Setting up a limited company in the Czech Republic as a foreigner
A limited liability company -Společnost s ručením omezeným or s.r.o.- is the most common legal form for a business entity in the Czech Republic. This company is a separate legal entity whose authorized capital consists of contributions paid by its shareholders. These partners are responsible for the debts of the company as much as their unpaid contributions to the company capital registered in the trade registry.
Doing business as a foreigner in the Czech Republic
Foreign investors have no restrictions on setting up a limited liability company in the Czech Republic. Foreign natural and legal persons can set up any company with Czech or foreign partners or as individual shareholders. This means that foreign legal and natural persons have the same rights as Czech citizens and can be treated the same way.
The company can be set up by either one or more people (the maximum number is not fixed). No matter if they are EU, EEA, or third-country residents, foreign entrepreneurs have the option to set up an s.r.o. Company in the Czech Republic.
Czech company incorporation from abroad
Foreigners can perform the function of director or partner, regardless of where they reside in the Czech Republic. An associate can be either a foreign legal entity or a natural person, and a person can be a partner without a Czech Republic residence permit or visa. A foreigner can also be a company director, and it is not necessary to have a visa or a residence permit.
The company can be established without visiting the Czech Republic via the power of attorney. You can sign a power of attorney in the Czech Consulate Section in your home country. The power of attorney gives a legal right to your business consultant to complete the establishment process on your behalf.