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CZECH REPUBLIC

Out of 170 countries The Czech Republic is in 140th place when comparing the administrative burden of setting-up companies.
Countries where there are an average of seven hundred civil servants annually, a country where each company has a civil servant. In the Czech Republic, you’ll have up to 15 visits to various institutions and offices when you start your business. Is it scary? Does it sound like a business nightmare? Nevertheless, business giants such as BOSCH are moving to the Czech Republic and are opening their headquarters. WHY? Economically favourable and stable situations, tax holidays, good performance of the Czech Koruna against the Euro and strategic location in the heart of Europe attract investors and business people from different parts of the world.

WANT TO DO BUSINESS IN THE CZECH REPUBLIC? I.E. IN THE SECONDEST RICHEST EAST EUROPEAN COUNTRY?

Benefits of establishing a company in the Czech Republic:

  • Compared with most of Europe, corporate tax is relatively small in the Czech Republic - Czech companies only pay 19%
  • No entry capital is required, start-up business expenses are therefore low.
  •  One shareholder and one director - this is all that is needed for a Czech company’s foundation
  • The Czech Republic allows foreigners to own 100% of a local company
  • A wide range of double taxation agreements with many other countries.
  • Low annual management costs in the Czech Republic
  • Opening a bank account in the Czech Republic is an easy process.

Prague is one of the few European cities that survived both world wars and remained almost untouched, so you can be sure that what you’ll see there is original!

The Czech Republic can offer a fair start for your business and much more.

In business, the opportunity makes an opportunity.

Just walk with open eyes.

WE OFFER YOU A SEA OF OPPORTUNITIES IN THE VERY CENTRAL EUROPE.

Yes, there are also shady sides, such as excessive bureaucratic and administrative burdens as well as the absence of English in offices.

Annually, there is an average of seven hundred civil servants in the Czech Republic. Do YOU WANT TO DEAL WITH THEM YOURSELVES? You do not have to, we’ll be happy to represent you.

The Czech Republic is in 140th place when comparing the administrative burden of setting-up companies. In particular, the number of administrative tasks to be carried out at the beginning of the business is taken into account.

15 visits to various institutions and offices, where you’ll need to provide nearly 20 applications, forms and other attachments. Trade office, bank, business register, paperwork, standing in queues, it requires an advanced level of assertive behaviour and strong nerves ... and what else do you have to do?

Nothing.

Leave it to us, we'll take care of it. You can invest your time better in your business and / or family. With years of practice, we know how to deal with the bureaucrats and in the meantime you can meet your dreams.

YOU DON’T HAVE TO WAIT WITH US, WE CAN TAILOR-MAKE A COMPANY AND WE ALSO OFFER READY MADE COMPANIES THAT ARE WAITING FOR YOU.

In the sphere of business, we are able to see connections that others don’t. Just get out of your comfort zone and say yes to business in the Czech Republic.

Disadvantages of establishing a company in the Czech Republic on your own

  • lack of clarity regarding the legal order and the unavailability of relevant information when establishing a company
  • the complexity of the filing form for the establishment of a trading company (proposal for registration of a new trading company in the Commercial Register) containing up to 20 pages, including unclear definition of annexes and the inconsistency of court decisions on the registration of a new trading company, while the registering a trading company in the Commercial Register is a necessary condition
  • significant risk of rejection by a court of the registration for a new company in the Commercial Register, with an associated additional time and financial costs for the founder; the formation of a company is connected with the registration in the Commercial Register
  • when establishing s.r.o. or a.s., up to 15 visits to various institutions and offices are waiting for you
  • If you want to start a business, you will need to provide nearly 20 applications, forms and other attachments
  • the average life of a company in the Czech Republic according to the World Bank report is about 5 weeks
  • any mistake you make when setting-up a new business company will prolong and cost increase the business start-up process

If you don’t have the time and patience for all that, we’re happy to help you set-up and manage your company.

Start a business with us in the Czech Republic.


Type of legal entity:

s.r.o. - Limited liability company
a.s. – Joint-stock company
Trust Fund
Branch
Investment Fund

NOTICE:

Did you know that the word "tunnel" originated in the Czech Republic? Be more precise and consistent in choosing the legal form of the company, the distribution of risks and, in particular, property protection:

Get an overview of legal forms in the Czech Republic to your email, including non-binding price calculations:

Type of legal entity: s.r.o. (Spol.)

