How to Build a Corporate Presence in the Czech Republic as a Greek Company: A Clear Roadmap

Greek companies eyeing Central European expansion often view the Czech Republic as an attractive entry point—and for good reason. As a leading Czech law firm in Prague, ARROWS regularly guides Greek businesses through every legal step of establishing operations here, from entity selection to full market launch. This article provides strategic insights drawn from our daily practice to help Greek entrepreneurs, investors, and corporate decision-makers navigate the registration process while avoiding costly legal missteps.

Need advice on this topic? Contact the ARROWS law firm by email office@arws.cz or phone +420 245 007 740. Your question will be answered by "Mgr. Vojtěch Sucharda", an expert on the subject.

Why Greek Companies Choose the Czech Republic for European Expansion

The Czech Republic offers Greek businesses a strategic foothold in the heart of Europe. With 80% of Czech exports flowing to EU countries and membership in the single European market, establishing a Czech entity grants immediate access to over 440 million consumers. The country ranks 10th globally for ease of doing business, supported by a skilled workforce, competitive 21% corporate income tax, and well-developed infrastructure connecting Western and Eastern Europe.

For Greek companies, the bilateral investment treaty between Greece and the Czech Republic—dating back to 1991—provides legal protections and favorable treatment for cross-border investments. Combined with the Czech Republic's position as an EU safe harbor based in Prague, European Union, Greek entrepreneurs gain regulatory certainty and access to Czech double taxation treaties with over 80 countries.

Yet what appears straightforward on paper often conceals procedural complexities that can delay market entry by months or trigger unexpected penalties. Even routine registration steps contain hidden exceptions, interlocking requirements, and technical details that laypeople routinely overlook—which is precisely why ARROWS handles this agenda daily for clients across 90 countries globally.

Subsidiary or Branch? Your First Strategic Decision

Greek companies face a fundamental choice when entering the Czech market: establishing a Czech subsidiary (typically an s.r.o., or limited liability company) or registering a branch office (organizational unit) of the Greek parent entity. This decision has profound legal and financial consequences that extend far beyond initial setup costs.

The Czech Subsidiary: Legal Independence and Limited Liability

A Czech s.r.o. operates as a separate legal entity under Czech law, providing full liability protection—your Greek parent company's exposure is limited to its capital contribution (which can be as low as CZK 1 per shareholder). The subsidiary can conduct business independently, hire staff directly, and maintain its own contracts and banking relationships. This structure is governed entirely by Czech corporate law once registered, meaning internal affairs follow Czech Business Corporations Act provisions.

Critical advantage: Limited liability shields the Greek parent company from Czech operational risks. If the subsidiary faces legal claims or insolvency, creditors cannot pursue the parent company's assets.

Hidden complexity: Establishing a subsidiary requires a formal resolution from the Greek parent company's board, notarized founding documents, apostilled criminal records for directors, and proof of a registered office in the Czech Republic—each with specific validity periods and format requirements. Mistakes in any of these foundational documents can result in Commercial Register rejection, restarting the entire timeline.

The Branch Office: Simpler Setup, Greater Liability

A branch office (organizational unit) is not a separate legal entity but rather an extension of the Greek parent company operating on Czech territory. The Greek parent company remains fully and directly liable for all obligations arising from the branch's Czech operations. While registration is somewhat simpler—no minimum capital requirement, no separate articles of association—the exposure is correspondingly greater.

Branches must still register with the Czech Commercial Register, obtain trade licenses, maintain separate Czech accounting records, and comply with local tax obligations exactly as subsidiaries do. The primary difference is liability: every contract signed, every employee hired, every regulatory violation becomes the direct responsibility of the Greek parent entity.

When branches make sense: Testing the Czech market before full incorporation, conducting limited project-based work, or maintaining a representative office for an established Greek company with substantial assets and robust insurance coverage.

ARROWS International operates from Prague, European Union, with cross-border expertise spanning 90 countries—we help Greek businesses structure their Czech entry to match their risk tolerance and growth strategy. Contact us at office@arws.cz for a detailed comparison tailored to your specific business model.

