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Complete guide: entity types, registration, costs, taxes, labor laws, and break-even analysis
~47 days
Setup Time
~$630
Setup Cost
21%
Corporate Tax
100%
Foreign Ownership
#41
Ease of Business
| Entity | Min Capital | Foreign % | Liability | Min Shareholders | Best For |
|---|---|---|---|---|---|
Limited Liability Company Spolecnost s rucenim omezenym (s.r.o.) | 1 CZK | 100% | Limited | 1 | Most popular entity type - only CZK 1 minimum capital, flexible structure ideal for SMEs and foreign investors |
Joint-Stock Company Akciova spolecnost (a.s.) | 2,000,000 CZK | 100% | Limited | 1 | Larger companies and those seeking to issue shares publicly - CZK 2M minimum capital, dual board structure option |
Branch of Foreign Company Organizacni slozka | None | 100% | Unlimited | 0 | Foreign companies establishing direct operations in the Czech Republic - simpler setup but parent bears full liability |
European Company Evropska spolecnost (SE) | 120,000 EUR | 100% | Limited | 2 | Cross-border EU operations - allows seat transfer across EU member states without dissolution |
Verify Trade License Requirements
Determine whether your activities require a free trade (volna zivnost) or regulated trade (vazana/koncesovana zivnost) license from the Trade Licensing Office
1-5 days
~$40
Trade Licensing Office (Zivnostensky urad)
Draft Founding Documents
Prepare the memorandum of association (or founding deed for single-shareholder) and have it notarized by a Czech notary
2-5 days
~$300
Czech Notary Public
Obtain Trade License
File the application for a trade license (zivnostensky list) with the Trade Licensing Office
1-5 days
~$40
Trade Licensing Office
Register at Commercial Register
File the application for registration in the Obchodni rejstrik (Commercial Register) through the court or notary direct registration
3-10 days
~$250
Regional Court / Notary
Register for Tax
Register with the Financni urad (tax office) for corporate income tax and VAT if turnover exceeds CZK 2M annually
3-10 days
Free
Financni urad (Tax Office)
Register for Social Security and Health Insurance
Register as an employer with the Czech Social Security Administration (CSSZ) and a health insurance company
1-5 days
Free
CSSZ / Health Insurance Company
Open Corporate Bank Account
Open a business bank account at a Czech bank with commercial register extract and tax registration
2-7 days
Free
Commercial Bank
$820/mo
Minimum Wage
$1800/mo
Average Wage
40 hrs/week
Work Hours
20 days/year
Paid Leave
4 weeks/year
Severance
33.8% of salary
Employer Social Security
11% of salary
Employee Social Security
Required
Foreign Worker Permit
Foreign Worker Quota: EU/EEA nationals have free movement. Non-EU workers need an employee card (zamestnanecka karta) or blue card. Labor market test required unless on shortage occupation list.
Work Permit Process: Employer applies for an employee card (zamestnanecka karta) through the Ministry of Interior or a blue card for highly qualified workers. Labor market test required for most positions unless exempt.
#41/190
Ease of Business Rank
9 days
Starting a Business
28 days
Registering Property
611 days
Enforcing Contracts
54/100
Corruption Perception
88%
Internet Penetration
CZK
Currency
UTC+1
Time Zone
12
Retail (months)
10
F&B (months)
9
Tech (months)
16
Manufacturing (months)
8
Services (months)