Founding time: up to three weeks
Number of shareholders: at least 1 may be any nationality
Shareholders: Members may be FO or business entities.
Registered capital: from 1 CZK
Bearer shares: Not allowed
Registered address is mandatory, but not physical
A company secretary is not obligatory
Directors: at least 1, maximum is not defined
The Director’s resident function: the director doesn’t have to reside in the Czech Republic

 

Type of legal entity: a.s.

Founding time: up to three weeks
Number of shareholders: at least 1 may be any nationality
Shareholders: Members may be FO or business entities.
Registered capital: from 2,000,000 CZK
Shares must include: the company’s name and registered office
Nominal value
Form of the share
Amount of registered capital and the number of shares
At the date of issue of the share
Date of issue
Registered address is mandatory, but not physical
A company secretary is not obligatory
Directors: at least 1, maximum is not defined
The Director’s resident function: the director doesn’t have to reside in the Czech Republic

 

Type of legal entity: Trust Fund

Founding time: within a week
The founder may be a legal entity or an individual. There can be more founders.
Registered capital: from 1 CZK
The trustee can be any rightful person or an investment company (CNB licence). The trustee may also be the founder of the Trust Fund or the person to be executed from the Trust Fund.
The founder has the right to nominate a conceived person and to determine their performance from the Trust Fund, unless the trust fund's statute determines otherwise.
Trust fund management supervision is carried out by the founder and person designated as beneficiary, or by other persons if the status determines so.
The Fund is an entity and carries out accountancy. The Fund is a taxpayer.

Income from business activities will be subject to corporation tax, at a rate of 19% unless it’s exempt income or, for example, income that is included in an independent tax base.

It’s absolutely necessary to structure the Trust Fund correctly so as to ensure consistency with the current Czech legislation and possible changes in the future law. It’s particularly important that the Trust Fund is robust and designed to withstand possible attacks by creditors or other individuals in the future. This isn’t a matter for yourself, you really need professional help.

 

Type of legal entity: Branch of an enterprise

Founding time: one week
The branch of a foreign company allows any foreign company to carry out its business activities in the Czech Republic
The head of the branch is their legal representative and is authorised to act for a foreign company in all matters relating to the branch
From a legal viewpoint, it’s a branch of a foreign trade company, although it can act independently, it’s only part of a company without its own legal personality
A notarial record isn’t required
Registered office is required

Type of legal entity: Investment fund

Basic prerequisites for fund establishment

  • There must be at least two different assets (e.g. 2 houses, 2 solar power stations, etc.)
  • Within one year of setting up the fund, the value of the assets must be at least 50 million CZK.
  • The fund’s shareholders must be at least 2 different investors (individual person and their own s.r.o.)

Examples of uses

  • Developer activity
  • Owners of photovoltaic power plants with a total power output of at least 6-8 MW
  • Networks of restaurants, gas stations, cafes
  • Enterprises with large production or operating areas
  • Residents and owners of a larger set of properties
  • Investors in securities, real estate, antiques, etc.

Main benefits of the Fund

  • You establish an investment and business strategy yourself within defined borders.
  • You can be the fund’s owner along with a related entity, so there is no risk that someone else will look after your investment.
  • Highly trustworthy and transparent form of business (the repository is a bank and the CNB carries out the supervision)
  • The ability to get additional investors easily. It is a more flexible and trustworthy form than the entry of another business partner.
  • Favourable tax regime (5%)

Taxation

Corporate income tax rate 19%
Branch tax rate 19%
Equity tax rate of 19% (a 0% reduced EU rate may occur)
Dividends / Interests / Subjects / Rental income 15% basic rate (35% rate on unspecified UBO, non-resident tax, etc.) (0/5% reduced rate depends on double taxation agreements, etc.)
The national VAT rate is 21%, the reduced rate of 10% and the rate of 15% apply to specific goods.
Net operating losses can be transmitted up to 5 years.
Agreements to avoid double taxation with different countries have been applied, determining the rates of dividend, interest and royalties.
Bookkeeping. Accounting and preparation of accounting is necessary
Audit isn’t required but depends on the company’s size
Anonymity and privacy. Information on directors and shareholders is available in the Commercial Register.

Receive a non-binding proposal today. Call us +44 (0) 20 3735 5557 or fill out the form below.
Receive a non-binding proposal today. Call us +44 (0) 20 3735 5557 or fill out the form below.

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