Business in the Czech Republic for Russians. How to open your own business in the Czech Republic How to open a business in the Czech Republic

If a completely new case is registered, it is initially designed to suit the client’s goals, and the registration process can take about 20 days.

Destination options

Since the tourism sector is very developed in the state, the following business segments are considered to be in demand:

• hotel;
• building;
• transport;
• restaurant;
• sale of souvenirs;
• car rental;
• companies with services for foreign citizens;
• trade kiosks and retail sale of small goods;

If you choose promising types of business for a foreign citizen in the Czech Republic, you can pay attention to several categories.

Travel business

About 50 million people from different parts of the planet go to admire the beauty of the Czech Republic every year. Each of them, regardless of their financial status, is forced to think about such expenses as:

• Nutrition. The Czech Republic has a variety of catering establishments where you can spend from $0.3 to $100.
• Accommodation. Mini-pensions, hostels and other budget options for tourists will cost from $10 per night, the best rooms in luxury hotels - from $300 per night.
• Transport. Costs for transport and excursion services also vary, because throughout the country there are a huge number of monuments and famous places that every guest of the Czech Republic strives to visit.
• Souvenir products. Here the choice of direction is very large, ranging from standard printed products with the symbols of the country to expensive products made from famous Czech glass.
• Entertainment and leisure. Places for a good rest are also very popular in the country, for example, massage parlors or discos. And even despite the fact that competition in this area is great, the chances of developing both a new business and an existing one are real.

Export

Czech consumer goods have earned a good reputation all over the world; high-quality goods from the Czech Republic at affordable prices are in demand in Germany, Austria, Slovakia and other EU countries.

Import

This is a rather difficult area for a foreign entrepreneur, since the market in the country is balanced and has long identified its leaders among local big brands. In order to break into this area, you need to offer really attractive prices and conditions.

Domestic small business in the Czech Republic

This direction is suitable for businessmen who do not expect fabulous profits. When opening a store or other facility far from tourist areas, you need to be prepared for the fact that the maximum monthly profit from it can rarely be more than $2,000.

Hotel business

One of the best hotels in the Czech Republic - Hotel Imperial

Managing the proposed objects in the Czech Republic has its own nuances. For example:

• Small family-type establishments with 2-5 rooms are unlikely to bring profit if they are not located in the capital. Most often, this is a source for paying the costs of maintaining buildings and the personnel living in them. Sale: from CZK 200,000 – Prague; from 100,000 CZK – resort areas; from CZK 50,000 – provinces.
• The sale or purchase of a small family hotel or inn can generate income if it is located in the tourist areas of the capital.

Catering business

Today, restaurant establishments that are located in the busiest parts of cities are thriving. Places with reasonable prices for each category of guests, a pleasant atmosphere and interesting design, delicious dishes made from quality products and good service are popular.

Business forms

1. Shareholder community.
2. Public trading enterprise.
3. Cooperative.
4. Limited Liability Company.
5. Private enterprise.

In today’s article, I decided to touch on a very important topic – LLC registration (Czech. společnost s ručením omezeným or s.r.o.) in the Czech Republic for those who prefer to open an LLC. Based on personal experience and regulatory documents on the Internet, I have compiled the most complete picture of opening a company in the Czech Republic as of 2017, taking into account new laws relating to companies. The article will be useful both for those who are just planning to move to the Czech Republic on the basis of an entrepreneurial residence permit, and for those who already live in the Czech Republic and want to organize their own business here.

Czechs are always trying to simplify the procedure for opening companies, because... at the moment this is a very labor-intensive process with visits to a bunch of authorities. In the future, of all the authorities required to visit when opening a company, it is planned to leave only the notary. However, at present, in addition to the notary, a visit to both the Commercial Court and the Business Office is mandatory. To open a company on your own, you need to run a lot.

On average, it takes about 19 days to open a company. I would like to immediately warn you: if you do not speak the Czech language sufficiently to open a company on your own, it would be better for you to turn to the services of one of the intermediary companies. Opening a company abroad is very, very serious; if you misunderstand something or do not provide the necessary documents on time, this may entail serious sanctions. Ignorance of Czech laws will not exempt you from liability, so once again, be careful.

Why do you need a company in the Czech Republic?

A company in the Czech Republic is necessary in order to open a representative office of a Russian company to conduct commercial activities in Europe. For example, if you want to sell a product, then it is more profitable to open a distribution company here - the Czech Republic is well suited for this, because doing business in the Czech Republic is easier than in Germany or France. By the way, the majority of LLCs in the Czech Republic among foreigners are owned by Russians, Slovaks and Germans.

Why is it profitable to open a company in the Czech Republic?

