How to start LLC company in the Czech Republic?
LLC company is the most common type of commercial company in the Czech Republic. So what should you do in order to set up an LLC company?
Visit of the notary
Limited liability company must be established by a memorandum (or notarial deed) executed by a Czech notary. Memorandum describes basic company information and must be signed by all of its founders, or future shareholders.
Before registering in the Commercial Register, the founders must pay the monetary contributions. The minimum amount of the contribution is CZK 1 for each shareholder. Shareholders must appoint a contribution administrator in their memorandum of association who receives and administers the contributions, which may be in cash or in kind.
From January 2021 it is not mandatory to open a special account to deposit monetary contributions if the amount of share capital does not exceed CZK 20,000. In practice, the deposit can be made directly with a notary. If the amount exceeds CZK 20,000 the monetary contributions must be deposited into a special bank account opened specifically for this purpose.
Obtaining a trade license will vary depending on the type of business. In the case of free trade, where no professional competence is required, the process of obtaining a trade license is a relatively quick and simple matter. However, if the business falls under technical trades, bound trades or concession trades the process will be more complicated and longer as it may involve the preparation of additional documents.
Registration to the commercial register
A company comes into existence by virtue of its registration in the Commercial Register maintained by the respective Registry Court. The executive body of the company must file an application to the Commercial Register to register the company within six months of its incorporation, unless the founding document stipulates otherwise. An application to the Commercial Register must be accompanied by documents evidencing each piece of information to be registered.
Which documents in the process are needed?
Affidavit signed by each member of the executive and supervisory body and consent from each member to the entry of his/her details in the Commercial Register.
Bank statement or other confirmation
Evidence that the company’s registered capital was paid up in the minimum required amount.
Extract from the criminal registry
Extracts from the criminal registry must be done for each proposed representative and supervisory board member.
Extract from the Trade Licensing Register
Extract from the Trade Licensing Register or other authorization relating to its business activity.
Fair title for the use of the premises
Consent of the owner of the premises in which the registered office of the company will be situated (in the event that such premises are leased); the consent of such owner must have a notarized signature and cannot be older than three months.
(see section Visit of the notary)
Incorporation and existence of the founder
Documents evidencing the valid incorporation and existence of the founder (usually the founder’s extract from the Commercial Register) and the power of its representatives to act on its behalf ( not older than three months).
Power of attorney
Powers of attorney or any other documents necessary for the execution of any of the above-listed documents or application (e.g. if the application is filed by an attorney, powers of attorney from all members of the executive body to file the application).
Once the company is registered don’t forget to register for taxes at the Czech Financial Authority and fulfill other statutory obligations.
As you can see the process has some specific procedures and requires special documents. If you don’t want to spend time on this whole process, leave it to Profi-kancelar. We have a lot of experience and we are able to set up a company for you in a short time even without your personal presence.