German founders · EU citizens · Remote PoA
Open a Czech company from Germany
German residents and EU nationals based in Germany can register a Czech s.r.o. entirely remotely. You sign a notarised power of attorney before a German notary — no trip to the Czech Republic needed.
- 100% remote — sign before a German notary (Notar)
- CZK 1 minimum share capital
- Czech IČO, registered office and datová schránka handled
- English-language process end to end
- EU single-market access from a Czech legal entity
Key facts for German founders
- Entity type: Czech s.r.o. (GmbH equivalent)
- Min. capital: CZK 1 (≈ 0 € indicative)
- Corporate tax: 21% on net profit
- VAT: 21% standard / 12% reduced
- PoA notarisation: German Notar + apostille
- Registration time: 5–15 business days
- Double-tax treaty: CZ–DE treaty in force
EUR figures are indicative at approx. 1 EUR = 24.8 CZK. Source: Finanční správa · 2026-07-14.
How it works for German residents
Remote registration via German Notar
1. Consultation
We agree on structure, shareholders and confirm cross-border considerations with you before proceeding.
2. German PoA
We prepare the power of attorney template. You sign before a German Notar and obtain an apostille — no Czech travel needed.
3. Czech notarial deed
We attend the Czech notary on your behalf and execute the founding deed (notářský zápis).
4. IČO + setup
Registered in the obchodní rejstřík. We set up your registered office, datová schránka and guide bank account opening.
Cross-border considerations
Important: Czech company vs. German tax residency
German tax law may treat a Czech s.r.o. as having a permanent establishment (Betriebsstätte) in Germany if it is managed and controlled from Germany. In that case, German corporate tax obligations may apply in addition to Czech ones. The CZ–DE double-tax treaty allocates taxing rights between the two countries.
We strongly recommend consulting a German tax adviser (Steuerberater) before setting up the company. We can refer you to cross-border specialists if needed.
Typical use cases
- E-commerce sellers wanting a Czech EU VAT base
- German-based founders expanding into Czech/Slovak markets
- Freelancers and consultants with Czech clients
- EU-citizen entrepreneurs relocating to / from Germany
- Holding structures with Czech operating subsidiaries
Ready-made Czech s.r.o.
Need to start trading immediately? A ready-made s.r.o. is already registered — you take it over and start trading in days, not weeks.
Ready-made s.r.o. →English-language accounting
We handle bookkeeping, VAT returns and annual statements for your Czech company — entirely in English, entirely remotely.
Accounting services →The CZ–DE treaty and the EU directives
Two rulebooks apply — treaty and EU law
Because both countries are in the EU, cross-border flows from your Czech s.r.o. are governed by both the CZ–Germany double-tax treaty and EU directives — and the directives often win, cutting the rate to zero for corporate structures.
| Payment from the Czech s.r.o. | Treaty ceiling | EU directive (company-to-company) |
|---|---|---|
| Dividends | 5% / 15% (5% for a company with a substantial holding) | 0% under the Parent-Subsidiary Directive for a German parent holding ≥10% for the qualifying period |
| Interest | 0% | 0% (Interest & Royalties Directive between associated EU companies) |
| Royalties | 5% | 0% (Interest & Royalties Directive between associated EU companies) |
The zero rates apply between associated companies — so a German GmbH holding your Czech s.r.o. can receive dividends free of Czech withholding. A German individual shareholder instead relies on the treaty (15% on dividends, matching the Czech domestic rate) plus a credit in Germany. Either way, interest and most royalties move between EU associated companies at 0%.
The German side: CFC and management risk
Good news on CFC — but watch where you manage from
German residents controlling a foreign company face two distinct German rules. On one, the Czech Republic is comfortably on the right side of the line:
- CFC / Hinzurechnungsbesteuerung (AStG): Germany's controlled-foreign-company rules bite only where the foreign company is low-taxed. From 1 January 2024 the low-tax threshold was cut to an effective rate below 15% (down from 25%). Czech corporate tax is 21% — above the threshold — so a genuinely active Czech s.r.o. is generally not a low-taxed CFC. Passive-income entities can still be caught, so structure matters.
