Company liquidation in Czech Republic

Options to winding up a company in the Czech Republic in 2025

We should note in advance that this topic requires detailed explanation. It is almost impossible to briefly summarize all possible options as there are EXTREMELY MANY ASPECTS to consider. We recommend reviewing this information carefully if you are considering liquidating your Czech legal entity and have enough time to understand the process.

We should note that in 2025, company dissolution remains available to owners of all nationalities without restrictions. The entire process can be handled remotely through power of attorney (there are always ways to arrange this).

Below you may find legal entity liquidation options under current circumstances

Company dissolution with full liquidation

This refers to the official legal entity liquidation procedure as defined by Czech law, involving the removal of the company information from the Czech Trade Register. In principle, this is how this procedure should properly be conducted. However, in the Czech Republic, this process is particularly complex and represents the most time-consuming method (typically taking 4-6 months to complete. For those interested in understanding the full scope and complexity, we have a step-by-step guide to Czech company liquidation).

Due to the procedure's complexity and high fees (including notary and administrative fees), this is an expensive method. Another drawback is that a 100% successful result cannot be guaranteed in every case. This option makes the most sense for companies that either had very limited business activity or were completely inactive.

Price: 1600 - 2500 EUR

Processing time: 4 - 6 months

In summary: From our professional perspective, this is the most correct company liquidation method. However, it is also the most complex, time-consuming, and costly option available. We recommend choosing this route if you have sufficient time and budget to cover this option, and if your legal entity did not conduct active business operations. To sum up, if you have the necessary resources, we recommend choosing this approach as it is the most correct method of a juridical person liquidation.

Company liquidation via ownership transfer

This method involves replacing all the founders and directors. Your current founders and directors are formally removed from the company structure, with their shares transferred to new parties. As a result, the former founders and directors are completely released from all obligations related to the legal entity. In simple terms, former owners become completely free of the juridical person. The process is relatively quick, completed within a few weeks. This represents a legal way to walk away from a Czech business entity.

Naturally, this option requires having an entity or an individual prepared to assume ownership of your company in its current state, which is the primary challenge of the transfer method. We assist with finding a potential buyer for such transfer - please inquire for more information.

Price: 1600 - 2500 EUR

Processing time: 2 - 3 weeks

In summary: This is a quick, lawful, and most straightforward option, though not the cheapest one.

Ownership transfer to your preferred individual

This option applies if you have someone specifically interested in taking over your company - for example, a known contact who is interested in acquiring the legal entity to continue business operations. This is a rare case, most commonly used between close contacts, though still applicable in some situations. In such cases, our role is strictly limited to helping with the formal transfer of ownership, resulting in lower fees. All involved parties will need to provide a few documents (we will specify which documents are needed for your case, assist with document preparation, and provide step-by-step instructions for proper document certification).

Price: 500 - 800 EUR

Processing time: 2 - 3 weeks

In summary: This option offers a cost-effective and quick way to dissolve your company – but requires finding a willing buyer yourself, which can be challenging and uncommon in practice at the moment.

Reduction of the number of founders

If your company has multiple founders (for example, a family business), you can choose the option of reducing the number of founders and directors. In this case, one founder agrees to acquire all others’ ownership shares while removing other directors from their positions. For example, a legal entity has 4 founders with equal share distribution - each owning 25%. Suppose one of the founders is ready to acquire the shares of the others. The shares of the remaining founders are re-registered to this one individual, who ultimately owns 100% of the company and becomes the sole founder. The other three are removed from the firm and are thus relieved of any obligations related to it.

Price: 600 - 900 EUR

Processing time: 2 - 3 weeks

In summary: The solution is relatively cheap, quick, and straightforward. It can be used in a situation where there is indeed one founder who is willing to take over all shares in the company – for example, if they no longer plan to have any ties with the Czech Republic or the EU in general.