The Czech Republic

Key benefits

The Czech Republic is located in Eastern Europe and is bordered by Poland, Germany, Austria and Slovakia. Until 1993 the Czech Republic was unified with Slovakia however since separation the country has undergone major political, social and financial reforms. The Czech Republic is a democracy and a member of the EU, NATO, the OECD and the Council of Europe. The capital city is Prague.

The Czech Republic has made significant progress with regards to liberalization of the business environment; 85% of the country’s GDP is derived from private businesses and corporate taxation has been cut from 26% to the current rate of 20% resulting in a significant increase in foreign investment. The Czech Republic has also introduced a range of financial incentives to stimulate foreign investment including ten years corporate tax relief for new manufacturing investment, payment of 50% of costs for new technology and business investment and numerous substantial job creation and training grants.

In 2009 this period of stable and robust economic expansion halted as a result of the global downturn however the Czech Republic has weathered the turmoil relatively well with a GDP Growth of 1.7% in 2011.

Key benefits of the Czech Republic:

  • Stable political environment with EU and NATO membership
  • The Heritage Foundation ranked the Czech Republic 15th out of 43 countries in the region of Europe with regards to economic freedom. The Czech Republic ranks higher than the regional and global average.
  • The Czech Republic is one of Europe’s most industrialized nations with a highly skilled workforce.
  • Liberal, western business culture with English widely spoken
  • Developed and stable banking system with most a number of international banks located in the Czech Republic
  • Low corporate tax rate of 20%

There are numerous international banks operating in the Czech Republic however setting up a corporate bank account can be challenging. Eltoma can assist you in bank account opening using our local contacts and knowledge.

For additional information on company incorporation and bank account opening in the Czech Republic please contact us.

Tax and accounting regulations

Summary of Requirements for an S.r.o Limited Liability Company:

General Information
Type of CompanyS.r.o – Limited Liability Company
Timescale to incorporate2 weeks
Corporate Taxation19%
Double Tax Treaty Access:Yes
Minimum No. Required1
Local Director RequiredNo
Publicly accessible informationYes, the names of the directors do appear on public record
Location of MeetingsAnywhere
Minimum No. Required1, can be a corporate shareholder
Publicly accessible informationNo, the names of shareholders do not appear on public record
Location of MeetingsAnywhere
Company Secretary
Local Secretary RequiredN/A
Registered Office RequiredYes
Additional InformationA Statutory Representative is required to represent the company. This must be a natural person. Must be appointed in a General Meeting of the company
Share Capital
Standard CurrencyCzech Crown (CZK)
Standard AuthorisedCZK 200,000 / €7,500.00
Minimum Paid Up CapitalCZK 100,000 / Approx. €3,500.00.
Additional InformationThe company is required to have a reserve fund (this is principally a bookkeeping entry):


  • 1st Year – 10% of net profit
  • Year 2 onwards – 5% thereafter until the reserve reaches 10% of the companies registered capital
Accounting & Compliance
Requirements to prepare AccountsYes
Requirement for AuditAudit is required if at least two of the following criteria are met:


  • Balance sheet exceeds CZK 40 million (€1.4 million)
  • Net turnover exceeds CZK 80 million (€2.8 million)
  • The number of employees exceeds 50
Local Auditor RequiredYes, if Audit is required
Requirement to File AccountsYes
Requirement to file Annual ReturnYes
Additional Information
Bank Account OpeningA bank account can be opened without the need for presence


Procedure of company registration

The procedure of company formation in the Czech Republic is as follows.

We require the following to proceed:

  • Completed application form
  • A certified copy of each director and shareholder passport
  • Certificates of clear criminal record for non-Czech nationals for each director
  • Two utility bills that are under 3 months old

Once the above has been received the company name will be checked and the following documents sent for signing. These must be notarized.

  • Articles of Association
  • Registration of company to the Commercial Register

In addition to the above the following documents are obtained:

  • Clearance that share capital is held in a bank account
  • Trade License (for general commercial activity only a notification is required)

Once all original documents are received they are submitted to the Companies Registry and in approximately 1 week the company will be registered.