Starting a company with Jake&James. How does it work?

Starting a business involves a lot of paperwork, but that’s what we’re here for. Areyou thinking about using our service to incorporate a limited liability company (s.r.o.) and wondering how the whole process works and what to expect? You’ll find out everything in this article.

Now that we’ve covered the basics, we’ll go into more detail about each step.

1. Filling out the order form

With us, you can easily order the formation of a limited liability company (s.r.o.) online. We’ll guide you through what to fill out on the form and how to do it.

Choosing a Company Name

First, choose a name for your s.r.o. The company name, or trade name, must meet legal requirements— it cannot be confusingly similar to another company’s name. There’s no need to search through the commercial register—right on our company formation page, you’ll find a name checker that lets you see with a single click whether your chosen name is available or if there are companies with similar names.

A low similarity score is acceptable. Are you having trouble coming up with a unique name, and does the checker keep showing “high” or “medium” similarity scores? Don’t despair—just move on to the next step. We’ll help you with the name later.

Order or modeling?

You’ve settled on a name and can move forward—you have two options: place an order for the company or create a non-binding simulation. Do you have a clear idea of what you want your company to be like? Then select “Order” (the “I want to set up a company online” button) and you can pay right away by credit card or bank transfer. If you’re not sure and need to discuss the company’s details before paying, request a no-obligation simulation first.

And if you’d like to set up a company without our help, read about how to set up a limited liability company (s.r.o.) on your own.

In both cases , in the next step of the form , you’ll select the abbreviation for the legal form and indicate whether you’d like us to handle the business license for your company; alternatively, you can use our income tax registration service (since, as a new company, you must register for income tax within 15 days of incorporation).

Physical or virtual registered office?

Next up is the company’s registered office. This is the location from which you will formally manage the company —you’ll designate the building with the company name and ID number, and you’ll receive mail at this address.

On the form, choose one of two registered office options:

• Own registered office. Select this option if you have your own address available. Typically, this refers to an office, workshop, store, or other owned or leased space. You can also have your company’s registered office at home. The property owner must give written consent to the location of the company’s registered office (we’ll be happy to prepare the consent document for you).
• Virtual Registered Office. Don’t have a suitable address and don’t want to list your permanent residence as your company’s registered office in the public registry? Instead, use a virtual registered office and choose from our 8 addresses in Prague or Brno. The price includes a sign on the building and notification of incoming mail. You can then pick up your correspondence at our office on Revoluční Street in Prague. If that’s too far for you, as part of our mail handling service, we’ll forward or scan your letters for you.

You can change your company’s registered office at any time in the future. Additionally, we only include the name of the municipality in the contract, so if your company moves within the same city, there’s no need to pay for a notarial deed to record the change. Unlike many of our competitors, we do not make the price of company formation contingent on using a virtual registered office. The price is just as affordable whether you use your own address or ours.

Once you’ve selected a registered office, all you have to do is fill out your personal and billing information, and you’re all set!

2. We’ll discuss the details of your company

Once you submit the form, we’ll contact you to arrange whether we’ll proceed remotely (we’ll send you the documents via email) or in person (we’ll meet at our Prague office at Revoluční 15). We’ll then discuss the details of your company.

Articles of Incorporation or Partnership Agreement

A company is established by having a document drawn up by a notary. When a limited liability company (s.r.o.) has one shareholder and one managing director, the document is called a certificate of incorporation. If there are multiple shareholders, it is called articles of association. You can download and review general document templates in advance.

When you establish your company, we will prepare a customized document for you. It contains basic information about the company:

• business name (name of the s.r.o.)
• partners and their shares
• managing director(s)
• share capital
• registered office
• Scope of Business

Were you unsure about the name when placing your order? We’ll help you adjust it so that it passes without any issues when registered in the Commercial Register. We’ll also go over your questions and other points in the articles of incorporation so that everything is clear to you. You can read basic information about each of these right now in the following paragraphs.

Partners and Managing Directors

A limited liability company must have at least one shareholder and one managing director. A single person may hold both positions. What exactly do these roles entail?

• A shareholder is the owner or co-owner of the company. The shareholder does not act on behalf of the company and is not liable with their personal assets, but is entitled to a share of the profits. If there are multiple shareholders, they specify in the articles of association what percentage of the company belongs to each shareholder.
• The managing director manages the company’s business operations and is responsible for its day-to-day management. He or she is required to perform this role with the care of a prudent manager (i.e., loyally, with the necessary knowledge and diligence). If he or she violates this requirement, he or she must compensate the company for any resulting damages.

When it comes to shareholders, managing directors, and the founding document of a limited liability company (s.r.o.), you’ll come across the abbreviation SOP. What does it mean? SOP stands for court fee and is used in practice as follows:

• Incorporation without SOP. This option is generally sufficient when incorporating any “simple company” (e.g., with a single shareholder and managing director), whose articles of incorporation or partnership agreement contain only the requirements specified in the model agreement under the law.
• Incorporation with a court fee (SOP). If the articles of incorporation are modified beyond the scope of statutory requirements (e.g., more complex terms or powers for a company with multiple shareholders, share certificates, etc.), a court fee (SOP) and additional notary fees must be paid.

We’ll discuss your specific situation in advance— in most cases, the option without the SOP is sufficient.

To incorporate a company in accordance with the Anti-Money Laundering Act, we need copies of the executive’s and shareholder’s identification documents, along with consent to make copies. You may add a watermark to the scanned documents.

