Czech company due diligence: which free register answers which question

The Czech state has put an unusual amount of company information online, free, and checking a firm is mostly a matter of knowing which register answers which question. A foreign buyer, landlord, investor or job candidate can learn a good deal in an afternoon. This is not a substitute for a lawyer's review of a deal, and it ignores paid commercial databases.

One habit saves most of the trouble. Search by the identification number (IČO) wherever you can. Names repeat and change; the IČO identifies one entity.

Does it exist, and who runs it

ARES, the Administrative Register of Economic Entities, pulls basic data from several registers onto one screen. Use it first to confirm the name, IČO, legal form and address, and to see which registers the company appears in. It then points you to the source for detail.

The commercial register (obchodní rejstřík), on the Ministry of Justice portal, is the authoritative source for companies. It shows directors, registered office, capital and history, and its collection of documents holds annual accounts. Our register explainer shows how to read an extract.

Sole traders are not in the commercial register. Look for them in the trade register (živnostenský rejstřík), which lists trade authorisations and tells you whether a person or company holds a licence for a given activity and whether it is suspended.

Is it in trouble

The insolvency register (insolvenční rejstřík) is run by the courts and open to the public. It shows whether a petition has been filed against a company or an individual, the stage of the proceedings and the documents filed. A company in insolvency proceedings is not necessarily finished, but a petition deserves your full attention. The register also covers individuals in debt relief, so a director's or owner's personal insolvency can turn up here as well.

In the commercial register, check for liquidation. A company v likvidaci has stopped ordinary trading.

Is it in order with VAT

The VAT payer register, published by the Financial Administration, shows whether a company is a VAT payer, from what date, and whether it has been flagged as an unreliable payer (nespolehlivý plátce). It also lists the bank accounts registered for VAT. This has practical consequences. Paying a large invoice to an account that is not on the published list can create a tax risk for the payer in some cases, so ask the Financial Administration or your accountant how the rule applies to you.

For cross-border EU transactions, the European Commission's VIES service checks whether a VAT number is valid. It confirms the number, not the quality of the business.

What does it own

The cadastre (katastr nemovitostí), run by the land survey and cadastre office, records who owns real estate, together with mortgages, easements and other encumbrances. Extracts are available online. For a property purchase it is the key check, and for a company it can show what property it holds and whether that property is encumbered.

Who is behind it

The beneficial ownership register names the people who ultimately own or control a company, but public access was narrowed after a 2022 EU court ruling. Our explainer gives the current picture. For a first check, the commercial register shows the members of many s.r.o. companies directly, which often suffices.

Other places worth a look

The state's register of contracts may show agreements where a company deals with public bodies. Subsidy and public-funding recipients are published in certain systems. EU and national sanctions lists, published by the relevant authorities, should be screened against any counterparty. For regulated professions such as lawyers, architects or auditors, the professional chamber's register confirms qualification.

Putting it together

A careful check follows an order. ARES first, to confirm identity. Then the full commercial register extract: how long the company has existed, how often directors changed, whether accounts have been filed. Then the insolvency register for the company and its directors. VAT status if you will be paying invoices, and the cadastre if property is involved.

Keep a dated record of each search. Registers change, and a saved extract shows what you knew and when.

A short list of red flags worth a second look

None of these proves anything alone. A company that has changed its name, address and directors in a short time deserves a closer read. So does one with no accounts deposited for several years, a petition in the insolvency register, an unreliable-payer flag, or a director who appears across many unrelated companies in trouble. A mismatch between what you were told and what the register shows is the most useful signal of all: if the person across the table says the company has traded for a decade and the entry is recent, ask why.

A clean check is also not a guarantee. Registers lag behind events, and not every liability is public. The register that matters most for you depends on the deal: the cadastre if you are buying or leasing property, the VAT register if you are paying large invoices, the insolvency register if you are extending credit.

What no register tells you

None of them shows commercial reputation, how a company treats clients, whether the product works or whether the person across the table is who they say they are. They lag behind events, and not every liability is public. For a significant transaction, add references, a visit to the premises and a professional review of the contracts.

For the next company you deal with, make a one-page checklist from the registers above and record the IČO, the date of each search and the result. After the first run you will know which entries to read twice.

Allow for the human side too. A direct question to the counterparty, such as why the director changed last year, often produces a better answer than any register, and a refusal to answer is information as well.

Where to check

ARES, the commercial register, the insolvency register and the cadastre are public services of the state, and the Financial Administration publishes the VAT payer register. The portals are in Czech, with English versions of some pages. If the interface is hard to read, a browser translation of the page is fine for navigation, but do not rely on it for legal text.

For one more habit, record the IČO and the search date on every extract you save. Months later, when a dispute arises, that small note shows what you checked and when. It also makes your next check faster, because you can compare the current extract with the saved one and see exactly what changed.

Frequently asked questions

Why search by IČO and not by name?

Names repeat and change. The IČO identifies one entity.

Where do I look for a sole trader?

In the trade register, not the commercial register. It lists trade authorisations and whether a licence is suspended.

What does v likvidaci mean?

The company is in liquidation and has stopped ordinary trading.

Does VIES verify a business?

VIES, the European Commission's service, checks whether an EU VAT number is valid. It confirms the number, not the quality of the business.

This is a general explainer, not legal or tax advice. Rules change; check the official source or a licensed adviser.