Basic information on ESTABLISHING - FOUNDATING a limited liability company (LLC) - Instructions on how to FOUND a czech LLC

A company with limited liability is, in practice, most preferred legal entity. What makes its establishment so popular is its easy administration and simple business conduct. Unlike running business with a limited liability company, a process of its establishing is somewhat complex and time-consuming exercise. Establishment of a limited liability company in the Czech Republic takes on average 1-2 months time, depending on the number of necessary procedures and the type and complexity of the company.

If you decide to use the services of our company, we are able to guarantee the registration into the Companies Register within only eight working days. When establishing a company it is essential to have a good understanding of, at least, basic issues associated with this process and we need to get from you some information required for establishing a limited liability company (LLC).

Information on the documents and background papers required to establish a limited liability company (LLC)

"... It is an explanation of basic concepts and information that you should fill the order form .." If you have advanced knowledge of the legal field, please skip this document ..."

Company´ s name

Before deciding upon a name of your company, you have to avoid registering a company´ s  name that would be identical or interchangeable with another one, which is already registered in the Companies Register (you can check on www.justice.cz).

Headquarters - Registred office

In the event that you choose your own address as a company´ s headquarters, it is necessary to prove the consent of the property owner with the location of the seat and an abstract from record of the Land Registry not older than 3 months (these documents will be prepared by our company).

Of course there is a possibility to maintain our headquarters at Primátorská 38, 180 00 Prague 8 for a fee of 390, - CZK per month.

Scope of Business

Permission to conduct business in this field arises upon an announcement of the trade at the Trade Office. In the event of operating regulated / craft / licensed trades by a legal person a responsible representative is required by law.

No one can be appointed to the position of a responsible representative for acting on behalf of more than four entrepreneurs (as amended § 11 of Act 455/1991 Coll., Licensing).

The scope of business can be extended by the following activities:

• živnosti volné
• živnosti řemeslné
• živnosti vázané
• živnosti koncesované

Documents required from a responsible representative for establishing a limited liability company:

• Statement of a responsible representative pursuant to § 46 paragraph 2 letter g of Act 455/1991 Coll. on trade (officially certified signature)
• In the case of a craft, regulated trade or a licensed trade it must be accompanied by appropriate documents evidencing the education and experience achieved in the field (original documents or certified copies)

Associates / Partners

An associate may be both a natural or legal person. If an associate is a natural person, we need to know:

• Name, surname, personal identification number (date of birth for foreigners), address of permanent residence
• Amount of shares
• In the event that a partner is a Czech legal entity:
• Business name, ID, address, abstract from record of the Companies Register not older than 3 months
• Amount of shares
• In the event that a partner is a foreign legal entity:
• Current abstract of record from the Companies Register or similar document issued by the competent authority in the country, where a company has been established. That document must clearly show who is entitled to acting on behalf of the company and that the company exists. The document must also be translated to the Czech language by a legal translator, bearing an Apostille, if required.
• Amount of shares

Statutory authority - managing director

Managing Director of a limited liability company may only be a natural person. It is not required to reside in the CR, not even in the case of non-EU citizens. Acting on behalf of a company is possible mediately after the General Meeting's decision, even before the registration of a Managing Director into the Companies Register.

A manner of acting on behalf of the Company

In the event that your company has more managing directors, it is always necessary to consider whether any of them should act individually or all of them should act only jointly.

Managing Director - citizen of the CR

• Name, surname, birth certificate number, residential address
• Abstract from Criminal record of the CR not older than 3 months
• Affidavit and signature specimen (officially certified signature)

Managing Director - EU citizen

• Name, surname, birth certificate number, residential address
• Abstract from Criminal record of the country of origin not older than 3 months translated by the legal translator into the Czech language with an Apostille, if required
• Affidavit and signature specimen (officially certified signature)

Managing Directors - non-EU citizens

• Name, surname, birth certificate number, residential address
• Abstract from Criminal record both of the CR and country of origin, not older than 3 months, moreover an abstract from the country of origin translated by the legal translator, with Apostille if required

Registration for VAT

The Company is not at the time of its sale registered as a payer of value added tax. At your request, we shall file for a voluntary registration for VAT.

Basic capital

You can determine the amount of a basic capital, the minimum amount is 200.000,- CZK

„If you have any questions, please contact us.“
JUDr. Jakub Maur, executive

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