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Register Your Export-Import Company (s.r.o.) in the Czech Republic

by | May 16, 2025 | Export/Import trading

Start Your Export-Import Business in the Czech Republic with an s.r.o. – Luxembourg

Expanding into Europe? The Czech Republic offers a strategic, low-cost base for establishing your export-import business through an s.r.o. (společnost s ručením omezeným) — the Czech version of a limited liability company. Here’s what you need to know.

Why Choose the Czech Republic?

Located in the heart of Europe, the Czech Republic is a landlocked EU member with strong road, rail, and air links to Germany, Austria, Poland, Slovakia, and beyond. Its open economy, skilled workforce, and favorable tax regime make it ideal for trading companies.

Legal and Tax Regime

A Czech s.r.o. is easy and affordable to set up.

  • Minimum share capital: CZK 1 per shareholder (approx. €0.04).

  • 100% foreign ownership is allowed.

  • Corporate income tax: 21%.

  • Dividend tax: 15% (may be reduced or exempt under EU Directives or tax treaties).

Incorporation typically takes 2–3 weeks, and the company must have a registered office in the Czech Republic. No resident director is required.

Czech VAT Regime for Trading Companies

Once your company’s turnover exceeds CZK 2 million (~€80,000) annually, VAT registration is mandatory. Voluntary VAT registration is possible earlier — which is often advantageous for export-import businesses.

  • Standard VAT: 21%.

  • Intra-EU exports: 0% VAT (reverse charge mechanism).

  • Imports: VAT can be deducted if the buyer is VAT-registered.

The Czech VAT system is fully harmonized with EU rules, which facilitates cross-border B2B transactions.

Common Export-Import Activities

Many investors use Czech s.r.o. structures to import goods from Asia or the US, warehouse them in central Europe, and then distribute across the EU.

Typical goods include:

  • Consumer electronics

  • Industrial components

  • Fashion and textiles

  • Packaging materials

  • Food and beverages

Case Study: German-Chinese Trading Venture

A German entrepreneur partnered with a Chinese supplier to import LED lighting into Europe. They formed a Czech s.r.o., registered for VAT, and rented warehouse space in Prague. Goods are imported from Shenzhen to Prague via Hamburg and then delivered to B2B clients across Germany, Austria, and Poland. Thanks to the 0% intra-EU VAT rate and input VAT recovery, their Czech s.r.o. minimizes tax friction while benefiting from EU single market access.

If you’re looking to build a cost-effective trading hub in Europe, registering a Czech s.r.o. gives you legal certainty, favorable taxation, and VAT benefits. It’s an ideal solution for exporters and importers targeting the EU.

Need assistance setting up your Czech company or VAT registration? Please contact your Damalion expert here to help. 

Damalion – Luxembourg

Register your export-import company (s.r.o.) in the Czech Republic — simple capital, 100% foreign ownership, VAT and EORI basics, licensing, banking, and a clear registration flow from notarization to activation.

For entrepreneurs, SMEs, trading houses, holding companies and international groups • We scope the use case, prepare files and coordinate providers so banks and authorities can review efficiently. Approval always remains with the bank and the authorities.

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Why a Czech s.r.o. for trading?

Central EU location, low setup capital (from CZK 1), 100% foreign ownership, standard VAT 21% with a 12% reduced rate, and clear customs processes once you have an EORI. Keep your trading profile simple: what you buy/sell, partner countries, logistics, payment terms, and expected volumes.

Czech trading company — key facts

Topic Details
Legal form s.r.o. (limited liability company)
Share capital From CZK 1 per shareholder
Ownership 100% foreign ownership allowed
Directors At least one managing director; no residency requirement
Registered office Required in the Czech Republic
Corporate income tax 21% (tax periods starting 2024+)
VAT Standard 21%; reduced 12%; exports are generally zero-rated
VAT registration Resident turnover CZK 2,000,000 per calendar year; immediate payer status after CZK 2,536,500; voluntary registration possible
Trade license “Unqualified trade” (wholesale/retail etc.) via Trade Licensing Office; special goods require additional permits
Customs EORI required for import/export with non-EU countries
UBO register Mandatory registration of beneficial owners

Documents you will usually need

  • Passport/ID and proof of address for shareholders and directors.
  • Company name choices and business scope (trading lines).
  • Registered office consent.
  • Articles of association; notarial deed for incorporation.
  • Bank confirmation or notary escrow for paid-in capital (can be symbolic).
  • Trade license filing (unqualified trade or specific licensed trade).
  • Tax registrations (CIT, VAT if applicable); EORI for customs.
  • UBO registration data and supporting ownership chart.
  • Supplier/customer contracts, logistics and Incoterms (if available).

