It is part of the foreign entity, no registered capital required
Establishment of a branch quickly and easily
Business through a branch (formerly "organizational units" under the Commercial Code) is one of the ways in which foreign entities can do business in the Czech Republic without establishing a new company.
The establishment of a branch, its management and dissolution is less demanding than the establishment, management and dissolution of a classical company (e.g. limited liability companies, joint stock companies, etc.).
The main advantages of a branch compared to a classical company are the following in particular:
It is part of the foreign entity, and therefore transactions between the foreign entity and the branch are purely informal
No registered capital required.
The sole mandatory body of the branch is its head, on whom the law does not impose such strict requirements as on members of the statutory body of a classical company.
Management of the branch is not subject to special rules, meaning that general meetings, etc. do not have to be held.