How to establish a LLC in Czechia

So, you decided to start a company in Czechia, eh? This might not sound as such a bad idea due to relatively low corporate tax (15%) and ability to hire employees (which may come handy in the future). The only downside (or upside, depending on your view) is that Czechia still does not accept Euro. So you might prefer to open your business in Slovakia or Estonia instead. The process will take around 3 days from which we will spend 1 day with some administrative bullshit (unfortunately, no electronic shortcuts you lazy bastards) and around 9000 CZK (350€, mainly depending on the minimum capital size). Establishing a LLC starts with choosing the company name, company specialization and company address. You can check company name availability here. List of possible company specializations can be found in attachment no. 4 of the 455/1991 law. You might want to read the whole law and also throw in the 563/1991 to get an overview of accounting practices and 480/2004 (alias GDPR). Company address can be the same as your address (if you have temporary or permanent residency in Czechia), but this is not recommended: in case your company goes under and asset forfeiture is in progress, you may also say goodbye to some of your personal belongings. Better approach would be to use the services of a virtual address rental company. They cost around 10€/month and will scan and forward you any received physical mail (we will set up state mandated virtual mail box later). When you have your company’s address, be sure to get the owner’s approval of company placement and cadastral record. These will be needed later (electronic forms are sufficient). Afterwards, we can schedule a meeting with notary…ideally in the vicinity of a bank in which we plan to open company account. Notary will create notary record and verify some signatures. We should also bring (or send via e-mail) address owner’s approval of company placement and address cadastral record. Notary services cost around 7700 CZK (300€). With notary record in hand we stroll to the bank to deposit the minimum capital requirement. Although the minimum is 1 CZK, it is better to deposit at least 1000 CZK (about 40€) as the higher minimal capital signals greater faith in our company. It may also come in handy in case we would like to add some business partners in the future (the amount must be divisible by the number of business owners). Bank fees for this procedure vary, but Fio bank asks for modest 120 CZK (~5€). With the bank’s confirmation of capital deposit we return to notary. Afterwards, we will visit trade bureau (better set up meeting in advance to avoid queues) with notary record (and its copy, which costs 2 CZK/letter at the trade bureau), address owners approval of company placement and we will choose business field of activity. After 2 business days our trade bureau record is ready and we take it back to notary who will grant us company identification number and we (finally) legally own a business. To make this company functional, we will need to register for VAT at the financial bureau and open a corporate account which will grant us corporate credit card (yay). In a few days we will receive a mail with login information for virtual mail box which is required for communication with state offices. Taxes can be also filled online here. Aaaand that’s it. Have fun with your own Czech limited liability company.