Czechia at a glance
Czechia is one of the EU jurisdictions founders most often use today, especially while the EU-wide 28th Regime (EU Inc) is still a proposal. Below are the verified essentials: company types, tax, capital, timing and whether you can set up remotely.
Company types in Czechia
- s.r.o. (spolecnost s rucenim omezenym) The dominant vehicle for founders: only CZK 1 minimum capital, limited liability, 100% foreign ownership and no local partner required. Ideal for startups and SMEs.
- a.s. (akciova spolecnost) Joint-stock company for larger ventures. Minimum capital CZK 2,000,000 (about EUR 80,000), capital split into shares.
| Corporate tax | Standard corporate income tax is 21%, in force since 1 January 2024 (raised from 19%). Withholding tax on non-resident income is 35/15/5% depending on the income type and treaty. |
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| VAT rate | Standard VAT (DPH) is 21%, with a single reduced rate of 12% (food, accommodation, certain pharmaceuticals and construction) and 0% on books. Registration is generally triggered above CZK 2,000,000 of turnover. |
| Dividends & payroll taxes | Dividends to individuals carry 15% withholding. Personal income tax is 15% with a 23% band on higher income, and employer social and health contributions add about 33.8%, the real cost driver when hiring. |
| Minimum share capital | For the s.r.o. the statutory minimum is just CZK 1 per shareholder, one of the lowest in the EU. The a.s. (joint-stock company) requires CZK 2,000,000 (about EUR 80,000). |
| Setup time | With the notarial deed, trade licence and documents in hand, the Commercial Register entry itself takes about 1 to 5 business days; a notary can even register the same day. Budget roughly 2 to 3 weeks for the whole run. |
| Remote setup | Yes. Non-residents can incorporate fully remotely with a notarised and apostilled power of attorney. A traditional Czech bank account often still needs an in-person visit, though fintech accounts (Wise, Revolut) open remotely. |
| Director / residency | No residency or nationality requirement for directors or shareholders, but a registered office in Czechia is mandatory. A non-EU managing director must supply a clean criminal record for the trade licence. |
| Banking options | Czech banks (Komercni banka, CSOB, Ceska sporitelna, Fio, Air Bank) usually expect an in-person visit; fintechs (Wise, Revolut Business) open remotely. Because s.r.o. capital can be as low as CZK 1, it can be paid to a capital administrator without a dedicated deposit account. |
| Our formation service | from around €100 to €200 (estimated). You get a fixed quote in your free plan before you commit. |
The s.r.o. dominates Czech company law, needing a symbolic CZK 1 of capital and allowing full foreign ownership. One procedural quirk: the trade licence must be in hand before the Commercial Register entry. And Czechia, though an EU member, still banks in koruna, not euro.
How to register a company in Czechia
Step by step, this is how a Czechia formation actually runs:
- Obtain the trade licence. The zivnost (trade licence) comes first; free trades register at the trade office with a clean criminal record for the managing director.
- Notarise the deed. A Czech notary executes the founding deed; a notarised, apostilled power of attorney covers remote founders.
- Handle the capital. With capital as low as CZK 1, it can be paid to a capital administrator; no dedicated bank deposit account is needed at this size.
- Register in the Commercial Register. The notary can enter the company directly, sometimes same day; otherwise the court registers within about a week.
- Tax registrations and banking. Register for corporate income tax (and VAT past CZK 2,000,000 turnover); traditional banks prefer an in-person visit while fintechs onboard remotely.
We handle each step with licensed local counsel, so the paperwork, registered address and filings are done correctly the first time.
What company formation in Czechia costs
Notary fees for a standard s.r.o. run roughly CZK 5,000 to 10,000 (EUR 200 to 400), the trade licence costs CZK 1,000, and direct notarial registration saves the court fee. Provider-led remote setups commonly total EUR 500 to 900 with translations. Accounting typically costs CZK 2,000 to 5,000 a month (EUR 80 to 200).
Form your Czech company in days
Tell us where you live and what you are building. Our formation service starts from around €100 to €200 (estimated); we confirm the right structure for Czechia, give you a fixed quote, and form the company with licensed counsel.
Get your free planWho can form a company in Czechia
Founders from outside the EU can own and run a Czech company, with the cross-border requirements handled for you. We flag any residency or local-agent rule for Czechia up front, so there are no surprises.
Czechia fits founders wanting a cheap, credible Central European s.r.o. with genuinely remote setup and koruna-denominated costs. The trade-licence step and Czech-language administration are the friction points; with a local accountant, it runs lean year to year.
After registration: what Czechia expects each year
Financial statements are filed and published through the Commercial Register, and the corporate tax return is due three months after year end, or six with a tax adviser. VAT payers file monthly control statements. Small companies avoid audit below thresholds; keep the trade licence details current when activities change.
Czechia and the 28th Regime (EU Inc)
EU Inc, the proposed 28th Regime, would let you register one company valid across all 27 EU member states. It is not law yet (expected around 2027-2028), so a Czech company is one of the ready options you can use today. Forming an EU company now also positions you to adopt EU Inc later, as we cover in how to prepare an EU Inc company. To weigh Czechia against other countries, see company formation in Europe.