Key takeaways
- Foreigners can fully own and manage a Czech limited liability company (s.r.o.) — no Czech residency needed.
- The legal minimum share capital is CZK 1 per shareholder.
- The whole process can be done remotely with a power of attorney.
- The company exists from its entry in the Commercial Register; tax registration follows within 15 days.
- Corporate income tax is 21%; VAT registration is required above CZK 2,000,000 turnover per calendar year.
1. Choose the legal form
Most foreign founders choose a limited liability company (s.r.o.). The main options are:
| Form | What it is | Best for |
|---|---|---|
| s.r.o. | Limited liability company; minimum capital CZK 1 per shareholder | Almost all small and medium businesses |
| a.s. | Joint-stock company; higher capital requirements | Larger companies and investors |
| Branch (odštěpný závod) | Czech registration of a foreign company; not a separate legal entity | Foreign companies extending existing operations |
| Sole trader (OSVČ) | An individual with a trade licence; unlimited personal liability | Freelancers living in Czechia |
2. Who can set up a Czech company?
Any individual or company, of any nationality, can own and manage a Czech s.r.o. Owning a company does not require Czech residency. If you want to live or work in Czechia yourself, residence and work permits are a separate matter with their own rules.
3. Documents you need
- Passport copies of all shareholders and directors.
- Criminal record extracts for directors from their country of citizenship (and residence, if different) — apostilled or superlegalised, with a certified Czech translation.
- For a corporate shareholder: a current extract from its commercial register, apostilled and translated.
- A power of attorney with an officially verified signature if you will not sign in Czechia.
- Owner’s consent for the registered office address in Czechia.
4. Step-by-step process
- Prepare the founding document. A deed of foundation (one founder) or memorandum of association (several founders), executed as a notarial deed in Czech.
- Secure a registered office. A real address in Czechia with the owner’s written consent.
- Pay in the share capital. As set in the founding document.
- Obtain the trade licence. Register the business activities with the trade licensing office.
- Register the company. Entry in the Commercial Register — directly by the notary, or by filing with the registry court. The company receives its IČO and legally comes into existence.
- Register beneficial owners. Record the individuals who ultimately own or control the company.
- Register with the tax office. Within 15 days for corporate income tax; register for VAT if required or useful.
- Open a business bank account and set up access to the company’s data box for official communication.
5. How long it takes
The Czech legal steps can be completed within days when all documents are ready; a registry court has five working days to make an entry. Most of the time usually goes into obtaining foreign documents — criminal record extracts, apostilles and certified translations.
6. Taxes at a glance (2026)
| Corporate income tax | 21% |
| Withholding tax on dividends to individuals | 15% (35% for certain non-treaty jurisdictions) |
| VAT | 21% standard, 12% reduced |
| VAT registration | Turnover above CZK 2,000,000 in a calendar year (immediately above CZK 2,536,500) |
| Personal income tax | 15%, and 23% on annual income above CZK 1,762,812 |
| Employer social and health contributions | 33.8% of gross salary |
7. Ongoing obligations
- Double-entry bookkeeping and annual financial statements filed in the Collection of Documents.
- Annual corporate income tax return.
- VAT returns and control statements for VAT payers.
- Payroll reporting if the company has employees.
- Keeping the Commercial Register and the register of beneficial owners up to date.
8. Common mistakes to avoid
- Using a registered office address without the owner’s valid consent.
- Foreign documents without an apostille or a certified translation.
- Forgetting to register beneficial owners.
- Missing the 15-day deadline for tax registration.
- Not watching the VAT thresholds during the year.
- Mixing personal and company money.
Want this done for you? See our company formation service or a ready-made company if you need to start immediately.
Frequently asked questions
Can a non-EU citizen open a company in the Czech Republic?
Yes. Citizens of any country can own and manage a Czech s.r.o. Residence and work permits are only needed if you also want to live or work in Czechia yourself.
Is the Czech Republic a good place to set up a company?
For many founders, yes: an s.r.o. can be set up with CZK 1 of share capital, the process can be done remotely, the corporate tax rate is 21% and the country is part of the EU single market. Whether it suits you depends on your business and tax situation.
How much tax does a Czech company pay?
Corporate income tax is 21% of taxable profit (2026). Dividends paid out to individual shareholders are generally taxed at 15% withholding tax.
Do I need a Czech bank account for my company?
In practice, yes. A Czech account makes it straightforward to pay taxes, salaries and local suppliers, and many partners expect it.
What is the difference between a registered office and a business address?
The registered office is the official address of the company in the Commercial Register, used for official correspondence. The company can operate elsewhere, but it must have a valid right to use the registered office address.