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What business to open in Prague. Opening a business in the Czech Republic

If a completely new case is registered, it is initially designed for the purposes of the client, and the registration process can take about 20 days.

Direction Options

Since the tourist destination 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;
shopping stalls and retail small goods;

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

Travel business

Every year, about 50 million people from different parts of the world go to admire the beauties of the Czech Republic. Each of them, regardless of their financial condition 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-boarding houses, hostels and other budget options for tourists will cost from $10 per night, the best rooms in luxury hotels - from $300 per night.
Transport. The costs of transport and sightseeing communications are also different, because throughout the country there are a huge number of monuments and famous places that every guest of the Czech Republic seeks to visit.
Souvenir products. Here the choice of direction is very large, ranging from the standard printed matter with the symbols of the country and ending with expensive products from the famous Czech glass.
Entertainment and leisure. Places for have a nice rest are also very popular in the country, for example, massage parlors or discos. And even despite the fact that the competition in this area is great, the chances of developing both a new business and an existing one are real.

Export

Czech consumer products 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 direction for a foreign entrepreneur, as the market in the country is balanced and has long identified its leaders among local big brands. In order to break through in 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 count on 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.

Hospitality

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

The management of the proposed objects in the Czech Republic has its own nuances. For example:

Small family-type establishments with 2-5 rooms are unlikely to make a 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 200,000 kroons - Prague; from 100,000 kroons - resort areas; from 50,000 crowns - provinces.
Selling or buying a small family hotel or hotel can generate income if they are located in the tourist areas of the capital.

Catering business

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

Business Forms

Shareholding community.
Public trading company.
Cooperative.
Limited Liability Company.
Private enterprise.

The Czech Republic is a stable developed state, a member of the EU since 2004. Having abandoned the principles of the socialist structure, today the country has a prosperous market economy, closely connected with European countries. According to the agency DOING BUSINESS, in the Ease of Doing Business 2019 ranking, which includes 190 countries, the Czech Republic ranks 35th place.

Despite a small population (about 10.6 million people), the potential sales market is significantly increased due to the proximity to countries such as Germany, Poland, Slovakia and Austria. In addition, your business in the Czech Republic automatically opens access to European loans, subsidies and incentives, investment programs, prestige trademark, flexible legislation and a number of other advantages.

In the end, a good option for business immigration to Europe, followed by obtaining Czech citizenship. Let us consider in more detail the features of doing business in the Czech Republic by foreigners.

How to open a business in the Czech Republic

The first thing to note is the absence of any restrictions for foreign citizens to open a business in the Czech Republic. Foreign businessmen have equal rights and conditions for the implementation entrepreneurial activity just like the locals. That is, in the Czech Republic, you can freely open a branch of an existing enterprise or register a new one, as well as become a founder or co-founder of a Czech company.

Let's take a quick look at the main steps to open new company in the Czech Republic. As a rule, a license is required to carry out entrepreneurial activities. To do this, to the local Department of Commerce ( Czech Point) is applied for. The procedure takes up to 5 days, but usually 1-2 days is enough. Cost - 1000 crowns ( about 40 euros).

Depending on the business area, for a positive decision on issuing a license, you need to meet certain requirements. For example, to open tourist agency, and as you know Czech Republic is an attractive country for tourists, along with the application, you need to confirm qualifications in this industry. Namely:

higher education in the field of tourism and work experience at least 1 year;
additional professional education in the tourism industry and work experience of at least 3 years;
certificate of secondary education and work experience in the Czech Republic or in another country in the field of tourism for at least 6 years;
certificates, diplomas and other official documents confirming qualifications in tourism business and over 6 years of experience.

Read more about permits and requirements for foreigners to do business in the Czech Republic.

For some types of work, a special license is not required, just a permit is enough. For example, services in agriculture, fishing, production of textiles, clothing, paper, cardboard, mediation in trade and much more.

In order to conduct business in these industries, it is necessary to provide the local office for the issuance of trade licenses with the so-called single registration form and meet the following criteria:

Adult age (18 years and over).
Legal capacity (legal responsibility).
Positive history of the entrepreneur (no problems with the law).

After issuing a license and entering in the commercial register, the company must be registered in Commercial Register. This is done in court at the location of the legal entity or entrepreneur. Usually the procedure takes no more than 5 days, maximum 7. The cost is 6000 crowns (about 235 euros). Within 15 days from the date of entry in the Commercial Register, you must register with the tax office.

