europe is committed to navigating the intricacies of local regulations, ensuring your business complies with all legal requirements and allowing you to focus entirely on your core operations without unnecessary bureaucratic hurdles.

One of the Czech Republic’s key strengths is its highly skilled and educated workforce, making it a genuine hub of innovation. With a strong emphasis on education and technological advancements, the country boasts a pool of talent ready to contribute to your business’s success. Regulated United Europe facilitates compliance with employment regulations but also assists in recruiting top-tier professionals for your team.

Corporate services in the Czech Republic

Advantages

Advantages of Establishing Your Company in the Czech Republic

• Strategic Location: Lying in the very center of Europe, the Czech Republic has a very advantageous strategic location from which it is easy to reach other European markets. This central position boosts the effectiveness of the distribution of products and services within the region.
• Robust Infrastructure: It has a modern and well-developed infrastructure with roads, railways, and airports. Excellent infrastructure ensures fluent transportation of goods and easy mobility of workers.
• Skilled Workforce: The labour in the Czech Republic is highly educated and trained, especially in the fields of engineering, information technology, and manufacturing. The base of intellectual capital is very high in this regard and hence contributes considerably to the competitive advantage of firms operating within the country.
• Competitive Labour Costs: While over the past several years it has been growing gradually, labor costs in the Czech Republic still remain competitive compared with other Western European countries. Cost competitiveness in this case will, therefore, be favoring economic viability and sustainability of the businesses.
• Favourable Tax Incentives: The government of the Czech Republic has provided a number of incentives in the form of tax exemptions/lower rates of taxation amongst other benefits that encourage and support a non-hostile tax environment for businesses.

Why consider registering a company in the Czech Republic?

These strategic, economic, and manpower advantages combine to make the Czech Republic a haven for company formation. Centrally positioned in Europe, its strategic geographic location provides unequalled access to the main European markets, placing the country in the best position to act as the frontier for the business expansion of companies further into the continent. The strong and stable economy, with steady growth, creates an excellent atmosphere in this country for all business ventures to do well in manufacturing, technology, and service. One of the high points of the Czech Republic is its human resources. Its main advantage is that the human resource pool is multilingual, though having an inclination towards technical matters. Furthermore, the business-friendly government of the Czech Republic-through the use of incentives for attracting foreign direct investment, as stated by policy-is generally quite conducive to business activity: namely, through favorable taxation, support for research and development, and painless bureaucratic procedures, ease and efficiency perform business operations. Finally, the general infrastructure in the country is well-advanced, and each business within the borders of the Czech Republic is suitably equipped with the relevant tool and systems.

Required Documentation for Company Registration in the Czech Republic:

• Chosen name of the company.
• Registered office address, with proof to support (lease agreement).
• Description of the activities to be carried out by the company.
• Memorandum and Articles of Association (MAA).
• Certificate of trade authorization.
• Sample signatures from the shareholders and the directors.
• Proof of bank deposit for the deposited capital.
• Criminal record extract for each of the company members.

Types of companies that exist in the Czech Republic

In the Czech Republic, entrepreneurs can choose several types of legal entities for doing business, each of which has its peculiarities, requirements for the founding capital, management structure, and taxation. This gives grounds for choosing the most suitable option in view of business specifics, plans for its development, and strategy of minimizing tax deductions. Within this article, we will look at the main types of companies that can be registered in the Czech Republic.

Individual entrepreneur (Živnostenské podnikání)

It is the easiest way to begin business for a sole proprietor. A sole proprietor does not require any initial capital and is registered in the Commercial Register (Živnostenský rejstřík). The entrepreneur has unlimited liability for his/her obligations with all his/her property.

Limited liability company (Společnost s ručením omezeným, s.r.o.)

S.r.o. is the most popular type of company in the Czech Republic among small and medium-sized businesses. The minimum authorized capital is CZK 1. The founders-shareholders bear losses only in so far as their contributions to the authorized capital.

Joint-stock company (Akciová společnost, a.s.)

Suitable for large businesses, it has a minimum requirement for authorized capital of CZK 2 million in the case of a closed joint-stock company and CZK 20 million in the case of a public joint-stock company. Shareholders bear liability up to the amount corresponding to their participation in the Authorized Capital.

Limited partnership (Komanditní společnost, k.s.)

In this type of company, there are two types of partners: limited partners who contribute and bear only limited liability within the limits of their contribution, and complementarians who are fully liable and undertake business management. This is suitable for family businesses or start-ups looking for investors without wishing to share the responsibilities of management.

