How does a foreign company set up a subsidiary in the Czech Republic?

Short answer

A foreign company sets up a Czech subsidiary most commonly as an s.r.o. (limited liability company). The founder does not need to be a Czech resident, and the minimum registered capital is symbolic — CZK 1. The company is founded by a notarial deed, the capital is paid in, and the company is then entered in the Commercial Register. In practice the process takes about 5 to 14 days and costs roughly CZK 5,500 to 12,000 in fees, depending on whether you use only a notary or also a lawyer. Non-EU owners face no barrier to owning the company, but the appointed executive (jednatel) will in practice need a Czech residence title to operate day to day.

When this situation arises

• •A foreign company wants to establish a permanent legal presence in the Czech Republic
• •A foreign investor is deciding between a branch office and forming a new Czech subsidiary
• •A parent company needs a Czech legal entity to sign local contracts, hire staff, or hold a trade licence

What options do you have

Recommended step-by-step process

1. 1.

   Verify the company name

   Check that your chosen company name is available in the Commercial Register.

2. 2.

   Secure a registered address

   Obtain a registered address in the Czech Republic with the property owner's written consent.

3. 3.

   Prepare and legalise founder documents

   For a corporate founder, obtain an extract from its home commercial register, apostilled or superlegalised, with a certified Czech translation.

4. 4.

   Sign the notarial deed

   Execute the founding deed before a Czech notary, who can register the company directly.

5. 5.

   Pay in the registered capital and register

   Pay in the capital, complete Commercial Register entry, and register the trade licence in parallel.

What documents to prepare

• •Extract from the parent company's home commercial register (apostilled/superlegalised, with certified Czech translation)
• •Decision of the parent company's competent body approving the formation
• •Identification documents of the founder
• •Clean criminal record extract for at least one executive (jednatel)
• •Written consent of the property owner for the registered address
• •Bank account details for paying in the registered capital

Common mistakes

• •Underestimating how long apostille/superlegalisation and certified translation of foreign corporate documents take — often the slowest step
• •Assuming the theoretical 5-day registration timeline applies before all documents are actually ready
• •Not appointing a Czech or EU-national executive when the foreign owner cannot obtain a Czech residence title
• •Confusing company ownership (no residence permit needed) with the executive role (a residence title is needed in practice for a non-EU national running the company locally)

Risks and important deadlines

When it's worth contacting a lawyer

Consult a lawyer before formation if the founder is a non-EU entity whose documents need legalisation, if the planned executive is a non-EU national without a residence title, or if you are weighing a branch office against a subsidiary for liability reasons.

Frequently asked questions