Share capital of a Czech s.r.o. — from one koruna, contributions and what follows

When you set up a limited liability company (s.r.o.) in Czechia, one of the first numbers you run into is the share capital. Until fairly recently people associated it with a mandatory CZK 200,000 that had to be found somewhere and “locked” inside the company. That is no longer the case — the Czech Business Corporations Act cut the minimum to a symbolic CZK 1 per member, opening the door to an s.r.o. for practically anyone.

That does not mean the topic is settled in a single sentence. The amount of capital affects how the company looks to the outside world, whether you will need a bank account already when forming it, and how much money you actually have to pay in before the entry into the Commercial Register. And although a member's liability is limited, an unpaid contribution comes with one catch worth knowing in advance.

This overview walks you through what share capital means in practice, what contribution to choose, and what the amount means for you as a director and member.

What share capital is and why CZK 1 is now enough

Share capital is the sum of all contributions that the members put into the company. Each member has their contribution, and its size determines how large a stake they hold. Under Section 142 of the Business Corporations Act, the minimum contribution of a single member is CZK 1, unless the memorandum of association sets a higher amount. With a single member, a company can therefore have share capital of literally one koruna.

In practice, though, the absolute minimum is rarely chosen. Very low capital is visible to everyone in the Commercial Register and the financial statements, and to banks or business partners it can look as if the company has no backing at all. That is why a sensible compromise is often CZK 10,000 to 100,000 — an amount that complicates nothing yet comes across as more credible. How much the whole formation costs and how it works step by step is covered in our article on the procedure, costs and deadlines for setting up an s.r.o.

Monetary and non-monetary contributions

A contribution to the company need not be in money. The law distinguishes a monetary contribution (typically cash or a bank transfer) and a non-monetary contribution, that is contributing property — for example a car, a machine, real estate or a receivable.

For a non-monetary contribution one important rule applies: you cannot set its value by estimate. Under Section 143 a non-monetary contribution must be valued by an expert selected from the register of experts, so that the figure in the Commercial Register is real and not inflated. This makes the process somewhat more expensive and slower, so most small companies opt for a simple monetary contribution and deal with a non-monetary one later, when there is a specific reason.

When you need a special account

Here is a practical change that has made setting up an s.r.o. considerably simpler. If the sum of all monetary contributions does not exceed CZK 20,000, you do not have to open any bank account for the capital — the contribution can be paid another way, typically in cash into the hands of the so-called contribution administrator (usually one of the founders). This follows from Section 23 of the Business Corporations Act.

Once the capital crosses this threshold, however, the basic rule applies: a monetary contribution is deposited into a special bank account opened in the name of the company being formed by the contribution administrator. The bank issues a confirmation that is attached to the registration application. Example: with capital of CZK 50,000 you cannot do without such an account, whereas a company with capital of CZK 10,000 does not need one at all. You will open an ordinary business account later anyway — see our overview of how to open a business bank account in a Czech bank.

How much must be paid in before registration

You do not have to pay in the whole capital at once. Before filing the registration application with the Commercial Register, Section 148 requires you to pay any share premium in full and at least 30 % of each monetary contribution. The rest you pay within the period set by the memorandum of association — but no later than five years from the company's formation.

With low capital this is practically irrelevant: 30 % of CZK 10,000 is CZK 3,000, which you comfortably pay in right away. The myth that the capital “sits locked” in the company and may not be used does not hold — once the company exists you run the money normally, buy from it, pay rent. Capital is not a reserve kept in an account but the starting contribution the company begins with.

What follows from the amount of capital

A member of an s.r.o. does not guarantee the company's debts with their entire personal assets — that is the main advantage of this form. They are liable only to a limited extent, jointly and severally up to the amount of unpaid contributions recorded in the Commercial Register. The practical conclusion follows: if your contribution is fully paid up, creditors cannot turn to you personally. If you still owe part of the contribution, you are liable precisely up to that unpaid amount — another reason to pay low capital in full straight away.

The amount of capital has nothing to do with the liability of a director, who answers for their decisions separately; we cover that topic in our article on a director's liability in a Czech s.r.o. What really changes with higher capital is above all credibility — a larger sum signals stability to a bank when you apply for a loan and to bigger business partners.

Conclusion

The share capital of an s.r.o. now starts at a symbolic CZK 1, and you tailor its amount to how you want the company to come across. Up to CZK 20,000 you manage without a special account; above that threshold you need one; before registration it is enough to pay in 30 % of a monetary contribution, with the rest due within five years. A member is liable only up to the amount of unpaid contributions, so the safest course is to pay the contribution in full right away. In the end, more than the figure itself, what matters is order in your documents and a credible address — just as in a carefully run house for just thirty companies.

Frequently asked questions

What is the minimum share capital of an s.r.o. in Czechia?

The minimum contribution of a single member is CZK 1 (Section 142 of the Business Corporations Act), so a company with a single member can have share capital of literally one koruna. In practice, however, a higher amount is often chosen — for example CZK 10,000 to 100,000 — because low capital looks less credible to banks and business partners. The statutory minimum and the practical recommendation are therefore two different things.

Do I have to open a bank account for the contribution when setting up an s.r.o.?

Not always. If the sum of all monetary contributions does not exceed CZK 20,000, you can pay the contribution another way, typically in cash into the hands of the contribution administrator, and you do not need a special account. Once the capital crosses this threshold, the monetary contribution must be deposited into a special bank account opened in the name of the company being formed. You open an ordinary business account later, independently of this.

How much of the share capital must I pay in before the company is registered?

Before filing the registration application with the Commercial Register you must pay any share premium in full and at least 30 % of each monetary contribution. The rest you pay within the period set by the memorandum of association, no later than five years from the company's formation. A member is liable up to the amount of unpaid contributions, so it is usually safest to pay the contribution in full right away.