A company is solvent when it can pay its obligations properly and on time. You can check a Czech company's solvency for free in four steps: the Insolvency Register (ISIR) shows whether a court is already dealing with insolvency, the VAT payer register shows whether it is failing its tax duties, the financial statements in the Collection of Documents (Sbírka listin) reveal equity and liquidity, and ARES and the Commercial Register confirm the company is not in liquidation. None of them gives certainty, though: enforcement proceedings (exekuce) and tax arrears cannot be looked up for free.
This article is not about a full partner check (directors, registered office, history), only about one question: will this company pay me?
What solvency means and when a company is insolvent
The line between "pays late" and "is insolvent" is drawn by the Czech Insolvency Act (No. 182/2006 Coll.). Under Section 3, a debtor is insolvent if it has several creditors, has monetary debts more than 30 days overdue, and is unable to pay them. The law presumes inability to pay when, among other things, the debtor has stopped paying a substantial part of its debts, has not paid them for more than 3 months after the due date, or a creditor cannot get paid even through enforcement.
For legal entities and individuals in business there is a second form of insolvency, over-indebtedness: the company has several creditors and its total liabilities exceed the value of its assets. Solvency therefore has two sides, cash flow (can it pay the invoices?) and the balance sheet (do debts exceed assets?). Each public source sheds light on a different side.
Signal 1: the Insolvency Register, where a court is already involved
The Ministry of Justice's Insolvency Register is the strongest and fastest signal. Once someone files an insolvency petition, the proceedings become public in ISIR, so you see the problem here before any other source shows it.
Two things are worth knowing. First, opened proceedings do not yet mean a decided insolvency: a creditor can file the petition and the court may reject it, so check who filed and what stage the case is at. Second, proceedings that ended in the past tell you about history, not the present. Reading the results is covered in detail in How to Read the Czech Insolvency Register.
Signal 2: unreliable VAT payer, where tax payments stall
The tax office designates a VAT payer as unreliable when it seriously breaches its obligations in tax administration (Section 106a of the VAT Act No. 235/2004 Coll.). A company that does not remit tax often has a cash problem, so this is a useful early signal even if it does not affect you directly.
For buyers it also has a direct financial impact: under Section 109(3) you are liable for unpaid VAT on a supply if the supplier was published as an unreliable payer when the supply was made or paid for. Check the status in the VAT payer register. What to do if your supplier is on the list is described in Unreliable VAT Payer.
Signal 3: financial statements in the Collection of Documents and what to look for
The Insolvency Register and the VAT register show a problem that has already happened. Financial statements can hint that one is coming. Under Section 21a of the Accounting Act, companies entered in a public register must publish their statements after approval (and audit, where required), at the latest within 12 months of the balance sheet date. You can find them for free in the Collection of Documents at or.justice.cz.
You do not need to be an accountant. Three figures matter most for solvency:
- Equity (balance sheet, liabilities side). If it is negative, the company's liabilities exceed its assets at book value. That is the accounting picture of over-indebtedness. The real value of the assets may differ, but it is a serious warning.
- Current ratio, meaning current assets divided by short-term liabilities. A value below 1 means short-term liabilities exceed the assets that can quickly be turned into cash.
- The trend. Compare two or three consecutive statements. One weak year matters less than equity falling year after year while liabilities grow.
Mind the limits. Micro and small accounting entities that are not subject to a mandatory audit do not have to publish the profit and loss statement, so for many smaller s.r.o. companies you will not see revenue or profit. The balance sheet is enough for equity and liquidity, though. Statements also describe the position at the balance sheet date, so the figures can be more than a year old. And if statements have been missing from the Collection of Documents for several years, the company is breaching a legal duty. That alone does not prove insolvency, but the company is hiding exactly the numbers you need.
Signal 4: ARES and the Commercial Register, meaning liquidation and dissolution
The last check is formal but quick: is the company active, or in liquidation or dissolved? A company in liquidation is winding down, and a new long-term commitment with it makes no sense. The Commercial Register also shows changes of directors, which deserve attention if they come just before a large contract.
What you cannot find out for free from public sources
- Enforcement proceedings (exekuce). The Central Register of Enforcement Proceedings is run by the Czech Chamber of Enforcement Officers. Anyone can request data, including about another party, but the service is paid (a paper extract via Czech POINT costs CZK 50 per page).
- Tax arrears and unpaid social or health insurance. These are not public. A certificate of no arrears is issued at the request of the company itself, so for a large contract you can ask your partner to provide one.
- Payment behaviour. State registers do not record how quickly a company pays its invoices. Your own experience, references or commercial databases help here.
How to check a company's solvency step by step
- Find the company ID (IČO) on an invoice, contract or the company's website. Searching by IČO is unambiguous.
- Check ISIR. Active proceedings mean trading only for payment upfront, if at all.
- Check the VAT register. Verify the unreliable payer status and the bank account on the invoice.
- Open the last two or three financial statements in the Collection of Documents and look at equity and the current ratio.
- Check the status in ARES to make sure the company is not in liquidation.
- Set terms according to the risk. With weaker signals, ask for a deposit, shorter payment terms or staged invoicing.
Firmometr combines steps 2 to 5 into a single profile: after entering an IČO you see the ISIR status, VAT status including published bank accounts, ARES and Commercial Register data, and the number of documents in the Collection of Documents (logged-in users also see the years and links). Solvency changes over time, so save important partners to your watchlist. You can keep up to 3 companies there for free; email alerts on changes come with the paid plan (details on the pricing page).
Frequently asked questions
Is solvency the same as liquidity?
Not quite. Liquidity describes whether a company has enough readily available money for its short-term obligations. Solvency is broader: the ability to pay obligations in general and over the long term. A company can have a short-term liquidity gap and still be solvent, and vice versa.
Does a clean Insolvency Register mean the company is solvent?
No. A clean ISIR only means no court is dealing with insolvency yet. A company can have enforcement proceedings, tax arrears or negative equity and still not appear in ISIR.
How do I check the solvency of a sole trader (OSVČ)?
Most sole traders do not publish financial statements, so you are left with ISIR (search by IČO or by name), the VAT register and ARES. For larger contracts it is sensible to ask for a deposit.
How much does a solvency check cost?
ISIR, the VAT payer register, the Collection of Documents and ARES are free. An extract from the Central Register of Enforcement Proceedings is paid.
Want to know where your next contract stands? Enter the IČO in Firmometr and within seconds you will see insolvency, VAT status and the number of published statements in one place.