Public partnership (Veřejná obchodní společnost, v.o.s.)

With their personal assets, all partners are fully and jointly liable for the obligations of the company. It is suitable for a small company with several founders who want to work together under one brand.

European Joint Stock Company (Societas Europaea, SE)

It enables an organization to work in every European Union country with only one legal form. This will be fit for big organizations that need to expand in Europe. The minimum required authorized capital is 120,000 euros.

A proper choice of legal form of enterprise operating in the Czech Republic depends on many variables, such as size and type of activity, number of founders, strategy for financing, and a willingness of owners to bear liability. All the options have both their advantages and limitations, and therefore, prior to making the final decision, it is necessary to thoroughly weigh all the possible variants with the possible consultation of lawyers and accountants.

Tax rates for companies registered in the Czech Republic

The Czech Republic offers very favourable conditions to business people, including quite a reasonable tax policy. A table with some main tax rates for companies is provided below.

 

The information provided is a general overview of the tax burden applicable to enterprises in the Czech Republic. Please note that the laws regulating taxes are subject to change, and numerous tax reliefs and exemptions may apply depending on the specific circumstances of the particular case. In any case, it is worth consulting professional tax advisors and accountants for up-to-date information and qualified advice.

Authorised capital of a company in the Czech Republic

The important aspect of the founding of a company in the Czech Republic is the amount of subscribed capital. Together with the legal form, the amount of subscribed capital forms the financial basis of the company and defines the level of accountability of the founders to creditors. According to the law of the Czech Republic, it will be determined by a legal form in order to fix the size of subscribed capital. The following article shall deal with the minimum authorization requirements in respect of the most common types of companies.

 

The amount of authorized capital for a company in the Czech Republic is determined based on the selected type of legal entity and specifics of the business; however, legislation does establish minimum thresholds for certain types of companies, so founders should consider not only fulfilling the minimum but also capitalizing their business accordingly to ensure its viability and development. Choosing the right amount of authorized capital will avoid financial difficulties and show that a company is viewed positively by banks, investors, and business partners.

Having a local director

In the Czech Republic, it is under the law on having a local director that has been one of the most discussed topics among foreign investors and entrepreneurs willing to do business in this country. We will focus on whether companies in the Czech Republic need to have a local director and what the specifics and requirements for company management are.

Requirements for company directors in the Czech Republic

There is no direct law under Czech stipulating that an executive director or a member of the management board necessarily a resident of the Czech Republic should be appointed. On the other hand, some aspects exist in appointing a foreign national to a managerial position.

Main Aspects:

• Ability to perform duties: The foreign director shall be capable of visiting the Czech Republic on a regular basis to perform his duties, attend meetings, and liaise with the Czech state authorities.
• Communication: Knowledge of the Czech language is not obligatory; it may, however, play an important role in proper company management and communication with local authorities and partners.
• Registration duties of a foreign director include the preparation and filing with the KRS of personal documents, such as confirmation of identity and, in special cases, a certificate of their criminal record.
• Tax consequences: Having a foreigner as a director may involve some consequences in respect of tax for the Company and the person appointed in connection with, among other things, income tax and social insurance.

Local director services-advantages

There are no strict requirements; still, having a local director has certain advantages, such as:

• A much better understanding of the local market and legislation.
• Easy communication on both levels of government agencies and business partners.
• The best representation of the company interests.

Possible alternatives:

Companies wanting to keep management flexibility may also favor the appointment of a foreign director, to whom a power of attorney is granted to some local representative, or use the services of a professional corporate director in the Czech Republic.

What are the state fees for the establishment of a company in the Czech Republic?

Having established a company within the Czech Republic, any entrepreneur should be prepared to face the need to pay state fees, interpreted as obligatory payments against the registration of the firm in relevant state registers. The level of such fees is most likely to depend on the type of legal entity of the firm and other factors. The following article describes the structure of state fees related to establishing various types of companies in the Czech Republic, which can be very useful for entrepreneurs when deciding on how to plan their business activities.

State Fees for Company Registration in the Czech Republic

Add-on charges and fees

Apart from this set fee, other charges include notary services—drawing the notarization and incorporation and registration documents, and other legal or consultancy services.

Besides the government fee, one of many costs entrepreneurs find themselves facing is the setup of a company in the Czech Republic. Understanding them in advance and adequately preparing for such fees makes the registration process a lot easier and less likely to be subject to unexpected delays. However, remember that laws and fees are subject to change, so it is best to check the latest information on official resources or personally contact representatives from Regulated United Europe before beginning the incorporation process.

