Czech Republic company registration

DOING BUSINESS IN CZECH REPUBLIC

Since 2003, Healy Consultants Group PLC has assisted our Clients with business registration in Czech Republic. Our services include i) Czech Republic company registration ii) government license registration iii) corporate bank account opening in Slovenia and abroad iv) employee recruitment v) visa strategies and vi) office rental solutions in Prague and other Czech Republic cities.

Press the link headings below to read detailed, relevant, up to date information.

  • Advantages and disadvantages

    Advantages of Czech Republic company registration

    czech republic business registration advantages and disadvantages

    1. Czech Republic is a great place to register a manufacturing business, because:
      • Manufacturing companies with investments amounting to €1.8 million are eligible for a corporate tax holiday of up to 10 years;
      • The country ranks 1st in several metrics including quality of infrastructure, quality of electricity supply, business sophistication and easy access to loans;
      • Compared to other well-developed EU countries like Germany and France, Czech Republic offers benefits such as low labor costs;
      • Capital investments enjoy significant Government investments and cash grants of up to 10% of the investment value;
      • Czech Republic is an automotive paradise in Central Europe, with more than 30 vehicle brands with an annual output of €1.4 billion over the past 5 years;
      • Manufacturing companies are also eligible for cash grants for training or retraining of employees up to the amount of 50% of the total training cost.
    2. Czech Republic businesses enjoy multiple investments incentives, such as:
      • Government incentives like tax holidays, employment subsidies, real estate tax exemption and cheaper land purchase offers are available for companies undertaking labor and cash intensive projects in the country;
      • Dividends and interest payments from Czech companies to EU companies are completely exempt from withholding tax if the EU companies hold more than 10% stake in the Czech companies;
      • Clients with investments in Czech regions with an unemployment rate above 14% for at least 1 year are eligible to apply for financial support;
      • The country has over 104 municipal industrial zones targeting international investors with cost-efficient investment opportunities for eligible businesses;
      • Czech Republic has signed tax treaties with over 70 countries including China, India, Singapore and the UK to reduce withholding taxes on payments abroad.
    3. Starting a business in Czech Republic is straightforward, because:
      • An LLC (s.r.o) can be registered by only 1 director and 1 shareholder of any nationality;
      • Clients can complete the incorporation process and corporate bank account opening without traveling to Czech Republic;
      • There is no statutory minimum paid-up share capital required and consequently a company can be incorporated with a share capital of just €1;
      • Czech Republic is in the top 15 countries in the World in terms of timelines of getting electricity, according to the World Bank.

    Disadvantages of Czech Republic company registration

    1. Value added tax (VAT) in Czech Republic is comparatively high at 21%;
    2. English fluency in Czech Republic is average according to Education First in 2017;
    3. Government inefficiency and corruptions remain the most problematic factors when doing business in the Czech Republic, according to WEF in 2017;
    4. Judicial processes in Czech Republic is very time-consuming. Clients involved in a commercial dispute should be prepared to be tied in court for at least 2 years before a contract is enforced;
    5. Clients engaged in building and construction will be faced with at least 33 procedures taking an average of 120 days when dealing with construction permits.
  • Best uses for a Czech Republic company

    1. The Czech Republic is an ideal location for establishing a regional automotive or manufacturing base in the heart of Europe;
    2. The country offers significant tax-incentives to qualified investors, while offering low operational costs in comparison to Western Europe economies.

Tell us what you need - we’ll send you a customised proposal in 5 hours!

Company registration

  • Time to incorporate: Four weeks
  • Cost to set up: €9,660
  • Minimum capital: €1
  • Physical office required: No

Required appointments

  • Shareholders: 1
  • Directors: 1
  • Company secretary: No
  • Resident director: No

Key facts

  • Corporate tax rate: 19%
  • Corporate tax base: Worldwide
  • Shelf companies: No
  • Main company type: S.R.O. Limited

Contact us

For additional information on our business registration services in Czech Republic, please email us at email@healyconsultants.com. Alternatively please contact our in-house country expert, Mr. Petar Chakarov, directly:
client relationship officer - Petar
czech Chamber of Commerce czech national bank CNB Government of the Czech Republic discover czech Republic czech Ministry of Finance czech ministry of foreign affairs