Risks and Penalties	How ARROWS Helps (office@arws.cz)
Unlimited liability exposure – Branch structure exposes Greek parent company to full liability for Czech obligations	Entity structuring advice – We analyze your risk profile and recommend subsidiary vs. branch based on your industry, transaction volume, and expansion timeline
Rejected registration – Incomplete or improperly formatted documents delay market entry by 2-4 weeks	Document preparation and notarization – Our Czech lawyers draft founding documents in proper legal Czech, coordinate notary appointments, and ensure Commercial Register compliance from day one
Piercing the corporate veil – Undercapitalized subsidiaries or commingled finances can negate liability protection	Capitalization planning – We advise on appropriate registered capital levels and ongoing financial separation between parent and subsidiary to maintain legal protection

The Czech Registration Roadmap: Step-by-Step Legal Requirements

What looks like a simple five-step process on government websites actually involves dozens of interlocking legal requirements, each with specific deadlines, format rules, and cross-dependencies. ARROWS guides Greek companies through this maze daily, anticipating issues before they become expensive delays.

Step 1: Prepare Founding Documents and Parent Company Resolution

Before any Czech registration can begin, the Greek parent company must formally resolve to establish a Czech presence. For subsidiaries, this requires a board resolution (or general meeting decision) explicitly authorizing the establishment, naming the Czech entity, appointing initial directors, and allocating capital. This resolution must be notarized in Greece and, depending on the Czech notary's requirements, may need apostille certification under the Hague Convention.

The founding deed (memorandum of association) for a Czech s.r.o. must include: business name ending in "s.r.o.", registered office address in the Czech Republic, shareholder identification, registered capital amount, business activities (matching trade license categories), number of directors, and rules for director authority. All of this must be drafted in Czech legal language and executed before a Czech notary—simple translation errors can lead to Commercial Register rejection.

Common hidden trap: The consent for registered office use must be no more than three months old at the time of Commercial Register submission, notarized by the property owner, and accompanied by a recent land registry extract. If your Greek company arranges a Czech address in January but doesn't complete registration until May, the consent expires and must be re-obtained—adding weeks to the process.

ARROWS maintains registered office addresses throughout Prague specifically for international clients, ensuring all documentation remains current and compliant. Get help at office@arws.cz.

Step 2: Obtain Czech Trade Licenses

Every Czech business entity must hold appropriate trade licenses (živnostenské oprávnění) before registration. The Czech system divides business activities into three categories: free trades (82 categories requiring no special qualifications), craft trades (requiring professional certification or apprenticeship), and concession/tied trades (requiring government permits).

For most Greek commercial companies, free trade licenses cover standard activities—wholesale and retail, import/export intermediation, advertising and marketing, administrative services, consulting (excluding financial/tax), warehousing and logistics, and IT services. The administrative fee is CZK 1,000 for the initial application, with processing typically completed within 2-5 days.

Procedural complexity: You must present a criminal record extract for all directors, apostilled from Greece and officially translated into Czech by a court-certified translator. If your Greek director has lived in another country for more than six months in the past three years, criminal records from that country are also required. Each of these documents has a 90-day validity window—if they expire before Commercial Register submission, you must re-obtain them from Greece.

What seems like a simple trade license notification actually requires coordinating document timelines across multiple countries, each with different processing speeds and apostille requirements. ARROWS handles this coordination daily, ensuring documents arrive in the correct sequence with valid timestamps. Contact office@arws.cz for comprehensive trade license support.

Step 3: Open a Czech Bank Account for Capital Deposit

Czech law requires a certificate of deposit proving that shareholders have paid their capital contributions before the subsidiary can be registered in the Commercial Register. For Greek companies, opening a Czech bank account has become the single most challenging step in the registration process—and it's getting harder.

Czech banks apply strict anti-money laundering protocols and internal risk policies that go far beyond legal requirements. Even properly registered companies face rejection if they cannot demonstrate: (1) genuine economic ties to the Czech Republic (Czech customers, suppliers, or partners—not just accounting services); (2) a director with Czech residence permit or willingness to appear in person for account opening; (3) a clear, locally-focused business model (purely international operations are often rejected); and (4) comprehensive UBO (ultimate beneficial owner) documentation for all shareholders.

Reality check: Banks frequently reject applications from foreign-owned entities in "high-risk" sectors including IT services, consulting, online marketing, and any business without a physical Czech office and Czech-speaking staff. The director typically must present in person—remote account opening is virtually impossible for foreign entities.