• A meager amount of minimum starting capital: only 1 CZK. The minimum starting capital for a similar company in Germany is 25,000 Euros, in Austria – 10,000 Euros, in Slovakia – 5,000 Euros.
• Possibility of opening a company without providing state registration. business plan authorities.
• Cheap service of the company in comparison with Germany, Italy and other advanced European countries.
• Possibility of obtaining a residence permit in the Czech Republic for 1-2 years for conducting business activities for directors of a company, followed by no travel outside the Czech Republic.

So, where to start when opening a company?

1. Choosing a company name

The name of your company should not be the same as the names of existing companies. You can check the uniqueness of your name on the website Overovac.cz.

2. Finding a legal address

If you have real estate in Prague, then you can register a company at the address of your apartment/house. If you don’t have it, you can use the service of purchasing a legal address for 1 year or more. Prices for this service range from 200 to 800 Euros.

3. Determination of the type of activity.

There are different types of activities: some require confirmation of your qualifications, others do not. You can check which category the type of activity you plan to carry out belongs to by following the link.

4. Selection of directors and founders of the company

It is not recommended to appoint more than 3-4 directors in one company. The director of the company (jednatel) must be over 18 years old, have no criminal record and no debt obligations in relation to the state. authorities of the Czech Republic. In addition to the directors of the company, the company has founders (společník) with different shares of participation in the start-up capital of the company. The number of founders in a company can vary from 1 to 50.

Until 2014, the mandatory starting capital of an LLC in the Czech Republic had to be at least 200,000 CZK. Now this rule has been abolished, and the starting capital of a company can be only 1 CZK if there is 1 founder in the company, which in many ways makes life easier for those who want to start a business in the Czech Republic. However, if you really plan to do business in the Czech Republic with your company, Czech lawyers strongly recommend that the starting capital be at least 100,000 CZK. In the Czech Republic, all data on companies, including the amount of their start-up capital, is available online. Think for yourself, would you choose a company with 1 CZK of start-up capital as your partner?

5. Opening a company with a Czech notary

You will need to have the following documents with you:

• Request for registration in the trade register (návrh na zápis do obchodního rejstříku), which you fill out and print on the Justice.cz website using the following link. The request must bear the certified signature of the person who signed it. The signature is certified by a notary or by the Czech post office.
• Statement from the director and his consent to be included in the commercial register (č estné prohlášení jednatele a souhlas se zapisem do obchodního rejstříku). If there are several directors in a company, an application from each of them is required.
• Certificate of good conduct (výpis z rejstříku trestů) of all directors of the company, translated into Czech and certified by a Czech court translator.

• Consent of the property owner to provide you with a legal address (souhlas vlastníka s umístěním sídla). It is drawn up in free form and certified by a notary or by post. If you yourself are the owner of a residential premises where you will have a legal address, then you still draw up such a document. The deadline for issuing consent is no later than 3 months before the date of submission.

• Application for depositing the amount of start-up capital (prohlášení správce vkladu).
• List of selected activities of the company.
• Passports of all directors, in case of opening a company by proxy - a copy of the directors’ passports.

The notary will draw up and issue it to you, the text of which will set out the Partnership Agreement (společenská smlouva) indicating the directors of the company, founders, the contribution of each of them and other issues. One copy of the Partnership Agreement will cost you 3,000 – 4,000 CZK depending on the number of pages. If you wish, you can order 1 more copy, for which you will also pay.

6. Registration of a company with the Office of Business Activities (živnostenský úřad)

A complete list of departments in the Czech Republic and their operating hours can be viewed. You need to have with you:

• Notarial deed (notářský zápis)
• Consent of the property owner to provide you with a legal address (souhlas vlastníka s umístěním sídla).
• Passport.
• If the activity you have chosen is classified as licensed or craft, you will need to provide documents confirming your right to carry out this type of activity (certificates, diplomas, etc.). As a rule, the majority choose free activities that do not require proof of your qualifications (this includes, for example, wholesale and retail trade, provision of hotel services, hosting, IT consulting, translation and teaching of language courses, provision of services real estate agent, etc.).

Registration fee is CZK 1,000. Registration will take about 1 week, after which you will receive a registration confirmation.

7. Depositing the starting capital amount into the bank

Bring your passport and a copy of the notarial deed with you. After this, the bank will issue you the confirmation necessary to register the company with the Commercial Court. An overview of Czech banks can be found in our article.

8. Registration of a company in a commercial court

The Commercial Court (Městský soud) in Prague is located at Slezská 2000/9, 120 00 Praha 2. The cost of registering a company with the Commercial Court is CZK 6,000. Have the following documents with you:

• All documents that you took to the notary.
• Notarial deed (notářský zápis)
• Confirmation from the bank that the amount of starting capital has been deposited.
• Certificate of registration with the Office of Business Activities (výpis z živnostenského rejstříku).

