{"id":15428,"date":"2025-09-10T14:02:02","date_gmt":"2025-09-10T14:02:02","guid":{"rendered":"https:\/\/axevera.com\/?p=15428"},"modified":"2025-09-10T14:02:03","modified_gmt":"2025-09-10T14:02:03","slug":"setting-up-an-a-s-in-the-czech-republic","status":"publish","type":"post","link":"https:\/\/axevera.com\/en\/2025\/09\/10\/setting-up-an-a-s-in-the-czech-republic\/","title":{"rendered":"Setting Up an A.S. in the Czech Republic"},"content":{"rendered":"\n

Opening a JSC (A.S.) in the Czech Republic<\/strong><\/h1>\n\n\n\n

Establishing a JSC (Akciov\u00e1 Spole\u010dnost, A.S.) in the Czech Republic is a strategic choice for entrepreneurs and investors who want to operate in a transparent, business-friendly European environment. This corporate form, comparable to the Italian S.p.A., is designed for structured companies, offering the ability to raise capital through shares and flexible corporate governance.<\/p>\n\n\n\n

What is a JSC and who is it for<\/strong><\/h2>\n\n\n\n

A JSC is a joint-stock company in which share capital is divided into shares. It can be founded by a single legal entity or by multiple individuals or legal entities. It is particularly suitable for:<\/p>\n\n\n\n

    \n
  • companies with substantial capital,
    <\/li>\n\n\n\n
  • businesses aiming to operate in a transparent and structured way,
    <\/li>\n\n\n\n
  • international groups seeking a stable presence in Central Europe.
    <\/li>\n<\/ul>\n\n\n\n

    Required share capital<\/strong><\/h2>\n\n\n\n

    The minimum share capital depends on the type of share offering:<\/p>\n\n\n\n

      \n
    • Private offering<\/strong>: CZK 2,000,000 (\u2248 \u20ac80,000)
      <\/li>\n\n\n\n
    • Public offering<\/strong>: CZK 20,000,000 (\u2248 \u20ac800,000)
      <\/li>\n<\/ul>\n\n\n\n

      At least 30% of cash contributions<\/strong> must be paid at the time of incorporation, while in-kind contributions must be fully covered and certified by an independent expert.<\/p>\n\n\n\n

      Incorporation procedure<\/strong><\/h2>\n\n\n\n

      To establish a JSC in the Czech Republic, you must:<\/p>\n\n\n\n

        \n
      • draft the articles of association with a notary,
        <\/li>\n\n\n\n
      • open a corporate bank account and deposit the capital,
        <\/li>\n\n\n\n
      • obtain a business license (\u017eivnostensk\u00fd list),
        <\/li>\n\n\n\n
      • register the company in the Commercial Register,
        <\/li>\n\n\n\n
      • create an official company website<\/strong> to publish financial statements, shareholder meeting notices, and other mandatory information (required by law).
        <\/li>\n<\/ul>\n\n\n\n

        Governance structure<\/strong><\/h2>\n\n\n\n

        A Czech JSC can adopt one of two governance models:<\/p>\n\n\n\n

          \n
        • Dualistic system<\/strong>: general meeting, board of directors, and supervisory board.
          <\/li>\n\n\n\n
        • Monistic system<\/strong>: board of directors and statutory director.
          <\/li>\n<\/ul>\n\n\n\n

          Both systems are flexible and can be tailored to the size and needs of the company.<\/p>\n\n\n\n

          Tax regime and accounting obligations<\/strong><\/h2>\n\n\n\n

          Joint-stock companies in the Czech Republic benefit from a competitive framework:<\/p>\n\n\n\n