Annual cost of maintaining a company in the Czech Republic

Apart from the advantages, there are quite a few obligatory fees and operative costs to be taken into account within the annual cost of maintaining the company in the Czech Republic in planning and running a business. These may vary according to the size of the company, its legal form, or area of activity, among others. In this article, we take a closer look at the major cost items of annual company maintenance in the Czech Republic.

 

The annual cost of maintaining a company in the Czech Republic may vary substantially depending on many factors. It is of vital importance that the entrepreneur should pay special attention to the planning of all his financial obligations and consider all possible costs for ensuring further sustainable development of his business. Local accounting, tax, and legal professionals will help to optimize costs and avoid unforeseen financial difficulties.

Establishment of a company in the Czech Republic

A Company in the Czech Republic has a lot of considerable advantages for foreign investors and local businessmen, making this country very appealing to conduct business in. Its advantageous Central European location with well-developed infrastructure and stable economy provides special conditions for the development and growth of businesses. In the article below, we will review the main advantages of establishing a company in the Czech Republic.

Geographical location that is strategic

The Czech Republic is located in the centre of Europe, bordering Germany, Austria, Poland and Slovakia, with easy access to the major European markets. For this reason, this country is suitable for enterprises intending to expand their companies on the European continent.

Economic stability

The Czech Republic enjoys high economic stability, underpinned by a relatively low level of general government debt and stable GDP growth. It is also a member of the European Union, with all the additional economic advantages and business opportunities this brings.

Attractive tax system

The level of company taxation in the Czech Republic is relatively low, with a standard rate of income tax standing at 19%. Moreover, several tax breaks and investment incentives are offered, above all in the field of research, development and innovation.

Highly qualified labor force

The country has duly earned its place among the leaders, thanks to highly qualified and well-trained specialists in all industries – from manufacturing through IT to services. This talent can be used at relatively moderate labour costs.

Developed infrastructure

One of the best transport networks in Central Europe, modern motorways, railway lines and airports ensure efficient logistics and access to key markets.

Support for innovation and technological development

Innovation and high-tech development receive energetic support in the Czech Republic through government programs and initiatives aimed at research and development, startups, and innovative projects.

European funds and grants

Thanks to its EU membership, the country has been subject to several European funds and grants for project financing in infrastructure development, innovation, environment, education, and many other fields.

Largest cities in the Czech Republic

What are the various ways of incorporation of a company in the Czech Republic?

Generally speaking, the incorporation of a company in the Czech Republic can be performed in numerous ways: depending on the type of legal form of the company, business goals and cofounders’ preferences. There are several ways to incorporate a company in the Czech Republic, each having its specific characteristics, advantages and conditions. In the following article we will look through the main ways of company formation in the Czech Republic to make a choice easier for entrepreneurs.

Direct establishment of the Company

The traditional variant of company registration includes the preparation and submitting of all the documents to the relevant state authorities, including registration in the Commercial Register – Obchodní rejstřík. The procedure includes:

• Company name choice and checking its uniqueness;
• Determination of where the registered office of the company will be.
• Preparation of documents related to its incorporation, especially: articles of association in the case of a joint stock company or in the case of a limited liability company, the memorandum of association.
• Determination of the amount of authorized capital
• Registration with the Internal Revenue Service and, where applicable, Social Security.

Buying an already-established company

This type of incorporation involves the purchase of an already registered “shelf” or off-the-shelf company. Normally, such companies have never carried on any business activities before and are only set up for resale. The advantages to be accrued from this method of incorporation include saving on time used in the registration process, as well as being able to start business activities straight away. In this regard, however, great care should be taken to meticulously check the history and documents of the company in question.

Registration via the Internet – using the DATA BOX system

In general, it is possible to implement the registration of companies electronically in the Czech Republic, using the DATA BOX system for acceleration and simplification. The founders will need an electronic signature and access to the system for this purpose. This will be appropriate for entrepreneurs who prefer digital technology and minimize personal visits to public authorities.

The founders may use the services of specialized registration agencies

Which can provide a full range of services—from document preparation and filing to interaction with state authorities. Such a variant of registration is ideal for foreign investors and businessmen who don’t have good knowledge of local laws and processes.

