Own your business in the Czech Republic. How to open a company in the Czech Republic, detailed instructions Popular types of business in Prague

Private entrepreneurs from abroad are attracted to this Central European country not only by its excellent reputation, but also by its stable economy and low starting capital threshold. Foreign business in the Czech Republic has government support and comfortable conditions have been created for it. Who can register a company, in which area it is preferable to open a business, and other important topics are covered in this article.

A high level of comfort, developed infrastructure, and affordable medicine attract immigrants to the country. ? The average salary in the republic is slightly lower than in Germany or Austria, but prices for food and housing are significantly lower. The country has free education, and local universities issue diplomas recognized in any EU state.

It is not surprising that many citizens of the post-Soviet countries would like to. Our compatriots are also attracted by the fact that the republic is located in the center of Europe. This allows you to get to your home country extremely quickly if necessary.

One of the ways to get legalized here is business immigration to the Czech Republic. It must be emphasized that it is a rule-of-law state, and that is why entrepreneurs here are comfortable both from an economic and social point of view. In addition, international exhibitions with the participation of representatives of the world's largest companies are regularly held in major cities.

In order to open a business here, a Russian first of all needs a business visa. This long-term permit is issued at the Czech diplomatic mission in the Russian Federation. It is worth understanding in more detail how to proceed competently and what a future businessman needs to know.

How to register a company

Doing business in the Czech Republic is easier than in Germany or Austria, which is why there are many Russians among the local owners of firms and companies. Investments in the opening amount to a symbolic value of 1 crown, although back in 2014 the amount of start-up capital started from 200 thousand. Servicing the company will cost less than in other advanced European countries. Opening a company in the Czech Republic for Russians in 2019 is allowed without submitting a business plan to the authorized agency for approval. What do you need to register your business in the country? Is it possible for a citizen of another country to purchase a ready-made company?

Requirements for a candidate

A foreigner who decides to open a business in the Czech Republic must:

• be of legal age;
• to be capable;
• have no criminal record or other problems with the law either in the Russian Federation or in the Czech Republic;
• have no debts to government agencies of the republic.

Knowledge of the Czech language is not mandatory for an entrepreneur, but if he is going to register a company on his own, then it is necessary.

Submission of documents

Company registration is carried out with a local notary. To do this, you need to prepare a set of papers:

• passport (original and copy);
• birth certificate;
• paper about no criminal record;
• proposed company name;
• amount of authorized capital;
• document confirming the applicant’s qualifications;
• information about the director and founders;
• address, lease agreement for the premises where the registered company will be located;
• business license.

The certificate of good conduct is certified by a court interpreter. After visiting a notary with the received deed, passport, document with the consent of the owner of the premises, license (if required), you should register in the Register of Entrepreneurs. After this, the authorized capital is formed - the required amount is deposited into the bank and an account is opened. Registration is carried out in the Trade Register. At the final stage, an application for registration is submitted to the tax office (Finanční úřad).

Obtaining a license

This can be done in the department for business activities (Živnostenský úřad), which are located in almost every locality of the republic. Licenses can be free (simple) or bundled. If you need to register a company in Prague or another city in the Czech Republic, the first type of license will be required. Issued under the following conditions.

1. An application filled out on a special form is submitted to the structural unit of the local government authority.
2. You must also have a lease agreement or proof of ownership of the premises.
3. The package of materials must contain an extract from the Trade Register with a registration date within the next three months.
4. Foundation agreement with fixed types of activities requiring a license.
5. A fee is paid. The size depends on the area of ​​entrepreneurship of the future company (production, commercial, financial).

When there are no complaints about the submitted papers, a license will be issued after 2 weeks. The validity period of the document is not limited. A related type of such permit is of two types: professional and concession licenses. The first option can be purchased by a foreigner with a residence permit who has a diploma in a specialty corresponding to the chosen profile of activity, qualifications and work experience. The issuance of concession permits is regulated by the state and requires obtaining a license from a higher organization, such as: State Energy Inspectorate, Ministry of Industry and Trade, Ministry of Agriculture.

