Registration a company in Czech Republic
Establishing a company in the Czech Republic is a “modern” solution for efficient business conduct.
Czech Republic ranks first in international trade and takes advanced positions in ease of doing business and obtaining credit in the international rating of Doing Business.
What are the advantages of registering a company in Czech Republic?
Establishing a company in Czech Republic is the basis for the acquisition of real estate and obtaining residence permit and permanent residence.
Czech Republic is a part of various associations, such as the EU, WTO, NATO, OECD. Establishing a Czech company opens wide access to Central and Western Europe. The convenience of registering a company and doing business in the Czech Republic is accompanied by high-quality banking services.
Companies registered in the Czech Republic can open a bank account both in the Czech Republic, as well as European and other jurisdiction’s banks.
Taxes for Czech companies
Legal entities registered in Czech Republic are subject to income tax at a rate of 19%. The standard VAT rate for Czech companies is 21%. Some businesses registered in the Czech Republic are subject to a reduced rate of 15%, and in some situations – 10%. Also, Czech companies may be exempt from VAT.
Individuals must pay income tax at a rate of 15%. Czech Republic has concluded treaties on avoiding double taxation with more than 50 states.
Optimal forms of business registration in Czech Republic
The most convenient and popular are the following organizational and legal forms: a limited liability company (s.r.o.) and a joint-stock company (a.s.).
Establishing of a Czech limited liability company (s.r.o.) provides for the presence of at least one founder and director, where the founder and director of Czech company s.r.o. can be one person. The amount of founders can be up to 50 people.
The minimum share capital for s.r.o. is 50 euros. To create a Czech joint-stock company (a.s.), a share capital must be of at least 1 kroon, but to create a positive image, we recommend increasing its minimum to 1,000 kroons; presence of at least 3 people on the Board of Directors. The number of founders is not limited. Shareholders are liable solely within the limits of the contributed capital.
Stages of company registration in Czech Republic
In order to open a company in Czech Republic you need to go through a relatively long way, consisting of several stages.
At the first stage of business registration in Czech Republic, it is necessary to choose the name and organizational and legal form of the future company, co-founders and directors, the size of the authorized capital and the type of activity of the company.
On the second stage, it is necessary to collect a package of relevant documents for the registration of a Czech company, including statutory documents of a Czech firm, and to go through the registration procedure in Czech Commercial Register and obtain a license in the Czech Chamber of Licensing.
In the third stage, within 30 days after the company’s registration in Czech Commercial Register, it is necessary to register with Czech tax authorities. Also, a company can obtain a registration number as a VAT payer in Czech Republic and a payer of the European VAT.
What documents are required to register a company in the Czech Republic?
We will take on all the efforts for completing a package of documents for the registration of business in Czech Republic (a certificate of criminal records, distributions of shares, applications, etc.). In this situation, you can be sure that you will have all of the necessary documents.
Terms of establishing a company in Czech Republic
The approximate period of registration of a Czech company is 20 days with all the necessary documents. It can depend on the type of company, its activities and the busyness of instances involved in the company’s registration in Czech Republic.
At first glance, registering a company in Czech Republic may seem complicated and confusing, but with our help you will not have to wary about a lot of legal issues.
For over five years we have been advising our clients in the field of corporate law, international tax planning, finance, international licensing and integrated business support in more than 40 countries.
We will be glad to assist you.