Assistance with business setup in the Czech Republic
Business setup support in the Czech Republic by WoBorders. Consultations on company structure, taxation, and EU business registration — completed within 30 days
Advantages of the Czech Republic for business
Fully remote
Organizational support for business setup, VAT registration, and online accounting
Favorable banking system
Many banks open accounts for s.r.o. companies with non-resident owners
Accounting and reporting
Simple procedures for accounting and financial reporting
Central location in Europe
A logistical advantage for goods-based businesses
Taxation and accounting for Czech companies
VAT & CIT for the Czech company
The VAT rate in the Czech Republic is 21%.
Mandatory VAT registration is required for companies whose annual turnover exceeds 2,5 million CZK. A company may also voluntarily register as a VAT payer even if its turnover is below the threshold, if it carries out or plans to carry out taxable or VAT-exempt operations with credit in the Czech Republic.
Taxation of business owners
Dividends received from a Czech company are subject to taxation in both the country of tax residence and the Czech Republic. In the case of residents of your country, the Double Taxation Avoidance Agreement allows a 15% tax payment in the Czech Republic, which can be credited when filing the tax return in your country
Accounting in the Czech Republic
Czech companies are required to maintain monthly accounting and pay corporate income tax on an advance basis. Financial statements (balance sheet and profit & loss statement) are submitted annually, but based on monthly accounting. All companies registered as VAT payers are also required to submit monthly VAT returns. Accounting service costs for small and medium-sized businesses in the Czech Republic depend on factors such as the volume of operations, the presence of a VAT number, and the number of employees. For IT businesses, the average cost is approximately €300
Planning to start a business in the Czech Republic?
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Stages of сompany formation in the Czech Republic
Consultation
We offer a free 30-minute initial consultation to discuss the key aspects of establishing your future company
Document preparation
We prepare powers of attorney, founders’ passport copies, and certificates of no criminal record. An online meeting with an AML officer is held (1 day), followed by the preparation of the whole document package for company incorporation (2–3 days)
Company setup
We coordinate the company registration process in the Czech Republic (3–5 business days) and provide full support throughout all stages of document submission
Advisory assistance with VAT registration (if required)
We submit the application for VAT registration, which takes up to 1 business day
Opening a business account
We open an account in a payment system or bank according to your business requirements
Requirements and documents for business registration in the Czech
- From the Director — a document confirming no criminal record, translated into Czech.
- From the Founders — copies of passports, a notarized power of attorney for representation, and proof of payment of the registration fee.
Which business form to register in the Czech Republic?
Společnost s ručením omezeným. Equivalent of a limited liability company (LLC)
– Minimum share capital: 1 CZK
– At least one founder (individual or legal entity, including non-residents)
– Limited liability of participants: only up to their contributions. The most popular form for small and medium-sized businesses
– Simple management: only one director required
Advantages: low start-up costs, no audit requirement for small companies, possibility of 100% foreign ownership.
Akciová společnost. Equivalent of a joint-stock company (JSC)
– Minimum share capital: 2000000 CZK (~€80 000)
– Shareholders are not liable for the company's obligations
– Requires a collegial management body: board of directors (představenstvo) and supervisory board (dozorčí rada)
– Mandatory audit if asset, turnover, or employee thresholds are exceeded
Advantages: prestigious form for large or investor-backed businesses, ability to raise capital through issuing shares, and suitable for structured holdings or stock exchange listings.
Service packages for company setup in the Czech Republic
Select a solution that best suits your business needs. All packages include consultations, as well as technical and informational support at every stage of company formation. Final terms are discussed during an individual consultation.
BASIC
An optimal option for a quick start in the Czech
- Initial consultation (30 min)
- Assistance with opening a Payoneer account
- Preparation of the document package for company incorporation
- Registered address for 1 year
STANDARD
An ideal option for businesses planning to operate within the EU
- Everything included in the Basic package, plus:
- Support with obtaining a VAT number
PRO
A reliable option with comprehensive tax support
- Everything included in the Basic and Standard packages, plus:
- CFC notification submission for Ukrainian residents
- Tax and legal consultation package (6 hours)
- Support with opening a bank account
Get a free consultation on launching your business in the Czech
You’ll be answered by
Ivan Chebotarov
CEO & co-Founder
Just leave your request
We’ll reply within 15 minutes during business hours
Frequently asked questions about business setup in the Czech Republic
The most popular business registration form in the Czech Republic for residents of other countries is S.R.O. (Společnost s ručením omezeným). Its advantages include the possibility of remote registration by foreign owners, a minimum registered capital of 1 CZK (~€0.04), and limited liability of founders within the registered capital.
The corporate income tax rate is 21%. The dividend tax for residents of your country is 15%. Additionally, residents are required to pay a military tax on dividends received.
Yes, business registration is possible by power of attorney. However, opening a bank account usually requires personal presence (or complex and lengthy verification procedures).
After registration, an S.R.O. company must maintain accurate accounting records, submit annual financial statements, and file corporate income tax returns. If VAT is registered, monthly VAT returns must be submitted. Additionally, if the company employs staff, reports to social funds are also required.
Companies registered in the Czech Republic with a turnover exceeding 2 million CZK in a calendar year are required to register as VAT payers with the tax authorities. If turnover exceeds 2,536,500 CZK, they are automatically required to become VAT payers. VAT registration is also required when trading with other EU countries.
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