In addition to the above procedures, it is necessary to choose a unique name for the company, which can be checked on the website Ministry of Justice of the Czech Republic. You will also need to notarize the charter and lease agreement (the cost of services depends on the size of the authorized capital), open a special bank account, and after hiring employees, register with the Social Security Administration and take out medical insurance.

As in many other countries, the most popular form of doing business in the Czech Republic is Limited Liability Company(OOO). Usually used for small and medium businesses. Main characteristics:

The minimum authorized capital is 1 kroon.
Who can be the founder of an LLC - an individual or entity, a citizen of the Czech Republic or a foreigner.

The second most popular form of ownership in the Czech Republic - Joint-Stock Company(AO). Mainly suitable for large firms. Main characteristics:

The minimum number of founders is 1.
Permissible number of shareholders - no restrictions.
The minimum authorized capital is 2,000,000 crowns or 80,000 euros.
The maximum possible block of shares - there are no restrictions.
Shareholders are not liable for the company's obligations.

In addition to these two forms of ownership, in the Czech Republic it is possible to conduct business as a private entrepreneur, open a Public Trading Company, Limited Partnership and Cooperative.

Business taxes in the Czech Republic

The taxation system of the Czech Republic is close to the standards of the European Union and is based on the principles market economy. Despite some complexity, with a competent approach, you can significantly optimize tax costs and successfully run a business.

Basic tax rates in the Czech Republic in 2019

Corporate Income Tax. The base rate is 19%. A reduced rate of 5% may apply to investment and pension funds.
VAT. The base rate is 21%. In some activities, reduced rates are applied - 15, 10 and 0%, for example, in the field of production food products, medical equipment for the disabled, child seats, pharmaceutical products, books, domestic passenger transportation.
Income tax. The base rate is 15%.

In addition to the above taxes, the Czech Republic also levies: real estate tax, excise duty, transport tax, environmental tax.

When choosing a business in the Czech Republic, everything depends on the financial capabilities and experience of a person. For beginners, it is preferable to start a small business, and over time, based on the results, gradually expand. The first thing that comes to mind is tourism. The Czech Republic is visited by a large number of travel enthusiasts from different countries.

There are many options for directions - a cafe, a bar, a restaurant, a hotel, a souvenir shop, a bicycle rental, a service sector, and so on. The most important thing is to successfully choose a location where attendance will be ensured, otherwise work at a loss is guaranteed. You can also pay attention to construction and real estate. More investments will be required, but in the long run the profit will be an order of magnitude higher.

If you take it very seriously, then the sphere of production using high technologies is an ideal option. The Czech Republic is an industrial country, largely export-oriented. Therefore, with sufficient investment in development and focus on advanced technologies, it is possible to enlist the support of local authorities and enter the European market. In any case, there are plenty to choose from. As an option to buy ready business in the Czech Republic and practice it further development. It is clear that in this case the share of risk and financial costs increases significantly.

Business visa to the Czech Republic

Entrepreneurship in the Czech Republic is a great option for business immigration to this country. After registering a company, a foreigner automatically gets the opportunity to apply for a long-term visa (D) and a residence permit in the Czech Republic. This type of visa is issued to foreigners planning to stay in the Czech Republic for more than 90 days. Before submitting an application to the Embassy of the Czech Republic, it is necessary to register in a special Visapoint system.

List of documents for obtaining a business visa to the Czech Republic in 2019

Application form for a visa.
Original and copy of international passport (valid for no more than 10 years).
Two identical photographs (3.5 x 4.5 cm), name and surname on the spread.
document about financial support(minimum 110,000 crowns).
Purpose of the trip (a copy of the document confirming the implementation of entrepreneurial activity).
A document confirming the availability of a place to live in the Czech Republic.
Certificate of no criminal record.
Visa fees.
Medical insurance.

A long-term business visa to the Czech Republic gives the right to stay in any of the Schengen countries for up to 90 days every 6 months.

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 threshold for start-up capital. Foreign business in the Czech Republic has state support, comfortable conditions are created for him. 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, affordable medicine attract immigrants to the country. ? The average salary in the republic is slightly lower than in Germany or Austria, but the prices for food and housing are significant. The country has free education, and local universities issue diplomas recognized in any of the EU states.

It is not surprising that many citizens of the powers of the post-Soviet space 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 quickly get to your homeland if necessary.

