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CZECH REPUBLIC


Registration of a company in the Czech Republic can be a suitable option for running a business in Europe. Offers favorable business conditions for startups, including in the financial sector. If you are thinking of registering a company in the Czech Republic, this jurisdiction overview can help you make your choice.


Basic forms of legal and business presence


If you intend to enter the Czech Republic by establishing your business presence in this country, this can be done in one of the following forms:

  • Limited Liability Company (LLC) – a company designed to carry out most types of business activities. It is convenient from this point of view, and also from the point of view that its authorized capital should be only 1 CZK. The liability of the shareholders in this case is limited only to the value of their investments.
  • Stock company – a company determined to include additional financing and requiring an initial legal capital of 2 million CZK (80,000 Euro). The liability of the shareholders in this case is limited to the values ​​of the shares owned, which can also be transferred. The types of shares may vary and provide for corresponding rights for their holders.
  • General Partnership - a business entity created and managed by at least two persons, whose responsibility for the results of all business transactions is not limited in any way, even their personal property may be exposed to risk.
  • Limited Partnership - a business arrangement that is managed by (I) one or more general partners whose liability is not limited in any way, and (II) one or more limited partners who assume financial responsibility for all results of the partnership's activity only within the limits of the invested amounts.
  • Representative offices or branches – foreign entities may find these options suitable for exploring local business opportunities and conducting a range of business transactions accordingly.


    • Requirements and steps for company registration


    Registering a company in the Czech Republic, for example a limited liability company, may require these preliminary steps to be taken:

  • Determining the main business objectives for doing business in the Czech Republic.
  • Collection of data on founders and beneficial owners.
  • Choosing and verifying the company name for a future legal entity.
  • Preparation and notarization of the memorandum and articles of association of the company.
  • Rent a local business address.
  • Submission of documents required for registration in the relevant local court. The data for the newly established entity are reflected in the Commercial Register.
  • Registration for tax and social security purposes.
  • Obtaining additional permits and licenses (optional - the exact types of future activities should be taken into account).


    • This is an overview of the LLC registration procedure. But in certain cases minor variations of this procedure may occur. Smart Startup UK specialists are ready to consider the specifics of your specific case and offer more detailed preliminary guidance.


    Legal and Regulatory Framework


    The local legal framework can be considered helpful for starting and operating a business. Completing the procedure for starting a company will not take much time. Transaction costs are also relatively low in this case. The local government is also taking steps to make it easier for foreign businessmen to do business in this country.


    Advantages of Jurisdiction


    If you intend to set up a company in the Czech Republic, you can enjoy these business opportunities:


  • Abundance of incentives for doing business (tax breaks and exemptions, subsidies, favorable conditions for obtaining properties and land plots)
  • Open and transparent business environment
  • Qualified employees


    • Tax system in the Czech Republic

  • Corporate Income Tax (CIT) rate – 19%
  • PIT rate – (I) basic – 15% and (II) increased – 23% for income exceeding the amount of 1.7 million CZK>
  • VAT – 21%
  • Withholding tax rates (basic, applicable to non-residents) – (I) dividends – 15%, (II) interest – 15%, (III) royalty – 15%.
  • Tax rates on capital gains – (I) corporate – equal to the standard income tax rate on income, (II) individual – equal to the standard income tax rate on income.


    • CREATE A COMPANY


  • Check and reserve a company name
  • Company registration in the form of S.R.O, including state fees
  • Legal address for 1 year
  • Extract from the commercial register (Výpis z obchodního rejstříku)
  • Register of Directors and Secretaries
  • Local Director for one (1) year
  • Local secretarial services for one (1) year
  • Set of statutory documents of the company in electronic form
  • Contribution to the authorized capital of the company
  • VAT registration
  • Obtaining a Foreign Investment Permit
  • Opening a corporate bank account at Ceska Sporitelna A.S, Fio Banka A.S.
  • Support for obtaining a residence permit
  • Free consultation
  • Help with online trading and opening an account at viva.com for online trading
  • Accounting services - 12 months
  • Annual renewal (payable from the second year)

    • *Within 30 days


    IMPORTANT! We can provide you with the initial share capital (if the amount is over EUR 5,000) for the registration of your company in the form of a loan from our company. Please, if you are interested, make an inquiry to us.


    What is the procedure!

    1. You submit a request for company registration using the request form.

    2. We check if the registration company name is free and eligible for registration.

    3. Choose a bank that suits your company's needs from a list of Smart Startup UK partner banks provided.

    4. We send you a proforma payment invoice to pay to our bank account + the initial capital amount of your company.

    5. You receive all necessary company documents for verification.

    6. You receive details of your newly opened bank account.

    7. In the specified period (for the Czech Republic it is 30 days), you receive all the services included in the package.

    8. You can manage through our platform all the services included in the package, as our team works 24/7 and you can get help from us within up to 30 minutes. We have built an internal ticketing system for our customers through which we process your every support request.


    All services like management, accounting, request to open bank accounts, licensing, filing tax returns, paying taxes and more are done through your account on our platform, it makes it easy managing your business!