Czech Republic - Sro Company Incorporation

Company Type	Time to Incorporate	Cost
Sro	2 weeks	£1860

The Czech Republic does not have controls on share ownership of Czech Companies, but has strict controls on ownership of property by non-nationals. The Czech Company is therefore an ideal vehicle for purchase and holding of property in the country.

Limited Liability Company - Společnost s Ručením Omezeným - S.r.o.

A Czech company is extremely useful, It can be:

• Started by a single person
• Directors can be of any nationality
• A European recognised VAT number, can be obtained extremely quickly
• It is not a requirement to visit the Czech Republic to incorporate your company

To help you get started; we can transfer a ready-made company to you, along with a bank account which can easily be activated

Limited Liability Company - Spolecnost s Rucením Omezeným - S.r.o.  

Features of a Czech company are:

• Total share capital to be at least €7,000 (CZK 200,000)
• At least 50% of the share capital is paid up
• An Sro company requires only 1 director of any nationality
• Only 1 shareholder is required
• The company has a reserve fund to built up 10% of the registered capital from the company profits
• To register the company, you need to get criminal record clearance
• A European VAT number is easy to obtain, good records of the movement of goods must be kept
• Ready Made Companies are available and can be easily transferred

Shares

The shares of a limited liability company are not represented by share certificates. The ownership interests of a limited liability company may be transferred under the terms and conditions of the Commercial Code and the founder's contract of the company.

The minimum capital requirement for the establishment of a limited liability company is €7600 (CZK 200,000).

The limited liability company is the corporate forms most commonly used for the operations of foreign companies in the Czech Republic.

To be registered in the Commercial Register, a trade license must be obtained and must also maintain a reserve fund (which is principally a bookkeeping entry) to cover losses. A limited liability company is required to contribute 5% of its net profit annually to the reserve fund (10% in the first year of making a profit, but not in excess of 5% of the registered capital) until it reaches 10% of the company's registered capital. A reserve fund can only be used to settle a company's loss if such a loss does not exceed 10% of the registered capital of a limited liability company.

A limited liability company's decision-making power is normally delegated to one or several executives appointed by the general meeting, which is the body representing the shareholders; it does not have a board of directors, but may for a supervisory board.

Statutory body – statutory representative

The statutory representative of a limited liability company may only be a natural person. Permanent residency within the territory of the Czech Republic is not required, even in the event that it concerns a citizen of a country outside the EU. It is possible to act as representative of the company, as soon as the person is appointed in a general meeting.

Documents needed for the statutory representative in the Czech LLC

Statutory representative – Czech citizen

• First name, last name, birth no., address of permanent residency
• Extract from the Czech Criminal Register not older than three months
• Statutory declaration and signature sample (with notarized signature)

Statutory representative - EU citizen

• First name, last name, date of birth, address of permanent residency
• Extract from the criminal register of the country of origin not older than 3 months, translated by a court-certified translator into Czech and affixed with an Apostille, if required
• Statutory declaration and signature sample (with notarized signature)

Statutory representative - citizen of country outside the EU

• First name, last name, date of birth, address of permanent residency
• Extract from the criminal register of the country of origin not older than 3 months, moreover translated by a court-certified translator into Czech and affixed with an Apostille, if required
• Statutory declaration and signature sample (with notarized signature)