One of the ways to legalize here is business immigration to the Czech Republic. It should be emphasized that it is a state of law, and that is why entrepreneurs are comfortable here both from an economic and social point of view. In addition, large cities regularly hold international exhibitions with the participation of representatives of the world's largest companies.

In order to open a business here, a Russian first of all needs a business visa. This long-term permit document is issued at the Czech diplomatic mission in the Russian Federation. It is worth understanding in more detail how to competently act further 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, so there are many Russians among the local owners of firms and companies. Investments in the opening amount to a symbolic amount of 1 kroon, although back in 2014 the amount of start-up capital started from 200 thousand. Maintenance of the company will cost less than in other advanced European countries. It is allowed to open a company in the Czech Republic for Russians in 2019 without submitting a business plan to the authorized department for approval. What do you need to register your business in the country? Can a citizen of another country buy ready-made company?

Requirements for a candidate

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

be of legal age;
be capable;
not have a criminal record or other problems with the law either in the Russian Federation or in the Czech Republic;
not have debts to state structures 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 this is necessary.

Submission of documents

Company registration is carried out at a local notary. To do this, prepare a set of papers:

passport (original and copy);
birth certificate;
non-conviction paper;
the intended name of the company;
the amount of the authorized capital;
a 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.

A certificate of non-conviction is certified by a court interpreter. After visiting the notary with the received act, passport, document with the consent of the owner of the premises, license (if required), one should register in the Register of Entrepreneurs. After that, the authorized capital is formed - the required amount is paid to the bank, an account is opened. Registration is made in the Commercial Register. At the final stage, an application for registration is submitted to the tax office (Finanční úřad).

Obtaining a license

This can be done at the business office (Živnostenský úřad), which is available in almost any locality of the republic. Licenses can be free (simple) and related. 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.

IN structural subdivision local authority is presented with an application filled out on a special form.
You must also have a lease agreement or proof of ownership of the premises on hand.
The package of materials must contain an extract from the Commercial Register with the date of registration within the next three months.
Memorandum of Association with fixed types of activities requiring a license.
A fee is paid. The size depends on the business area of the future company (industrial, commercial, financial).

When there are no claims to the submitted papers, a license will be issued in 2 weeks. The validity period of the document is not limited. A related type of such permission 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 involves obtaining a license from a higher organization, such as: State Energy Inspectorate, Ministry of Industry and Trade, Ministry Agriculture.

When a license is not needed

There is no need to draw up a special paper if the company is engaged in renting out its own real estate. But it should be noted that many firms registered by entrepreneurs from the Russian Federation indicate this type of activity. It may have Negative consequences, because often migration officials begin to doubt the true goals of a foreigner. As a result, you can get a refusal to grant or extend a residence permit.

What are the forms of ownership

In the Czech Republic, as in many other European powers, the most common is LLC - a limited liability company. We list the main characteristics of such economic education.

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

This form is used by the small and medium business. As in Russia, the second most popular variety is Joint-Stock Company. Unlike LLC, the minimum authorized capital is equal to 80 thousand euros. In addition to these forms of ownership, business is conducted in the republic in the form of a state of emergency, public trading company, cooperative.

Tax policy of the country

The system operating in the Czech Republic is oriented towards the EU standards. Each type of monetary collection is fixed in a certain 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 are the same in 2019.

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 the firm has a zero balance, then this type of tax is not paid.
VAT with a base rate of 21%. For food production, book publishing, and the production of medicines, reduced rates are applied - 15 and 10%. Entered into force in 2016 new law, according to which VAT control reports are submitted monthly.
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 object.

In addition to the above, in the Czech Republic there are value-added, environmental, excise, road and other fees.

Popular types of business in the Czech Republic

Choosing the sphere of entrepreneurial activity, each person is guided by his experience and financial capabilities. Beginners are encouraged to engage in small forms, gradually expanding their business. Spheres and directions of activity great amount. If there are sufficient funds as an investment, a win-win path is to open a production using innovative technologies. The Czech Republic is export-oriented, so it will not be difficult to find a market, and in the long run, profits in industry will be significantly higher than in the service sector. We will analyze which business to open in the Czech Republic, which is guaranteed to be profitable.

Tourist

This industry is the first 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, 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. Obviously, business in the tourism industry in the center of Europe is quite promising. Moreover, transport, excursion service, food, entertainment, accommodation, transport rental, inventory.