When a license is not needed

There is no need to draw up special paperwork if the company is engaged in leasing its own real estate. But it should be noted that many companies registered by entrepreneurs from the Russian Federation indicate precisely this type of activity. This can have negative consequences, since migration officials often begin to doubt the true goals of the foreigner. As a result, you may be refused to grant or extend a residence permit.

What forms of ownership exist

In the Czech Republic, as in many other European countries, the most common is LLC - limited liability company. Let us list the main characteristics of such an economic entity.

1. It is enough to have one founder.
2. The number of shareholders is not limited.
3. The size of the authorized capital is 1 crown.
4. There are no restrictions on the maximum possible shareholding.
5. An individual or legal entity and not only a citizen of the republic, but also a foreigner can become a founder in the Czech Republic.

This form is used by small and medium businesses. As in Russia, the second most popular type is the joint stock company. Unlike an LLC, the minimum authorized capital is 80 thousand euros. In addition to the indicated forms of ownership, business is conducted in the republic in the form of private enterprises, public trading companies, and cooperatives.

Tax policy of the country

The system in force in the Czech Republic is oriented towards European Union standards. Each type of monetary collection is fixed in a specific legislative act. Business taxes in the Czech Republic are regulated and collected by the Ministry of Finance of the Republic and local subordinate structures. With proper business management, you can optimize costs, the rates of which in 2019 are as follows.

1. On profit with a base value of 19%. A reduced percentage applies to investment and pension funds – 5%. The declaration must be submitted within 3 months after the end of the reporting period. If a company has a zero balance, then this type of tax is not paid.
2. VAT with a base rate of 21%. For food production, book publishing, and medicine production, reduced rates are applied - 15 and 10%. Since 2016, a new law has come into force, according to which control reports on VAT are submitted monthly.
3. If an entrepreneur owns real estate, he must pay a tax, the amount of which depends on the area, method of use, and other characteristics of the property.

In addition to the above, in the Czech Republic there are monetary fees for value added, environmental, excise, road and others.

Popular types of business in the Czech Republic

When choosing a field of entrepreneurial activity, each person is guided by his own experience and financial capabilities. Beginners are recommended to engage in small forms, gradually expanding their business. There are a huge number of areas and areas of activity. If you have sufficient funds for investment, the win-win path is to open production using innovative technologies. The Czech Republic is export-oriented, so finding a market will not be difficult, and in the long term, profits in industry will be significantly higher than in the service sector. We will analyze what kind of business to open in the Czech Republic that is guaranteed to be profitable.

Tourist

This industry is the first one that comes to mind. Monuments of medieval architecture and ancient castles have been preserved in the cities of the republic. The Czech Republic has a rich cultural heritage. Despite the lack of access to the sea, there are many resorts, sanatoriums, and boarding houses.

Every year the country is visited by a huge number of travelers, pilgrims and vacationers from different countries. Various international exhibitions are constantly held here. It is obvious that business in the tourism industry in the center of Europe is quite promising. Moreover, this area is associated with transport, excursion services, food, entertainment, accommodation, transport rental, and equipment.

Export and import

Locally produced goods have high quality characteristics and reasonable prices. In many ways, they represent a “golden mean” between expensive products from Western EU countries and cheap, but problematic in properties, from the eastern countries of the commonwealth. Data on the export of goods from the republic is growing every year. Automotive products occupy the leading position.

If we talk about imports, a potential entrepreneur should keep in mind that the Czech market is balanced. Large foreign firms occupy a strong place here. It is possible to take a position among them only by making more favorable offers in terms of conditions and cost. In addition, it must be taken into account that the Czech Republic has a population of 10.5 million citizens and this factor limits the market for consumed services and goods. At the same time, it is possible to export from the territory of the republic to neighboring Slovakia, Poland, and Hungary.

