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. |
|---|---|
| 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. |
| 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 | Once the notarial deed, trade licence and documents are ready, entry in the Commercial Register takes about 1 to 5 business days (expedited registration by a notary can be same day). Allow roughly 2 to 3 weeks in total. |
| 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, with a symbolic CZK 1 minimum capital and 100% foreign ownership permitted. A trade licence must be obtained before Commercial Register entry. Czechia is an EU member but uses the Czech koruna (CZK), not the euro.
How to register a company in Czechia
The process is straightforward and, in Czechia, largely digital. In outline:
- Choose your company type and name. Most founders pick the s.r.o. (limited); we confirm the name is available.
- Verify your identity. 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.
- File the incorporation. Once documents are signed, registration usually completes in around 2-3 weeks.
- Open a business account and register for tax/VAT. 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.
We handle each step with licensed local counsel, so the paperwork, registered address and filings are done correctly the first time.
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 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.