Czech Limited Company Incorporation for Foreigners

Czech limited liability companySpolečnost s ručením omezeným or s.r.o.– is a type of a legal entity. It is governed by the Act on Business Corporations and is the most common legal structure for small and medium-sized businesses in the Czech Republic.  This company type is a separate legal entity and can be established with at least 1 partner. 

Doing business as a foreigner in the Czech Republic

Prague, Czech Republic

Foreign investors have no restrictions on setting up a limited liability company in the Czech Republic. Foreign natural and legal persons can set up companies with Czech or foreign partners or as individual shareholders. This means that foreign legal and natural persons have the same rights as Czech citizens and can be treated the same way. The company can be set up by either one or more people.

Czech company incorporation from abroad

Foreigners can perform the function of director or partner, regardless of where they reside in the Czech Republic. An associate can be either a foreign legal entity or a natural person, and a person can be a partner without a Czech Republic residence permit or visa. A foreigner can also be a company director, and it is not necessary to have a visa or a residence permit.

The company can be established without visiting the Czech Republic via the power of attorney. You can sign a power of attorney in the Czech consulate section in your home country. The power of attorney gives a legal right to your business consultant to complete the establishment process on your behalf.

The minimum capital for a Czech s.r.o.

The minimum shareholder contribution is 1 CZK for a Czech limited company. The legislation does not specify the minimum registered capital it is calculated from the shareholder’s minimum contribution. Limited liability companies with only one shareholder have a minimum registered capital of 1 CZK. If your company registered capital is less than 20.000 CZK you do not need a corporate bank account for showing starting capital during the incorporation process.

Required documents to register a Czech limited company

  • Passport or/and ID card copy of director(s) and shareholder(s)
  • Criminal clearance for the managing director from the home country 
  • Registered business address and consent of the owner of the building
  • Affidavit of the executive

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