Indian founders · IT & SaaS · Non-EU · Remote PoA + apostille

Open a Czech company from India

Indian entrepreneurs, IT founders and SaaS companies can register a Czech s.r.o. as their EU legal entity — fully remotely via a notarised and apostilled power of attorney. No travel to the Czech Republic required. CZ–India tax treaty in force.

  • 100% remote — Indian notary + apostille, no Czech visit needed
  • Full EU entity: Czech IČO, EU VAT number (DIČ), registered office
  • CZ–India double-tax treaty in force
  • EU OSS for cross-border SaaS and digital sales
  • Datová schránka monitored and forwarded in English
  • English-language accounting and filings throughout
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⚠️ Cross-border India–Czech tax structuring is complex. This page covers the Czech side only. Consult a qualified tax adviser in India for your India-side obligations.

Czech s.r.o. — key facts for Indian founders

  • Entity type: Czech s.r.o. (Ltd. equivalent)
  • Min. capital: CZK 1 (≈ 0 € indicative)
  • Czech CIT: 21% on net profit
  • Dividend WHT: 15% (default; treaty may apply)
  • Czech VAT: 21% standard / 12% reduced
  • PoA route: Indian notary + state apostille
  • Tax treaty: CZ–India DTAA in force (MLI-updated)
  • Registration: 5–15 business days after notarial deed

EUR figures are indicative at approx. 1 EUR = 24.8 CZK. Source: Finanční správa · 2026-07-14.

Why Indian founders choose a Czech s.r.o.

EU access, treaty protection, remote setup

EU single market

A Czech s.r.o. is a full EU legal entity. It can open EU bank accounts, collect EUR payments, contract with EU clients, register for EU VAT and access all EU-based payment processors and platforms.

CZ–India tax treaty

The bilateral DTAA between India and the Czech Republic is in force and has been updated through the OECD Multilateral Instrument. The treaty governs withholding taxes and helps prevent double taxation on cross-border income. A tax adviser in both countries can explain the specific implications for your structure.

Apostille — no legalisation chain

India is a party to the Hague Apostille Convention. Your notarised Czech power of attorney is apostilled once in India and accepted directly by Czech authorities — no embassy or consular legalisation needed.

IT & SaaS-ready

A Czech IČO and EU DIČ (VAT number) lets you sell SaaS and digital services across the EU under a single OSS VAT registration — ideal for Indian IT founders launching EU-facing products.

E-commerce & Amazon EU

Need to sell on Amazon.de, .fr or other EU marketplaces from India? A Czech s.r.o. gives you the EU entity Amazon requires, with full FBA and OSS access for EU-wide VAT compliance.

Remote & English throughout

Entire formation and ongoing accounting in English. We monitor your datová schránka, handle Czech tax filings and keep you compliant — all without requiring Czech language skills.

How it works for Indian founders

Remote registration in 5 steps

1. Consultation

We discuss your business plan, shareholders and intended structure. We recommend consulting a tax adviser in India about cross-border implications before proceeding.

2. Indian PoA + apostille

We provide the power of attorney template. You sign before an Indian notary and have it apostilled by your state's designated apostille authority. We provide step-by-step instructions.

3. Czech notarial deed

We attend the Czech notary on your behalf using the apostilled PoA and execute the founding deed (notářský zápis) for the s.r.o.

4. IČO & registration

We file with the Czech Commercial Register (obchodní rejstřík). Your IČO (Czech company number) is assigned within 5–15 business days.

5. Full setup

Registered office, datová schránka, business bank account guidance, optional VAT registration and ongoing English-language accounting — all handled.

Cross-border considerations

Czech company + India tax residency

If you manage your Czech s.r.o. primarily from India, Indian tax authorities may consider the company to have its place of effective management (POEM) in India, potentially making it a tax resident of India as well. Similarly, Czech tax law evaluates whether a company has its effective management in the Czech Republic. The CZ–India DTAA provides tie-breaker rules and governs withholding taxes on dividends, interest and royalties.

We strongly recommend taking advice from a qualified tax adviser in India before forming the company. We handle the Czech formation and accounting side; your Indian adviser covers India-side tax compliance.

