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Registration of foreign company

  1. Enterprising of foreign subjects in the Czech Republic
  2. Steps necessary for establishment of chosen companies

Enterprising of foreign subjects in the Czech Republic

The enterprising of foreign subjects in the territory of the Czech Republic is governed by the Commercial Code – Enactment 513/1991 Coll. and Notice 250/2005 Coll. on The Official Application Forms For Making An Entry In The Commercial Register.

Foreign subjects can enterprise in the territory of the Czech Republic under identical conditions and to an identical extent as Czech subjects, unless it results otherwise from legal regulations. The foreign subject can be a physical entity with a place of residence outside the CR or a legal entity with a registered office outside the CR. A Czech legal entity is a legal entity with a registered office in the CR.

The enterprising of a foreign subject in the territory of the Czech Republic means the enterprising of such a subject if the company or organizational unit is based in the Czech Republic. The organizational unit of the foreign subject’s company has a similar position to a branch of a domestic subject, and it is registered in the Commercial Register.

A foreign subject can register an organizational unit in the Czech Republic only if they enterprise abroad. If they enterprise abroad, they also have a company abroad. At the same time, a foreign entrepreneur has the possibility to establish a second company in the Czech Republic, for example, if they have a travel agency abroad and a hotel in the CR.

The entitlement of a foreign subject to enterprise in the Czech Republic originates on the day when such a subject or organizational unit is registered in the Commercial Register. The proposal for registration is submitted by a foreign subject. This does not apply to a physical subject that is:

  • a citizen of a member state of the EU or another state forming the European Economic Area or Swiss Confederation;
  • a family member of a person specified in the first point who is entitled to reside in the Czech Republic;
  • a citizen of third country with an acknowledged legal position of a long-term resident in a member state of the EU;
  • a family member of the person specified in the third point with issued approval for a long-term stay in the Czech Republic.

A foreign subject can establish or participate in the establishment of a Czech legal entity or become a partner in the Czech legal entity. Foreign subjects have identical rights and obligations in the area of company establishing in the CR as Czech citizens.

Examples of possibilities regarding foreign subject enterprising:

  1. Foreign legal entity – e.g. a limited-liability company – that enterprises abroad can establish another company or organizational unit of their company based abroad in the Czech Republic
  2. Foreign entrepreneur – physical entity (e.g. a French wine producer) can establish another company or organizational unit of their company in the Czech Republic.
  3. Foreign legal entity – not an enterprising subject – e.g. an interest association of legal entities – can enterprise in the CR according to Czech legal regulations (unless prevented by foreign legal regulations) and have a company in the CR.
  4. Foreign physical entity – not an enterprising subject – can enterprise in the CR, have a company in the CR and enterprise only in the CR.

Steps necessary for establishment of chosen companies

To establish a limited-liability company, the following steps must be performed:

  1. conclusion of a partnership agreement in the form of a notary record;
  2. consignation of the company basic capital or its part;
  3. acquisition of trading certificates (trading certificate, etc.);
  4. entry of the company into the Commercial Register;
  5. registration of the company with the financial office.

To establish a joint-stock company, the following steps must be performed:

  1. execution of the founding document in the form of a notary record and its signing by all founders;
  2. creation of a special bank account – contributions of founders will be deposited in this back account;
  3. request a criminal register extract regarding the responsible representative of the company and document evidencing their qualification;
  4. register the trade with trade office;
  5. entry in the Commercial Register – no later than 90 days after establishment of the company, proposal for entering the company into the Commercial Register with corresponding appendices must be submitted;
  6. issuance of shares or interim certificates;
  7. registration with the financial office.


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