A limited liability company represents the preferred business structure for foreign investors in the Czech Republic. The establishment process centers on a Memorandum of Association, executed as a notarial deed by a Czech notary, with fees typically not exceeding CZK 5,000.

Key Formation Requirements

The founding deed must contain essential company information, and the business name cannot duplicate existing registrations in the Commercial Register. Name availability can be verified at www.justice.cz.

Trade License and Business Activity

Unless the company manages only its own property or rents real estate, founders must obtain a trade license from the Trade License Office, incurring an administrative fee of CZK 1,000.

Capital and Contributions

The minimum registered capital requirement is just CZK 1, though higher amounts are advisable. Shareholders may contribute monetary or in-kind assets, with in-kind contributions requiring expert appraisal and advance payment before filing.

Registration Process

Incorporation applications must be submitted within six months through company executives or a notary. The court registration fee is CZK 6,000, reduced to CZK 2,700 when processed by notary with cash-only contributions. Standard registration takes five working days; notary registration occurs almost immediately.