• Innofin s.r.o

Business entities in the Czech Republic

Updated: Mar 12

The first step of starting a business in the Czech Republic is to choose the right business form. In the article bellow we list a short summary of the most common business forms and their attributes.



Sole Entrepreneurship | Živnostenská činnost

  • Applied for/by an individual natural person

  • No minimum capital required

  • Tax rates: 15%

  • Tax calculated as personal income tax of natural persons

Limited Liability Company | Společnost s ručením omezeným (s.r.o.)

  • Formed by 1 or more shareholders – both natural and legal entities

  • The minimum capital: 1 CZK

  • Tax rates: 19%

  • Fully liable to taxes

Joint Stock Company | Akciová společnost (a.s.)

  • Investors can be both natural and legal entities

  • The minimum capital: 2,000,000 CZK (approximately 80,000 EUR)

  • Tax rates: 19%

  • Fully liable to taxes

Unlimited Partnership Company | Veřejná obchodní společnost (v.o.s.)

  • Formed by 2 or more shareholders – both natural and legal entities

  • No minimum capital required

  • Income tax is levied at the level of the partners

  • Tax rates: 15% personal income tax for natural person shareholders and 19% corporate income tax for corporate shareholders

Limited Partnership Company | Komanditní společnost (k.s.)

  • Formed by a general partner (komplementář) and limited partner (komanditista)

  • The minimum capital: 5,000 CZK

  • Income tax calculated separately for general and limited partners

  • 15% personal income tax if the general partners are individuals or 19% corporate income tax if the general partners are corporations

  • 19% corporate income tax for limited partners

Cooperative | Družstvo

  • Formed by a minimum of 3 shareholders – both natural and legal entities

  • No minimum capital required

  • Tax rates: 19%

  • Fully liable to taxes

Company Branch | Organizační složka

  • Formed by a foreign legal entity

  • No minimum capital required

  • Tax rates: 19%

  • The Branch is fully liable to tax and abides by the Czech Law

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