You acquire a ready-made VAT-registered s.r.o. by buying an ownership interest in an existing Czech company. The company keeps its identification number, rights and liabilities. Request details about the specific company and check its status before you sign or pay the purchase price.
Due diligence before the transfer
- Commercial Register and collection of documents. Check the shareholders, managing directors, authority to represent the company and any pledges over the interest. Review the founding documents and filed financial statements. Also check the Insolvency Register.
- VAT registration. Use the tax identification number to check the VAT Register for whether the company is a VAT payer or a VAT-identified person, whether it is flagged as unreliable and which bank accounts are published. For cross-border EU transactions, also check the VAT number in VIES if needed.
- Accounting, taxes and liabilities. Request the accounts as at the transfer date, a list of filed returns and VAT control statements, bank statements and a list of contracts, debts, receivables and disputes. If the company had employees, check the related obligations and documents.
- Seller’s representations. If the company is offered as having no previous activity or debts, ask for documents supporting those claims. Agree in the contract on what happens if a pre-existing liability comes to light after the transfer.
Signing and handover
An ordinary transfer of an ownership interest in an s.r.o. is made under a written agreement with officially certified signatures. For a transfer to a new shareholder, check whether general meeting approval is required and whether the memorandum of association imposes other restrictions. The transfer takes effect against the company when it receives the effective agreement. Special rules apply to an interest represented by a share certificate (kmenový list).
Specify in the handover record who will provide the accounting records, banking documents and corporate files, and when. Arrange the agreed changes to shareholders, managing directors, the name or registered office, and check the beneficial ownership register. Update account signatories and ownership information separately with the bank. Also check access to the Czech data box and upcoming tax filing deadlines.
When to compare a purchase with forming a new s.r.o.
If VAT registration is your main aim, compare the cost of buying and checking the company with the cost of forming a new s.r.o. and registering for VAT separately. The Financial Administration distinguishes voluntary registration from becoming a VAT payer by operation of law. In ordinary cases where domestic turnover exceeds the threshold, turnover is measured by calendar year. Above CZK 2,000,000, VAT payer status generally starts on 1 January of the following year or earlier if elected in a timely application. Above CZK 2,536,500, VAT payer status starts the next day. When registration becomes mandatory, the application is due within 10 working days of exceeding the applicable threshold.
In your enquiry, describe the proposed business, timetable and requested changes. If you are choosing from our VAT-registered companies, ask for the company identification number, tax identification number, current availability, purchase price and list of services included.