A guide for opening a business in the Czech Republic

Post date: May 14, 2012 9:11:53 AM

A guide for opening a business in the Czech Republic

You‪'ve decided to open a new business in the Czech Republic‪.

Are you considering opening your next branch in Prague‪?

The following is a short guide designed to simplify your decision and enable you to understand what your first steps will be in establishing a business or franchise in one of the most attractive European countries for investment‪.

Why Prague‪?

Prague is located in the heart of Europe‪, offering a number of advantages‪ for new business owners and entrepreneurs‪. Many of those advantages aren’t‪'t necessarily available in other European capitals‪.

The Czech Republic offers a stable economy with strong infrastructure‪, an educated and dependable work force‪ and lower wages and living expenses than its western European counterparts. Average monthly salaries in Prague are around 26,500  Czech kronas. Tax rates are low‪, with rate of 15‪% for individuals and a 19 ‪% tax rate for businesses.

The Czech government offers generous tax incentives for businesses offering strategic services such as telephone service stations and service centers in developing areas of the country‪.

The stable Czech economy is a direct product of a constant flow of investment into the country‪. Since 2000 the Czech economy has experienced a constant annual growth rate of between from 1‪.5‪% to 4‪%. This rate is mostly the result of increased production and foreign investment‪.

The flourishing economy is proof of Prague‪'s significane to large companies and recognition of the Czech Republic‪'s potential and economic rise‪ of central Europe.

The first phases‪, before opening a business in Prague

Defining legal form of your business

Once the decision to open a business in the Czech Republic has been made the legal form of business must be categorized‪. The main options are‪: a self‪-employed business license ‪(živnostníci‪), a limited liability company ‪(S‪.R‪.O‪., společnost s ručením omezeným) or a joint stock company ‪(A‪.S‪., akciová společnost).

This article will further focus primarily on the establishment of a limited liability company since this legal form is most commonly used when establishing businesses in the Czech Republic‪. Additional options for starting a company or opening a franchise are commercial and limited partnerships‪.

Establishing a limited liability company ‪(S‪.R‪.O‪.) in the Czech Republic

Since 2014 establishing an S‪.R‪.O‪. in the Czech Republic requires only symbolical registered capital of in the form of deposited bank notes before the company‪'s registration has been approved‪. This is a condition that must be fulfilled in order for authorities to approve a registration‪.

It is highly recommended to use services of a company specializing in the establishment of businesses in the Czech Republic in order to receive assistance in fulfilling Czech legal regulations‪, registering owners and executives, attaining proper trade licenses, opening bank accounts and securing certification, authorizations and legal requirements. All of the mentioned are required of non-Czech citizens in order to open a business.

Additional important documents include the business's registered address in the Czech Republic‪, the owner‪'s address‪ and certification that the potential owner has no criminal record ‪(produced by police in the state in which the potential owner resides‪). All documents must be translated and approved by a notary public‪. It‪ should be noted that after registering an approved company initial capital it must be deposited in a Czech bank for the purposes of .

Required Reports

Additional Issues Connected to Opening a Businesses in the Czech Reupblic


Establishing a company or franchise in the Czech Republic is an important undertaking that may contribute to many of your financial goals‪. The investor or entrepreneur will face many important issues when establishing a business’s‪, from management to tax and legal issues to finding appropriate real estate and employees‪. These issues are best approached during the initial stages of establishment‪.

Conbiz's consultants are experts in their respective fields and have an intimate knowledge of local markets. This allows them the ability to open channels, for you, with relevant bodies and authorities - one of the most important aspects of development for any new business in the Czech Republic. To set up an appointment with Conbiz, please go to our Contact Us page.‪