Czech Republic - Společnost s Ručením Omezeným (s.r.o.) Company Formation
A Czech Republican Společnost s Ručením Omezeným (s.r.o.) is equivalent to a Limited Liability Company in the UK or a GmbH in Austria and Germany in that it is a legal entity which is separate and distinct from the individuals who run it. For sole traders and for people in partnerships, the individuals’ personal assets are at risk if there is a claim against the organisation but shareholders in an s.r.o. are liable to lose only the value of the share capital to which they subscribe.
As the Czech Republic has strict controls on the ownership of property by non-nationals, but has no restrictions on share ownership of an s.r.o., incorporating an s.r.o. is the ideal means for foreign nationals to purchase and hold property within the Czech Republic.
Company names in the Czech Republic must be pre-approved for availability and acceptability; our trained staff will check your proposed company name with the Registry of the Regional Commercial Court and inform you of its availability. Certain words, such as ‘bank’ aren’t allowed or require approval. The name of your company must end in s.r.o.
A Czech s.r.o. is required to have a registered agent and a registered address where all official correspondence may be legally served. This is provided as part of our incorporation service.
A Czech company only requires one person to act as a director. This person may be of any nationality and may be a corporate entity. Director names are filed on the public register.
Only a single shareholder is required and a maximum of fifty shareholders is permitted. The shareholder may be of any nationality and may be a corporate entity. Shareholder names are filed on the public register.
The standard authorised share capital requirement is CZK 200,000, with a minimum paid up share capital of CZK 100,000.
An s.r.o. is required to file an annual return, register of officers and accounts.
The incorporation of a new company takes from one to two weeks from the moment we have your proof of address and I.D. Please note the company will not be ready for trading until a bank account is established and the share capital is paid up.
Proof of Identity
As part of our due diligence we require proof of identity in the form of a passport copy for all directors and shareholders of the company.
It is necessary to visit the Czech Republic to open a bank account to deposit the paid up share capital.