Business support in the Czech Republic for non-residents

Consulting and organizational support for starting a business in the Czech Republic: we explain the process and requirements for the s.r.o. structure, options for a registered address, and tax setup. We help you prepare for company registration and ongoing operations. The typical launch timeframe is from 2 to 4 weeks

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WoBorders is an independent private consulting company. We provide advisory and administrative support and are not affiliated with any government authority or official registry

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Which businesses are suitable for the Czech Republic?

If your business needs a company in the EU to work with clients, contractors, or partners in Europe, the Czech Republic can be a practical option to start with. Below are typical scenarios in which entrepreneurs consider launching a company in the Czech Republic.

IT companies and online services

An s.r.o. company is often used to launch IT projects, SaaS services, consulting, and marketing companies. This structure allows businesses to work with clients from different countries and operate within the European Union

E-commerce and international sales

A company in the Czech Republic can be used for online sales within the EU, working with marketplaces, and international trade. The s.r.o. format makes it possible to organize product sales and work with customers across different European markets

Service businesses and consulting

The s.r.o. structure is suitable for service companies such as consulting, marketing, design, IT development, and other professional services. Such companies often work with international clients and use a Czech company as an operational base for business activities in Europe

Holding and investment companies

An s.r.o. company in the Czech Republic can also be used to create holding or investment structures. This format is suitable for owning shares in other companies, managing assets, or structuring an international business

Advantages of the Czech Republic for entering the EU market

The Czech Republic is one of the practical options for entrepreneurs planning to work with clients and partners in Europe, thanks to its clear corporate structure, convenient location, and the ability to organize business operations within the European environment

Operating within the EU market

A company in the Czech Republic can be used to work with clients, suppliers, and partners across the European Union. This allows businesses to operate within the EU and benefit from the freedom to provide services

Central location in Europe

The Czech Republic is located in the center of Europe and has convenient logistics connections with many EU countries. This can be beneficial for companies operating across multiple European markets or working with international partners

Access to European banks

A company registered in the Czech Republic can open accounts with European banks and international payment systems. This simplifies international payments, working with EU clients, and financial integration into the European market

Residence through business activity

In some cases, business activity in the Czech Republic may be a factor in obtaining a long-term residence permit. However, launching a company alone does not guarantee obtaining a residence permit and requires a separate legal assessment

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Taxes and accounting for companies in the Czech Republic

Companies in the Czech Republic operate within the European tax system and maintain regular accounting. Below is a brief overview of the main taxes for Czech companies. For more details, see the article “Taxes in the Czech Republic for business“.

VAT & CIT for the Czech company

The corporate income tax (CIT) rate in the Czech Republic is 21%.

The standard VAT rate in the Czech Republic is 21%. VAT registration becomes mandatory when a company’s annual turnover exceeds 2,000,000 CZK.

A company may also work with VAT if it plans to interact with EU partners or carry out transactions subject to VAT.

Taxation of business owners

Dividends received from companies in the Czech Republic are taxed according to the tax rules of the owner’s country of tax residence.

Dividends received from a company in the Czech Republic are taxed according to the tax rules of the shareholder’s country of tax residence.The exact tax treatment depends on local legislation and any applicable double taxation treaty. In some cases, tax paid in the Czech Republic may be credited in the country of residence

Accounting for companies in the Czech Republic

Companies in the Czech Republic maintain regular accounting records, based on which financial statements and tax declarations are prepared. Financial statements (balance sheet and profit and loss statement) are usually submitted once per year, while accounting is maintained throughout the year.

If a company is registered for VAT, it must submit regular VAT declarations.

The cost of accounting support depends on the number of transactions, VAT status, and the company structure. For small businesses and IT companies, accounting services usually start from €250–300 per month. We help companies in the Czech Republic organize their accounting processes and set up regular reporting.

Which business form to register in the Czech Republic?

For non-residents planning to start a business in the Czech Republic, the most common option is the s.r.o. — a structure similar to a limited liability company. For larger projects, investment structures, or companies planning to raise capital, the a.s. form may be more suitable. Below is a brief overview of the key differences between these structures.

S.R.O.

A.S.

Společnost s ručením omezeným (s.r.o.) — similar to a limited liability company. This is the most common company form for small and medium-sized businesses in the Czech Republic.

– Minimum share capital — 1 CZK
– At least one shareholder (individual or legal entity, including non-residents)
– Shareholders’ liability is limited to their capital contribution
– Simple management structure — usually one director is sufficient

Advantages: lower setup costs, simple corporate structure, no mandatory audit for small companies, and the possibility of full foreign ownership.

Akciová společnost (a.s.) — a company structure similar to a public limited company.

– Minimum share capital — 2,000,000 CZK (~80,000 €)
– Shareholders are not personally liable for the company’s obligations
– More complex governance structure: board of directors (představenstvo) and supervisory board (dozorčí rada)
– In some cases, a mandatory audit may apply

Advantages: suitable for large or investment projects, allows raising capital, and is often used for holding structures or business scaling.

What needs to be prepared to start a company in the Czech Republic

To start a company in the Czech Republic, a basic set of information from the founders and directors is usually required. Some formal steps can be organized remotely through a notary. Below are the main requirements and data typically needed for non-residents.