This is where ARROWS International's daily experience becomes invaluable. We maintain relationships with multiple Czech banks, understand their current risk appetites, and can present your application in the format each institution requires. More importantly, we structure your business model documentation to emphasize Czech economic substance from day one. Email office@arws.cz for bank account opening support.

FAQ – Legal Tips About Banking and Capital Requirements

• Can we use a Greek bank account instead of opening one in the Czech Republic?
  No. Czech law requires a Czech bank account for capital deposits, and the certificate of deposit must come from a Czech financial institution. Additionally, ongoing Czech accounting and tax compliance require local banking facilities. ARROWS can connect you with Czech banks that regularly work with international clients—contact us at office@arws.cz.
• What if no bank will open an account for our company?
  This is increasingly common for purely foreign-owned entities without Czech operations. The solution is demonstrating genuine Czech economic substance: signed contracts with Czech customers, a Czech employee, or partnerships with local businesses. ARROWS advises on structuring your initial operations to meet bank requirements—reach out to office@arws.cz for specific strategies.
• How much registered capital should we actually deposit?
  While the legal minimum is CZK 1 per shareholder, we strongly advise meaningful capitalization (CZK 200,000 or more) to satisfy bank account opening requirements and demonstrate serious business intent. Undercapitalized entities struggle to open accounts and may face challenges with suppliers and clients. For tailored capitalization advice, contact ARROWS at office@arws.cz.

Step 4: Register with the Czech Commercial Register

Once you have your founding deed, trade license, and certificate of deposit, the final registration step is submission to the Commercial Register maintained by regional courts. Since recent reforms, a Czech notary can perform direct registration immediately after executing the founding deed, reducing the timeline from 2-4 weeks to just 1-2 days.

The court registration fee for an s.r.o. is CZK 6,000 (CZK 12,000 for a joint-stock company). If you use simplified standard founding documents and the notary performs direct registration, the court fee may be waived. However, most international structures require customized articles of association—particularly when the Greek parent company wants specific governance rules, dividend policies, or director authorities—triggering the standard fee.

All documents submitted to the Commercial Register must be in Czech, including foreign-language attachments which require certified translations. The court examines whether all legal requirements are met: valid founding deed, proper trade licenses, confirmed registered capital deposit, director eligibility declarations, and valid registered office consent.

Common rejection reasons: Expired registered office consent (over 3 months old), criminal record extracts that don't cover all required jurisdictions, trade license categories that don't match the business activities listed in the founding deed, or incorrectly formatted director declarations. Each rejection adds 1-2 weeks to your timeline and often requires re-executing documents that have since expired.

ARROWS manages the entire submission process, coordinating with notaries and registry courts to ensure first-time approval. As a leading Czech law firm based in Prague, European Union, we've successfully registered hundreds of foreign subsidiaries. Get started at office@arws.cz.

Step 5: Tax Registration and VAT Compliance

Within 15 days of Commercial Register entry, your Czech entity must register with the local Financial Administration office for corporate income tax. For Greek companies, VAT registration is equally critical—and the rules are particularly strict for non-residents.

Czech VAT registration has a zero threshold for non-resident businesses—any taxable activity in the Czech Republic triggers immediate mandatory registration. This includes: selling goods to Czech customers, providing services with Czech place of supply, importing goods into the Czech Republic, or registering for intra-EU transactions. The standard VAT rate is 21%, with a reduced rate of 12% for specific goods and services.

Critical compliance point: Non-EU companies (if any Greek shareholders are outside the EU) must appoint a Czech fiscal representative for VAT registration. Even EU-established entities must submit extensive documentation: certificate of incorporation, trade license, articles of association, director identification, and proof of business activity—all with official Czech translations.

Monthly VAT returns and control statements (Kontrolní hlášení) are mandatory for most taxpayers, including non-residents. Failure to register for VAT when required triggers penalties starting at CZK 10,000, with ongoing fines for late returns and potential criminal liability for systematic evasion.

ARROWS provides comprehensive tax registration services, including VAT compliance, transfer pricing documentation for intra-group transactions, and ongoing Czech accounting support. Our Prague-based team handles tax matters daily for over 150 joint-stock companies and 250 limited liability companies. Contact office@arws.cz for tax registration assistance.