            \n
          • Corporate Income Tax (CIT)<\/strong>: 21% since 2024 (previously 19%).
            <\/li>\n\n\n\n
          • Dividends to non-residents<\/strong>: subject to 15% withholding tax, unless exempt under participation exemption (PEX) or tax treaties.
            <\/li>\n\n\n\n
          • VAT<\/strong>: standard rate 21%, single reduced rate 12% since 2024.
            <\/li>\n\n\n\n
          • Mandatory audit<\/strong>: required if, for two consecutive years, 2 out of 3 thresholds are exceeded: assets > CZK 40m, revenues > CZK 80m, or > 50 employees. (Note: new audit thresholds apply from January 1, 2026).<\/em>
            <\/em><\/li>\n<\/ul>\n\n\n\n

            Main differences between Italian S.p.A. and Czech A.S.<\/strong><\/h2>\n\n\n\n
            Aspect<\/strong><\/td>Italian S.p.A.<\/strong><\/td>Czech A.S.<\/strong><\/td><\/tr>
            Minimum capital<\/strong><\/td>\u20ac50,000<\/td>CZK 2,000,000 (\u2248 \u20ac80,000, private) \/ CZK 20,000,000 (\u2248 \u20ac800,000, public)<\/td><\/tr>
            Governance<\/strong><\/td>Three possible systems: traditional, dualistic, or monistic<\/td>Dualistic or monistic (statutory choice)<\/td><\/tr>
            Audit<\/strong><\/td>Mandatory if thresholds under Italian Civil Code\/TUF are exceeded<\/td>Mandatory only if criteria (assets, revenues, employees) exceeded 2 years<\/td><\/tr>
            Legal disclosure<\/strong><\/td>Business Register; notices in Official Gazette or newspaper for meetings<\/td>Mandatory corporate website for financials and disclosures<\/td><\/tr>
            Foreign access<\/strong><\/td>No formal restrictions; more bureaucratic procedures<\/td>No restrictions; criminal record extract required for directors<\/td><\/tr>
            Taxation<\/strong><\/td>IRES 24%<\/td>CIT 21% + 15% WHT on dividends<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n

            Conclusion<\/strong><\/h2>\n\n\n\n

            The Czech JSC is a solid and competitive corporate form for those aiming to internationalize their business in Central Europe. With higher minimum capital but a more favorable tax regime and flexible governance, it provides a business-friendly framework that can serve as a real competitive advantage for companies and international investors.<\/p>\n","protected":false},"excerpt":{"rendered":"

            Setting up a JSC in the Czech Republic: minimum capital from CZK 2 million, 21% corporate tax and flexible governance to attract investors.<\/p>\n","protected":false},"author":5,"featured_media":15425,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[525],"tags":[],"yst_prominent_words":[],"class_list":["post-15428","post","type-post","status-publish","format-standard","has-post-thumbnail","category-en"],"_links":{"self":[{"href":"https:\/\/axevera.com\/en\/wp-json\/wp\/v2\/posts\/15428","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/axevera.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/axevera.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/axevera.com\/en\/wp-json\/wp\/v2\/users\/5"}],"replies":[{"embeddable":true,"href":"https:\/\/axevera.com\/en\/wp-json\/wp\/v2\/comments?post=15428"}],"version-history":[{"count":1,"href":"https:\/\/axevera.com\/en\/wp-json\/wp\/v2\/posts\/15428\/revisions"}],"predecessor-version":[{"id":15429,"href":"https:\/\/axevera.com\/en\/wp-json\/wp\/v2\/posts\/15428\/revisions\/15429"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/axevera.com\/en\/wp-json\/wp\/v2\/media\/15425"}],"wp:attachment":[{"href":"https:\/\/axevera.com\/en\/wp-json\/wp\/v2\/media?parent=15428"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/axevera.com\/en\/wp-json\/wp\/v2\/categories?post=15428"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/axevera.com\/en\/wp-json\/wp\/v2\/tags?post=15428"},{"taxonomy":"yst_prominent_words","embeddable":true,"href":"https:\/\/axevera.com\/en\/wp-json\/wp\/v2\/yst_prominent_words?post=15428"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}