Hotel and restaurant

In this case, one should take into account the fact that the flow of tourists in the Czech Republic is constantly growing, and the bulk of them go to Prague and other places not only for cultural experiences, but also for the purpose of entertainment. Tourists visit restaurants, cafes, and pubs. In addition, local residents also quite often allow themselves to spend an evening with their family in a cozy establishment. When deciding to open a restaurant, it is important to choose the location of the premises well in order to ensure good attendance. Hotels and guesthouses located in tourist areas, if properly organized, can bring good profits.

Acquisition of a ready-made business

Many foreigners are considering not creating their own company, but purchasing an existing one. Obviously, in this case the financial risks will be increased, but the benefits are also more significant. First of all, it saves time and increases the chances of obtaining a residence permit in the future.

Before you buy a ready-made business in the Czech Republic, you should soberly assess your capabilities. You need to understand that no one will sell a profitable company without compelling reasons. Often, in order to increase the price of their business, owners hide important points, masking problems under such common reasons:

• deterioration of health;
• moving to another city or country;
• family circumstances.

The right step in this case would be an assessment of the company by an independent expert company and a full audit of its activities.

Finally

Running your business in the Czech Republic, as in any other foreign country, is not so easy. You need to have a good understanding of local legislation and know the mentality of the population. Our compatriots should take into account that when purchasing products, Europeans pay attention to the brand. Buyers carefully study information about the manufacturer, consumer reviews, and experience in the stated field. New brands cause distrust among Czechs, so it will not be easy to compete with established companies.

Like all Europeans, local residents have such traits as practicality and economy. The wealthiest citizens of the republic will not throw money away. Therefore, to run a profitable business, you need to adapt to the mentality of the Czechs.

Particular attention should be paid to quality customer service. In Europe, service comes with smiles and friendliness. Our entrepreneurs must meet these requirements. In order for a businessman to become successful in the Czech Republic, he must carefully study not only marketing, legislation, profitable industries, but also the state itself, its customs, cultural and value orientations of the population.

Business immigration to the Czech Republic is the most common way to move to Europe. Opening your own company in this country provides the business owner with several important advantages: obtaining a business visa valid for one year, reducing the costs of running your own enterprise, the opportunity to obtain a mortgage for the purchase of real estate, and the chance to obtain a residence permit.

When submitting documents again to extend a visa, a businessman has the right to transport his family to the Czech Republic under the program of reunification with relatives. After five years of successfully running a business, an entrepreneur can count on receiving a residence permit.

Business structure

Any foreign citizen who has reached the age of majority can open a company in the Czech Republic. You can register an enterprise under several structures: joint-stock company, LLC, OJSC, branch, and so on. It should be noted that Russian citizens predominantly choose such a form of business as a limited liability company (LLC).

In order to open a business in the Czech Republic using the LLC structure, you must have an authorized capital of at least 200 thousand crowns. Each member of the society must contribute a minimum of twenty thousand crowns. The founder of an LLC can be either a legal entity or an individual. The latter should not be a member of more than three societies.

Just a few years ago, in order to open your own business in this country without the personal presence of the business owner, it was necessary to provide a power of attorney certified by a notary. Before entering a company into the trade register, you need to decide on the type of business activity.

There are many affordable ideas for starting a business in the Czech Republic that do not require special permission or licenses. A special document is required in cases where the enterprise’s activities are aimed at producing a specific material or product in the Czech Republic. In this case, the founder must have special education and at least some experience in conducting such activities.

In the Czech Republic, the hotel and restaurant business is considered predominantly developed. In addition, many businessmen open food stores or rent out their own real estate. Also, in this country no permit or license is required for work related to creativity.

Requirements for an entrepreneur for business immigration to the Czech Republic

First of all, the following condition must be met: the registered company must have a legal address in the Czech Republic. Before opening a business in the Czech Republic, you need to decide on the composition and number of founders, choose a name for the company and develop a charter.

An LLC in the Czech Republic is registered on the basis of a constituent agreement, which describes in detail all the rights and obligations of the parties. The agreement must be certified by a notary. It is also necessary to notarize an application for company registration in the Prague Commercial Court, an application from the director with samples of signature and seal, and an application from the contribution manager. The registration process takes approximately three to four weeks.