Risks and Penalties	How ARROWS Helps (office@arws.cz)
Missed tax registration deadline – Failing to register within 15 days of Commercial Register entry results in penalties up to CZK 50,000	Deadline management – We track all registration deadlines automatically and submit tax forms on your behalf, ensuring timely compliance
Incorrect VAT registration – Zero threshold for non-residents means even a single Czech transaction may require immediate VAT registration; penalties start at CZK 10,000	VAT eligibility assessment – Our tax advisors analyze your business model and determine exact VAT obligations before you begin Czech operations; we handle all registration paperwork
Missing control statements – Monthly Kontrolní hlášení filings are mandatory for VAT payers; late submission triggers automatic penalties	Monthly VAT compliance – ARROWS provides ongoing bookkeeping and VAT return preparation, ensuring all Czech tax obligations are met on time

Beyond Registration: Ongoing Compliance for Czech Entities

Establishing your Czech subsidiary is only the beginning—ongoing legal compliance requires constant attention to deadlines, reporting obligations, and regulatory changes. Many Greek companies underestimate these requirements, leading to penalties, registry court warnings, or even involuntary liquidation proceedings.

Annual Financial Statements and Shareholder Approval

Every Czech company must prepare annual financial statements (balance sheet, profit and loss statement, and notes) according to Czech accounting standards. These statements must be approved by the general meeting of shareholders within six months of the accounting year-end—for calendar-year entities, by June 30 of the following year.

After approval, financial statements must be published in the public Collection of Deeds within 30 days (or 12 months maximum). Failure to publish triggers escalating penalties: the registry court first sends a warning with a correction deadline, then imposes fines up to CZK 100,000, and ultimately may initiate liquidation proceedings for persistent non-compliance.

New audit thresholds (effective 2026): Mandatory audits now only apply to medium and large companies exceeding two of three criteria in consecutive years: assets over CZK 120 million, turnover over CZK 240 million, or 50+ employees. Small companies (below these thresholds) are exempt from mandatory audits, significantly reducing compliance costs for Greek SMEs entering the Czech market.

Companies subject to audit must also prepare an annual report (výroční zpráva) including the financial statements, auditor's report, and additional disclosures about risk factors, corporate governance, and business activities.

Corporate Tax Returns and Transfer Pricing

Czech corporate income tax returns are due three months after the fiscal year-end (six months if filed by a registered tax advisor). Even dormant companies with no activity must submit annual tax returns—there is no exemption for inactive entities.

For Greek parent companies with Czech subsidiaries, transfer pricing documentation is mandatory for all intra-group transactions. The Czech tax authorities scrutinize related-party pricing to ensure Czech entities pay appropriate taxes on profits generated in Czech territory. Insufficient documentation or non-arm's-length pricing can trigger adjustments, penalties, and interest charges.

ARROWS International specializes in cross-border tax compliance, maintaining permanent partnerships with corporate legal departments of multinational companies. We prepare Czech accounting records, file tax returns, and create transfer pricing documentation that satisfies both Czech and Greek tax authorities. Contact office@arws.cz for ongoing compliance support.

Changes to Directors, Shareholders, or Business Activities

Any change to registered information must be reported to the Commercial Register within prescribed deadlines—typically 15 days for most changes. Common changes requiring registry filings include: appointment or removal of directors, changes to shareholder ownership or capital contributions, amendments to the registered office address, modifications to business activities (trade license scope), and changes to the company name or articles of association.

Each registry filing incurs a CZK 2,000 court fee and requires supporting documents (e.g., general meeting minutes, director declarations, updated trade licenses). Corresponding notifications must also go to the trade licensing office, tax authorities, social security administration, and health insurance companies within 8-15 days depending on the change.

Reality check: Greek business owners often don't realize that failing to register a director change leaves the old director legally responsible for company actions—even if they've left the company entirely. Similarly, operating under trade license categories you haven't registered is illegal and can trigger license revocation.

ARROWS tracks all registry obligations for our clients, prepares required documents in proper legal Czech, and ensures timely filing with all relevant authorities. We're insured for damages up to CZK 500 million, providing additional security for our corporate clients. Get reliable compliance support at office@arws.cz.