Basic information from founders and directors

To start a company in the Czech Republic, you usually need copies of the founders’ passports, information about directors, and other details required to prepare corporate materials.

In some cases, confirmation of the director's criminal record from the director's country of residence may be required. Documents must meet international standards.

Additional personal information may also be needed, such as previous surnames, residential address, and contact details.

Additional information for the company launch

Additional corporate materials may also be required during the process.

Typically includes:
– incorporation materials
– confirmation of legal address
– director’s consent to appointment
– definition of business activities according to Czech requirements

This information is prepared or reviewed as part of the company launch process.

How long does it take to launch a company in the Czech Republic?

Launching a company in the Czech Republic usually takes from 2 to 4 weeks, depending on the preparation stage and notarial procedures. Some parts of the process can be organized remotely, while certain steps still require notarial formalization.

As a rule, the process includes preparing incorporation materials, opening a corporate account, and completing the main steps required to start business operations.

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What the business launch process in the Czech Republic looks like

The process of starting a business in the Czech Republic includes several organizational steps — from the initial consultation and preparation of key materials to completing the main formalities and opening a corporate account. We support clients at every stage

Consultation

We conduct an initial consultation to discuss the business model, company structure, and key requirements for starting a business in the Czech Republic

Preparation of information

We collect and review the key materials and information required for launching the company, including founder details, corporate forms, notarial steps, and other organizational aspects

Company launch coordination

We organize the main stages of the company launch in the Czech Republic and support the process of completing key formal steps

Tax setup

We assess the need for VAT and help prepare the tax processes needed to work with clients

Open a corporate account

We assist with opening an account in a bank or payment system for company operations and international payments

Business launch support options in the Czech Republic

The cost of starting a business in the Czech Republic begins from €1900. The final cost depends on the business structure, number of founders, and additional legal procedures. Below are the main consultation and organizational support packages.

BASIC

Best for entrepreneurs exploring international operations

Initial consultation (30 min)
Company launch support
Company address for 1 year
Assistance with setting up a Payoneer account

STANDARD

Frequently asked questions about business setup in the Czech Republic

Which business form to register in the Czech Republic?

For non-residents planning to start a business in the Czech Republic, the most common option is an s.r.o. (společnost s ručením omezeným), which is similar to a limited liability company. It is the most widely used structure for small and medium-sized businesses due to its simple management structure, low share capital, and the possibility of full foreign ownership.

The a.s. form is usually considered for larger projects, investment structures, or companies planning to raise capital.

Can a company be launched remotely?

Yes, in many cases, a company in the Czech Republic can be launched remotely via a power of attorney. Some formalities can be completed through a notary without being physically present in the country.

However, opening a corporate bank account or a payment account may require additional checks, and in some cases, the personal presence of the owner or director.

Can a foreigner open a company in the Czech Republic?

Yes, foreigners can start a company in the Czech Republic without restrictions. Both the shareholder and the director can be individuals or legal entities from any country. Most foreign entrepreneurs choose the s.r.o. structure as a practical option for doing business.

To start the process, basic information about the founders, passport copies, and details for preparing corporate materials are usually required.

Is a local director required in the Czech Republic?

No, Czech legislation does not require the company director to be a resident of the country. The director may be of any nationality.

However, in some cases, banks or payment systems may perform additional checks when opening a corporate account for companies with foreign management.

What is the minimum share capital for an s.r.o.?

The minimum share capital for an s.r.o. in the Czech Republic is 1 CZK. In practice, entrepreneurs often choose a higher amount depending on the business structure, partner expectations, or bank requirements.

The liability of shareholders is limited to the amount of their contributions to the share capital.

How long does it take to launch a company in the Czech Republic?

Typically, launching a company in the Czech Republic takes from 2 to 4 weeks, depending on the preparation of materials and notarial procedures.

The process usually includes preparing incorporation materials, completing key formal steps, opening a corporate account, and, if needed, setting up tax for business operations.

Is a registered address required for a company in the Czech Republic?

Yes, a legal address is required to launch a company in the Czech Republic. It is used as the company's official address.

The address can be either your own office or a service provider's address. Usually, written consent from the property owner is required to use the address.

What taxes does a company pay in the Czech Republic?

The corporate income tax rate in the Czech Republic is 21%. If the company works with VAT, the standard VAT rate is also 21%.

Business owners should also consider dividend taxation in their country of tax residency. For Ukrainian residents, additional local tax rules may apply.

What reporting obligations does an s.r.o. have in the Czech Republic?

After launch, an s.r.o. typically maintains accounting records, submits annual financial statements, and files corporate income tax returns.

If the company operates with VAT, regular VAT reporting is also required. If the company has employees, additional reporting and contributions to relevant funds may apply.

When is VAT required in the Czech Republic?

The obligation to work with VAT in the Czech Republic usually arises when the company’s annual turnover exceeds the legal threshold of 2,000,000 CZK.

In some cases, it may also depend on the type of operations, especially when working with EU partners. A company may also choose to apply VAT earlier if needed.