US founders · Treaty-protected · Remote PoA · FATCA-aware
Open a Czech company from the USA
US entrepreneurs can register a Czech s.r.o. as their EU operating base — fully remotely via apostilled power of attorney. We handle the Czech side; we recommend a US CPA for the US-side tax implications.
- 100% remote — US notary + Secretary of State apostille
- Genuine EU entity with Czech IČO and EU VAT number
- CZ–US income tax treaty in force
- FATCA-aware banking guidance
- EU OSS access for Amazon and cross-border e-commerce
- English-language process from start to finish
⚠️ US persons owning foreign companies have IRS reporting obligations (Form 5471, FBAR). This page covers the Czech side only — consult a US CPA or international tax attorney for US compliance.
Czech s.r.o. — key facts for US founders
- Entity type: Czech s.r.o. (LLC/Ltd. equivalent)
- Min. capital: CZK 1 (≈ 0 € indicative)
- Czech CIT: 21% on net profit
- Czech VAT: 21% standard / 12% reduced
- PoA route: US notary public + state apostille
- Tax treaty: CZ–US 1993 Convention in force
- Banking: FATCA-compliant Czech banks
EUR figures indicative at approx. 1 EUR = 24.8 CZK. Source: Finanční správa · 2026-07-14.
Why Czech Republic for US founders
EU access, treaty protection, remote setup
EU single market
Full EU/EEA market access, EU VAT number, intra-EU trading and EU payment processors — the same benefits EU-resident founders enjoy.
CZ–US tax treaty
The 1993 bilateral tax convention governs withholding taxes on dividends, interest and royalties and provides treaty protections. Your US CPA can advise on treaty elections.
Remote formation
US notary + state apostille is all that is needed. We attend the Czech notary, file with the Commercial Register and get your IČO — no Czech visit required.
Amazon EU base
A Czech IČO and EU VAT number enables Amazon EU seller registration, EU OSS and pan-EU FBA — a clean EU operational structure for US-based e-commerce.
FATCA-aware banking
Czech banks are FATCA-compliant. We match you with banks that work with US-person account holders and guide the onboarding process.
English throughout
Documents, communications, accounting — all in English. No Czech language barrier for US founders managing their EU entity remotely.
How it works for US founders
Remote registration in 4 steps
1. Consult US CPA
Before registering, confirm the US reporting obligations (Form 5471, FBAR, FATCA) with a US international tax professional.
2. US PoA + apostille
We provide the PoA template. Sign before a US notary and obtain a state apostille from your Secretary of State. Post or courier the original to us.
3. Czech registration
We attend the Czech notary, execute the founding deed and file with the Commercial Register. IČO assigned within 5–15 business days.
4. Bank + accounting
We guide FATCA-aware bank account opening, optional VAT registration and set up English-language monthly accounting.
Czech EU base for Amazon US sellers
Selling on Amazon.de, .fr, .es or other EU marketplaces from the US? A Czech s.r.o. gives you the EU entity and VAT number you need — we handle OSS enrollment and monthly filings.
E-commerce guide →Ready-made Czech s.r.o.
A shelf company is already registered — you take it over in days. Useful when you need an EU entity immediately for Amazon verification or a client contract.
Ready-made s.r.o. →The 1993 US–Czech tax treaty in numbers
What the treaty actually caps
The Convention between the United States and the Czech Republic (signed 16 September 1993, in force 1993) sets ceilings on the Czech withholding tax that can be charged on money flowing from your Czech s.r.o. to a US owner. The rates below are the treaty maximums — your US CPA applies them alongside US worldwide taxation.
| Payment from the Czech s.r.o. | Czech WHT under the treaty | Condition |
|---|---|---|
| Dividends | 5% | Beneficial owner is a company holding > 10% of the voting shares |
| Dividends | 15% | All other cases — including a solo individual US founder |
| Interest | 0% | Interest is taxable only in the residence country |
| Royalties — copyright / cultural | 0% | Films, literary, artistic, scientific works |
| Royalties — industrial (patents, know-how, equipment) | 10% | Standard rate for other royalties |
The practical takeaway: for a single US individual owning 100% of the s.r.o., the treaty dividend ceiling (15%) matches the Czech domestic rate (15%), so the treaty's real value is on royalties (0% on copyright — relevant for US software/IP licensing into the EU), interest (0%), and enabling a US foreign tax credit against the same income. The 5% dividend rate is a holding-company benefit, not a solo-founder one. Permanent establishment (PE): under Article 5, a genuinely Czech-run s.r.o. is taxed in Czechia; a company run entirely from a US home office risks being treated as having its management in the US.
Sources: IRS — US-Czech tax treaty text; PwC Worldwide Tax Summaries — Czech Republic WHT.
The US side you cannot ignore
A Czech s.r.o. is a foreign corporation in the eyes of the IRS
The United States taxes its citizens and green-card holders on worldwide income, wherever they live. Owning a Czech company does not move income out of the US net — it adds a reporting layer on top. The main pieces your US CPA will manage:
- CFC status: if US persons each owning ≥10% together hold >50% of the s.r.o., it is a Controlled Foreign Corporation. A wholly US-owned s.r.o. is always a CFC.
- Subpart F & GILTI (renamed "net CFC tested income" / NCTI from 2026): anti-deferral rules can tax the company's earnings on your US return in the year earned. The 2025 reform removed the QBAI exclusion and trimmed the §250 deduction to 40% — GILTI/NCTI planning got more important, not less.
