Company registration in Czech Republic
Advantages of opening a company in the Czech Republic
- Shell firms that exist only on paper and do not generate income are prohibited. Previously, such a scheme remained conditionally legal, but the situation has changed. To invite foreigners to work, the company must actually function.
- A company’s director who lacks citizenship is not permitted to work on Czech territory, even if they are listed in the constitutive documents. To achieve this, it is necessary: a) to conclude an employment contract, b) apply for a vacancy, and c) obtain a work visa. In addition, you need to meet other conditions.
- All Czech companies, regardless of the director’s and founders’ citizenship, are required to submit tax returns. And if there are employees in the state (including the director!), you will still have to contribute to pension and other funds.
Why choose Fintech Harbor Consulting to register a company in the Czech Republic?
Costs for company formation in the Czech Republic
Requirements for Company Registration in Czech Republic
- Check the name of the future company.
- Obtain a certificate of criminal record, and translate it into Czech.
- Obtain a legal address (initial) for 1 year.
- Open a bank account.
Prepare necessary founding documents.
- Pay state fees.
- Register the company in the Commercial Court and Finance Department.
- Make the seals of the future company.
Main types of companies
- “S.R.O.” (společnost s ručením omezeným) – limited liability company.
- “A.S.” (akciová společnost) – joint stock company.
“Zivnostenský list” – private entrepreneur.
- “V.O.S.” (veřejna obchodní společnost) – public business company.
- “K.S.” (komanditní společnost) – limited partnership.
- “Družstvo – cooperative.
- The period of existence of the company is not limited.
- The company can be excluded from the register only by court decision.
- The company submits an annual report once a year until March 31 of the following year, and in case of large turnover – quarterly.
- A director of the company may also be the founder.
- By law, a director may not have a work permit in the company but work with the company under a civil contract as a natural person.
- There is no limit on the number of directors. Director can independently decide any issues concerning the company unless otherwise provided by the charter.
- It is necessary to deposit the share capital in the company’s bank account. It is not necessary to be a resident of the Czech Republic to establish an S.R.O.
- A director must not have a criminal record (neither in the Czech Republic nor in any other country) for financial crimes.
- The founder may not be the sole shareholder of more than three S.R.O.s simultaneously.
Corporate taxes in the Czech Republic
- Income tax – 15%
- Corporate income tax – 19%
- VAT – 21%
How to open a bank account in the Czech Republic
Steps to set up a company in the Czech Republic
How do I check if a company is incorporated in the Czech Republic?
All data on individual entrepreneurs and large companies in this country are open to public access. Just go to the site of the trade register of Czech Republic to check information about a particular organization.
The website www.rzp.cz is available in Czech and English. To find a counterparty, you need to know either the identification code of the company or its full name. You can also search by legal address. This resource is free. You can find out the contact details of the company, its address, and information about branches and representative offices.
Can I start entrepreneurship in the Czech Republic?
Is the Czech Republic good for business?
Can a foreigner start a business in the Czech Republic?
How to register a company in Czech Republic?
Company Registration in the Czech Republic involves the following steps:
- The choice of a unique name.
- Selection of the subject of activity.
- Obtaining a registered office in the Czech Republic.
- Preparation of the list of directors, founders, and shareholders of the company.
- Determination of the amount of the share capital.
- Registration of the articles of incorporation with the notary.
- Registration at the Trades Licensing Office.
- Opening a bank account and the payment of the share capital.
- Registration at the Commercial Registry and with the Tax Office.
What are the terms for registering a company in the Czech Republic?
What licenses and permits are needed for business in the Czech Republic?
Company formation in the Czech Republic involves obtaining a license for almost all types of activities.
To open a store, real estate agency, consulting agency, making export and import, and provide intermediary services requires a license from the list of free and easy. You do not need special education or experience in this field to get it.
Opening a restaurant, cafe, bar, disco, casino, travel agency, hotel, or production requires a complex license. To get it, you need special education and experience.