Czech Republic
AI Agent Legal Status: partial · Autonomy: moderate
Legal Framework
The Czech Republic is subject to the EU AI Act and has a mature technology sector, particularly in software development and cybersecurity. No specific national AI legislation beyond the EU framework.
Key Laws & Regulations
- ◆EU AI Act
- ◆GDPR
- ◆Business Corporations Act
Business Formation
s.r.o. (společnost s ručením omezeným) is the standard entity with CZK 1 (essentially no) minimum capital since 2014 reform. Formation process is straightforward through a notary.
Tax Implications
Corporate tax rate is 21%. The Czech Republic offers R&D tax deductions of up to 100% of qualifying R&D expenses.
Opportunities
Very accessible company formation. Competitive R&D tax deductions. Strong technical talent pool in Prague and Brno. Growing startup ecosystem.
Highlights
Essentially no minimum capital for company formation. Strong engineering talent from technical universities. Central European location with good infrastructure.
Risks & Challenges
EU AI Act compliance required. Smaller VC ecosystem compared to Western Europe. Czech language barrier for international operations.