Every year thousands of Czech entrepreneurs lose money by working with an unreliable partner. A customer goes bankrupt, a client fails to pay invoices, or you discover that your supplier was on the list of unreliable VAT payers — making you jointly liable for their unpaid tax. Yet a basic company check takes under a minute and is completely free.

This guide walks you through verifying a business partner step by step: what data is publicly available and what red flags to watch for.

What you can find in public registries

The Czech Republic has one of the most open company databases in Europe. The key registries are completely free and available online:

  • ISIR (Insolvency Register) — active and historical insolvency proceedings, maintained by the Ministry of Justice
  • ARES — basic company data: company ID (IČO), address, date of incorporation, legal form
  • Unreliable VAT payers register — list of companies that repeatedly fail their VAT obligations
  • Commercial Register (OR) — directors, share capital, collection of documents including financial statements

Each registry has a different interface and search method. Firmometr aggregates these sources in one place and presents a clear profile after you enter a single company ID.

Insolvency Register (ISIR) — the most important signal

ISIR is by far the most important source for assessing business risk. Insolvency means the company or person is unable to repay their due obligations. As a creditor you join a queue of other creditors with uncertain prospects of recovering your money.

An ISIR check can return one of three results:

  • Clear (CLEAR) — no records; the company has never been in insolvency proceedings. Green light.
  • Past debtor (PAST_DEBTOR) — the company went through insolvency but proceedings are closed. Depends on details and how long ago it happened.
  • Active proceedings (ACTIVE_DEBTOR) — the company is currently in insolvency. Red flag — do not proceed, or require payment upfront.

Always check by company ID (IČO), not by company name. Names can change; the IČO is a unique, permanent identifier.

Unreliable VAT payers register

The Ministry of Finance publishes a list of VAT payers who repeatedly violate their tax obligations. An unreliable VAT payer is a serious warning for two reasons:

  1. Financial health — inability to pay VAT is often the first sign of a payment crisis
  2. Joint liability — as the buyer, you are jointly liable for the VAT of an unreliable payer. If your supplier fails to remit VAT, the tax authority can pursue you for the unpaid amount

The rule is simple: always check VAT status before accepting the first invoice from a new supplier where VAT applies.

Commercial Register and ARES — building the company profile

The Commercial Register provides information about company structure and history:

  • Current and former directors (statutory executives, authorised signatories)
  • Share capital
  • Date of incorporation and dissolution (if applicable)
  • Collection of documents — financial statements and annual reports

ARES adds a verified registered address from the ČÚZK/RUIAN cadastre, company ID, VAT number, and legal form. Together these sources give you a complete picture of who runs the company, how long it has existed, and where it is actually based.

How to check a company — step by step

  1. Find the company ID (IČO) — It appears on invoices, the company's website, or in the Commercial Register. If you don't have it, search by company name.
  2. Enter the IČO in Firmometr — On the search page, type in the company ID or name. Results appear immediately.
  3. Check the risk semaphore — Green = all clear, amber = review recommended, red = active insolvency or unreliable VAT payer.
  4. Review the details — Look at the ISIR status, VAT registration, current directors, and the company's date of incorporation.
  5. Add the company to your watchlist — For ongoing partnerships, enable monitoring. You'll receive an email whenever the company's status changes.

Red flags — what to watch for

Beyond direct insolvency, there are weaker signals worth noting:

  • Recent director change — especially just before signing a large contract
  • Company less than 1 year old — new entities have no track record, making risk harder to assess
  • Unreliable VAT payer — always a red flag, no exceptions
  • Missing financial statements — no statements filed in the last 2+ years
  • Past insolvency — companies that have been insolvent before are statistically more likely to repeat
  • Registered address shared by hundreds of companies — typical of shell companies

Ongoing monitoring — protection over time

A one-off check gives you an instant snapshot but does not provide ongoing protection. A company that looks fine today can enter insolvency in three months. A client reliably paying VAT today can be on the ministry's blacklist tomorrow.

Firmometr's watchlist fills this gap. Add companies to your monitoring list and receive an email whenever their insolvency status or VAT registration changes. A free account covers up to 3 companies — enough for most freelancers and sole traders. For larger portfolios, the BASIC plan supports up to 50 companies.

Summary

Checking a business partner before starting to work together is the foundation of safe business practice. It takes under a minute, is completely free, and can save you thousands of crowns. The three key checks are: the Insolvency Register (ISIR), the unreliable VAT payers register, and the company's basic profile from ARES and the Commercial Register.

Firmometr combines all three into a single clear profile — enter one company ID and have a complete overview in 10 seconds. Check your next business partner today.