How much it really costs to open a Czech s.r.o.: your Year-1 and Year-2 budget

This article gives you a transparent view of what it takes to open a company in the Czech Republic and what you will actually spend in the first and second year of operations. 

We will go through each stage step by step – starting with the mandatory expenses you cannot launch without (notary, Commercial Register, registered office, trade licence) and moving on to ongoing operating costs: accounting, VAT/CIT compliance, banking services, contributions to social and health funds, and salaries. 

As a result, you will get a complete picture of your company’s cost structure and will be able to plan your budget in advance – without unexpected expenses or “surprises” once the business is already running. 

What you should know upfront about Czech s.r.o. costs 

• The minimum share capital of a Czech s.r.o. can be symbolic – CZK 1, which makes market entry much more affordable. 
• It is difficult to name a single “standard” amount for set-up costs (notary + Commercial Register and related fees), because the final figure depends on what is included in your provider’s package and how complex your case is. 
• The typical registration time is about one week, but the real process (document preparation, KYC, opening a bank/EMI account, etc.) usually takes around 2–3 weeks. 

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For whom this article is useful: 

• freelancers and solo entrepreneurs 
• IT teams 
• e-commerce projects 
• consultants 
• investors 
• anyone who wants to open an s.r.o. in the Czech Republic and understand the realistic “target amount” for Year 1 and Year 2 without unnecessary overpayments. 

How much you will really have to pay and why the total can differ 

So, what are the main cost items you need to factor in, and why can the total cost of opening an s.r.o. differ so much from case to case? 

Below we have summarised the key elements which influence both the initial budget and the cost of maintaining the company in the first two years. 

Main cost categories 

• Company registration – includes the notary’s services and filing the incorporation documents with the Commercial Register. 
• Share capital – the legal minimum is symbolic (CZK 1). In practice, though, banks and partners often prefer to see a higher, more realistic level of capital before they are comfortable opening an account or working with the company. 
• Service provider’s fees – registered office, legal support, assistance with opening a bank or EMI account, corporate documents and support packages.  
• Recurring operating costs (Year 1 and Year 2) – accounting, tax reporting, rent or virtual office fees, obligatory taxes and contributions. 

Factors that influence the final amount 

• Type of activity. An IT company, e-commerce project or manufacturing business will have different licensing and tax-compliance requirements. 
• VAT status. If your turnover exceeds the statutory VAT registration threshold or you work actively with EU partners, your accounting becomes more complex and therefore more expensive. 
• Volume of operations. The higher your turnover, number of transactions and number of employees, the higher your accounting and tax compliance costs. 

Costs of registering and launching a Czech s.r.o.  

When you open a company in the Czech Republic in the form of an s.r.o. (společnost s ručením omezeným), you go through several stages which make up both the time and financial cost of the launch. 

First, you need to prepare the constitutional documents – the company’s Articles of Association / foundation deed. They set out the company’s name, registered office, scope of business, amount of share capital, distribution of shares between the founders as well as the governance rules. 

Next, the notarial steps are taken: the notary draws up a notarial deed approving the incorporation, verifies the signatures and files the application for registration with the Commercial Register (Obchodní rejstřík). At this stage you also pay the relevant court / registration fee. 

If some of the founders are foreign individuals or companies, you will need to provide additional documents: extracts from foreign commercial registers, apostilles, certified translations into Czech and sometimes certificates confirming the place of registration of the corporate shareholder. In some cases, extra confirmations about the ultimate beneficial owners and the group structure may be required. 

The total registration cost will therefore vary depending on the number of founders, whether there are corporate shareholders, the need for translations and apostilles, and the scope of assistance you expect from your legal provider. It is important to assess all these factors in advance so you can plan your budget properly and avoid delays at the start. 

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Registered office and trade licence (trade licence / živnost) 

Every company in the Czech Republic must have a registered office – this can be a physical office or a virtual office provided by a service provider. 

