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.