The decision to register a company comes in about 7 - 10 days.

8. Registration of a company with the Tax Office (Finanční úřad)

A complete list of tax offices in the Czech Republic and their opening hours can be viewed. The company is registered with the tax office located at its legal address. After this, you will receive a registration notification by email within 1-2 weeks with a TIN number assigned to you. A company, depending on its turnover, may or may not be a VAT payer. You should discuss these nuances in detail with your accountant in the Czech Republic. A general idea of ​​taxes in the Czech Republic can be obtained from our article.

This completes the registration of the company in the Czech Republic. However, if you want to hire employees for your company, you will also have to register with the Pension Fund and Health Insurance Company. Each case is individual, and the steps I discussed relate only to the basic opening of a company.

What is important to consider when opening a company in the Czech Republic:

• The mere fact that you are a director in your own Czech company does not give you the right to work in your own company. In fact, you can only put signatures on documents and contracts of your company. If you want to work in your own company, you will have to enter into a contract with yourself, the types of which I wrote in detail in the article, or apply for a job in your own company - by submitting an official request to the Labor Exchange (Úřad práce).
• You are required to submit an annual report annually to the Internal Revenue Service (by March 31) and, if you have employees, to the Pension Fund and Health Insurance Company. Scans of the annual report must be posted on the Justice.cz website. Failure to comply with this duty will result in huge fines!
• The previously practiced topic with companies with zero turnover, for which it was possible to obtain a residence permit in the Czech Republic without any problems, has now been canceled. At the moment, if you are planning to obtain a residence permit based on a company in the Czech Republic, you need to be active: enter into agreements with other companies, have receipts in your account. In addition, it is mandatory to conclude with you, as a director, an Agreement for the performance of the functions of a director of the company (Smlouva o výkonu funkce jednatele) with the payment of a certain amount of remuneration (which will be determined by your accountant). In addition, you cannot do without monthly contributions to the Pension Fund and the Health Insurance Company: the minimum they total is about 4,700 CZK per month.
• If your company is a VAT payer, you can buy various goods with it without paying VAT on them.

Liquidation of a company in the Czech Republic

Due to the economic crisis in Russia and the strong fall of the ruble against the Euro, many people who previously opened a company in the Czech Republic may think about liquidating it. You should think about liquidating a company in the Czech Republic in the following cases:

• You have a non-working “zero” company that you don’t really need.
• Neither you nor your relatives are planning to immigrate to the Czech Republic on the basis of entrepreneurship, and you do not need additional costs for maintaining accounting records, maintaining a legal address and submitting annual reports.
• You are not in the Czech Republic and physically cannot control the reporting of your company. As I said above, ignorance of Czech laws does not exempt you from responsibility, and you can run into a fine even if your company does not conduct any activities at all.

In the event of liquidation of the company, all obligations will be removed from you, and you will no longer owe anyone any money. It’s not easy to understand the process of liquidating a company on your own, so it’s better to turn to professionals to make sure you don’t leave any tails.

In 2019, the Czech Republic took 30th place among 190 countries in the world in the “Favorable conditions for doing business” rating (data from the Doing business agency). The country's economy is actively developing and attracting investors from around the world. If you are engaged in entrepreneurship and want to expand your business, you will be interested to know how you can open a business in the Czech Republic.

Why is it profitable to do business in the Czech Republic?

In the Czech Republic there are no restrictions for foreign citizens to open a business. Foreign entrepreneurs enjoy the same rights and conditions for doing business as Czech citizens.

The Czech Republic, as an EU country, offers many advantages for business people. Private enterprises are very common here, the legislative framework for entrepreneurial activity is comfortable and transparent, so creating and registering a company is not difficult. The level of corruption and crime is low, the tax system is loyal. It is easy to get a loan from a bank for the development of an enterprise, and loan rates are low.

The Czech Republic's membership in the Schengen area makes it possible to cooperate with suppliers and clients from other countries of the European Union, receive subsidies and benefits, and use European investment programs.

Neighborhood with Germany, Austria, Poland, and Slovakia significantly expands the potential market for goods and services.

A foreign owner of a company in the Czech Republic can apply for a long-term visa, and in the future, a residence permit and Czech citizenship.

Business formats

Different formats of entrepreneurial activity are widespread in the Czech Republic. You can act as a private entrepreneur, open a cooperative or public trading enterprise, register a limited liability company (LLC) or a joint stock company (JSC).

According to Czech laws, an LLC can have only one founder, this greatly facilitates the initial stage of entrepreneurial activity.

If you want to open your own business in the Czech Republic or you have a business in Russia and you plan to establish a representative office of your company in this country, then the first step should be to register the enterprise.

