How much does it cost to set up an LLC?
Starting a business also involves initial investment. In addition to depositing the share capital, you need to complete several administrative steps to get your company off the ground. Most of these formalities are chargeable, so the establishment of an LLC will cost you several thousand crowns in total.
What do I need to do and what are the prices?
Starting a business consists of several steps, which we describe in detail in our article on how to set up a limited liability company.
How much will you pay for the documents?
In order to set up an LLC, you need to draw up a memorandum of association, possibly a memorandum of incorporation. In it, you specify the name of the company, its shareholders, share capital and the subject of the business.
The incorporation documentation must be in the form of a public deed, so it is always drawn up by a notary and published in the collection of deeds. You will pay a minimum fee of CZK 4,000 (+ VAT) for the preparation of the document. The specific amount is calculated according to the notary's tariff, i.e. as a percentage of the company's share capital.
Every company must have a formal registered office, i.e. an official address for contact with the authorities. This may (but does not have to) be in the same place as the place of business where you actually carry out your business activities. The registered office is stated in the memorandum of association, and you also need it for the processing of the trade and registration in the commercial register.
The Trade Licensing Office and the Registry Court also require the official consent of the owner of the property in which you intend to be established. The consent must be in writing and officially certified (certification costs CZK 30).
If you do not have a suitable address for your business, we will be happy to provide you with a virtual office in Prague from 135 CZK excluding VAT per month.
In order to run a business, your company needs to have its own trade license for a legal entity. Your next steps will lead you to the Trade Licensing Office, where you will be issued a trade license for a fee of CZK 1,000.
Most companies also open a company account to deposit the company's share capital (SC) before registering. For a capital stock of more than 20,000 CZK, this is even a requirement. The account is set up by the deposit manager specified in the articles of association, and the account is usually free of charge.
Instead, you can deposit the capital below CZK 20,000 with a notary in cash and go to the bank later.
Entry in the Commercial Register
Once you have all the documents ready, you submit the application for registration in the Commercial Register. You can either submit the application to the registry court or you can have everything processed through a notary. If you opt for the first option, the court fee will cost you CZK 6,000.
Dealing with the whole thing through a notary is often faster and cheaper. If the registration is carried out by a notary, all contributions of the partners are in cash and the articles of association contain only the statutory requirements, you do not have to pay the court fee for registration in the Commercial Register. The cost of setting up a company through a notary consists of several items:
- certificate for registration in the Commercial Register - CZK 1,000 + VAT
- fee for the notary for direct registration in the Commercial Register - 300 CZK + VAT
- court fee for direct registration in the Commercial Register - 2 700 CZK (if the above conditions are met, you do not pay it).
Attention! It is also useful to have an extract from the executive's criminal record, which will cost you CZK 100. You also need his affidavit that he agrees with the registration.
Are you interested in details? Read how to register in the Commercial Register step by step.
A summary of the fees for setting up a company
|Price incl. VAT
|Notarial deed of incorporation of a limited liability company
|min. 4 840 CZK
|Verification of consent to the location of the registered office
|Extract from the criminal record
|Entry in the Commercial Register (notary/court)
|min. 1 573 CZK / 6 000 CZK
|min. 7 543 CZK
Final tip: The fee schedules you find online can be confusing - in the case of notary fees, you must add VAT to the legal rate, which most notaries pay. Court and administrative fees are exempt from VAT.
Why set up an LLC with a consulting firm?
You can rely on yourself when setting up an LLC. However, if you do not normally spend your time reading the codes, the whole thing will cost you a lot of time as well as money. You need to find all the information, make an appointment (or two) with a notary, contact the land registry, go to CzechPoint... but that's the only way to get the lowest price for setting up an LLC. However, consider for yourself whether it is worth it for you.
You will pay a little extra for a bespoke company formation service. But you'll save yourself the trouble of searching for information and going to the authorities. We will be happy to help you with the whole process , even remotely. Book a company formation with us online via the web or leave us a message below and we'll get started so you can get your business up and running as soon as possible.