- Form 5471: the information return every ≥10% US shareholder of a CFC files with their 1040. Missing it carries a $10,000 penalty per form, now enforced by automated IRS matching.
- FBAR (FinCEN 114): required once your foreign accounts — including the Czech business account you control — exceed USD 10,000 aggregate at any point in the year.
- FATCA: Czech banks are FATCA-compliant and will ask you for a W-9. Expect Form 8938 on your return above the relevant thresholds.
Worked example — a US SaaS founder
Your Czech s.r.o. earns €100,000 net profit selling software to EU customers.
- Czech CIT at 21% = €21,000, leaving €79,000.
- Distribute it all as a dividend to you (individual, 100% owner): Czech WHT at the 15% treaty/domestic rate = €11,850.
- On your US return the dividend is taxable worldwide income; the €21,000 Czech corporate tax and €11,850 withholding generally feed the foreign tax credit — but GILTI/NCTI may have already taxed part of the €79,000 in the year earned.
Illustrative only — the interaction of CIT, WHT, GILTI/NCTI and the FTC is exactly why a US international tax professional must model your specific facts before you incorporate.
Disclaimer: general information on the Czech side only, not US tax advice. Sources: IRS FBAR; IRS Form 5471 instructions. Updated: 2026-07-14.
Banking & the remote reality
FATCA makes US-person onboarding slower — plan for it
Every Czech bank reports US persons under FATCA, and a minority quietly avoid US-owned companies to sidestep the compliance load. In practice that means a narrower shortlist of banks, a W-9 up front, and occasionally a request for a video call or a single branch visit for the ultimate beneficial owner. An EU fintech account (for example a business IBAN) can bridge early operations, but it cannot receive the statutory share-capital deposit — a mainstream Czech bank account remains the anchor. We match US founders to the banks that actively onboard them and prepare the FATCA paperwork before you apply, rather than after a rejection.
Because the whole formation runs on an apostilled US power of attorney — notarised before a US notary public, apostilled by your state Secretary of State — you never need to fly to Prague. The ready-made s.r.o. route can compress the timeline further when an Amazon or client deadline is fixed.
Where a Czech s.r.o. fits for US founders
- US SaaS/software firms licensing IP into the EU (0% copyright-royalty ceiling)
- Amazon EU sellers needing a genuine EU entity and VAT number
- Agencies and consultancies invoicing European clients in EUR
- Founders building an EU operating layer under a US parent (5% dividend route)
- US e-commerce brands entering the EU single market — see our e-commerce guide
Czech company from USA — FAQ
Can a US citizen open a Czech company?
Yes. US citizens and US-resident individuals can be shareholders and directors of a Czech s.r.o. Czech law imposes no restrictions based on nationality for non-EU citizens. The entire formation process is handled remotely via a notarised and apostilled power of attorney.
Does the USA and Czech Republic have a tax treaty?
Yes. The Czech Republic and the United States have a bilateral income tax treaty (the 1993 Convention). It covers withholding taxes on dividends, interest and royalties, and provides for exchange of information. US citizens and residents should be aware that the US taxes its citizens and residents on worldwide income — a Czech company will likely have US tax reporting obligations. We strongly recommend consulting a US CPA or international tax attorney before proceeding.
What US reporting obligations does owning a Czech company trigger?
US persons who own 10% or more of a foreign corporation may have obligations including: IRS Form 5471 (information return for controlled foreign corporations), FBAR (FinCEN 114, for foreign bank accounts over USD 10,000), and potentially FATCA reporting. These are US-side obligations — we help you understand the Czech side; you need a US tax professional for the US side.
How do I notarise documents in the USA for Czech incorporation?
You sign the power of attorney before a US notary public. The US notarial deed is then apostilled by the relevant state authority (Secretary of State in most US states) under the Hague Apostille Convention, which the USA joined in 1981. We provide the PoA template and apostille instructions.
What is the minimum share capital?
CZK 1 — one Czech crown (≈ 0 € indicative). The Czech Republic has no minimum capital requirement in practice. We recommend a small amount for bank credibility.
What Czech taxes apply to my s.r.o.?
Czech corporate income tax (CIT): 21% on net annual profit. Dividends paid to US shareholders attract 15% Czech withholding tax — the CZ–US tax treaty may modify this rate depending on the ownership level. VAT: 21% standard / 12% reduced; mandatory registration above 2 000 000 Kč (≈ 80,650 € indicative) turnover. Source: Finanční správa.
Can I use a Czech s.r.o. to sell on Amazon EU?
Yes. A Czech s.r.o. with a Czech IČO and EU VAT number (DIČ) can register as an Amazon EU seller, enrol in EU OSS for cross-border VAT, and operate pan-EU FBA. This is a viable EU entry point for US-based e-commerce businesses.
Can I open a Czech business bank account as a US person?
Yes, but it can be more complex. Czech banks are subject to FATCA compliance and will request a W-9 or W-8BEN from US persons. Some banks are more accommodating than others for US clients. We guide you through the bank selection and onboarding process for your situation.
How long does registration take?
After the notarial deed is executed and filed, the Czech Commercial Register typically processes applications in 5–15 business days. A ready-made s.r.o. is available immediately if speed is critical.
Ready to open your Czech EU entity from the USA?
Tell us your business plan and we will prepare a clear, all-in quote — Czech side handled in full.
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