How to register a company yourself

To open a business in the Czech Republic, you need to meet the following requirements:

• Age over 18 years.
• Legal capacity.
• No criminal record and no debt to tax authorities.
• Profile education and confirmation of qualifications in the chosen industry (for types of activities that are subject to licensing in the Czech Republic).

The requirements for Russians who are going to open a business in the Czech Republic are the same as for Czech citizens.

The business registration program in the Czech Republic can be divided into preparatory and main stages. To get started you need:

1. Select a field of activity. Some types of business in the Czech Republic require licensing, while others can be operated without a license. Sometimes certain conditions must be met to obtain a license. For example, tour operators must have a higher specialized education and at least 6 years of experience in this field. If you do not meet the necessary requirements, you will have to find a co-founder or director who has the necessary education and experience.
2. Choose a name for the company. It must be unique and not coincide with the names of existing Czech companies. You can check the originality of the name for free on the website Overovac.cz. 3-4 options are submitted for approval.
3. Select the legal address of the company. If you have a house or apartment in the Czech Republic, you can register a company at your home address. If not, then you can use the address of your rented house, apartment or industrial premises as a legal address. This will require the notarized consent of the owner. In the Czech Republic, services are provided for renting a legal address; it will cost 200-800 euros for one year.
4. Decide on the division of powers. Any enterprise must have a founder (společník) and a director (jednatel). When opening a private business or limited liability company, the founder and at the same time the director can be one person. The company is allowed to have from 1 to 50 founders with different shares of contributed starting capital and several directors (depending on production needs).
5. Determine the size of the authorized capital. Since 2014, a law was passed in the Czech Republic according to which a company with one founder can have an authorized capital of 1 crown. But if you really want to engage in business and expect to be taken seriously, the size of the authorized capital must correspond to the type of activity. A company is considered trustworthy if its authorized capital is at least CZK 100,000 (EUR 3,850).

Main stage of registration:

1. Register your company with a notary (Notářský zápis). The cost of the service is about 3000-4000 CZK.
2. Register the company with the Business Administration. (živnostenský úřad).
3. Open a temporary bank account and deposit authorized capital into it. Once the company registration is approved by the Commercial Court, the temporary account is closed and a permanent account is opened.
4. Submit documents for company registration to the city Commercial Court (Městský soud).
5. Register a company with the Tax Office (Finanční úřad). To do this, you must contact the territorial office at your legal address. The application review period is 7-14 days. Your company will receive an individual taxpayer legal entity number.

If you are both the founder and director of a company, you need to draw up documents that will allow you to perform the duties of a director in your own company. This can be done using a contract or registering yourself as a hired employee.


If you employ employees (including yourself), you must register with the Social Security Administration as an employer and obtain health insurance for your employees.

Documents required to register a business in the Czech Republic

To register a company with a notary, you will need the following documents:

• Copies of passports of all founders and directors (for foreigners - foreign passports and the page of the national passport on which the registration address at the permanent place of residence is indicated).
• Certificates of good conduct of founders and directors (výpis z rejstříku trestů). Foreign applicants must receive the certificate in their home country no more than 2 months before submitting it to the notary. In the Czech Republic, it will need to be translated into Czech and certified by a court translator. In addition, it is necessary, based on a copy of the birth certificate, to obtain a certificate of no criminal record in the Czech Republic.
• Statement from each director of the company (čestné prohlášení jednatele a souhlas se zápisem do obchodního rejstříku) with consent to their inclusion in the commercial register.
• Consent of the owner of the premises you rent to register the company's legal address (souhlas vlastníka s umístěním sídla). If you yourself are the owner of the property, then you draw up this document on your own behalf. The application is written in free form and certified by a notary.
• Request for registration in the commercial register (návrh na zápis do obchodního rejstříku). To submit it, you need to go to the website, fill out the electronic form, print it, sign and have the signature certified by a notary.
• Application for depositing the amount of starting capital (prohlášení správce vkladu).
• List of statutory activities of the company.

Based on the submitted documents, the notary will issue you a notarial deed (notářský zápis). The document indicates the founders and directors of the company, the monetary contribution of each of them and other issues related to the activities of the company. Registration takes no more than 1 working day and costs from 3000 to 4000 CZK (115-154 euros).

To register a company with the Business Administration (živnostenský úřad), you must provide:

• Passport.
• Notarial deed (notářský zápis).
• Consent of the property owner who provides the legal address (souhlas vlastníka s umístěním sídla).
• If the business you plan to engage in requires licensing, you need to provide originals and copies of documents that confirm your qualifications and work experience (education diplomas, certificates of completion of training courses, certificates of work in this field, etc.). A big plus will be documents that confirm the history of your successful business in the past.

The fee is 1000 CZK, registration takes place within 5-7 days.

