Legal entity types in Czechia compared
Our team is dedicated to helping entrepreneurs like you understand the complexities of Czechia’s business structures. We provide a range of services to help you select the best structure for your business and ensure compliance with all legal regulations. Let’s discuss the different business structures options and how we can support you in establishing your business in this thriving European country.
Legal entities in Czechia
Here is a summary of the most common types of legal entities that can be established in Czechia:
| Entity | Local name | Min. share capital | Management | Incorporation time (approx.) |
|---|---|---|---|---|
| Limited Liability company | Společnost s ručením omezeným | CZK 1 (€ 1) | Directors | 10 days |
| Joint Stock Company | Akciová společnost | CZK 2000000 (€ 80000) | Board of directors | 15 days |
| Branch Office | – | – | Branch manager | 15 days |
| Holding Company | – | – | Board of directors | 10 days |
Limited Liability company (Společnost s ručením omezeným)
Small and medium-sized businesses in Czechia commonly choose to form a Limited Liability company. This type of company requires only a minimum capital of CZK1 (€1), making it a convenient option for many entrepreneurs. A major benefit of this structure is the limited liability it offers to directors, relieving them of personal responsibility for any debts. Our team can offer the support and expertise needed to assist in registering this type of company in Czechia.
Joint Stock Company (Akciová společnost)
Bigger companies often opt for the Joint Stock Company in Czechia because of its flexibility in share transfers and the anonymity it provides shareholders. Despite the substantial commitment of a minimum capital requirement of CZK2 000 000 (€80 000), this structure allows for easier access to new partners and offers strong protection for creditors. We are available to assist you throughout the process of registering your company in Czechia.
Branch Office
A branch office is a continuation of the parent company that permits it to carry out business in a different area while keeping its original legal status. Opting to establish a branch office in Czechia can be beneficial for companies seeking to broaden their activities into the country without having to establish a distinct legal entity. Through operating as a branch, the parent company can capitalize on its current brand recognition and assets while entering new markets. We provide full assistance in navigating the complexities of establishing and overseeing a branch office in Czechia, guaranteeing a seamless and lawful entry into the market.
Holding Company
In Czechia, setting up a holding company can provide numerous advantages such as centralized management, risk spread, and tax benefits. By forming your business as a holding company, you can effectively oversee multiple subsidiaries, simplify decision-making procedures, and improve tax planning techniques. Our experienced team offers personalized support to assist you in creating and running a holding company in Czechia, guaranteeing adherence to legal regulations and maximizing the potential of your corporate framework.
Requirements for starting the business
Let’s examine the necessary prerequisites for initiating any form of business entity in Czechia and how our committed team assists you through each stage of the process.
Minimum share capital
Czechia requires a minimum share capital depending on the selected business structure. Our team helps calculate the necessary minimum share capital for starting your business, regardless of the corporate type. We collaborate closely with you to make sure you meet regulatory requirements and make the most of your financial assets.
Directors and shareholders
In the Czech Republic, it is mandatory for every business to have directors and shareholders. Our experts provide valuable guidance on selecting appropriate directors to ensure that the company benefits from their expertise and aligns with your future goals.
Legal duties and obedience
Ensuring compliance with all legal requirements, from registering with authorities to reporting and tax obligations, is essential. Our legal team handles all administrative tasks to guarantee full compliance, allowing you to concentrate on your main business activities without worrying about paperwork.
Book a consultation
The team carefully considers your objectives, field of work, and obstacles in order to offer tailored support during the process of creating your business. Our commitment and expertise ensure a smooth and trouble-free path to establishing a successful company in Czechia. Don’t let the challenges of starting a business in Czechia hold you back from achieving success. Trust in us to assist your organization in reaching its full potential. Start your journey to success today by reaching out to us. Simply complete and submit the inquiry form below, and our experts will reach out to you.