Typical use cases for Indian founders

  • IT services and software companies billing EU clients
  • SaaS founders launching an EU-facing product
  • E-commerce sellers on Amazon EU or EU marketplaces
  • Consultants and agencies with EU customer base
  • Founders relocating to or travelling in the EU/Schengen area
  • Holding structures with Czech operating subsidiaries
Faster option

Ready-made Czech s.r.o.

Need an EU entity immediately — to pass Amazon seller verification, sign a client contract or open a bank account without waiting for fresh registration? A ready-made s.r.o. is already in the Commercial Register. You take it over in days.

Ready-made s.r.o. →
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English-language Czech accounting

Already have a Czech company? We handle bookkeeping, VAT returns, payroll and annual statutory accounts entirely in English — with datová schránka monitoring included.

Accounting services →

The India–Czech DTAA in numbers

The treaty rate that beats the Czech domestic rate

The India–Czech Republic Double Taxation Avoidance Agreement (in force since 1999, updated by the OECD Multilateral Instrument) caps the Czech withholding tax on payments to Indian residents. Unlike most Czech treaties, the dividend ceiling here is below the Czech domestic rate — a genuine, quantifiable benefit.

Payment from the Czech s.r.o.Czech WHT under the DTAAVs. Czech domestic
Dividends10%Down from 15% — the treaty saves 5 points
Interest0% / 10%0% for specified public lenders; 10% otherwise
Royalties10%Also covers fees for technical services (FTS)

The 10% dividend ceiling applies to Indian-resident shareholders — companies and individuals alike — so an Indian IT founder repatriating profit pays 10% Czech withholding rather than 15%. The 10% royalty / FTS article matters if the Czech company pays your Indian entity for development or technical services. Place of effective management (POEM): if you run the s.r.o. day-to-day from India, Indian law can treat it as Indian tax-resident under POEM, and the DTAA's tie-breaker then decides residence — model this before you incorporate.

Source: PwC Worldwide Tax Summaries — Czech Republic WHT.

The India side: LRS, FEMA and the RBI

Getting money out of India is the real constraint

For a resident Indian, the Czech company is easy to form — the harder question is how you legally fund it and route capital under Indian exchange control. This is governed by FEMA 1999 and enforced by the Reserve Bank of India (RBI), and it is where most Indian founders need advice:

  • LRS cap of USD 250,000 per financial year: the Liberalised Remittance Scheme is the channel a resident individual uses to send money abroad — for portfolio investment, and within limits, to fund an overseas entity. It is available to individuals only, not to companies, LLPs or HUFs.
  • ODI (Overseas Direct Investment): acquiring control of, or a stake giving control in, a foreign operating company is Overseas Direct Investment under the FEMA overseas-investment rules — reportable to the RBI through your authorised dealer bank, with ongoing filings (annual performance report).
  • OPI vs ODI: a small, non-controlling stake can qualify as Overseas Portfolio Investment; taking a controlling interest in your Czech s.r.o. generally pushes you into the ODI regime with its heavier compliance.
  • 20% TCS: investment remittances under LRS above ₹10 lakh in a year attract 20% Tax Collected at Source (creditable against your Indian tax) — a cash-flow point, not a lost cost.

None of this stops an Indian founder owning a Czech company — thousands do — but the funding route must be structured with an Indian CA / FEMA adviser before the first remittance, not after.

Worked example — an Indian IT founder

You fund a Czech s.r.o. and it nets €100,000 from EU software clients.

  • Czech CIT at 21% = €21,000 → €79,000 retained.
  • Dividend to you as an Indian resident: Czech WHT at the 10% treaty rate = €7,900 (versus €11,850 at the 15% domestic rate — a €3,950 treaty saving).
  • In India the dividend is taxable; the 10% Czech tax is available as a foreign tax credit under the DTAA, and the inbound funds must reconcile with your ODI filings.

Illustrative only. The interaction of the DTAA, POEM and FEMA/ODI reporting needs a qualified Indian adviser on the India side.

Disclaimer: Czech-side information only, not Indian tax or FEMA advice. Source: RBI — Liberalised Remittance Scheme FAQ. Updated: 2026-07-14.