- Place of management / permanent establishment (Betriebsstätte): this is the real exposure. If your Czech s.r.o. is directed day-to-day from Germany, German tax law can treat it as having a German PE — or even German tax residence — and tax its profits in Germany regardless of the Czech registration. Substance in Czechia is what protects the structure.
- Posted workers & VAT-OSS: if the Czech company sends staff to work in Germany, EU posted-worker rules and A1 social-security certificates apply; for cross-border B2C sales, EU VAT One-Stop-Shop lets you file EU-wide VAT from a single Czech return.
One extra German-specific point: if a German PE is established, the profits attributed to it face not just German corporate income tax but also trade tax (Gewerbesteuer), which varies by municipality and can add materially to the bill — another reason the management-substance question is decided in Czechia, not left to chance. For founders in the Saxony/Bavaria border regions who genuinely commute or split operations, cross-border social-security (A1 certificates) and the exact location of decision-making both need documenting from day one.
The honest positioning: Czechia is chosen for EU market access and legal certainty, not as a tax haven from Germany. A German Steuerberater should confirm the management and PE picture before you incorporate.
Worked example — a German e-commerce seller
Your Czech s.r.o. nets €100,000 selling across the EU.
- Czech CIT at 21% = €21,000 → €79,000 retained.
- If a German GmbH owns the s.r.o.: dividend up under the Parent-Subsidiary Directive at 0% Czech withholding.
- If you own it personally: dividend carries 15% Czech WHT (€11,850), credited against German tax under the treaty.
- Because 21% > 15%, the German CFC regime generally does not add a top-up on active profits.
Illustrative only — confirm CFC, PE and management substance with a German Steuerberater.
Disclaimer: general Czech-side information only, not German tax advice. Source: Tax Foundation — Germany CFC rules. Updated: 2026-07-14.
Ready-made Czech s.r.o.
Need to start trading immediately? A ready-made s.r.o. is already registered — you take it over and start in days, not weeks.
EU VAT-OSS from a Czech base
Selling B2C across the EU from Germany? A Czech IČO plus EU VAT registration gives you OSS filing and Amazon EU access — see our e-commerce guide.
Czech company from Germany — FAQ
Can a German resident open a Czech company?
Yes. German residents — whether German citizens or other EU/EEA nationals living in Germany — can be sole or joint shareholders of a Czech s.r.o. The entire formation process is handled remotely via a notarised power of attorney. You do not need to travel to the Czech Republic.
Does the Czech Republic and Germany have a double-tax treaty?
Yes. The Czech Republic and Germany have a bilateral double taxation agreement. This treaty governs, among other things, how dividends, interest and royalties paid between the two countries are taxed. We recommend consulting a tax adviser in both countries to understand the impact on your specific situation.
How do I notarise documents in Germany for Czech incorporation?
You sign the power of attorney (Vollmacht / plná moc) before a German notary (Notar). The German notarial deed is then apostilled under the Hague Apostille Convention, which is accepted by Czech authorities without further legalisation. We prepare the template and instructions.
What is the minimum share capital for a Czech s.r.o.?
The statutory minimum is CZK 1 — one Czech crown (≈ 0 € indicative). In practice we recommend a slightly higher capital for credibility with Czech banks.
What corporate tax rate applies in the Czech Republic?
Czech corporate income tax is 21% on net annual profit. Dividends paid to shareholders attract 15% withholding tax. The Czech Republic is not a low-tax jurisdiction — it offers EU market access and legal certainty. Source: Finanční správa.
Do I still have obligations in Germany if I open a Czech company?
Potentially yes. German tax law may treat a Czech company controlled and managed from Germany as having a permanent establishment in Germany, which can trigger German tax obligations. This is a complex area — we strongly recommend advice from a qualified German tax adviser (Steuerberater) before proceeding.
How long does Czech company registration take?
After the notarial deed is signed and filed, the Czech Commercial Register (obchodní rejstřík) typically processes the application in 5–15 business days. A ready-made s.r.o. is available immediately if speed is critical.
What is a datová schránka?
Datová schránka is the mandatory Czech electronic government inbox for companies. Since 2023 all newly registered s.r.o.s receive one automatically. All official communications from Czech authorities are delivered electronically via this system. We monitor it on your behalf.
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