Is setting up a limited liability company (s.r.o.) from scratch the right choice for me?
Benefits
- Set-up is cheaper than buying a ready-made limited liability company.
- The limited liability company is written directly in your name upon foundation (there is no change of name, registered office, managing director, etc.).
- You determine the size of the registered capital yourself (from CZK 1 upwards).
Disadvantages
- The whole process of setting up a limited liability company takes about a week, from first meeting to entry in the Commercial Register.
- You have to pay the registered capital yourself (there is no need to do this for a ready-made limited liability company).
- Setting up a limited liability company will take up more of your time – one meeting is enough to set up a ready-made limited liability company.
What is the procedure involved in setting up a limited liability company from scratch?
Contact us and tell us how you want your limited liability company to look.
- You can find everything you need to think about before setting up a limited liability company here.
- Or you can use or non-binding online form.
We will contact you right away and agree on the details of setting up the limited liability company with you.
- You can even set up a company from the comfort of your own home (by e-mail and post). All you have to do in person is go to the bank and pay the registered capital of your company.
Preparation of documents and subsequent handover of the documents you have signed
- We will prepare the documents required for you to set up a limited liability company and send them to you by e-mail.
- You sign them (authenticated signatures required) and return them to us, either in person or by post.
- We will then arrange a notarial deed and set up a trade for you at the trade licence office.
- Your task in the meantime is to pay the registered capital into any bank in the Czech Republic.
Payment for setting up a limited liability company is made in cash when handing over documents.
- If the sale goes through “remotely", payment is made by bank transfer into our account.
We will deal with entry in the Commercial Register.
- As soon as your trade has been set up (within around 3 days) and you have paid the registered capital (it is up to you how quickly this happens), we will arrange for the limited liability company to be entered in the Commercial Register (within around 5 days).
- The limited liability company can also be entered in the Commercial Register immediately for a surcharge (see here – link).
Registering a company with the competent tax authority
- A new company must be registered for income tax within 30 days of its entry in the Commercial Register and we will do this for you based on power of attorney.
What to think about before setting up a limited liability company from scratch
The name of the limited liability company
- The name of your limited liability company may not resemble any other name already registered in the Commercial Register and must differ in at least two characters – you can check names here (link).
- Our notary will enter the limited liability company in the Commercial Register. You can therefore check with him/her in advance whether your name will be entered or not (evaluation is no longer a matter for court officials, as was previously the case).
The registered office of the limited liability company
- Each limited liability company must have a specific address entered in the Commercial Register as its registered office.
- You may have your own registered office, or we can provide you with one (our choice of registered offices – link).
The trade of the limited liability company
- You must consider the area of activity that your limited liability company will engage in.
- There is no need to prove any qualification in order to carry out an unqualified trade (What is an unqualified trade? – link here).
- A responsible representative who is able to prove his/her qualification (study certificate, experience in the field, etc.) must be in place in order to carry out a professional or permit-requiring trade.
The managing director of the limited liability company
- A natural person or a legal person may be the managing director.
- The managing director may be one and the same person as the member (owner).
- A limited liability company may have more than one managing director – in such case it must be determined how they will act on behalf of the company (independently or together, with any restrictions).
- We are able to provide you with a managing director (see nominee services – link here).
The member of the limited liability company
- A natural person or a legal person may be a member.
- It may be one and the same person as the managing director.
- A limited liability company may have more than one member – in such case the stakes which they each own in the limited liability company must be determined.
- We are able to provide you with a member (see nominee services – link here).
The registered capital of the limited liability company
- You can decide yourself on the size of the registered capital of the limited liability company, the minimum amount being CZK 1.
When you set up a limited liability company from scratch, you pay the registered capital yourself – you open an account at any bank in the Czech Republic in which to deposit the registered capital, pay the relevant amount into that account and the bank will issue you with confirmation that the funds in question are in the account. The bank releases the money after the limited liability company has been entered in the Commercial Register.
