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Opening a Business in the Czech Republic

Opening a Business in the Czech Republic

Updated on Wednesday 19th July 2017

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With a highly developed industrialized economic system, the Czech Republic is often the choice of many foreign investors who want to open a business. This country offers many advantages for new businesses, ones that cannot be found in other European countries. Foreign entrepreneurs should first consider asking for the help of a Czech lawyer, as setting up a business in the Czech Republic can sometimes be a rather complex process.

Deciding on the Czech type of business

The first aspect that should be taken into account by a foreign investor is the type of business that he/she wants to establish in the Czech Republic. There are various options to choose from and the main ones are:
  • - limited liability companies (s.r.o.)
  • - joint-stock companies (a.s.);
  • - general commercial partnerships (v.o.s.);
  • - limited partnerships (k.s.).
Another option can be to create a branch or a representative office for a parent-company overseas. These are not, however, legal entities as they are dependent on the parent company.
Our attorneys in the Czech Republic can help you with choosing the right Czech type of business that best suits your interests.

Requirements for registering a business in the Czech Republic

Foreign legal structures are allowed to conduct  trade operations in the Czech Republic (including the purchase of real estate) under the same conditions as the Czech investors. 
Legal entities and branch offices can be established only if they are registered with the Commercial Register first. Some of the documents that need to be submitted with the application are: copies of the partnership agreement, authorised copies of trade licenses, occupational lease etc. When registering a Czech company, a foreign investor should also complete the following steps:
  • • choose a name for the company and check for its uniqueness;
  • • find offices or an open space for the legal entity (initially the requirement is only for the address where the company is registered);
  • • depending on the type of business activity, a trade license or other specific permits can be required;
  • • in the case of a limited liability company (LLC), a bank account for the share capital deposit also has to be opened. In addition, registration for taxes, social security and health insurance is also required.
Our Czech law firm can assist and advise you through the whole process of opening a business in the Czech Republic, so feel free to contact our team.


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