The way of registering a company in the Czech Republic can be chosen in accordance with a lot of factors, among which are the urgency of starting one’s business, preferences regarding document management, and readiness to deal with government authorities. Whatever the route is, comprehensive preparation and observance of all Czech formalities are compulsory for a smooth and effective start of a business in the Czech Republic.

Does One Need a Legal Address in the Czech Republic?

Incorporating a company in the Czech Republic automatically raises the issue of the requirement for a registered office. It is not only a question of “an officially declared seat of an enterprise” but one that is also intended to be integral to operational activity. This article will look in more detail at why having a legal address is a binding obligation in the Czech Republic and what functions it fulfils.

Obligatory Legal Address

The rule is that any legal entity registering in the Czech Republic should have a registered office. In simple terms, it’s the office address at which the firm is legally registered and through which all kinds of legal correspondence are addressed. The legal address is supposed to appear in all the official documents of the company, such as the memorandum of association, as well as in the Commercial Register-Obchodní rejstřík.

Legal Address Functions

1. Legal identification: The statutory seat acts to legally identify the company for purposes of law, taxation and administration.
2. Correspondence: This is the address where official letters are sent or forwarded to the company, including any correspondence originating from government agencies, tax authorities and legal institutions.
3. Registration with government authorities: The statutory seat is one that is used when registering a company with the various government agencies, such as the tax office and social security system.

How to establish a statutory seat

1. Business address: If a firm has its physical office space, then it can use that address for its legal address.
2. Virtual Office Services: If a company does not require a permanent physical presence, it has the option of a virtual office where a registered office address is provided. Additional services may include acceptance of mail and subsequent forwarding.
3. Office renting: The company rents office space and uses the address of that office as its official legal address. This is more suitable for companies where they need to access the office on a regular basis for meetings with clients and business partners.

Legal requirements and restrictions

The selection of the Czech registered office follows the local legislation, which may provide particular requirements or limitations, such as prohibiting the use of a residential house or premises as an address of a company. Careful attention should be paid to ascertaining whether the office does not violate any of the requirements and that it has been correctly registered.

Can a branch office of a foreign company be opened in the Czech Republic?

Opening a branch office of a foreign company in the Czech Republic represents an attractive opportunity to expand business into the Czech and European markets. Due to its strategic location at the centre of Europe, the country offers a stable economy with relatively low operational costs, making it an ideal place for international business. In this article, we shall look into the main requirements and issues that occur when a branch office of a foreign company is opened in the Czech Republic.

Branch Concept in the Czech Republic

A branch of a foreign company (“pobočka zahraniční společnosti”) in the Czech Republic is considered as an inseparable part of a foreign legal entity, which has the right to carry out activities on behalf of the parent company. The branch does not have the status of a legal entity and acts on the basis of powers delegated by the foreign company.

Basic steps for opening a branch

Requirements from branch

• Branch management: The Branch should have an appointed manager whose powers are circumscribed by the power of attorney issued by the parent company.
• Legal address in the Czech Republic: The branch shall have a legal address in the Czech Republic that may be used for official correspondence and also for its registration purposes.
• Compliance with legislation: The activities of the branch must comply with the Czech law, including tax laws, accounting rules and labour law standards.

Advantages of opening a branch

• Market access: A branch office allows a foreign company to operate directly on the Czech market and take advantage of the local business environment.
• Tax simplification: A branch is not a legal entity, therefore the tax reporting is simpler and tax burden optimization can be achieved.
• Marketing and brand benefits: The presence of the branch strengthens the position of the brand in the international market and thus develops the customer base.

Can a foreigner open a company in the Czech Republic?

Opening a company in the Czech Republic by foreign nationals is quite feasible and even welcomed by the Czech law, which creates favorable conditions for foreign investors. Because of its strategic location in the heart of Europe, its stable economy and attractive business environment, the Czech Republic offers many opportunities for entrepreneurs from different countries. Here, in this article, we take a glance at how it is possible for a foreigner to open a company in the Czech Republic, what steps and requirements are, and what advantages Czech law offers.

Steps to start a company in the Czech Republic

In case of incorporation, this will also require that the company pass a tax office registration, in order to obtain a taxpayer number and, where applicable, to declare VAT status.

Requirements of the foreign investor

It is allowed for foreigners to create and fully own an agency in the Czech Republic. They are not obliged to reside in this state; however, it might be required for some cases to get temporary residence in order to carry on management or performance of a director.

What does the Czech Republic offer to foreigners opening a company there?

