Company Formation in Czech Republic

Top 5 Advantages of company registration in Czech Republic

1. No residency requirement for shareholders or directors
2. Reputed member state of the EU
3. Possibility to open a bank account
4. Low minimum share capital
5. Perfect to start a new business in the EU for foreigners

Roadmap

How long does it take to register a company in Czech Republic?

• 12-18 working days
• Can be done remotely in around one month

What are the steps to register a company in Czech Republic?

The registration process of a company in Czech Republic is very simple. The experts of LegalBison will assist you throughout every step of it:

1. Initial consultation and agreement
2. Payment of the full invoice
3. [IF REMOTELY]: Notarization of POA by client
4. Preparation of registration documents
5. Document signed at the notary
6. Official register validity: immediately

Taxes

How high are the corporate income tax in Czech Republic?

• The corporate income tax rate in Czech Republic is 19%
• An advantageous 5% rate applies to basic investment funds (operating under license)

What Double-tax treaties has Czech Republic?

Many countries have bilateral conventions to avoid double taxation and prevent fiscal evasion

Albania, Armenia, Australia, Austria, Azerbaijan, Bahrain, Barbados, Belarus, Belgium, Bosnia and Herzegovina, Brazil, Bulgary, Canada, China, Croatia, Cyprus, Denmark, DPRK (Democratic People’s Republic of Korea), Egypt, Estonia, Ethiopia, Finland, France, Georgia, Germany, Greece, Hong Kong, Hungary, Island, India, Indonesia, Ireland, Israel, Italy, Japan, Jordan, Kazakhstan, Kuwait, Latvia, Lebanon, Lithuania, Luxembourg, Macedonia, Malaysia, Malta, Mexico, Moldavia, Mongolia, Morocco, Netherlands, New Zealand, Nigeria, Norway, Philippines, Poland, Portugal, Republic of Korea, Republic of South Africa, Romania, Russia, Saudi Arabia, Serbia and Montenegro, Singapore, Slovakia, Slovenia, Spain, Sri Lanka, Sweeden, Switzerland, Syria, Tadjikistan, Thailand, Tunisia, Turkey, Ukraine, United Arab Emirates, United Kingdom of Great Britain and Northern Ireland, United States of America, Uzbekistan, Venezuela, Vietnam, Thailand, Tunisia, Turkey, Turkmenistan, Ukraine, United Arab Emirates, United Kingdom, United States, Uzbekistan, Venezuela, Vietnam

Status: End of 2020

VAT number

Without VAT number

• Your company will not be eligible to receive VAT refunds, which means everything bought is 21% more expensive (important: B2B payments between two VAT exempt companies are not more expensive)
• Your company will not have to file monthly tax returns (prerequisite: no one receives a salary), which means low costs

With VAT number

• The company will be eligible to receive VAT refunds, which means you can make use of the reverse-charge mechanism
• Monthly tax returns have to be filed, even if no transactions occur
• Businesses seated in the Czech Republic whose turnover exceeds 1,000,000 CZK (around 39,000 EUR) in any consecutive 12-month period must register as a VAT payer with the tax authorities

Before we help you to apply for a VAT number you should carefully think about the advantages and obligations that go along with it. To register as a VAT payer might be either voluntary or obligatory, depending on the turnover.

Decide first

1. Do you want to buy a ready-made company or start a new one?
2. Is your business plan detailed enough to check for a trade license?
3. What is the planned authorized share capital?

Speak to our consultants to get a free consultation and guidance on how to choose the best jurisdiction based on your business model.

Documents to provide for company registration in Czech Republic

• Passport copies (a scan) of shareholder/s and director/s, also beneficiary owner if applicable
• A Power of Attorney (in case of a remote company registration)
• Certified company documents (in case at least one of the shareholders is going to be a foreign company)

Information needed to get company registration in Czech Republic

• 3 options of your desired name for the company and a company contact email address
• Names, addresses and emails of all shareholders and board members
• Short description of your company's activity

Remote incorporation

• The whole incorporation process can be conducted remotely. No travel necessary. Notarization of documents is necessary
• A Power of Attorney (POA) from (all) partners/shareholders is needed
• The POA is sent to you by us based on the services you want
• You have to certify the POA by a notary and in some cases legalize it by apostille (some countries need full legalization)
• Once you have the POA on your hands, we double-check, and you send us the original form (physical document!) via courier to our address
• Czech Republic is part of the Hague Convention of the Apostille

Accounting and auditing

• A tax return has to be filed every year, even in the absence of any business activity
• Bookkeeping is mandatory and accounts are to be filed

Residential requirements

What are the residential requirements in Czech Republic?

• There are no residential requirements for shareholders and directors of a Czech limited liability company
• Every company needs a registered address, virtual offices are allowed in Czech Republic

LegalBison offers help with all of the above requirements. We assist and are local on ground. Speak now for free with one of our consultants to get your business started.

FAQs about company registration in Czech Republic