How to start a business in Czechia as a foreigner (2026)

Legal framework

Act on Business Corporations No. 90/2012 Coll. & Public Registers Act No. 304/2013 Coll.; Commercial Register administered by Ministry of Justice (or.justice.cz); trade licensing by Ministry of Industry and Trade (businessinfo.cz)

Key points: starting a business in Czechia

1. 01Foreign ownership limits

   No foreign-ownership cap exists for any standard legal form. Foreign natural and legal persons may establish or fully own an s.r.o. alone or with others and bear the same rights and obligations as Czech nationals under Act No. 90/2012 Coll.

   mzv.gov.cz businessinfo.cz

2. 02Minimum share capital

   The statutory minimum share capital for an s.r.o. is 1 CZK (since the 2014 reform). Amounts up to CZK 20,000 may be deposited in cash before a notary rather than in a dedicated bank account, removing a practical barrier for small founders.

   businessinfo.cz portal.gov.cz

3. 03Formation steps

   Four main steps: (1) Prepare and notarise a Memorandum of Association or Deed of Foundation; (2) Obtain a trade licence from the Trade Licensing Office (živnostenský úřad), typically 3-7 business days; (3) Register in the Commercial Register, a notary can effect same-day entry; (4) Register for corporate income tax at the local tax office (finanční úřad) within 15 days of commercial-register entry.

   portal.gov.cz businessinfo.cz

4. 04Typical timeline & cost

   End-to-end formation takes approximately 5-15 business days when documents are prepared correctly. The statutory court registration fee is CZK 6,000; additional costs include notary fees and any professional assistance. Notary-expedited commercial-register entry can reduce court processing to under 24 hours.

   portal.gov.cz firma.domytax.cz

5. 05Non-EU directors / statutory body

   Third-country (non-EU) nationals wishing to act as the statutory director (jednatel) of an s.r.o. may need to hold a long-term residence permit issued for the purpose of doing business (valid up to 2 years, renewable), issued by the Ministry of the Interior. EU/EEA/Swiss nationals face no such additional requirement.

   ipc.gov.cz mzv.gov.cz

6. 06EU single-market baseline

   As an EU member state, Czechia is subject to EU-wide harmonised company-law directives. The Commercial Register is interconnected via the European Business Register / e-Justice portal. EU passporting rights apply for regulated activities (financial services, etc.) subject to relevant sectoral EU law (MiCA, PSD2/PSD3, etc.).

   e-justice.europa.eu businessinfo.cz

Timeline of decisions

1. 1 Jun 2021Law
   Mandatory Beneficial Owner Register Enters Force (Act No. 37/2021)

   Transposing the EU's Fifth AML Directive, Act No. 37/2021 requires all Czech-registered companies to identify and register their ultimate beneficial owners in a public register. Non-compliance carries fines up to CZK 500,000 and suspension of profit-distribution rights, adding a significant transparency obligation to every company formation.

   Global Compliance News (Baker McKenzie)

2. 1 Jan 2021Law
   Business Corporations Act Major Amendment (Act No. 33/2020) Takes Effect

   Published in the Official Gazette on 13 February 2020 and effective 1 January 2021, this amendment corrects ambiguities and legislative gaps accumulated since the 2014 recodification, clarifying shareholder rights, director liability rules, and profit-distribution conditions, improving legal certainty for entrepreneurs setting up companies.

   Ecovis Legal Czech Republic

3. 1 Jan 2014Law · official
   Landmark Recodification: New Civil Code, Business Corporations Act, and Public Registers Act Take Effect

   Acts No. 89/2012 (Civil Code), 90/2012 (Business Corporations Act), and 304/2013 (Public Registers) simultaneously replace the 1991 Commercial Code in the most sweeping reform since post-communist transition. Minimum share capital for an s.r.o. fell from CZK 200,000 to CZK 1; notary direct-registration was introduced; and registry courts were given a statutory 5-working-day deadline, dramatically lowering cost and time to incorporate.

   European e-Justice Portal

4. 1 Jan 2001Law · official
   Major EU Pre-Accession Amendment to Commercial Code (Act No. 370/2000) Enters Force

   The most extensive revision to the 1991 Commercial Code harmonises Czech company law with EU directives ahead of the 2004 accession, updating formation requirements, shareholder protections, and company-disclosure obligations. It serves as the first systematic modernisation of the post-communist business registration framework.

   WIPO Lex

5. 1 Jan 1992Law · official
   Trade Licensing Act (No. 455/1991) and Commercial Code (No. 513/1991) Take Effect

   Two foundational post-communist statutes simultaneously enter force: the Trade Licensing Act establishes the živnostenský list (trade licence) as the primary entry route for self-employed entrepreneurs with 227 Central Registration Points nationwide, while the Commercial Code creates the Commercial Register and company legal forms (s.r.o., a.s., etc.), together replacing Soviet-era economic legislation and launching Czechia's market-economy business framework.

   Czech Ministry of Industry and Trade (MPO)

Sources

1. 1.businessinfo.cz/en/start-your-business/registration-of-legal-form-of-business/limited
2. 2.portal.gov.cz/en/informace/incorporation-and-formation-of-a-business-corporation-IN
3. 3.mzv.gov.cz/brussels/en/commerce_and_economy/establishing_a_company/procedure_for
4. 4.ipc.gov.cz/en/visa-and-residence-permit-types/third-country-nationals/long-term-
5. 5.e-justice.europa.eu/topics/registers-business-insolvency-land/business-registers-eu-count
6. 6.or.justice.cz/ias/ui/rejstrik
7. 7.businessinfo.cz/en/start-your-business/
8. 8.businessinfo.cz/en/start-your-business/registration-of-legal-form-of-business/
9. 9.firma.domytax.cz/en/blog/how-to-start-an-s-r-o-in-the-czech-republic-in-2025