Czech Republic company incorporation can be achieved in a relatively short period of approximately 3 – 4 weeks, and can be an excellent way for international businesses to trade within the European Union (EU). Healy Consultants assists Clients to complete Czech Republic company registration.
Advantages of Czech Republic company registration
- Corporate tax in the Czech Republic is relatively low, with companies subjected to a standard rate of 19%;
- Czech Republic business setup requires just one director and one shareholder, who can be of any nationality. The shareholder does not need to be resident in the Czech Republic;
- With a minimum capital requirement of €8,300 (approximately US$10,800) a Czech Republic company incorporation is considerably cheaper than, for example, Germany that requires €25,000 (approximately US$32,500) or other European countries;
- Czech Republic business setup is supported by various economic incentives such as grants and tax incentives that are given for investments in certain industries and region;
- Czech Republic business setup allows 100% EU ownership of its companies. For company incorporation of a Limited Liability Company (Sro) only one EU-resident director will be required;
- It is easy to open global corporate bank accounts to support Czech business setup. Healy Consultants works with internationally recognized banks such as HSBC, Standard Chartered and Citibank to provide corporate bank account services;
- The Czech Republic has a wide network of double tax agreements with other countries, including China, India, Singapore, and the UK;
- In 2013, 87% of the population is computer literate, thus more productive employees;
- A limited liability company can be incorporated within two weeks;
- The Czech Republic is an ideal location for a regional headquarters. Located in the centre of Europe, The Czech Republic is in close proximity to many leading East european markets such as Germany, Lithuania, Latvia and Russia;
- There are no restrictions on inward The Czech Republic investment, currency accounts or the repatriation of capital and earnings;
- A foreign owned company can invest in every business sector without restriction;
- Annual business costs are low. For example, monthly salaries average US$866 in The Czech Republic;
- The public company register discloses only the directors’ details.
Disadvantages of Czech Republic company registration
- After undertaking Czech Republic company incorporation, the company is required to register for value added tax (VAT), for which the standard rate is currently 20%;
- According to the World Bank’s Doing Business 2012 Survey, the Czech Republic ranks 65th;
- The Czech Republic is negatively ranked as the 54th least corrupt country in the 2012 Corruption Perceptions Index by Transparency International, a global measure of corruption amongst public officials and politicians;
- Czech Republic company is subject to several taxes including corporate income tax, withholding tax, VAT and real property tax. Additionally they are also required to contribute to the state social security and health schemes for employees;
- Only 27% of the Czech population speak English fluently, consequently language is a barrier when conducting business.
Did you know about Czech Republic?
- Czech Republic is the second richest Eastern European country after tiny Slovenia;
- Prague’s GDP per capita (PPP) is twice the Czech national average, and higher than any EU member states except Luxembourg;
- Over 92% of the country’s total population comprises of Czech, while the remaining population is divided amongst Slovaks, Germans, Poles, Ukrainians, Vietnamese, Hungarians, Russians, Romani, Bulgarians, and Greeks;
- The country is almost entirely surrounded by mountains. Mountains mark a natural border with Germany and Poland;
- Within the EU, part-timers work the longest hours in the Czech Republic (about 24 h/week). However, part-time work is very rare in this country;
- Czech people have the second highest death rate for cancer in the EU;
- Czech people are the world’s heaviest consumers of beer;
- 90% of Czechs have completed at least secondary education – the highest score in the EU;
- There are over 2,000 castles, keeps, and castle ruins in the country, one of the highest density in the world.
- Czech Republic Tax Authority
- Central Bank of Czech Republic
- Czech Republic Stock Exchange
- Investment Authority
- Chamber of Commerce
- Czech Republic airports
- Visiting Czech Republic