Company setup and activation — step by step

  1. Name & scope. Choose the company name and confirm trading scope.
  2. Notary & articles. Sign the notarial deed and articles of association.
  3. Capital & address. Provide registered office consent; pay in capital to notary escrow or bank.
  4. Trade license. File for the unqualified trade or any required licensed trade.
  5. Commercial Register. Obtain the s.r.o. registration and IČO.
  6. Tax & VAT. Register for taxes; apply for VAT if thresholds or business model require it.
  7. EORI. Apply for EORI for imports/exports with non-EU countries.
  8. Banking. Open the account; set user rights and test payments.
  9. Operations. Put contracts, logistics, and invoicing in place.

VAT and customs — quick view

  • Standard VAT is 21%; a 12% reduced rate applies to listed goods/services in the VAT Act.
  • Intra-EU B2B supplies are usually zero-rated with valid VAT IDs and transport proof (reverse charge at the buyer).
  • Imports: customs + import VAT; VAT can be recovered if you are a VAT payer.
  • From 2025, two turnover checks apply: CZK 2,000,000 (calendar-year test) and CZK 2,536,500 (immediate payer after crossing).
  • EORI is mandatory for customs declarations with countries outside the EU.

Timing and typical costs

  • Incorporation and trade license: usually 1–3 weeks after complete filing.
  • Bank account: a few days to a few weeks based on the profile and documents.
  • Ongoing: accounting, payroll (if any), annual financial statements, tax filings, and license renewals where relevant.

Frequently asked questions

Can a non-resident own 100% of a Czech s.r.o.?
Yes. There is no local-shareholder requirement. Keep identification and ownership proofs ready for company and UBO registration.
Is there a resident-director requirement?
No. At least one managing director is required, but residency is not mandated.
What is the minimum share capital?
From CZK 1 per shareholder. Higher capital is common for credibility with banks and partners.
Do I need a registered office in the Czech Republic?
Yes. Provide landlord consent or a service address agreement.
Is a notary needed to incorporate?
Yes, for the notarial deed and articles. Electronic options may be available in specific cases.
When must I register for VAT?
Track both thresholds from 2025: CZK 2,000,000 (calendar-year turnover test) and CZK 2,536,500 (immediate VAT payer status after crossing). Voluntary registration is possible earlier.
What are the VAT rates?
Standard 21% and reduced 12% for listed items in the VAT Act. Exports outside the EU are generally zero-rated with proper evidence.
Do I need an EORI?
Yes, for customs declarations with non-EU countries. One EORI per entity across the EU.
Can I import from outside the EU and distribute across the EU?
Yes. Use EORI for customs, settle import VAT, and apply zero-rating for qualifying intra-EU B2B supplies with valid documentation.
Is a trade license required?
Yes. Most trading falls under the “unqualified trade” category. Certain goods (e.g., chemicals, pharmaceuticals, defense) require special licenses.
How long does incorporation take?
Commonly 1–3 weeks after complete filings. Bank onboarding time depends on your profile and documents.
What is the corporate income tax rate?
21% for tax periods starting in 2024 and later.
Do I have to register the beneficial owner?
Yes. UBO registration is mandatory. Fines may apply for failures or inconsistencies.
Are accounting and annual financial statements mandatory?
Yes. Keep proper books, file annual accounts, and meet audit thresholds if applicable.
Can the company open a multi-currency bank account?
Yes. Czech and international banks offer CZK and foreign-currency accounts with standard KYC/AML checks.
How are dividends to foreign shareholders taxed?
Statutory withholding is generally 15%, subject to EU directives or treaty relief where conditions are met.
What documents help bank onboarding?
Clear ownership, director IDs, proof of address, business plan, suppliers/customers list, expected flows, and contracts or LOIs.
Do I need Intrastat or other filings?
Yes, if your EU trade exceeds set thresholds. Monitor EU dispatch/arrival values and file when required.
Are product standards and certifications required?
Yes. Ensure CE marking and compliance documents where applicable (e.g., electronics, toys, medical devices, food).
Can the bank or authority decline my application?
Yes. Each institution applies its own policies and risk rules. A different bank or a refined file may work better.
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  • Graphic – Luxembourg
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