Company Formation in Czech Republic

Procedure to prepare the registration of a company in Czech Republic

The registration process for a company in the Czech Republic is very simple. The experts of LegalBison will assist you throughout every step of it:

• Initial consultation and agreement;
• Payment of the full invoice;
• [IF REMOTELY]: Notarization of POA by client;
• Preparation of registration documents;
• Document signed at the notary;
• Official register validity: immediately.

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

The approximate duration for company formation in the Czech Republic is 12-18 working days.

Can I form a company in the Czech Republic remotely?

Yes, the whole incorporation process can be conducted remotely with no travel necessary. Notarization of documents is necessary.

• A Power of Attorney (POA) from (all) partners/shareholders is needed;
• The POA is sent to you by us based on the services you want;
• You have to certify the POA by a notary and in some cases legalize it by apostille (some countries need full legalization);
• Once you have the POA on your hands, we double-check, and you send us the original form (physical document!) via courier to our address;
• The Czech Republic is part of the Hague Convention of the Apostille.

Necessary information to begin with company formation in the Czech Republic

• 3 options of your desired name for the company and a company contact email address;
• Names, addresses, and emails of all shareholders and board members;
• Short description of your company’s activity.

Without VAT number in Czech Republic

• Your company will not be eligible to receive VAT refunds, which means everything bought is 21% more expensive (important: B2B payments between two VAT-exempt companies are not more expensive);
• Your company will not have to file monthly tax returns (prerequisite: no one receives a salary), which means low costs.

With VAT number in Czech Republic

• The company will be eligible to receive VAT refunds, which means you can make use of the reverse-charge mechanism;
• Monthly tax returns have to be filed, even if no transactions occur;
• Businesses seated in the Czech Republic whose turnover exceeds 1,000,000 CZK (around 39,000 EUR) in any consecutive 12-month period must register as a VAT payer with the tax authorities.

Before we help you to apply for a VAT number you should carefully think about the advantages and obligations that go along with it. Registering as a VAT payer might be either voluntary or obligatory, depending on the turnover.

Required documents to provide to register a company in the Czech Republic

• Passport copies (scans) of shareholder/s and director/s, also beneficiary owner if applicable;
• A Power of Attorney (in case of a remote company registration);
• Certified company documents (in case at least one of the shareholders is going to be a foreign company).