Banking & the remote reality

Budget for one Czech branch visit

The formation itself is fully remote on an apostilled Indian power of attorney — India is a Hague Apostille member, so a notarised PoA apostilled by your state authority is accepted directly in Prague. Banking is the step that can require your presence: several Czech banks want the beneficial owner to appear once at a branch for a non-EU director opening an account, or to complete an enhanced-KYC video call. We prepare the source-of-funds documentation (aligned with your LRS/ODI paperwork) and shortlist the banks most open to Indian founders, but we advise planning for a possible single visit. An EU fintech IBAN can run early operations, but the statutory share-capital deposit needs a real Czech bank account.

Where a Czech s.r.o. fits for Indian founders

  • IT services and SaaS firms billing EU clients from an EU entity
  • Founders needing an EU base for Schengen-area travel and contracts
  • Amazon EU and marketplace sellers requiring an EU VAT number — see our e-commerce guide
  • Indian groups adding a Czech operating subsidiary (ODI structure)
  • Software teams licensing IP into Europe (10% royalty/FTS ceiling)

Czech company from India — FAQ

Can an Indian citizen open a Czech s.r.o.?

Yes. Czech law does not restrict company ownership or directorship based on nationality. An Indian citizen can be a sole shareholder and director of a Czech s.r.o. The entire formation process is completed remotely via a notarised and apostilled power of attorney — you do not need to travel to the Czech Republic.

Does India and the Czech Republic have a double-tax treaty?

Yes. The Convention between the Government of the Republic of India and the Government of the Czech Republic for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion is in force. It has also been updated through the OECD Multilateral Instrument (MLI) to reflect modern anti-BEPS standards. We strongly recommend consulting a qualified tax adviser in both India and the Czech Republic to understand how the treaty applies to your specific situation — we do not provide cross-border tax advice.

How do I notarise a Czech PoA in India?

You sign the power of attorney before a recognised Indian notary. The notarised document must then be apostilled under the Hague Apostille Convention — India acceded to the Convention, so Indian apostilles are accepted by Czech authorities without further legalisation. We prepare the PoA template and apostille instructions; you complete the process at a local notary and the designated apostille authority in your state.

What is the minimum share capital for a Czech s.r.o.?

The statutory minimum is CZK 1 — one Czech crown (≈ 0 € indicative). There is no meaningful minimum capital barrier for Czech company formation.

What Czech taxes will my s.r.o. pay?

Czech corporate income tax is 21% on net annual profit. Dividends paid to shareholders attract 15% Czech withholding tax by default (35% if paid to shareholders in non-cooperative jurisdictions — India is a treaty country so the standard rate applies, subject to treaty provisions). Czech VAT (DPH) is 21% standard / 12% reduced; mandatory registration above 2 000 000 Kč (≈ 80,650 € indicative) annual turnover. Source: Finanční správa.

Can I use a Czech s.r.o. to sell software or SaaS products in the EU?

Yes. A Czech s.r.o. with a Czech IČO and EU VAT number (DIČ) is a full EU legal entity. It can sell SaaS, digital products and services to EU customers, register for EU VAT OSS for cross-border sales, contract with EU clients and processors, and collect EU payments. This is a common structure for Indian IT founders and SaaS companies entering the European market.

Can I open a Czech business bank account from India?

You can apply, but many Czech banks require at least one in-person visit to a Czech branch for non-EU directors. We guide you through bank selection and document preparation to maximise the chance of remote approval, but recommend budgeting for one visit if needed. EU fintech accounts (e.g. Wise Business) can supplement a Czech account but cannot replace it for the share capital deposit.

Do I need a Czech address for my company?

Yes — Czech law requires every s.r.o. to have a registered office (sídlo) in the Czech Republic. We provide a registered office address in Prague as part of the formation service.

What is a datová schránka and do I need to monitor it?

Datová schránka is the Czech government's mandatory electronic inbox for companies. All Czech authorities — tax office, courts, commercial register — communicate exclusively via this system. Since 2023 all new s.r.o.s receive one automatically. We monitor your datová schránka and forward all official communications to you in English.

How long does Czech company registration take?

After the notarial deed is signed and filed with the Czech Commercial Register (obchodní rejstřík), registration typically takes 5–15 business days. A ready-made s.r.o. is available immediately if you need an EU entity urgently — for example, to pass an Amazon seller verification or sign an EU client contract.

Ready to open your Czech EU entity from India?

Tell us your business plan and we will prepare a clear, all-in quote. Czech side handled from start to finish.

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