If your activity is subject to licensing or falls under the trade licence (živnost) regime, you need to obtain the appropriate permit from the Trade Licensing Office. For most classical services a “free trade” licence (volná živnost) is sufficient; the administrative fee for such a licence is around CZK 1,000. 

Having a registered office and the necessary licence is required even before you start active operations. Without this you cannot properly sign contracts, receive official correspondence or open a bank/EMI account, so for most projects it is better to take care of these elements at the very beginning. 

Mandatory registers and UBO 

When you register an s.r.o., you must submit information on the Ultimate Beneficial Owner (UBO), shareholders and directors. The company’s data is entered into several registers – including the Commercial Register and the UBO register – with details of the company’s name, IČO, registered office, share capital, activities and other key information. 

Keeping these data up to date is part of the company’s regular compliance and also influences how banks and partners view your structure. 

Operational and compliance costs in the first and second year of activity 

Accounting and tax reporting 

After registering a Czech s.r.o., you should budget for monthly accounting and regular reporting costs, even if the company has little or no activity in the beginning. According to current market practice, basic bookkeeping for a small s.r.o. starts from around CZK 4,500 per month. 

The company is required to file a Corporate Income Tax (CIT) return and, where applicable, VAT returns and other statutory reports. 

Note: even if the company has no turnover, bookkeeping and statutory reporting remain obligations – these are cost items that many founders underestimate when planning their Year-1 budget. 

Employees, salaries and social contributions 

If the company plans to hire employees in the first or second year, you need to factor in payroll processing, social security and health insurance contributions and the administrative work related to employment. 

For example, servicing one employee per month may cost several thousand CZK in payroll/accounting fees, plus the employee’s salary itself and the related statutory funds. 

It is therefore best to have a reserve for “typical fixed costs” if you plan to start with one or two employees. 

Registered office, datová schránka and administrative expenses 

A company in the Czech Republic must have a registered office (registered address). Foreign founders often choose a virtual office, because it is more cost-effective than a physical office while still meeting legal requirements. 

In addition, you need to set up and maintain a datová schránka – the company’s official digital mailbox through which the authorities deliver official messages. Maintaining access to this system and dealing with official correspondence is a recurring expense. 

Administrative expenses should be planned from the second year onwards as a permanent budget line (for example, changes to details in the registers, obtaining extracts, dealing with notices and replies to state authorities). 

Timeline and checklist 

The launch of a Czech s.r.o. can be broken down into several weeks with clear stages – from incorporation to opening an account and completing VAT registration. Understanding this timeline helps you correctly set expectations for when the company will be fully ready to trade. 

Weeks 1–2: key incorporation steps 

• Preparation and filing of all incorporation documents with the Commercial Register (s.r.o. registration). 
• Obtaining the certificate of incorporation and the company identification number (IČO). 
• Submitting information on the Ultimate Beneficial Owner (UBO) and entering the relevant data into the UBO and shareholders’ registers. 
• Arranging the registered office and, where necessary, obtaining the trade licence (Živnost). 

Weeks 2–6: bank account, VAT and digital infrastructure 

In the second to sixth weeks after incorporation, the main organisational steps relate to opening the company’s financial and digital infrastructure: 

• Opening a corporate bank account or choosing a payment institution / EMI if the business needs a more flexible or faster payment solution. 
• Ensuring the personal presence of the director (if the bank requires it), preparing a business description and providing KYC documents. 
• Depositing the share capital – in some cases this is a mandatory condition for completing the incorporation process. 
• Registering with the tax authorities as a VAT payer (where required), which allows you to work properly with EU partners.
• Setting up bookkeeping: during the first year the company should already keep proper accounts, submit its annual financial statements and file tax returns. 
• Activating the datová schránka electronic mailbox. 

Many of these procedures can be carried out in parallel, which helps shorten the overall time until the company is fully ready to operate. 

Note on VAT in the Czech Republic in 2025. 
Mandatory VAT registration applies once the threshold of CZK 2,000,000 is reached in a calendar year. VAT rates: standard – 21%, reduced – 12% for selected goods and services. Non-residents making taxable supplies must register regardless of the threshold. VAT returns are filed monthly or quarterly, depending on turnover. 