Documents for business registration

To open a business in the Czech Republic, you must provide the following documents to the registration chamber:

1. A copy of a foreign passport.
2. Certificate of no criminal record in the applicant’s country of residence. The document must be translated into Czech and certified by a court translator.
3. A certified copy of the birth certificate and a translation of this document into Czech, also certified.

Activities

Depending on the type of activity you have chosen, you will need to obtain a special permit or license. The Czech Entrepreneurship Office is responsible for issuing these documents. In this country there is the following division of activities.

1. “Free” - registration of such a business requires only a statement written on behalf of the company.
2. “Professional” - in this case, it is necessary to have a responsible and unconvicted representative, a citizen of the Czech Republic. In addition, you need to prove professionalism in conducting a specific type of activity. This refers to the presence of education, work experience, qualifications and competence.
3. “Concession” - registration of a business in this case is possible only with special permission from regulatory authorities.

It is worth noting that this type of activity, such as renting out real estate, does not require a license, but only if the provision of other services is not provided. Permission to do this can be obtained from the court when registering the company in the Trade Register.

Czech tax system

The taxation system in the Czech Republic controls compliance with the conditions of equal competition and is quite conducive to business development. The income tax in this country is 20%. The Czech tax system is adapted to European standards. It cannot be said that the rates in the republic are the lowest in Eastern Europe, but, nevertheless, there are over 150 investment projects here, thanks to which it was possible to attract 3.6 billion euros into the economy.

The Czech Republic has entered into bilateral agreements with 37 countries to avoid double taxation. That is, business in the Czech Republic for Russians and citizens of other countries is a rather promising and profitable solution. The government is gradually reducing corporate taxes. A single rate has been introduced, and income tax for legal entities has already been reduced by 9%.

How founders can obtain a residence permit

If you are planning to open a business in the Czech Republic, then you should know that this gives you the additional advantage of obtaining a residence permit in this country. This opportunity applies not only to the business owner, but also to his family members if they are the founders of the company. You can obtain permanent residence in the Czech Republic after five years of successful business, if the state and the tax service do not have any claims against you.

Please note that after the latest amendment to Czech legislation regarding immigration laws, a primary visa can only be obtained for six months and can be extended on the spot. When re-registering, all details are taken into account - company data, business history, income level and living conditions of the owner. To obtain a visa and residence permit, the applicant must appear in person first at the consulate and then at the Ministry of the Interior.

Why Czech Republic

Business in the Czech Republic opens doors for Russians to many countries that are part of the European Union. In this country, Russian citizens with in-demand professions, such as programmer, IT specialist, and so on, have excellent business prospects. Knowledge of languages ​​is also welcome - English, German and, of course, Czech. In this case, there are practically no problems with employment and communication. The Czechs themselves are very loyal to citizens of other states who honor their traditions and way of life.

Of course, the global crisis has affected the economy of this country, and now it has become more difficult to find a job. The Czech authorities recommend that their companies hire Czechs first, and only then turn to the services of citizens with permanent residence in this country or an EU passport.

Features of life in the Czech Republic

According to many Russian citizens living in the Czech Republic, the local mentality is very different from the Russian one, although both peoples have Slavic roots. Czechs are slow and are not used to showing excessive initiative; they do not like being rushed in business. For Russians, this approach to business is very unusual, especially for those who moved from large cities and are accustomed to value their time.

As in all countries of the world, the most expensive life in this country is in the capital - Prague, as well as in resorts. This is understandable, since it is in these places that most of the jobs and many tourist routes are concentrated. Russian citizens note that the Czech Republic attracts them with its order, calmness and leisurely pace.

The government of this country cares about its citizens and is kind to nature and animals. Czechs are accustomed to honoring and protecting family values ​​and relationships; they strictly adhere to work schedules and are not distracted by work during weekends and holidays.

In general, Russian emigrants get used to Czech reality quite well and become almost true Czechs with Russian roots.