To open an account in a Czech bank and deposit authorized capital, you must have your passport and a copy of the notarial deed with you. The bank will issue you a certificate for the Commercial Court.

To register a company with the Commercial Court, you must bring:

• all the documents that you provided to the notary,
• notarial deed (notářský zápis),
• certificate of registration with the Office of Business Activities (výpis z živnostenského rejstříku),
• a certificate from the bank confirming the contribution of the authorized capital,
• receipt of payment of the court fee (6000 CZK).

The application is reviewed within 7-10 days.

Registration of a company with the Tax Administration and the Register of Employers, registration of health insurance for employees is done online and does not require much time.

Opening a company in the Czech Republic takes about 20 days.

The annual report is submitted to the Tax Administration by March 31. You must post scans of the report on the Justice.cz website. Failure to do so will result in heavy fines.

When the company registration is completed, you can apply for a long-term business visa to the Czech Republic (type D). It allows you to stay in the Czech Republic for more than 90 days.

When the visa expires, you can obtain a residence permit in the Czech Republic for a period of 2 years.

After 5 years of residence in the Czech Republic, you have the right to receive a permanent residence permit (permanent residence in the Czech Republic), and after another 5 years - Czech citizenship.

Purchase of a company in the Czech Republic

If you do not like bureaucratic procedures or live outside the Czech Republic, you can entrust the opening of a company to an intermediary company. You provide the dealer with a power of attorney, all the necessary documents and instructions regarding the charter of the future enterprise, and after 3 weeks you receive a company registered in your name.


In addition, you can buy an already opened and registered company, which has a legal address, authorized capital and is included in the Czech tax register. When re-registering a company, you can change its name, registered activities, founders and directors. The re-registration period is about 10 days.

What taxes are paid in the Czech Republic?

Czech taxation follows the pan-European model. Main types of taxes in the Czech Republic:

• Income tax. The base rate is 19%. For investment funds, a reduced rate (5%) may be used.
• Income tax. 15% is charged on any individual income. A tax return must be submitted not only to Czech citizens, but also to foreigners if they spent more than 183 days in the Czech Republic (continuously or intermittently). Tax is charged if your total annual income exceeds 15 thousand CZK (577 euros).
• VAT. Basic rate – 21%, reduced – 15 or 10%. Reduced rates are used if you produce food, medical equipment for the disabled, child seats, pharmaceutical products, books. Some types of medical and other services are exempt from VAT.
• Environmental tax.
• Property tax.
• Excise duty (on excisable goods).
• Transport tax.

What kind of business is profitable to do in the Czech Republic?

Serving tourists is one of the most popular areas for foreign entrepreneurs. Travelers can be provided with accommodation services (hotels, family boarding houses), food (cafes and restaurants), organize excursions around the country (travel agencies), and sell souvenirs.

Among the guests of the Czech Republic, car rental, taxi and transfer services, leisure activities (clubs, entertainment), fitness and the beauty industry are in demand. Tourists coming from Russia willingly turn to the companies of their compatriots, where they are served in their native language.

But it should be taken into account that the level of profitability of this type of business directly depends on its location. The tourism business in Prague and other large cities is always profitable, but in the periphery the income may be small.

The Czech Republic produces high-quality and inexpensive goods that can be profitably exported to other countries.

Czech and European cars are popular in Russia, and art products made from Czech glass are in demand in European countries.

Importing goods to the Czech Republic will also allow you to make a good profit if you are able to offer something useful and original with the prospect of expanding not only to the Czech Republic, but also to neighboring countries.

Conclusion

Doing business in the Czech Republic is profitable and convenient. This country has created favorable conditions for private entrepreneurship, and the size of the authorized capital is the lowest in Europe - only 1 crown. You can register a company yourself in 3 weeks, spending 420-500 euros. You can also buy an already opened company, spending 10 days on its re-registration. Prices are as of August 2019.

How to open a company in the Czech Republic: Video

Over the past few years, it has been profitable and easy for foreign entrepreneurs to invest money in the Czech economy and sell it in the Czech Republic. A transparent system of administrative and economic relations allows a business to limit itself to only the most necessary documents and at the same time be protected. In addition, the additional preferences that the Czech state provides to foreigners working for the benefit of the Czechs make business in the Czech Republic not only economically attractive, but also promising in terms of moving the entire entrepreneur’s family to one of the most stable European countries.

How to open a company in the Czech Republic

Opening a company in the Czech Republic is as easy for a foreigner as for a Czech. To do this, you need to decide on the organizational and legal form of the future enterprise (individual entrepreneur - živnostník or limited liability company - společnost s ručením omezeným), collect documents confirming that the founder of the company was not prosecuted in the countries of which he was a citizen. You also need to make an official translation into Czech of identity documents and confirming the presence of specialized education and work experience as an entrepreneur.

