🇨🇿 Annual Compliance — Czech Republic

Forgetting to obtain trade licences before filing for commercial registration

Fix: The trade licence (živnostenský list) is a prerequisite for registration in the Commercial Register. Apply at the Trade Licensing Office before submitting your court filing. Free trades are granted by notification and take 1–5 days; regulated trades require proof of professional qualification.

Underestimating employer social and health insurance contributions

Fix: Employer-side contributions total approximately 33.8% of gross salary (24.8% social + 9% health). Factor this into your hiring budget from the start. The total cost of an employee is significantly higher than the gross salary figure, which is a common surprise for foreign founders.

Setting share capital at CZK 1 and losing credibility

Fix: While CZK 1 is the legal minimum, banks, landlords, and business partners may view an extremely low share capital unfavourably. Consider capitalising the company with at least CZK 100,000–200,000 to demonstrate financial seriousness, especially if you plan to open a traditional bank account or enter contracts with larger companies.

Assuming all filings can be done in English

Fix: Nearly all official filings, court submissions, and tax returns must be in Czech. Engage a Czech-speaking accountant and consider a bilingual legal adviser for ongoing operations. Translated documents submitted to authorities generally require certified (official) translations.