The Czech Republic is a country that benefits from a long tradition concerning industrial production and has one of the most skilled workforces in Europe. Czech Republic has a strong economy that develops at a steady rate and it enjoys a high level of foreign investments, which are sustained through various policies. Because of this, a lot of individuals seek to incorporate a company in this refreshingly aesthetic terrain.
Benefits of Doing Business in the Czech Republic
- Situated in the center of Europe, the Czech Republic acts as a gateway to both the eastern and the western markets.
- As a member of the EU, any company in the Czech Republic benefits from the nation’s trade relationships and commercial ties with majority of the business centers in the world.
- There is no shortage of literate, skilled, and professional workforce in the country, so employability standards are conducive for business operation.
- The Czech Republic shows a serious level of entrepreneurship and favorable conditions for doing business.
- The country features high standards of living and a vibrant economy.
Forms of business structures in the Czech Republic
It is possible to register or buy a company in the Czech Republic in such organizational and legal forms as the following.
- S.R.O. (společnost s ručením omezeným), Limited Liability Company.
- A.S. (akciová společnost), Joint Stock Company.
- «Živnostenský list», Private entrepreneur.
- V.O.S. (veřejna obchodní společnost), Public commercial company.
- K.S. (komanditní společnost), Limited partnership.
- «Družstvo», Cooperative in the Czech Republic.
How to Register a Company in the Czech Republic
The definitive process of company formation in the Czech Republic are as follows:
- Choosing the most appropriate business form for your business activity (the most popular legal entities in the Czech Republic are represented by limited liability companies and joint stock companies)
- Decide a Company Name – Business name registration in the Czech Republic is subject to availability and acceptability. The proposed company name can be checked with the Registry of the Regional Commercial Court.
- Provide Criminal Record Clearance- Arrange for certificates of a clear criminal record of the managers (an extract from the Criminal Register from their country of origin )
- Provide Real Estate Register Clearance- Submit evidence of the registered office of the company.
- Advance the Minimum Share Capital- During company incorporation, the minimum share capital, if any, must be put in a bank.
- Obtain Trade Licence and Clearances- Depending upon the type of activity your company would be engaging in, file for the necessary trade licenses and permits.
- Get the Articles of Association Notarized- Draft the Articles of Association (AOA) of the company, and get them, as well as the company statutes, verified by a public notary in the Czech Republic.
- Register Your Company at the Commercial Register- For completing the registration process, get the motion to the relevant Regional Court signed by all the first managers in front of a notary public, and afterward, submit it at the Companies Registry.
- Get a Tax Identification Number- Registration for income tax happens simultaneously, and a company receives its Tax Identification Number on submission of the company application.
Documents Required for Company Registration in the Czech Republic
- The Company business name
- Address of registered office, along with its proof.
- Details of the activities to be carried out by the company
- Memorandum and Articles of Association.
- Trade authorization certificate
- Specimen signatures of shareholders and directors
- Proof of deposited bank capital
- Extract from the Criminal Registry for each member of the company
Costs for a company formation in the Czech Republic
The registration of a local business implies the following company formation costs in the Czech Republic:
- registration fee: the main registration fee concluded through a public notary in the Czech Republic is CZK2,000 for a limited liability company, while for the registration through the Register Court, the fee can increase.
- virtual office cost: the virtual office represents the most suitable option for having a business address in this country, and its fee start from eur .
- minimum share capital costs: for a limited liability company, the minimum capital share required is CZK1.
- accounting costs: it includes bookkeeping services and tax assistance; the cost starts from EUR 50/month.
The enrollment of a nearby business suggests the accompanying organization development costs in the Czech Republic:
Opening a business bank account in the Czech Republic
Opening a bank account for a business helps separate personal liabilities from a business. Each company with establishments in the Czech Republic needs to open a bank account by procuring the firm’s main documents, like the Articles of Association. First, a provisory bank account is opened for depositing the minimum share capital, and then a permanent bank account will serve to the company’s financial operations.
At Damalion, we can assist with the whole process of your company incorporation in the Czech Republic, by helping with drafting the constitutive documents, hiring a local accountant, offering a registered office, and numerous other relevant matters. Contact your Damalion expert now to register your company in Czech Republic.
