How to set up an LLC online from abroad in 2024?

Setting up a limited liability company (LLC) online from abroad has become a much simpler and more accessible process in 2024. This article will introduce you to the specific steps and important information on how to set up your own company in the Czech Republic from abroad, especially if you are an entrepreneur who does not live in the Czech Republic and wants to do everything online.

What you will need

1. The property owner's consent to the location of the company's registered office, electronically signed.
2. Bank identity (if you have a Czech bank, you have it automatically).
3. Active data box.
4. A certified extract from the executive's criminal record.
5. Electronic signature with a qualified certificate (the notary can set this up for you during the online meeting).

If you don't have a certificate, you need

• A computer running Windows.
• Mac with emulated Windows (although this option works less reliably).

Consent of the property owner to the location of the company's registered office

The simplest option is a virtual seat. The benefits of a virtual office include a prestigious address, increased credibility and privacy for your business without the need for a physical presence at that address. A virtual office can be set up quickly, online and even within 24 hours thanks to the company's Seatbreaker.

Banking identity

On the Czech Bar Association's portal or official website, simply select the option to log in via Bank iD. You will then choose to authenticate through your bank and be redirected to their website to confirm your data sharing. After this action, you will then be redirected back to the original portal where you will be officially authenticated using your bank identity.

Data box

You can log in to the Citizen's Portal with your bank identity. Then select "Create a mailbox" on the home screen and you're done.

Certified extract from the Criminal Record

After logging into the citizen portal, simply download immediately yourself. You can find it in the section Submission → Requests for extracts → Criminal Record Extract by online service or via data box.

Electronic signature with a qualified certificate

This certificate can be set up by a notary online during the online call during which you will be setting up the limited liability company. You must have a computer with Windows operating system for this step. A Mac version is also in the works, but with less certainty of success. Before using the online notary signature, you need to check the compatibility of your computer on this website. You must also download the add-on from the Chamber of Notaries (available for Chrome and Mozilla Firefox). The actual signing of the document is only possible during the live meeting with the notary.

A notary who has experience in this and is known for his professional approach is Mgr. Matěj Dubenwhom I highly recommend. 

Steps to setting up an LLC online

Step 1: Contact the notary and arrange an online call.

• The notary will check that you have all the necessary documents ready and that your computer is capable of electronic signatures.

Step 2: Online call with notary:

• Prepare, read, approve and authorize notarization of the company's articles of incorporation, the declaration of the managing director, the declaration of the deposit administrator and the application for registration in the Commercial Register.
• Each document is signed with an electronic signature using a special component for signing documents within the NCRC, which is integrated directly into the web browser.
• As of 2023, it is no longer necessary to have a trade licence in advance; you just need to do it afterwards.
• The notary will register you in the commercial register, which is faster than registering in the registry court because the notary does not carry out the complex procedure, but does the registration itself.
• If you have a share capital of up to £20,000, you can be the custodian of the cash deposit yourself, you do not need to deposit this money in the bank, only above this amount you need to deposit it in your business bank account and you can use it immediately for company expenses.

Step 3: Payment of the notary fee

• In 2023, the total fee, including the issuance of the electronic certificate, was 6 897 CZK (5 700 CZK + VAT). A detailed breakdown of services can be found below:

Step 4: Application for a trade licence

You log in to the Trade Licensing Office using your bank identity and fill in a simple application form at official website. The administrative fee is reduced to CZK 800 for online applications.

Step 5: Obtaining an extract from the register of beneficial owners

You can download an extract from the register of beneficial owners from the register of justice. This document is required to set up a company bank account.

Step 6: Create a business account

It is now possible to do this online with Česká spořitelna. If you already have an account with this bank, you can sign everything using the George app and your account will be created immediately. This is relatively new, and I was one of the first to have the opportunity to open a business account online. Previously, you had to visit a branch and sign documents.

Setting up an LLC through an intermediary?

I don't recommend it because you would have to give the company a power of attorney. If you are abroad, you would have to go through a notary public abroad to get a certified signature. This is easier if you are in the Czech Republic, as the cost is often the same without the complicated paperwork.

Final price of setting up an LLC online

Setting up an LLC online from abroad in 2024 brings a much easier and more affordable way for entrepreneurs to create their own company in the Czech Republic. We've walked you through the specific steps and key information to help you through the process.

Thanks to modern technology and the ability to meet with notaries online, you can quickly and conveniently set up your company without having to travel to the Czech Republic. With the clear list of documents and procedures we have presented, you have everything you need to do business in the Czech Republic.

Remember that the speed and efficiency of this process depends heavily on proper preparation and adherence to all steps. So if you are determined to start a business in the Czech Republic, there is nothing standing in your way.

Good luck with your business!