---
name: cz-company-formation
description: "Source-cited draft: company formation & entity choice for Czech Republic (tax year 2025) — rates, thresholds and rules with primary-source citations. Unverified; pending local-accountant review."
license: "AGPL-3.0-or-later (code) / OpenAccountants Guide License v1.0 (content)"
metadata:
  source: openaccountants
  openaccountants_url: "https://www.openaccountants.com/skills/cz-company-formation"
  jurisdiction: "CZ"
  tax_year: "2025"
  last_updated: "2026-07-13"
  review_status: "pending_review"
---

# Czech Republic Company Formation & Entity Choice

## Entity types, capital and incorporation

- **Overview** — The most common Czech business vehicle is the s.r.o. (limited liability company), which can be formed with a symbolic minimum capital. Formation runs through a notarial deed and entry in the Commercial Register.
- **Limited liability company (s.r.o.)** — Společnost s ručením omezeným — the most common entity for SMEs  _([Business Corporations Act (Act No. 90/2012 Coll.)](https://taxsummaries.pwc.com/czech-republic/corporate/corporate-residence))_
- **Joint-stock company (a.s.)** — Akciová společnost — used for larger businesses; minimum capital CZK 2,000,000 (or EUR 80,000) CZK  _(Business Corporations Act (Act No. 90/2012 Coll.))_
- **Other forms** — General partnership (v.o.s.), limited partnership (k.s.), branch of a foreign company, and sole trader (OSVČ / živnost)  _(Business Corporations Act (Act No. 90/2012 Coll.); Trade Licensing Act (Act No. 455/1991 Coll.))_
- **Minimum share capital — s.r.o.** — CZK 1 (legal minimum); CZK 200,000+ commonly used for credibility CZK  _([Business Corporations Act (Act No. 90/2012 Coll.)](https://firma.domytax.cz/en/blog/how-to-start-an-s-r-o-in-the-czech-republic-in-2025))_
- **Minimum share capital — a.s.** — CZK 2,000,000 (or EUR 80,000) CZK  _(Business Corporations Act (Act No. 90/2012 Coll.))_
- **Founding instrument** — Memorandum of association (or founder's deed for a single member) executed as a notarial deed  _(Business Corporations Act (Act No. 90/2012 Coll.))_
- **Incorporation steps** — Notarial memorandum of association → obtain trade licence (živnostenský list) → deposit capital / proof → register in the Commercial Register → register with tax authority  _([Business Corporations Act (Act No. 90/2012 Coll.); Act on Public Registers (Act No. 304/2013 Coll.)](https://www.ten-law.org/knowledge/qa-company-law-in-the-czech-republic/))_
- **Typical timeline** — Approximately 1–3 weeks; faster (a few days) where the notary registers directly into the Commercial Register ((approx — confirm)) (approx — confirm)  _(Act on Public Registers (Act No. 304/2013 Coll.))_
- **Typical incorporation cost** — Roughly CZK 10,000–20,000 in notary, court/registration and trade-licence fees ((approx — confirm; excludes legal/advisory fees)) CZK (approx — confirm; excludes legal/advisory fees)  _(Act on Court Fees (Act No. 549/1991 Coll.))_
- **Registration authority** — Commercial Register (Obchodní rejstřík) maintained by the regional courts  _(Act on Public Registers (Act No. 304/2013 Coll.))_
- **Annual financial statements** — Companies must prepare annual financial statements under the Accounting Act and file them in the Collection of Deeds of the Commercial Register  _([Accounting Act (Act No. 563/1991 Coll.)](https://www.commenda.io/czech-republic/annual-compliance))_
- **Annual corporate income tax return** — Required each tax year, due 3 months after period end (extended to 4 or 6 months as applicable)  _([Tax Procedure Code (Act No. 280/2009 Coll.)](https://taxsummaries.pwc.com/czech-republic/corporate/tax-administration))_
- **Statutory audit threshold** — Audit required where the company exceeds defined size criteria (assets, turnover, employees) under the Accounting Act ((confirm current numeric thresholds with accountant)) (confirm current numeric thresholds with accountant)  _(Accounting Act (Act No. 563/1991 Coll.))_

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## Today's figures and who stands behind this skill

This file is an AI skill (tax rules your AI follows) from OpenAccountants, copied on 2026-07-13. Rates, thresholds and deadlines change. For the current version of this skill, its official sources and the named accountant (if any) who stands behind it, call `get_skill` with slug `cz-company-formation` on the OpenAccountants connector (https://www.openaccountants.com/connect), or read https://www.openaccountants.com/skills/cz-company-formation. If neither is available, confirm every figure against the official source pages cited above before relying on it.