Would you like to start a business in the Czech Republic? If yes, then the first question that arises in your mind is: “In what area should I start a business?”

We present to you the story of a young businesswoman who will be happy to share with you ideas for business in the Czech Republic, based on her own experience. Suppose you are thinking about emigrating or have already emigrated. The question before you is: how to approach the Czech market and what to invest in? Everything is very simple.

First we explore the market.

The population of the Czech Republic is about 10 million, specifically Prague: 1.3 million (of which about 200 thousand are migrants). Also, about 7 million tourists visit the country every year. The average income is 25,000-30,000 crowns, in rubles about 55,000 rubles.

Habits of Czechs

Czechs are quite tight-fisted and count every penny; they like to spend their free time in cheap pubs (hospoda), play sports, and go hiking (judging by their backpacks).

The emigrants are mainly Vietnamese, Ukrainians and Russians. We don’t take Slovaks, their habits are similar to the Czechs.

So what kind of business would be interesting in such a country?

Unique excursions.

In 6 years of living in Prague, I have never encountered a typical “St. Petersburg” theme - a tour of the roofs. Although Prague was created for this, because all the houses are strewn with red tiles and the view is simply stunning. Another interesting option would be a trip on a water boat or a vintage car, dinner with a Czech family, or a master class on making “gulas s hnedliky” (goulash). Also Prague is very well developed for people with disabilities, Prague needs to be shown to everyone!

Coffee vans.

Those who live or often visit Russia have noticed that in Prague there are no coffee machines on the streets at all. The market is completely free. Everyone knows that they make the biggest markup on coffee (the cost of coffee is no more than 10 crowns, but it can be sold for 100 or more)

Male striptease.

Everyone knows that a lot of porn is filmed in Prague, and prostitution is legal. No one will stop you from organizing something similar for the fairer sex. Czechs also have bachelorette parties and birthdays, and we also don’t forget about tourists who come in search of fun, a break from the “everyday life”, husband and children.

Quest room.

A fairly new topic, especially since students change every 3-5 years and it will not become outdated. Students in Prague are quite wealthy and spend little time studying; drinking and smoking weed all the time gets boring too; everyone will come for a change.

Mini Hotel.

The season in Prague is almost all year round. The flow of tourists is approximately the same all year round. Try going to booking and choosing dates in 2 months (it will show you that 88% are already booked). 7 million tourists a year is 550 thousand a month, all these people want to live inexpensively and comfortably.

Renting expensive cars.

Transfers. We are moving on to larger and more costly projects. Prague is of course a budget city, but at the same time very unique, tourists from all over the world come here. And 10% of them are definitely very wealthy, who are accustomed to comfort and luxury (Arab Emirates, Americans, Russians). The cost of one transfer by car is no more than 2000 CZK, but they sell them for no less than 10,000 CZK.

Own clothing line.

Why not open a workshop at home and sew your own designer clothes. I also hasten to inform you that school graduations (maturitni ples) are celebrated on a grand scale in the Czech Republic, where all the Czech beauties are already dressed in all their glory.

Pizza Hut franchise or sushi wok.

A very simple way, if you don’t want to invest in promoting a new brand, is to buy something that consumers from other countries already know. Finding good pizza and sushi in Prague has always been a big problem. And as we know, Americans cannot live without their pizza, just like Russians cannot live without sushi.

Hookah bar.

Of course, there are enough hookah bars in Prague, but if you are a very sociable person and have many friends in Prague, you become a kind of celebrity and people are drawn to you. So it’s time to open your own place so that you can have fun, or dad said that it’s time for you to earn money yourself and gives you start-up capital, but you’ve always been a party animal and don’t really want to understand the paperwork.

Bakery.

Confectionery. Cooking. There is a lot of room for variation here. It depends on what you can do and what resources you have. You can always start by cooking at home and posting it in the VKontakte group, then word of mouth will spread. Those who have lived in Prague for a long time know how sick one gets from a honey cake or how sometimes one craves a homemade pie.

Choose any idea you like and bring it to life. Good luck!

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 website Justice.cz. 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.