• Stable economy: The Czech Republic is in possession of one of the most stable economies in Central and Eastern Europe.
• Attractive tax system: The state offers competitive tax rates to businesses.
• Highly skilled labor force: Access to educated and skilled labor.

Establishment of a company in the Czech Republic by foreigners is a relatively easy and not very expensive process with many considerable advantages for international business. It will be important to approach the preparation of the incorporation carefully, to select the right legal form of the company, and not to disregard any requirement under Czech law. In the case of successful incorporation, it will enable taking advantage of the economic and strategic benefits of the Czech Republic as a place of business.

Can a residence permit be obtained in the context of establishing a company in the Czech Republic?

Obtaining a residence permit in the Czech Republic by setting up a company is one of the opportunities for foreign entrepreneurs who want, besides developing their business, to also establish themselves in the country for a longer period. The process has its own particularities, requirements and stages, which a foreign citizen should consider to successfully finalize the process. In this paper, we will discuss in detail how a foreign investor can get a residence permit in the Czech Republic on the basis of establishing a company.

Basic conditions and requirements

Czech legislation allows foreign residents to obtain a residence permit if their purpose for staying in the country is business. The basic requirements are as follows: company registration – establishment and registration of a company in the Czech Republic, and the firm must be registered within the borders of the country and meet all legal criteria.

• Proof of financial stability: A foreign entrepreneur shall prove his/her financial stability and sufficient funds to conduct business and reside in the Czech Republic.
• Business Plan: An elaborate business plan is to be drawn up and presented to the relevant authorities, which should reflect the prospects of business development, its goals, foreseen profits, and creation of jobs for the citizens of the Czech Republic.

Procedure for getting a residence permit

1. Application after Registration of a Company: Every foreign national who has a registered company is free to apply for a long-term visa in the purpose of doing business at the embassy or consulate of the Czech Republic in his or her country of residence.
2. Application Assessment: The application assessment procedure can take as long as several months. In that time, other supporting documentation may be requested or there might be a need to go for an interview.
3. Residence permit obtaining: After the application is approved, the foreign entrepreneur gets a long-term visa, which he or she can already change for a residence permit in the Czech Republic.

Advantages of residence permit obtainment via establishment of the company

• Access to the European market: A residence permit not only allows you to conduct business in the Czech Republic but also secures easier access to other European Union countries.
• Right of residence: Acquisition of residence allows for residence in the Czech Republic in the long term – in principle, of course.
• Social guarantees: The foreign entrepreneurs who receive a residence permit enjoy health care, education, and other social securities on equal terms with citizens of the Czech Republic.

Establishment of a company allows foreign entrepreneurs to obtain a residence permit in the Czech Republic, by which they will be able not only to develop their business but also to create a ground for obtaining their long-term stay. Given the complexity of the process, careful preparation, elaboration of a business plan, and compliance with all the legal requirements in advance will contribute to maximum chances of successfully obtaining the residence permit.

What does the charter say in a company registered in the Czech Republic?

The Charter of a company registered in the Czech Republic is a key constituent document, which provides for the basic principles of functioning, structure, rights, and obligations of the founders and management. The Statute must be developed according to the Czech law and at the same time registered along with the company into the Commercial Register. The document represents a set of provisions, which determine the activities of the company on all levels. Below in this article, we will review the main sections and provisions usually spelled out in the charter of the company in the Czech Republic.

 

 

The Charter is a very basic document underlying the activities and management of the firm. Proper registration of the charter, by the Czech legislation and business objectives of the company, ensures transparency of its functioning, protection of the rights of founders, and effective management and development of the business. A draft of the charter has to be prepared with great care, considering all the aspects of further activities of the company and possible risks.

What activities can the firms do in the Czech Republic?

Companies in the Czech Republic can be involved in various activities because of the attractive investment climate, the high level of education of the population as well as the state’s geographical location at the center of Europe. Here are some areas that companies in the Czech Republic can get involved in:

IT and technology

The IT sector of the Czech Republic is currently being actively developed – attracting world leaders in information technology, as well as supporting local startups. The country concentrates software developers, mobile applications, specialists in the field of artificial intelligence, and machine learning.

Production

Rich industrial traditions, along with its advantageous location, make the country appealing for manufacturing companies. In addition, the most important industries are the automotive industry, followed by mechanical engineering, electrical engineering, and food production.

Tourism and hospitality

The rich cultural heritage, together with beautiful nature and high quality of service, attracts tourists from all over the world to the Czech Republic. On such fertile ground, hotels, restaurants, travel agencies, companies offering entertainment and excursions can find their opportunities for development.

