Czech Republic
Limited Liability Company (LLC)

Benefits of Czech Republic LLC Registration


    1 Director, 1 Shareholder Required, No Locals


    Access to the EU market


    European Union VAT number


    Great Banking Opportunities


    Incorporation up to two weeks


    Legal System Based on Civil Law


    Network of Double Tax Treaties

Czech Republic LLC’s activities

Under the  Czech Republic legislation,  Limited Liability Company  is an independent legal personality and has the same capacity to engage in any business provided that the activity is allowed by its memorandum and articles of association, the Laws of Czech Republic and European Union regulations do not require a license such as bank, insurance, assurance, collective investment schemes etc.

Czech Republic LLC is optimal for:

  1. International Business
  2. EU Trading Activity
  3. E-commerce
  4. Production of Goods
  5. Web-business
  6. Investment Funds
  7. Financial Services

Limited Liability Company incorporation checklist

If you are considering the incorporation of a Czech Republic LLC, you should take into consideration the following points:

Company’s name

It must not contain sensitive words that imply criminal activity or contradict to the standards of public morality. The words such as Assurance”, “Bank”, and “Insurance” are the subject of licensing.

The name of the company may not create any associations with the governmental bodies, agencies and departments.

The company’s name must not be very similar to existing names on the registrar and it must not contain improper or objectionable words. It must be written in Latin letters and contain the abbreviation ” S.R.O ” which means limited liability.

Registered office

Czech Republic LLC is required to have a registered office address in Czech Republic.


One director is the minimum required. There is no requirement for them to be locals, but there is a requirement to hold the meetings of directors within the territory Czech Republic.

Corporate persons cannot become directors. The director and shareholder can be the same person. The directors’ details are registered on the public record and can be accessed by the public.


The appointment of a secretary is not mandatory, but optional.


One shareholder is the minimum required; maximum 50. There is no requirement for them to be locals and corporate persons can become shareholders. There is no requirement regarding the place and frequency of the shareholders’ meetings.

The director and shareholder can be the same person. The shareholders’ details are registered on the public record and can be accessed by the public.

Beneficial owners

The beneficial owners’ details are registered on the public record.

Authorized capital

The owners of an LLC are free to determine any amount as the authorized capital at incorporation. The authorized capital is the maximum amount of capital that the company is authorised by its constitutional documents. In the case of Czech Republic, it should be denominated in Czech Korunas – CZK.

A Czech Republic LLC does not have shares. Instead, members make contributions and their part of the ownership in the company is proportional to such contributions.

Paid up capital

There is a requirement to have the authorized capital of the company fully paid up. This means that the owners of an LLC are required to pay their contributions during the incorporation. However, at the moment of incorporation, only 50% of the authorized capital can be paid, the rest of that sum, can be paid up during the next 5 years.

Incorporation period

The incorporation period in Czech Republic may take up to 2 weeks.

Shelf companies

Ready-made but unused LLCs are available in Czech Republic, in case you are in need of a quicker incorporation process.

Economic substance

Czech Republic legislation does not contain any requirements regarding the economic substance of the Limited Liability Companies. This means that the company is not demanded to have premises and an adequate number of employees, the number of expenditures to support its activity in Czech Republic. In that sense Limited Liability Company must have an address within the territory of Czech Republic that will be registered as the company’s address.

Accounting records and annual returns

Limited Liability Company incorporated in Czech Republic is obliged to prepare and file accounting records. It is also required to prepare an annual corporate income tax return and file it to the tax authorities.


The corporate tax rate in Czech Republic is 19%. However, Czech Republic has a well developed system of tax exemptions. Moreover, Czech Republic has a huge number of double tax avoidance treaties and due to being a member state of the EU, Czech Republic LLC is entitled to the tax benefits that are established on EU level. For the investment funds, a reduced tax rate of 5% is applied. VAT tax rate is 21%, but can be reduced to 15%, 10% and certain types of goods and activates are tax exempted. The VAT should be registered from the threshold of € 37.000 EUR (1.000000 CZK)

Disclaimer: Buy Now Companies and its affiliates do not provide tax, legal, or accounting advice. Materials provided by Buy Now Companies and [insert domain name] have been prepared for informational purposes only, and is not intended to provide, and should not be relied on for tax, legal, or accounting advice. You should consult your own tax, legal, or accounting advisor with regard to your own tax, legal, or accounting scenario. Nothing on this webpage shall be construed as a contractual commitment or as a warranty. Services conditions are governed by the applicable terms and conditions.

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