Risks and Penalties	How ARROWS Helps (office@arws.cz)
Unpublished financial statements – Registry court warnings escalate to fines up to CZK 100,000, then liquidation proceedings for persistent violations	Annual compliance package – We prepare Czech financial statements, coordinate shareholder approval, and publish to the Collection of Deeds on time every year
Late tax returns – Missing the 3-month (or 6-month) tax return deadline triggers late filing penalties and potential tax office audits	Tax return preparation – ARROWS files all Czech tax returns through registered tax advisors, automatically extending your deadline to 6 months and ensuring technical accuracy
Unregistered changes – Operating with outdated registry information (old directors, wrong business activities) creates personal liability for individuals and administrative violations for the company	Registry update service – We monitor your company structure and proactively handle all Commercial Register filings when changes occur, keeping your records current

Why Greek Companies Choose ARROWS for Czech Market Entry

Establishing a Czech corporate presence involves far more complexity than most Greek business owners anticipate. What appears on government websites as a straightforward registration process actually conceals dozens of procedural requirements, strict document validity periods, intricate cross-references between regulations, and penalties for technical non-compliance that can delay your market entry by months.

ARROWS is a leading Czech law firm based in Prague, European Union, specializing in cross-border corporate establishment. Our lawyers combine deep knowledge of Czech law with extensive experience in Greek and international business structures, enabling us to navigate the procedural maze efficiently while protecting your interests at every step.

Our Czech Registration Services

ARROWS provides comprehensive turnkey support for Greek companies entering the Czech market:

• Entity structuring analysis – We evaluate subsidiary vs. branch options based on your business model, liability concerns, and growth strategy
• Document preparation and notarization – Complete founding documents drafted in legal Czech, coordinated notary appointments, and apostille/legalization management
• Trade license registration – Application preparation, document translation, and liaison with trade licensing authorities
• Bank account opening assistance – Relationship coordination with Czech banks, business model documentation, and director support for in-person appointments
• Commercial Register filing – Preparation of all registry documents, direct notary registration for faster processing, and court liaison if issues arise
• Tax registration and VAT compliance – Corporate tax registration, VAT registration with fiscal representative services (if needed), and ongoing return preparation
• Registered office services – Professional Prague addresses with mail handling, physical meeting space, and proper legal compliance
• Ongoing compliance management – Annual financial statements, shareholder meeting coordination, tax returns, and registry update filings

ARROWS supports over 150 joint-stock companies, 250 limited liability companies, and 51 municipalities and regions across 90 countries globally. We operate within the ARROWS International network, providing seamless cross-border legal support when your Czech operations interact with Greek headquarters or other jurisdictions.

Why Experience Matters: The Hidden Complexity of "Simple" Steps

Every step in Czech company registration contains hidden exceptions and procedural traps that non-specialists routinely miss:

• Registered office consents expire after three months—if your registration timeline extends longer, you must re-obtain consent from the property owner
• Criminal record extracts must cover all countries where directors lived more than six months in the past three years—missing jurisdictions cause registration rejection
• Trade license categories must exactly match the business activities listed in your founding deed—mismatches trigger court inquiries and delays
• Bank account opening requires demonstrating Czech economic substance before you have Czech operations—a catch-22 that requires careful strategic planning
• VAT registration has zero threshold for non-residents—even a single test transaction can trigger immediate mandatory registration
• Director declarations must confirm no criminal convictions, no bankruptcy, and no prohibition from office—incorrect declarations create personal liability

Each of these points involves multiple sub-requirements, cross-references to other regulations, and practical knowledge that only comes from handling these registrations daily. ARROWS has established systematic processes for every procedural step, ensuring nothing is overlooked and deadlines are never missed.

Insurance Protection and Professional Reliability

ARROWS maintains professional liability insurance coverage of CZK 500 million—among the highest in the Czech legal market. This insurance protects our clients if any error in our work causes financial harm, providing an additional layer of security beyond our professional expertise.

For Greek companies establishing subsidiaries worth hundreds of thousands of euros, this insurance coverage means you can proceed with confidence that even in worst-case scenarios, you have financial recourse. It's one more reason why major corporations, investment groups, and family businesses choose ARROWS as their Czech legal partner.

Speed and Quality: Our Dual Commitment

ARROWS is known for speed and high quality—we understand that delayed market entry means lost revenue opportunities. Our systematic processes, established relationships with notaries and registry courts, and deep procedural knowledge enable us to complete Czech registrations faster than most competitors while maintaining meticulous accuracy.

