Foreigners can establish business companies in the Czech Republic without restrictions, particularly a limited liability company (s.r.o.), which is the most common legal form for conducting business. The legal framework is the same as for Czech citizens, but there are certain specific requirements that must be met:
1. Basic Requirements
The company’s managing director is not required to have permanent residence in the Czech Republic but must have a clean criminal record (proven by a criminal record extract from the country of origin).
A shareholder can be a natural or legal person of any nationality.
The minimum share capital is CZK 1, but for credibility, a minimum of CZK 10,000 is usually recommended.
2. Documents and Steps
- The Articles of Association must be executed by a notary.
- The company must have a registered office on Czech territory (a consent to use the address must be provided).
- A bank account must be opened to deposit the share capital (some banks require personal presence).
- The company must be registered in the Commercial Register (filed at the relevant court).
- The company must be registered for tax purposes with the Financial Authority (including VAT registration if applicable).
3. Proof of Clean Criminal Record
A foreign founder must submit a criminal record extract from their home country, along with an official Czech translation. In some cases, an apostille or superlegalization of the document is required.
4. Representation and Language Barrier
Foreign founders often use law firms or specialized service providers who offer comprehensive assistance, including translation and representation in administrative procedures. All notarial deeds and Commercial Register filings must be in the Czech language.