Types of Companies in Czech Republic

Types of Companies in Czech Republic

Updated on Wednesday 22nd April 2020

Rate this article

based on 3 reviews.

Types-of-Companies-in-Czech-Republic.pngBusinessmen who want to open a company in Czech Republic can choose from numerous legal entities, depending on their business plans. Each type of company in Czech Republic sets up rules and regulations for the investors and for the business activities carried by the company. The local legislation allows the incorporation of the simplest form of business, which is represented by the sole proprietorship, but also advanced business forms, recommended for medium to large companies. Our team of lawyers in Czech Republic can assist investors with more information related to the legal entities available here, as well as the legal requirements related to their incorporation. 

Legal entities in Czech Republic  

The Czech legislation recognises the following legal entities
  • unlimited partnership;
  • limited partnership;
  • limited liability company;
  • joint stock company;
  • co-operative;
  • European joint stock company;
  • European cooperative society;
  • European economic interest grouping. 
Also, businessmen can set up a branch or a subsidiary of a foreign company, depending on the autonomy they want to have for the company registered in Czech Republic. In this sense, we mention that the branch is a completely dependent entity to its parent- company.
Although there are many different legal options, most of the investors in Czech Republic choose to incorporate a limited liability company, which is the most common type of business registered in this country, as well as in other member states of the European Union. Our team of attorneys in Czech Republic can offer more details on how to register a limited liability company and about how to register for VAT in this country. Here is an infographic with details about the existing types of companies in Czech Republic:
Main types of Czech companies1.png


The company’s capital and shareholders in Czech Republic 

Some of the basic elements defining a company in Czech Republic are related to the company’s share capital and the number of shareholders necessary to register the business. In the case of a limited liability company, the entity can have minimum one shareholder and up to 50. Its minimum share capital is established at CZK 200,000, which will be paid depending on the number of shareholders
In the case of a joint stock company, the share capital is established at CZK 2 million if the company is registered as a non-public entity. If the business is incorporated as a public company, the share capital will increase to CZK 20 million
Businessmen interested in finding out more details on the types of companies available here are invited to address to our law firm in Czech Republic.