The Czech limited liability company, the s.r.o. (společnost s ručením omezeným), remains the most popular legal form for doing business in the Czech Republic. In 2026 the formation process is faster and simpler than ever: the whole formation can be completed online at a notary, and the notary registers the company directly in the Commercial Register. This guide summarises the current rules, the real costs and the procedure step by step.
What Applies in 2026
The year 2026 has brought no fundamental legislative change to the formation of an s.r.o.; today's process is the result of changes over recent years. Since 1 September 2021, an amendment to the Notarial Code (Act No. 300/2021 Coll.) has allowed the notarial deed founding an s.r.o. to be executed online by video conference. The entire formation can therefore be completed without a single visit to the notary's office; what you need is identification via bank identity or the Czech citizen identity scheme (for EU citizens an equivalent notified means such as ID Austria), a video conference with the notary and a qualified electronic signature.
The minimum registered capital of an s.r.o. has been 1 CZK since 2014, when the Business Corporations Act (Act No. 90/2012 Coll.) took effect. That has not changed. In practice, however, we recommend considering higher registered capital (at least 50,000 to 200,000 CZK) for credibility with business partners and banks.
Every s.r.o. has had a data box (datová schránka) by law since 2009; since 2023 the same applies to all legal entities. You need not arrange it when founding the company: the Ministry of the Interior sets it up automatically after registration in the Commercial Register and sends the login credentials to the director. Official documents are deemed delivered at the latest ten days after arriving in the data box, even if unread; we advise foreign directors to share access with a representative based in the Czech Republic.
Step by Step: How to Found an s.r.o.
1. Preparing the Founding Document
The first step is to draw up the memorandum of association (where several persons found the company) or the founding deed (for a single-member s.r.o.). This document must take the form of a notarial deed. It contains the company name, registered office, scope of business, amount of registered capital, each shareholder's contribution and the appointment of directors (jednatelé). An s.r.o. can be founded by a single shareholder; since 2014 there has been no upper limit on the number of shareholders.
2. Obtaining a Trade Licence
Before registration in the Commercial Register you must obtain a trade licence (živnostenské oprávnění). The trade notification can be filed electronically via the Trade Licensing Portal (rzp.gov.cz, the single registration form) or through a data box, or in person at any municipal trade licensing office. Regulated and licensed trades require proof of professional qualifications.
3. Paying Up the Registered Capital
Before the registration application is filed, the entire share premium and at least 30 % of each cash contribution must be paid; contributions in kind must be made in full (Section 148 of the Business Corporations Act). If the total cash contributions do not exceed 20,000 CZK, since 2021 they can be paid directly to the contribution administrator without opening a special bank account; above that amount they are paid into a special account. The contribution administrator confirms payment by a declaration.
4. Registration in the Commercial Register
The fastest route is direct registration by the notary, which the law has allowed since 2015: the notary usually registers the company on the same day the notarial deed is executed. Alternatively, the application is filed electronically with the registry court (via data box or the justice.cz portal). You attach the notarial deed, the contribution administrator's declaration, the property owner's consent to the registered office (with a certified signature, no older than three months) and the directors' sworn declarations. For Czech citizens, the court or notary obtains the criminal record extract itself; foreign nationals provide an extract from their home state (no older than three months) with a Czech translation. The court verifies the trade licence and cadastre data in the public registers.
5. Tax Registration
Within 15 days of the company's incorporation (registration in the Commercial Register) you must register for corporate income tax. VAT registration is mandatory once turnover exceeds 2,000,000 CZK in a calendar year (a threshold in force since 2023); you then become a VAT payer from 1 January of the following year. If turnover in a calendar year exceeds 2,536,500 CZK, you become a VAT payer from the very next day. The application must be filed within 10 working days (rules in force since 1 January 2025). Voluntary registration is possible from the outset.
Documents Required
To found an s.r.o. you will need: the founders' identity cards or passports, the property owner's consent to the registered office (with a certified signature), the directors' sworn declarations that they meet the conditions for office, and, for foreign directors, a criminal record extract from their home state (no older than three months) with a translation. An Austrian criminal record certificate does not need an apostille, as a bilateral treaty on legal assistance applies between the Czech Republic and Austria (Czech Decree No. 9/1963 Coll.); shareholders who are not directors do not need to provide a criminal record extract at all.
Costs
The cost of founding an s.r.o. in 2026 consists of several items. The notarial deed costs roughly 4,000 to 8,000 CZK including VAT depending on the complexity of the memorandum; for a so-called simple s.r.o. using the model memorandum, from about 2,500 CZK. The court fee for the first registration of an s.r.o. is 6,000 CZK if you file the application with the registry court (item 11 of the schedule to Act No. 549/1991 Coll.). If the notary registers the company directly, it is 2,700 CZK, and for a simple s.r.o. (the memorandum contains only the statutory essentials and all contributions are in cash) registration by the notary is fully exempt from the court fee. The trade notification on entering business costs 1,000 CZK (800 CZK if filed electronically) regardless of whether the trade is unregulated, regulated or licensed; if several trades are notified at once the fee is paid only once, and each later notification costs 500 CZK.
The minimum total cost of a simple s.r.o. founded directly at the notary therefore starts at around 4,000 to 6,000 CZK; for a tailored memorandum with direct registration by the notary, expect 8,000 to 12,000 CZK. If you engage a lawyer to prepare the documentation and represent you, allow a further 10,000 to 25,000 CZK depending on the complexity of the project.
How Long Does It Take?
Under the standard procedure, founding an s.r.o. takes approximately 2 to 4 weeks. The notarial deed can be executed within 1 to 2 days. The trade licensing office issues the licence within 5 working days. With direct registration by the notary the company is usually in the register the same day; the registry court should register the company within 5 working days of receiving a flawless application, although in practice we do see longer delays.
Virtual Registered Office: Pros and Pitfalls
More and more founders use a virtual registered office. A provider lets you use an address for the registered office entry in the Commercial Register without your being physically based there. Prices are in the order of a few hundred crowns per month. The advantage is obvious: you save on office costs, especially if you work from home or on the move. Be aware, however, that the registry court may check the registered office and the tax office may visit it during a local inspection. Choose a reputable provider with a real address and the property owner's written consent.
What Has Changed Compared with Previous Years
For clarity, the main changes of recent years: since 2014, minimum registered capital of 1 CZK and no cap on the number of shareholders. Since 2015, notaries can register companies directly in the Commercial Register. Since 2021, cash contributions totalling up to 20,000 CZK can be paid without a special bank account, and since September 2021 the whole formation can be completed online at the notary. In 2023 the mandatory VAT registration threshold was raised to 2,000,000 CZK and data boxes are set up for all legal entities. Since 2025, VAT turnover is calculated per calendar year. The year 2026 continues the trend towards full digitalisation of the formation process.
How We Can Help
The law office of Mgr. Barbora Surmanová offers complete legal support for company formation; she has practised corporate law since 2006. We prepare a tailored founding document, obtain the trade licence, coordinate the notarial deed and the Commercial Register entry, and guide you through the whole process. As a law office on the Czech-Austrian border we regularly assist Austrian entrepreneurs founding companies in the Czech Republic; our knowledge of both legal systems and fluent German save you time and trouble.
Planning to establish an s.r.o.? Contact us for a non-binding initial consultation. Find out more on our Legal Services page.
Updated August 2026.