Registering a company in the Czech Republic from scratch takes about a month. The longest period is waiting for a response from the Russian authorities about the applicant’s lack of criminal record in Russia. The Czech authorities also require a certificate of no criminal record in the Czech Republic; this document can be ordered online, and the electronic version of the certificate has the force of the original.

Only an entrepreneur who has an excellent command of the Czech language can independently register a business. If there is no such knowledge, then you cannot do without the services of a specialized company.

A consulting company that registers companies in the Czech Republic can be found either via the Internet or on the recommendation of specialists from the Czech consulate. The cost of services is approximately the same for all agents: about 300 euros for registration of an entrepreneur (živnostník) and about 1000 euros for registration of a limited liability company (společnost s ručením omezeným).

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Features of Czech organizational and legal forms

Despite the fact that it is much cheaper to open a company in the Czech Republic on the basis of individual entrepreneurship, experts do not advise choosing this particular organizational and legal form for those Russians who do not plan to permanently stay in the territory of this country, but want to spend more time in Russia. This recommendation is due to the fact that the entrepreneur is obliged to independently pay for year-round commercial health insurance and be responsible for his business obligations with all personal property.

To avoid unnecessary costs and risks, Russians are recommended to become founders of a Czech limited liability company (společnost s ručením omezeným). Until recently, this was difficult due to the need to form a significant authorized capital, but since 2014 it has been possible to register a company in the Czech Republic on the basis of an LLC with an authorized capital of 1 crown.

How to choose a type of activity

Business in the Czech Republic for Russians is actually not burdened with legislative or administrative prohibitions. But there are a number of other restrictions that complicate the work of investors. One of the main difficulties is the language barrier, and the second is a lack of understanding of the business culture and customs of the Czechs. These circumstances make it difficult to create large engineering or manufacturing enterprises. Therefore, Russian businessmen place the main emphasis on the service sector and trade.

To engage in these types of activities, an entrepreneur must obtain a license (entrepreneurial permit) from the Czech authorities. In some cases, a license is issued only on the basis of an application:

• trade;
• sewing workshop;
• rental of real estate (see);
• hotel services;
• etc.

The list is quite extensive; it can be found in consulting firms that provide business registration services in the Czech Republic.

But there is also a category of companies that, in order to issue a license, need to confirm the presence of employees with specialized education and practical experience in the profile chosen to obtain a license. Such a license is called a permissive license.

A permit to open a business in the Czech Republic will be required for the following types of activities:

• cosmetic and hairdressing services;
• catering establishments;
• Jewelry repair shop;
• solarium, etc.

A full list of areas of work can also be studied at a consulting firm.

Minimum starting capital and business maintenance

Renting profitable commercial space in the Czech Republic costs about 10 euros per square meter. That is, for a small store with an area of ​​50 square meters. m will need to pay about 500 euros per month. Taking into account the mandatory contribution at the start of a business project, you will need to pay about 1,500 euros. A set of commercial equipment will cost 1,000 euros. Advertising services (signboards, signs, publications in local media) in the Czech Republic are not cheap. The minimum advertising budget is about 2,000 euros.

For a store to make a profit of at least 1,000 euros, it must have goods worth 10,000 euros. In total, the launch of a small store with a sales area of ​​about 30 sq. m will cost at least 15,000 euros.

If an entrepreneur intends to buy commercial real estate, he should expect that one meter of good space for sale costs about 2,600 thousand euros. Monthly costs for running a store in the Czech Republic (excluding purchasing costs) are about 700 euros.

Financial results and additional prospects

The Czech Republic is a country with a very developed market for goods and services. Therefore, an entrepreneur, before opening a company in the Czech Republic, must prepare to work in a highly competitive environment.

To stay afloat, you will have to reduce the markup and invest more money not in personal well-being, but in improving the quality of services. If the average return on sales for retail enterprises in Russia is about 25%, then for a Czech retail outlet it is 10%. According to reviews from active entrepreneurs, such profits are quite enough for a comfortable and quiet stay in the Czech Republic.

The average payback period for a store is about 1.5 years.

Additional opportunities for entrepreneurship in the Czech Republic include the right of an entrepreneur to apply for a residence permit, and in the future, citizenship in the Czech Republic, as well as the right to move his family to the Czech Republic. Moreover, to obtain citizenship you do not need to purchase real estate or invest significant funds. A small business is enough even in rented space.

Conclusion

Before thinking about opening a business in the Czech Republic, it is necessary to study in as much detail as possible the market for the goods and services that the entrepreneur plans to offer to clients. For these purposes, it is best to order a marketing research, since independent trips, even with a translator and guide, will not be able to give a complete picture of work on the Czech market.