We also connect clients with one another when business or investment interests align, and we welcome innovative business ideas and investment opportunities. As a leading international law firm operating from Prague, European Union, ARROWS serves as more than just a legal service provider—we're a strategic partner for Greek companies building long-term presence in Central Europe.

Your Next Step: Professional Legal Support from Prague, European Union

If you're a Greek company considering Czech market entry, the complexity and interdependencies of the registration process make professional legal support not just helpful—but essential for efficient, compliant establishment. Attempting to navigate Czech corporate law, trade licensing procedures, banking requirements, and tax registration on your own typically results in months of delays, rejected applications, and unexpected penalty notices.

ARROWS is a leading Czech law firm based in Prague, European Union, with specific expertise in Greek-Czech business corridors. Our lawyers understand both Czech legal requirements and Greek business culture, enabling smooth communication and practical advice tailored to your situation. We handle this agenda on a daily basis, which can significantly reduce your time investment and minimize the risk of errors that create liability exposure or regulatory violations.

We are insured for damages up to CZK 500,000,000, ensuring that our clients have maximum protection. We also serve as regular partners of corporate lawyers for handling specialized matters, meaning even if you have in-house legal counsel in Greece, ARROWS can serve as your trusted Czech legal partner.

For immediate assistance with Czech subsidiary establishment, branch registration, or any aspect of Czech corporate law, write to us at office@arws.cz.

FAQ – Most Common Legal Questions About Czech Corporate Establishment

1. How long does it take to establish a Czech subsidiary from start to finish?
Typical timeline is 3-6 weeks from initial document preparation to Commercial Register entry, depending on Greek document procurement speed and Czech bank account opening. With ARROWS managing the process, we compress this to 2-3 weeks in most cases by coordinating all steps in parallel and using direct notary registration. The most common delay is bank account opening, which can add 2-4 weeks. Contact office@arws.cz for a detailed timeline based on your specific situation.

2. Can a Greek company operate in the Czech Republic without establishing a legal entity?
For limited activities (single project, short-term consulting), yes—but you must still register for VAT if you have Czech taxable transactions, and you may need Czech work permits for Greek employees. For ongoing business operations, establishing a legal entity (subsidiary or branch) is mandatory. Operating without proper registration violates trade licensing laws and exposes you to penalties including business closure orders. ARROWS advises on the minimum compliant structure for your activities—email office@arws.cz for specific guidance.

3. Do we need a Czech citizen as director or shareholder?
No residency or nationality requirements exist for directors or shareholders. Greek citizens can serve as directors and 100% shareholders of Czech subsidiaries. However, banks strongly prefer directors with Czech residence permits for account opening purposes. ARROWS can provide nominee director services when needed or help structure your entity to satisfy bank requirements. Contact us at office@arws.cz to discuss options.

4. What are the ongoing costs of maintaining a Czech subsidiary?
Annual costs typically include: accounting and bookkeeping (CZK 30,000-80,000/year depending on transaction volume), tax return preparation (CZK 10,000-25,000/year), financial statement audit if required (CZK 40,000-100,000/year), registered office address (CZK 5,000-20,000/year), and Commercial Register update filings as needed (CZK 2,000 per filing). Corporate income tax (21% on profits) and VAT compliance add to these costs. ARROWS offers annual compliance packages starting at competitive rates—get a quote at office@arws.cz.

5. How does Czech corporate tax compare to Greece, and can we avoid double taxation?
Czech corporate income tax is 21%; Greece applies rates of 22% (2023) to businesses. The Czech Republic and Greece likely have a double taxation treaty (Czech Republic has 80+ treaties), meaning profits are typically taxed only once with credits for taxes paid in the other jurisdiction. ARROWS prepares transfer pricing documentation and tax treaty analysis to optimize your international structure. For specific tax planning, reach out to office@arws.cz.

6. What happens if we need to close the Czech subsidiary later?
Voluntary liquidation requires shareholder approval, appointment of a liquidator, publication in the Commercial Register, 3-month creditor notice period, final accounting, and registry deletion. The process typically takes 6-12 months and costs CZK 30,000-60,000 in professional fees. Alternatively, the subsidiary can be sold to another party or merged with another Czech entity if your business changes. ARROWS handles all aspects of corporate restructuring and dissolution—contact office@arws.cz when your business needs change.