Research and development

The Czech Republic allows an excellent place for research projects and developments in many fields, from pharmaceuticals to new materials. Support for research and innovations from the Government exists within several programs and grants.

Export and import

The country is geographically located at the very center of Europe, thus being a significant hub of important trade in goods. Amongst other things, this brings many advantages to exporting and importing companies, such as well-developed logistics infrastructure and advantageous trade agreements.

Financial and advisory services

Yet another field represented in the Czech Republic is financial services. Banks, insurance companies, investment funds, and consulting companies render their services to the local as well as the international market.

Energy and Ecology

The Czech Republic treats renewable sources of energy and sustainable development as a core of energy policy. Greater opportunities for companies exist in the alternative energy, energy efficiency, and clean technology sectors.

Is It Mandatory to Have Employees Within a Company in the Czech Republic?

As a general rule of law, there is no obligation that every company must have employees in the Czech Republic. Of course, many individual entrepreneurs and small businesses run successfully without any staffing on the part of the employer either by using their own resources or outsourcing. However, some sectors of activity may require certain regulations or even licensing where it is important to have qualified employees available. For example, it is impossible to work in education, medicine, construction, and transportation without full-time specialists with appropriate education and qualifications.

Types of companies and personnel requirements

Additionally, the availability of employees’ needs may also be different under the various forms of ownership for a company. For example, a joint stock company will necessarily have an executive director or a board of directors, which is not necessarily available with individual entrepreneurs or private limited liability companies.

Strategic and operational considerations

Whether to have employees or not in a company in the Czech Republic depends, in view of strategic and operational efficiency, on several factors: the scope and specifics of the work, need for specialized skills, and long-term business goals. Companies expanding and catching a market do need qualified employees to ensure such growth and competitiveness. Meanwhile, start-ups and small enterprises can outsource and freelance individual tasks and projects with a minimal fixed cost of personnel.

How to choose a company name in the Czech Republic?

Naming a company in the Czech Republic is the first significant step in starting a business. Having the right name makes your company stand out in the market and builds an important first impression with customers. Here are some guidelines that will assist you in naming a company in the Czech Republic:

It will be worth researching potential customers or the target audience in advance of making the final choice. This will enable you to understand how attractive and understandable the chosen name is for your target audience.

Czech Republic Business Register

The Business Register is the official name, while in translation it sounds like “Obchodn rejst k”, serving as one of the corner stones in the economic environment of the Czech Republic, considering the issues of transparency and access to information on all registered companies. First of all, it helps to raise trust between business communities and consumers by confirming that these companies correspond to their legal and financial duties. This work is going to provide an in-depth analysis of the Czech Business Register concerning functions, the process of registration, and providing access to information.

Main activity of the Business Register

The Business Register of the Czech Republic is the official public register that captures data about all legal entities, entrepreneurs, and other organizational units of business activity conducted within the country. Basic data included in this register are: legal name of the organization, identification number, legal address, data about managers, main subject of activity, as well as data about registered branches or representative offices.

Registration process

A business entity is registered in the Business Register and obtains legal personality upon the registration process. It starts by lodging the documents pertinent to the registration with the competent registration court, where the exact form of procedure is different depending on the type of registered legal entity. Basically, it includes:

1. Preparation of the constituent documents, for instance the statute or agreement on founding.
2. The enterprise identification number – IČ/ O – is requested from the Tax Authority.
3. Paying the State Tax with the registration of the state.
4. Thereafter, application and other documents are to be filed with the Registration Court.

After verification of the information provided and the documents submitted, the data in respect of the firm in the Business register is recorded by the registration court.

Access to information

Information from the Business Register is publicly available, via the Internet, on the official website of the register. Through the Business Register, everyone can gain information about the companies registered in the Czech Republic. The register is searchable by company name, identification number, or legal address.

Value to business and the economy

The business register also performs another very important function: making the business climate transparent, providing all the relevant information for market research, competitor analysis, and verification of a potential business partner or investment. It has also been employed as a tool for preventing financial fraud and a means of building trust between business and customer.

If you are contemplating the establishment of a company in the Czech Republic, the specialists at Regulated United Europe are on hand to evaluate the prospects for success in your particular case. Our skilled professionals can also provide insights into alternative options that align well with your business goals. Regardless of the stage of your business formation and operation, from document preparation to assisting with the day-to-day activities of your newly established entity, we are prepared to offer support. Contact us for more detailed consultations.