Czech Republic Business Registration Guide

Obchodní rejstřík (OR) — Commercial Register

The Commercial Register (Obchodní rejstřík) is the official public register of all business entities in the Czech Republic, administered by the regional courts (rejstříkový soud). All limited liability companies (s.r.o.), joint stock companies (a.s.), and other legal entities must be registered in the OR. The registration is done through a notary, who files the application electronically. The entry becomes effective upon publication in the Business Bulletin (Obchodní věstník), though in practice the registration is immediate for most purposes. The register contains information on the company name, registered office, identification number (IČO), statutory body, shareholders, and share capital.

s.r.o. — Společnost s ručením omezeným (LLC)

The s.r.o. (limited liability company) is the most common corporate form in the Czech Republic. It is the Czech equivalent of a German GmbH or a US LLC. The shareholders are liable only up to the amount of their unpaid capital contribution.

• Minimum capital — CZK 1: Since 2014, the minimum registered capital for an s.r.o. is CZK 1 (previously CZK 200,000). However, banks, trade partners, and foreign investors often expect a higher capital (typically CZK 200,000 or more) for credibility.
• Registered office: The company must have a registered office address in the Czech Republic. Virtual offices and shared office spaces are permitted.
• Statutory body — jednatel: The s.r.o. is managed by one or more executives (jednatelé). A sole shareholder can also be the sole jednatel.
• Shareholders: Can be individuals or legal entities, residents or non-residents. There is no minimum or maximum number of shareholders.

a.s. — Akciová společnost (Joint Stock Company)

The a.s. (joint stock company) is suitable for larger businesses and companies planning to raise capital through share issuance. It corresponds to a German AG or a UK plc.

• Minimum capital — CZK 2,000,000: The minimum registered capital is CZK 2,000,000 (approximately EUR 80,000). For a.s. with public share offerings, the minimum is CZK 20,000,000.
• Governance: The a.s. has a two-tier governance structure: the board of directors (představenstvo) and the supervisory board (dozorčí rada). Alternatively, the company may opt for a monistic system under the European Company (SE) framework.
• Shares: Shares can be issued in documentary or dematerialised form. Bearer shares are restricted under anti-money laundering legislation.

OSVČ — Osoba samostatně výdělečně činná (Self-Employed)

An OSVČ (self-employed person) operates as a sole trader without creating a separate legal entity. The individual is personally liable for all business debts. The application is made at the Trade Licensing Office (Živnostenský úřad) with a valid ID card (občanský průkaz) or passport for non-residents.

• Trade license — Živnostenský list: Most activities require a trade license (živnostenské oprávnění). Trades are classified as ohlašovací (notifiable) — requiring only registration, or koncesované (concession) — requiring a state authorisation.
• Registration: OSVČ must register with the Trade Licensing Office, the tax administrator (Finanční úřad), the Czech Social Security Administration (ČSSZ), and a health insurance company (zdravotní pojišťovna).
• Tax obligations: OSVČ pay personal income tax (15%/23%), social insurance (29.2% of 55% of profit), and health insurance (13.5% of 55% of profit).

DIČ — Daňové identifikační číslo (VAT Registration)

The DIČ (daňové identifikační číslo) is the Czech VAT registration number — CZ + IČO (e.g., CZ12345678). VAT registration is mandatory for businesses whose annual turnover exceeds CZK 2,000,000 in any 12 consecutive months. Voluntary registration is also possible. The DIČ is used for all VAT-related transactions, invoices, and reporting. VAT returns are filed monthly or quarterly depending on the turnover and the taxpayer's choice. See also our guides on Tax Filing and Social Contributions.

FAQs

Can a foreigner register an s.r.o. in the Czech Republic?

Yes. EU/EEA nationals can register an s.r.o. under the same conditions as Czech citizens. Non-EU nationals may need a valid residence permit or a visa. The jednatel can be a foreigner, but at least one executive must have a Czech or EU residence permit or be a legal entity. A Czech registered office address is required.

How long does the registration process take?

An s.r.o. registration through a notary typically takes 5–15 working days, but can be expedited (sometimes within 5 days). The fastest method is to purchase a ready-made company (ready-made s.r.o. or shelf company) which can be transferred within 1–2 days.

Do I need a trade license for all business activities?

Most business activities require a trade license. Some professional activities (lawyers, doctors, auditors) are governed by special regulations and require membership in a professional chamber. If the activity is not covered by the Trade Licensing Act, the OSVČ or company must register under the specific regulatory regime.