Can a foreigner be the founder and director of a Czech company?

Yes, foreigners can register legal entities in the Czech Republic, acting as both their founders and directors.

There are currently no legal barriers for foreigners to establish companies in the Czech Republic. This opportunity is available to citizens from all countries without restrictions, as Czech law places no limitations in this regard. We have extensive experience setting up Czech firms for our international clients.

The only specific requirement is a police clearance certificate from the person's home country, bearing an original wet ink stamp (not any electronic document) and, in some cases, an apostille (check the apostille requirement for your country). However, this is an easily manageable requirement. Moreover, if an individual has a connection to another EU country (by having a residence permit or long-term visa in another EU member state), it will be sufficient to obtain a police clearance certificate from the Czech Republic.

In our experience, the real challenge is not the registration (which is indeed possible), but the company's future operational realities. Key challenges include:

• Bank account opening. If the company's founders and directors are non-residents of the Czech Republic, opening a bank account presents a major obstacle. Czech banks currently apply very strict criteria in this regard. We possess comprehensive information on the challenges of opening bank accounts for Czech companies with non-resident owners. A major risk is that even after an account is opened, banks may close it if the company's activity is primarily international with little business conducted inside the Czech Republic.
• Navigating the local language and business environment. It is important to note that there is limited information available in English, as most information is provided in Czech. Therefore, conducting business effectively without understanding Czech and the local business environment is challenging.

You will find extensive information and services for the registration of legal entities in the Czech Republic, including for citizens of other countries. You can find the information via the button below.