Czech Republic company registration

Czech Republic company registration

DOING BUSINESS IN CZECH REPUBLIC

Since 2003, Healy Consultants 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. It is relatively easy to register a company and open a bank account in the Czech Republic because:

      • An LLC (s.r.o) can be registered by 1 director and 1 shareholder of any nationality;
      • Clients can complete the incorporation process and bank account opening without traveling to Czech Republic;
      • A Koruna corporate bank account is not mandatory and our Clients may opt for a US Dollar and Euro account, thereby making it easier to import foreign currency into the country;
      • There is no statutory minimum paid-up share capital required and consequently a company can be incorporated with a share capital of just €1.

    2. Businesses are likely to benefit from company registration in the Czech Republic because:
      • As a member of the EU, Czech Republic offers companies the following benefits:
        • Duty free trade within the EU;
        • Access to well qualified labor from other EU countries;
        • Free movement of capital and repatriation of after-tax incomes;
        • Access to a consumer base of over 500 million people.

      • Czech Republic is a recent member in the EU and its economic performance amongst the 10 newest member states has been exceptional;
      • 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;
      • Clients with investments in the transport and logistics industry will find the country’s central location in Europe advantageous due to its proximity to production and consumption zones.

    3. Czech Republic is one of the best jurisdictions in the world to open a trading company because:
      • The World Bank 2016 Doing Business survey ranks the country 1st in the world for Trading across Borders index;
      • 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;
      • Government financial support is available for investment across several industries in the secondary and tertiary sectors of the economy;
      • Czech Republic has signed tax treaties with over 70 countries including China, India, Singapore and the UK to reduce withholding taxes on payments abroad;
      • 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.

    4. Investments in Czech Republic can enjoy government investment incentives, including:
      • Manufacturing companies with investments amounting to €1.8million are eligible for a corporate tax holiday of up to 10 years;
      • Such companies are also eligible for cash grants for training or retraining of employees up to the amount of 50% of the total training cost;
      • Clients with investments in Czech regions with an unemployment rate above 14% for at least 1 year are eligible to apply for financial support;
      • Companies with investments in special industrial zones are also eligible for a 5-year property tax exemption subject to other specific requirements.

    Disadvantages of Czech Republic company registration

    1. After undertaking Czech Republic registration, the company is required to register for value added tax (VAT), for which the standard rate is currently 21%;
    2. The Czech Republic is negatively ranked as the 37th least corrupt country in the 2015 Corruption Perceptions Index by Transparency International, a global measure of corruption amongst public officials and politicians;
    3. Only 27% of the Czech population speak English fluently, consequently language is a barrier when conducting business;
    4. Judicial processes in Czech Republic can slow and taxing, 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 headquarter. Located in the center of Europe, The Czech Republic is in close proximity to many leading East European markets such as Germany, Lithuania, Latvia and Russia.

Company registration

  • Time to incorporate: Four weeks
  • Cost to set up: €8,660
  • 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