Every person, no matter what country in the world he is in, is looking for ways to make money. As you know, one of the best jobs is working for yourself, i.e. entrepreneurship. Many people who moved to the Czech Republic from the CIS countries are looking for niches to start their own business.

The first thing that any person from the CIS should understand is that business in the Czech Republic, as in any other European country, is very different from Ukrainian and Russian.

Where to start opening your own business?

Of course, the first thing a novice businessman will face is the need to register with government agencies. In the Czech Republic, registering your business is much easier than in Russia. This will require a little time and a small authorized capital. Since 2014, the Czech government decided that the authorized capital for opening an LLC can start from one crown. After the authorized capital has been formed, you must contact a notary to draw up the required documents. After this, you must submit the application and documents to the Commercial Court. Employees of the Commercial Court check the correctness of the completed application and the authenticity of the submitted documents, after which they register the new entrepreneur.

In addition, before filing an application with the Commercial Court, you should decide on the form of business. The most common forms of business in the Czech Republic are s.r.o. (LLC) and živnostník (individual entrepreneur). As a rule, a limited liability company is formed if the company will employ several employees who do not have blood ties to the owner of the business. An individual entrepreneur is registered in the case when the owner and employee of the company are the same person.

What types of business are the most common in the Czech Republic?

As in any country in the world, the most profitable areas of business can be identified in the Czech Republic. These include:

• hotel business;
• souvenir;
• tourist;
• restaurant;
• pharmacy;
• building;
• veterinary;

No less profitable are:

• real estate agency;
• beauty salons, hairdressers, spas and fitness centers;
• online stores;
• taxi and car rental services;
• trade in essential products;
• so-called "bottle openers".

It is worth noting that almost all of the above areas of business are family-owned. As a rule, members of the same family both manage and work at the company. It is quite difficult to get into such a company from the outside. At the same time, the income of such companies is not significant if we compare it with the income of similar companies in large cities of Russia. As a rule, in Russia the above-mentioned areas of business “emerge” in Moscow, and then grow throughout the country’s major cities in the form of branches. In the Czech Republic, business is usually tied to one city. It is very rare that business owners in Prague decide to develop and expand it in another city.

What business should not be opened in the Czech Republic?

In the Czech Republic, as in any country, there are business areas that have already filled the entire market with their offers. So, the most failed businesses in the Czech Republic.

Catering business. Many people who come to the Czech Republic to open a business naively believe that this business will bring them a lot of money. Actually this is not true. And this statement has been proven more than once by many people. Every day a new restaurant, cafe, or beer bar opens in this country, despite the fact that there are a great many similar establishments in this country. This situation is due to the fact that renting a restaurant or cafe in the Czech Republic is very simple and inexpensive. It is enough just to pay a low rent and “compensation” to the owner or former tenant. But it is unprofitable establishments that are rented out, as a rule, those that have an unfavorable location. In addition, many visitors decide that this business will bring them profit, because... they have a brilliant idea - to open a restaurant serving Russian or Ukrainian cuisine in the Czech Republic. This idea is a failure, because... Czechs prefer national and European cuisine; they often give preference to Chinese fast foods.

Hotel business. Another unsuccessful niche for starting a business in the Czech Republic. And this despite the fact that this country has a huge number of interesting historical places and a large influx of tourists. There are a lot of expensive hotels and boarding houses in the Czech Republic that cope with the influx of tourists. If the problem of high competition does not frighten you, then it is worth noting that maintaining a hotel and restaurant business is quite difficult. Constant advertising is needed to attract tourists who can offset the costs of maintaining the hotel and paying utility bills, which are very high in this country.

Openers and real estate agencies. A peculiar business in which Russians, Ukrainians and other residents of the CIS have been employed for a long time. The essence of this business was to open a company to help Russian-speaking immigrants. The assistance consisted of collecting various documents, issuing invitations and assistance in opening companies. Today this business is not as in demand as it was 15-20 years ago, when there was a large influx of Russian-speaking immigrants in the Czech Republic. Today, many of these firms have retrained themselves as real estate agencies. There are also a huge number of disadvantages in this area. Firstly, the work is hard and thankless. Secondly, high competition. Thirdly, in the Czech Republic there are a number of large agencies that are known throughout the country. As a rule, Czechs turn to already proven large agencies that have been working in this area for several years and have managed to establish themselves.

Construction stores. Like all Europeans, Czechs are careful with their money. As a rule, Czechs with an average income make repairs in their apartments themselves, and they prefer to buy goods for repairs as cheaply as possible from the local Hornbach. It is worth noting that in this area it is very difficult to compete with large brands that have captured a significant part of the construction market. Such brands include Hornbach, Obi and Baumax.