Based on the copies of these documents, we will prepare a power of attorney and an affidavit from the managing director. In this affidavit, each managing director will confirm that they are at least 18 years of age, legally competent, have no criminal record, and face no obstacles that would prevent them from performing their duties.

The conditions for serving as an executive officer were clarified by an amendment to the Business Corporations Act effective as of July 1, 2023, which replaced the general requirement of good character with specific impediments to serving in the role and established a registry of disqualified persons.

Impediments to serving as an executive include, for example, a ban on conducting business in the company’s field of operation (or a related field), revocation of a business license, or a situation where another company in which the individual currently serves or has served as a member of a governing body within the last 3 years has entered insolvency proceedings.

Documents Regarding the Registered Office

When applying for a business license , you must provide the trade licensing office with proof that you have a legal right to use the registered office.

• Have you chosen your own registered office? We’ll need consent to locate the registered office at that address, with certified signatures from all property owners (even if the property is owned by the CEO or a partner). We’ll be happy to prepare the document for you to sign for 200 CZK, excluding VAT.
• Will you be using one of our virtual registered offices? In that case, you don’t need to worry about a thing—we’ll prepare the documents for you.

Amount of Share Capital and Bank Account

The registered capital represents the value of the shareholders’ contributions to the newly established company. It is typically used to cover the costs of incorporating the company and other initial expenses. You can choose the amount at your discretion; the minimum amount for a limited liability company is 1 CZK per shareholder.

If the registered capital exceeds 20,000 Kč, you must deposit the funds into the company’s bank account. The bank will then issue a confirmation of the registered capital deposit, which you must provide to us for the purpose of registering the company in the Commercial Register.

If you set the registered capital at 20,000 CZK or less, there is no need to open a corporate bank account before your s.r.o. is established. To register the company in the Commercial Register, we will submit a notary’s declaration confirming payment of the registered capital in cash, which makes the entire incorporation process simpler and faster.

Not sure how much registered capital to choose? Read our detailed article on the registered capital of a limited liability company (s.r.o.).

Business Licenses for Your Company

In order to conduct business, your company needs a business license for a legal entity. A business license proves that you are authorized to carry out the selected activity. You don’t need to apply for it until after your company has been registered in the Commercial Register.

You can apply for a business license yourself, or we can do it for you. We’ll help you choose the right type of business license— just tell us what your business will be doing.

What do you need to do to obtain a business license for your company?

For an unrestricted trade, simply choose from the list (this refers to the group of trades under “Manufacturing, Trade, and Services Not Listed in Annexes 1 through 3 of the Trade Licensing Act”). You’ll specify how many business categories you want; the only requirements are that you’re at least 18 years old and have a clean criminal record.

For regulated, skilled trade , and licensed trades, the process is a bit more complicated. You can read the details in the article on trade licensing requirements. In short, it’s good to know that:

• You must submit documentation proving that you meet the legal requirements for the specific trade (e.g., professional qualifications—you have education in the field, retraining, or practical experience).
• Another option is to appoint a responsible representative who will meet the requirements on your behalf.
• You can only obtain a licensed trade once a license has been granted (i.e., a permit issued by the state or a municipality). Unlike skilled trades and regulated trades, there is no legal entitlement to this license.

Additional Services

We are your business partner. In addition to helping you start a business , we’re also happy to handle your company’s bookkeeping, provide tax advice, or assist with trademark registration. Is any of our services right for you? Just let us know, and we’ll discuss how we can work together.

3. Certified Signatures on Documents

We’ve agreed on all the details of the company, and all that’s left to set it up are the officially certified and signed documents:

• a power of attorney authorizing us to act on your behalf in dealings with government agencies and the notary;
• a declaration by the managing director(s) stating that they meet the legal requirements for holding this position (if there are multiple managing directors, all must sign the document and have their signatures notarized);
• consent to the location of the registered office, if you have chosen your own address.

We must submit the originals to the authorities, so please send us the certified documents remotely or in person—read on to find out how to proceed:

Remote Submission

We’ll prepare the documents and send them to you by email (the power of attorney and declaration are included in the service price; consent to register the company’s registered office at your own address costs EUR 8 excluding VAT). Print them out, go to a CzechPOINT location, have your signature notarized, and send them back to us:

• in hard copy by mail to Revoluční 763/15, 110 00 Prague 1;
• in electronic form as a file that has undergone electronic conversion (i.e., via the CzechPOINT service; unfortunately, a standard scan is not sufficient).

If you are abroad, please send us the certified originals of the documents by mail.

In-person submission

Will you stop by to see us? If so, we’ll take care of everything on the spot— we’ll verify your signatures right here in our office. The managing director(s) or property owner(s) can come with you, or you can deliver or bring us their sworn statement or consent to the location of the registered office with a notarized signature at a later time. We’ll incorporate the company as soon as we have all the necessary documents.

4. And then it’s up to us

Based on the power of attorney, we’ll take care of everything —we’ll draft the articles of incorporation, visit the notary, register the company in the Commercial Register, and obtain the selected business licenses. The company will receive its ID number and be officially established.

In the meantime, you can take your time planning your first steps as a business owner.

Would you like to start a business, too?

Save yourself time and stress by entrusting your administrative tasks to experts. We’re here for you—we know the ropes and speak the language of government agencies. Order the formation of a limited liability company (s.r.o.) online and start your business worry-free.