How long does it take to set up a company?
Setting up a company involves administration that can take weeks. We will tell you how long it takes to set up an LLC and give you tips on how to speed up the process.
What affects the speed of setting up a company?
The length of time it takes to set up a company depends on the type of company you choose, the speed of the administrative authorities and the notary. In addition, it takes some time to study the necessary information (which authorities to report to, what documents to prepare).
If things go really smoothly, it will take you about a week to set up an LLC on your own, but you usually have to count on several weeks of processing.
Reserve the extra time in case you are setting up a joint stock company or a company that needs a license to operate. It also takes longer to process a voluntary VAT registration if you want to become a taxpayer at the start of your business.
What is the process of setting up an LLC?
Starting a business takes a lot of time because of the formalities you have to complete. These vary according to the type of company. In the case of an LLC, the following steps await you:
Drawing up a memorandum of association
The memorandum of association is a document that contains basic information about the company and its shareholders. It is drawn up by a notary public.
Opening a bank account
A bank account is used to deposit the company's share capital if it exceeds CZK 20,000. For companies with lower share capital, you can go to the bank later.
Entry in the Commercial Register
Once you have completed the previous steps, you can apply to a notary or the registry court to register your company in the Commercial Register (OR).
Obtaining a trade licence
To start a business, your company (as a legal entity) needs its own trade licence. You can obtain this from the trade licensing office.
TIP! Need more detailed information? Read our detailed guide on how to set up an Ltd.
Once you have fulfilled all the necessary requirements, you can officially start your business. And if you're stuck in the beginning, the Business Owner's Responsibilities Guide will help you get started.
How to speed up the process of setting up a company?
We've got 2 tips to get your new business up and running faster:
Prepare all the documents
Be sure to prepare well for your meeting with the notary. Write down the basic details of the new company and prepare the necessary documents for registration. If you take care, you won't have to visit the notary more than once.
Be clear with the partners:
- the name of the company,
- the subject of the business,
- the registered office of the company,
- the division of shares in the company,
- the method of conduct,
- the amount of the share capital.
You will also need the written consent of the shareholders to the registration in the Commercial Register and the consent to the location of the registered office, which will be provided by the owner of the property.
However, even with all the documents, the processing may take longer, depending on the speed of the authorities.
Leave the incorporation to the experts
The second option is to set up a company through a consultancy company. At Jake&James we have our own notary, so we can speed up the whole process considerably. Thanks to this, we will set up your LLC within 3 working days. Moreover, you can set up a company online with us, which will save you additional time.
And if you need a company with a license or VAT registration, buy a ready-made company that already has the necessary documents. Our experts will be happy to help you choose the best option - just leave us a message below.