Czech Republic Limited Liability Company (společnost s ručením omezeným or SRO)
- This business entity requires at least one owner. The minimum amount of paid-up capital required is € 1 (CZK1). One director must be appointed. He / she may be of any nationality.
- After the company’s registration, the capital must be paid within five years.
- These entities must submit audited financial statements each year.
- An external audit must be conducted if the balance sheet exceeds € 1,5 million, annually or the turnover exceeds € 3 million or there are more than 50 employees in the company.
Czech Republic Joint Stock Company (aka akciová společnost or AS)
- The capital of € 75,000 must be paid within five years of the completion of the incorporation. There must be three members on the supervisory board, other than the company’s directors.
- An external audit has to be conducted. Joint Stock Companies can be free from tax deductions if the amount of the balance sheet is above €1.5 million, yearly turnover is above €3 million or there are more than 50 employees in the company.
- It is the most suitable option if the shareholders do not want to be involved in the regular operations of the business.
- It is also a good option if customers want to list the entity with the local stock exchange (PSE) to raise capital.
Czech Republic free zone company
- The business entity formed in the Czech Republic can be registered with any of the available special industrial zones.
- The prerequisites are at least €2 million minimum investment (€4 million in case of SIZs) and 20 or more jobs creations.
- As per the Technology Center Program, innovative businesses benefit from a low investment of € 1 million.
- These business entities are exempt from taxes for ten years. They can benefit from a cash grant of up to 7,500 per every job created and no property tax cuts up to five years.