A limited liability company is one of the most frequently founded legal entities. What makes its establishment so popular is its easy administration and also that it is an effective way through which an individual can conduct business activities.
Unlike running business with a limited liability company, a process of its establishment is quite complicated and time-consuming. The establishment of a limited liability company in the Czech Republic takes on average from 1 to 2 months, 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 Commercial Register within only eight working days. When establishing a company it is essential to have a good understanding of (at least) the basic issues associated with this process. You should also know what information we will require from you to establish a limited liability company (LLC).
Information on the documents required to establish a limited liability company (LLC)
"... This is an explanation of the basic concept and information that you should fill into the order form ." ... if you have advanced knowledge of the legal field, skip this section ..."
Company‘s name
When deciding upon a name of your company, you have to avoid registering a company‘s name that would be identical or interchangeable with a company name that is already registered in the Commercial Register (we recommend checking the webpage www.justice.cz).
Registred office
In the event that you choose your own address as a company‘s registered office, it is necessary to provide the consent of the property owner with the location of the registered office and an extract from record of the Land Registry not older than 3 months (these documents will be prepared by our company).
Of course there is also the possibility to maintain your registered office at one of our virtual offices located throughout the Czech Republic.
Scope of business
The permission to conduct business in the chosen field arises from the moment you acquire a trade licence issued by 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 (includes all 80 activities within free trades)
- živnosti řemeslné (skilled trades)
- živnosti vázané (restricted trades)
- živnosti koncesované (trades requiring concession)
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 case of a craft, regulated trade or a licensed trade it must be accompanied by appropriate documents proving 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:
- An up-to-date excerpt from the Commercial Register or similar document issued by the competent authority in the country where the company has been established. This document must clearly show who is entitled to act 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 for him to reside in the CR, not even in the case of non-EU citizens. Acting on behalf of a company is possible immediately after the General Meeting‘s decision, even before the registration of a Managing Director into the Commercial Register. New: Also a legal entity can be a statutory authority of the LLC.
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
- Extract from the 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
- Extract from the 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
- Extract from the Criminal record both of the CR and country of origin, not older than 3 months, moreover an extract 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.
Share capital
You can determine the amount of the share capital, the minimum amount is 1 CZK. However, we recommended having your share (registered) capital at least in the amount of 200.000 CZK.
