Czech Republic
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The limited liability company (společnost s ručením omezeným, “s.r.o.”), governed by Act No. 90/2012 Coll., on Business Corporations (“BCA”), is the standard choice: cheap, flexible and fast. A joint-stock company (capital CZK 2,000,000 or EUR 80,000) suits larger projects; a ready-made company transfers within a day. Incorporation is largely digital: the founder’s deed can be signed before a Czech notary by videoconference, and the notary registers the company directly in the Commercial Register, often within days and, with a model deed, free of court fee. Corporate records may be kept electronically.
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Neither form has a minimum number of shareholders; both may be wholly owned by a single foreign investor, individual or corporate. For an s.r.o. capital is nominal: the minimum contribution is CZK 1 (Section 142 BCA). Contributions up to CZK 20,000 can go to the administrator of contributions, so no Czech bank account is needed upfront.
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Individuals and legal entities, Czech or foreign, are treated alike; ordinary investments need no approval. Foreign documents outside the scope of Hague Convention (powers of attorney, register extracts) must bear an apostille, or superlegalisation, plus a court-appointed translation; bilateral treaties waive this for several EU states, including Slovakia, Poland and Austria. A legal entity may act as managing director through a designated individual. Beneficial owners must be registered, and investments in sensitive sectors may need clearance under Act No. 34/2021 Coll.
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No. Residence, nationality and tax domicile are irrelevant, for EU and non-EU nationals alike, and no residence permit is needed to hold office. Directors must have legal capacity and must not fall under the Section 46 BCA disqualifications: a judicial or administrative ban, bankruptcy, or conviction for specified economic or property offences; an unrelated criminal record is not an issue. The notary checks the Register of Disqualified Persons; foreign directors normally just file a statutory declaration.
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Our Corporate and Commercial team advises foreign investors on incorporation and ongoing compliance. Primary contact: olga.vavrova@samak.cz.
