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Company Formation Czech Republic



Set up an LLC in Czech Republic

Updated on Monday 11th December 2017

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set up LLC in czech republic.jpgKnown as SRO, from the Czech name, the limited liability company is the most common among small and medium-sized businesses. The entities able to set up a SRO are a legal entity, an individual or an association based on a memorandum concluded by a group of individuals or entities up to 50. In both cases, the deed or the memorandum needs to be a notarial deed.

The legal aspects of incorporating an LLC in Czech Republic

The Czech law states that a SRO founded by a single shareholder can’t constitute itself the sole shareholder of another limited liability company. However, one individual can be the only shareholder of a maximum of three such companies.

The limited liability company set up in Czech Republic requires a minimum CZK 1 (around 5 euro cents) as registered capital. Before the company is registered in the Commercial Register, the non-monetary contributions must be fully settled. The court appoints an expert to determine the value of the non-monetary contributions clearly specified in the founder’s deed or memorandum. Another step to be done, before applying for the Commercial Register, is the payment of at least 30% of the subscribed monetary contributions. In case there is only one founder of the company, the registered capital must be fully paid before the limited liability company is registered in the Commercial Register.

Documents required for obtaining the license

An important step to set up an LLC in Czech Republic is the license from the Trade Licenses Office. The necessary documents include the founder’s deed or the memorandum of association for companies not registered with the Commercial Register or an excerpt from the Register for the companies already established and the papers for the office space and an administrative fee.

Once the license is released, there is a term of 90 days for the company to apply to the Commercial Register. Along with the incorporation documentation, the bank evidence of the payment of 30% of the capital, the specimen signature and the clean criminal record for all members, the license completes the file for the Commercial Register.

Once the company is set up in a process that lasts up to five working days, it is eligible for the corporate income tax. In Czech Republic, this tax is 19% with some exceptions of 5%. The first day of work of the first employee generates the obligation for the company to register for health insurance and social security taxes in not more than eight days. 

Our specialists in company formation can offer you more information about the incorporation of an LLC and other types of companies in the Czech Republic. Contact them now for details.



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Starting a company in the Czech Republic can be difficult since it involves such complex procedures. The team from CzechCompanyIncorporation.com is very qualified and benefits from extensive expertise in this area.

Mihai Cuc, Partner of
Enescu&Cuc; Law Firm

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