How to set up an Ltd.
Setting up a company in the Czech Republic involves a lot of administration. The whole process here takes even twice as long as in other developed countries. That's why it's good to have an overview of how to proceed.
The procedure for setting up a limited liability company.
Setting up a limited liability company takes time and patience. However, if you know where to arrange what, it's not that difficult. Key points include:
Drawing up a memorandum of association or memorandum of incorporation
The first step to starting a company is the creation of the incorporation document with a notary public. The agreement contains, among other things, information about the partners, managing directors and shares in the company. It also states the company's business name, details of its registered office, business objects and share capital. For details on the incorporation documents, see the article on the articles of association.
In order to execute the agreement, you will need the consent of the managing directors to be entered in the Commercial Register (OR) and an extract from their criminal records (this can also be obtained from a notary).
Arranging a trade licence for the company
Every entrepreneur in the Czech Republic must arrange a trade licence at the trade licensing office for the activities they intend to carry out as part of their business. This obligation applies not only to self-employed persons but also to legal entities. An administrative fee of CZK 1,000 is payable for the processing of a trade licence.
Opening a bank account
You need a bank account to deposit the company's share capital. However, this obligation only applies to you if the company's assets exceed CZK 20,000.
Entry in the Commercial Register
Once you have all the documents for registration ready, you contact the notary again, pay the court fee and have your company registered in the Commercial Register.
We describe the whole process in detail in the instructions for registering an Ltd. in the Commercial Register.
Unfortunately, the administration does not end with the official formation of the company. As a new business owner, you still have to deal with the company name, tax registration and accounting. We summarise the other obligations in the overview of the first steps of a business owner.
Starting a company: with a consultancy firm or on your own?
You have two options when starting a new business. Either you deal with all the formalities yourself or leave the paperwork to a consultancy firm such as Jake&James.
We have compared the two options for you:
|Starting up with Jake&James||Setting up on your own|
|What do you need to do?||
|How long does the process take?||Within 10 days (or 24 hours)||weeks (average 24.5 days)|
|How much does everything cost?||From 5 993 CZK excluding VAT||4-11 000 CZK excluding VAT + your time|
If you don't feel like doing it yoursefl and going to the authorities, we'll be happy to do it for you.
How do you set up an LLC with Jake&James?
Filling in the order form
You will start by entering some basic information into our web application. You'll find out what we'll need from you in the instructions on how to set up an LLC with Jake&James.
Discuss the details with our expert
You'll be contacted by one of our specialists to discuss the details of your future company. You will also need a registered office for your business and if you don't have a suitable address, we will be happy to provide you with one of our virtual ones straight away.
Preparation of a power of attorney and a declaration of managing directors
In order to complete the necessary paperwork with the authorities, we need to document your formal consent. We will send you sample documents to fill in and you just have your signature verified at CzechPOINT.
We will sort out all the formalities - and you can start your business
The whole process of setting up an LLC will take a maximum of 10 days. And if you are in a hurry, we will ensure express processing within 24 hours.
We'll take care of all the paperwork for you - and without unnecessary waiting. We have our own notary who will make the necessary entries expressly. If you come to us in person, we will also verify the necessary documents with our notary immediately. And if you want to deal with everything remotely, all it takes is one trip to the post office.
Do you have any questions? Leave us a message below and we will discuss everything together.