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Summary budget for a Czech s.r.o. for Year 1 and Year 2 

To make planning easier, we have summarised the key expenses in a short Year-1 vs Year-2 table.  

Summary budget for a Czech s.r.o.: Year 1 vs Year 2 

Cost item	Year 1 (approx.)	Year 2 (approx.)	Comment
Company registration (notary, Commercial Register, document preparation)	One-off expense at incorporation. The amount depends on the number of founders, any foreign shareholders and the provider’s package.	0 CZK, unless you make changes that require a new filing.	Includes constitutional documents, notarial deed and filing with the Commercial Register.
Share capital	From CZK 1; in practice often higher, depending on business model and bank requirements.	No additional cost if the capital is not changed.	This is a contribution by the founders, not an expense – the funds stay in the company.
Registered office / virtual office	Annual fee for the registered office (varies by provider and location).	Similar to Year 1 – regular annual payment.	Mandatory for registration and for receiving official mail and bank correspondence.
Trade licence / živnost (if required)	Around CZK 1,000 one-off for a standard “free trade” licence.	0 CZK, unless you add new regulated activities.	Some sectors may require additional specific licences.
Accounting and tax reporting (CIT, VAT where applicable)	Basic bookkeeping from ~CZK 4,500/month (≈ from 54,000 CZK/year). The amount increases with VAT, turnover and complexity.	Similar or higher, depending on growth, VAT status and number of transactions.	Includes bookkeeping, annual CIT return and, where applicable, VAT and other reports.
Employees (if you hire staff)	Payroll/accounting services per employee + salary and social contributions.	Grows with the number of employees and salary levels.	It is sensible to keep a reserve for fixed costs when starting with 1–2 employees.
Administrative and compliance costs (UBO, datová schránka, registers, potential fines)	Initial set-up and first filings in the registers, activation of datová schránka, onboarding with bank/EMI.	Regular smaller costs for maintaining data up to date + potential penalties if deadlines are missed.	Proper planning helps minimise fines for late CIT/VAT filings or UBO non-compliance.

FAQ: common questions about Czech s.r.o. costs 

Q1. When do you actually need a trade licence (živnost)? 

A trade licence (živnost) is required when an s.r.o. carries out activities which are regulated under Czech law. 

Simple consulting, IT and many classical service businesses are usually covered by the “free trade” licence (volná živnost). However, activities in regulated sectors – for example real estate, financial and investment services, insurance intermediation and some professional services – may require additional specific permits. 

Q2. Can I open a company remotely? 

Yes, partially remote incorporation is possible. The constitutional documents can be prepared in advance, signed with notarised signatures and, in some cases, processed via a Czech notary remotely. Certain filings can also be submitted digitally. 

However, for opening a corporate bank account the director’s physical presence is usually required, especially if you are working with a traditional bank rather than an EMI. 

Q3. How long does it really take to open a bank / EMI account? 

In practice, opening a corporate bank or EMI account usually takes 2–4 weeks, provided all documents are prepared correctly. 

The bank will typically require proof of the registered office, the company’s incorporation documents, identification of the director and UBOs, and a clear description of the business model and expected transaction flows. 

Q4. What fines are most common? 

The most frequent fines are related to: 

• late submission of CIT or VAT returns 
• missed or incorrect UBO filings 
• improper use of the registered office (for example, if you do not actually receive and react to official correspondence sent to your registered address). 

Q5. Do I need a real physical presence, or is a registered address enough? 

For small and medium-sized s.r.o. companies, a registered office (virtual office) is usually sufficient. A full physical presence (employees, physical office) is mainly required if you are aiming for tax residency in the Czech Republic or planning significant local operations and staff. 

However, regardless of the format, it is important to ensure that: 

• your bookkeeping is maintained properly in line with Czech law; and 
• you are reachable at your registered office and can receive and respond to official correspondence in a timely manner.