Renting out real estate. This type of business is very popular in Moscow and Kyiv. Very often, with the money received from renting out an apartment or office, Muscovites and Kiev residents can live for a month without going to work. This will not work in the Czech Republic. This can be easily argued. As a rule, a two-room apartment with good furniture and new appliances near the center of Prague can be rented for a maximum of 12,000 CZK. It would seem that the money is not small. But! Please note that the rental price usually already includes payment for utilities. And utilities in the Czech Republic are very expensive. So, for 1 kilowatt/hour of electricity, Czechs pay 0.32 euros. Gas and water prices are also high. If you deduct utility fees, the actual rent for a two-room apartment is a maximum of 8,000 CZK. Do not forget that you must pay taxes on this money, which amount to 15%. You should also set aside something for depreciation of the apartment. Therefore, there is very little real income left. In addition, the demand for rental housing in the Czech Republic is constantly decreasing. This is due to the fact that people prefer to take out a mortgage, the rate of which is quite low (2-4%). It is worth noting that according to the laws of the Czech Republic, even people without permanent residence in the territory of this state can also take out a mortgage. At the same time, the mortgage rate can reach a maximum of 6%, and in order to obtain a housing loan, it is enough to provide documents on income in the Czech Republic.

Occult services, withdrawal from binge drinking. This area of ​​business is the most disastrous. And this is not related to high competition or state policy. It's all about the mentality of the Czechs. You rarely see a drunk person here, and no one needs to remove the evil eye. In addition, Czechs value their money and will definitely not spend it on fortune-telling using coffee grounds. It is worth noting: as soon as immigrants from the CIS come to the Czech Republic and start earning money, their attitude towards them immediately changes. Therefore, even immigrants are not ready to spend their money on fortune telling, recovery from binge drinking and other occult services.

Features of business in the Czech Republic

Since the Czech Republic is a European country, it is characterized by a number of features of doing business that are not paid due attention to in Russia.
The first thing Europeans pay attention to when purchasing any product is the brand. In the Czech Republic, buyers carefully study information about the company and are interested in reviews from people who use the products of this brand. An equally important factor is the length of time a given company has been operating in a particular area. As a rule, if the product meets the needs and expectations of the buyer, then the person will order goods from this company on an ongoing basis. Czechs react to the emergence of new brands with caution and distrust. Therefore, it is quite difficult to compete with brands and companies already known in the Czech Republic.

Before you start your business in the Czech Republic, you should remember: Czechs are Europeans. And like all Europeans, they are characterized by practicality and economy. Even wealthy Czechs will not spend their money on Italian diamond panels or gold toilets. Therefore, in order to open a profitable business in this country, you should adapt to the mentality of its citizens.

High competition is another characteristic of business in the Czech Republic. If in Russia and Ukraine there are niches in which you can organize a profitable business and own it for a long time without problems, then in Europe this is problematic. This is due to the fact that all profitable areas of business in Europe are already occupied and there is quite tough competition here. You can go broke at any time. Therefore, European businessmen always follow new products, look for new ways to implement their plans and always keep up with the times.

An equally important feature of Europeans is the careful weighing of all information about the selected products. Thanks to the Internet, Europeans can easily identify an unscrupulous manufacturer and find the required product cheaper. Almost all Czechs, after purchasing any product or service, consider it a matter of honor to write their reviews.

Those who decide to open a business in the Czech Republic should also pay special attention to service and customer care. Everything here should be at its best. Europeans appreciate being greeted with a smile on their face. A friendly attitude is considered the responsibility of every hairdresser, salesperson, and massage therapist. Very often, Europeans harass sellers with their questions about the product and numerous fittings. They need complete information about the product they will buy. Often this is a simple test of the seller’s endurance and friendly attitude. Typically, novice entrepreneurs from the CIS countries do not take this point into account, and, as a rule, are inferior to European businessmen in terms of quality of service.

What are the main mistakes that occur when starting a business in the Czech Republic?

As a rule, many beginning entrepreneurs, coming to the Czech Republic, hope to buy a ready-made business that will generate a stable income. If in Russia this option is rare, but it can be, then in Europe this is excluded. Not a single European with a profitable business will sell it. If a European offers to sell a profitable business, then there is a problem with this business. No one can create a highly profitable business for you.

Another mistake is ignorance and misunderstanding of the mentality of Europeans. This nation values ​​its money and its time very much. If they are offered low-quality products, they will not give a second chance. The expression “the customer is always right” perfectly describes the requirements of Europeans for service and quality of service. If you are not sure that you are ready to greet the buyer with a smile, then you should not waste your time and money on opening a business in Europe.

In order to become a successful entrepreneur in the Czech Republic, you need to thoroughly study not only profitable areas of business, but also the country itself, its customs and people.