Export and import

Locally produced goods have high quality characteristics and reasonable prices. In many ways, they are golden mean» between the expensive products of the western EU countries and the cheap, but controversial in terms of properties, from the eastern states of the Commonwealth. Data on the export of goods from the republic is growing every year. The leading place is occupied by the automotive industry.

If we talk about imports, a potential entrepreneur should keep in mind that the Czech market is balanced. Large foreign firms occupy a firm 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 should 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 is constantly growing in the Czech Republic, and most of them go to Prague and other places not only for cultural impressions, but also for the purpose of having fun. Tourists visit restaurants, cafes, pubs. In addition, local residents also quite often allow themselves to spend an evening with their family in a cozy place. Having decided to open a restaurant, it is important to choose the location of the premises successfully in order to ensure good attendance. Hotels and pensions located in tourist areas, with proper organization activities can bring good profits.

Acquisition of a ready-made business

Many foreigners are considering not creating their own company, but buying 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. It must be understood that no one will sell a profitable company without good reason. Often, in order to increase the value of their business, owners hide important points masking problems under these common causes:

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

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

Finally

Running your business in the Czech Republic, as well as in another foreign country, is not so easy. It is necessary to understand local legislation well, to 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, work experience in the declared field. Czechs distrust new brands, so it will not be easy for well-known companies to compete with them.

Like all Europeans, local residents are characterized by such features as practicality and frugality. The wealthiest citizens of the republic will not throw money down the drain. Therefore, in order to maintain profitable business you have to adapt to the mentality of the Czechs.

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

In the article today, I decided to touch on a very important topic - the registration of an LLC (Czech. společnost s ručením omezeným or s.r.o.) in the Czech Republic for those who prefer opening an LLC. Based personal experience And normative documents on the Internet, I compiled the most complete picture of opening a company in the Czech Republic as of 2017, taking into account the new laws regarding companies. The article will be useful both for those who are just about 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 business here.

The Czechs are constantly trying to simplify the procedure for opening companies, because. at the moment it is a very time-consuming process with visits to a bunch of instances. In the future, it is planned to leave only a notary public of all the mandatory institutions for visiting when opening a company. However, at present, in addition to a notary, it is obligatory to visit both the Commercial Court and the Business Administration. To open a company on your own, you need to have a good run.

On average, it takes about 19 days to open a company. I want to warn you right away: if you do not speak Czech well enough to open a company on your own, it would be better for you to turn to the services of one of the intermediary firms. Opening a company abroad is very, very serious if you misunderstand something or do not provide it on time Required documents this could result in severe sanctions. Ignorance of the laws of the Czech Republic will not relieve you of responsibility, therefore, once again, be careful.

Why do you need a company in the Czech Republic?

A company in the Czech Republic is required in order to open a representative office Russian company to maintain commercial activities in Europe. For example, if you want to sell goods, it is more profitable to open a company for distribution 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?

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

So, where do you start when opening a company?

1. Choosing a company name

The name of your company should not be the same as the names already 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 not, then you can use the purchase service legal address for 1 year or more. Prices for this service vary from 200 to 800 Euros.

3. Definition of the type of activity.

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

4. Selection of directors and founders of the company

It is not recommended to appoint more than 3-4 directors in one firm. The director of the company (jednatel) must be over 18 years of age, 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 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 start-up capital of an LLC in the Czech Republic had to be at least 200,000 CZK. Now this rule has been canceled, and the starting capital of the company can be only 1 Kroon if there is 1 founder in the company, which 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 own firm, Czech lawyers strongly recommend that the initial capital be at least 100,000 CZK. In the Czech Republic, all firm data, including the size of their start-up capital, is available online. Think for yourself, would you choose a company with 1 Krona of starting capital as a partner?

5. Opening a company with a Czech notary

You will need to have the following documents with you:

Application for registration in the commercial register (návrh na zápis do obchodního rejstříku), which you fill out and print out on the Justice.cz website at the following link. The request must be signed by the person signing it. The signature is certified by a notary or by Czech post.
Application of the director and his consent to be entered in the commercial register If there are several directors in the company, a statement from each of them is required.
Certificate of non-conviction (výpis z rejstříku trestů) of all directors of the company, translated into Czech and certified by a Czech court translator.

The landlord's consent 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 mail. If you yourself are the owner of the 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 the selected forms of the firm's activity.
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 you with 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 in the Office for Business Activities (živnostenský úřad)

A complete list of departments in the territory of the Czech Republic and their working hours can be viewed. You must have with you:

Notarial deed (notářský zápis)
The landlord's consent to provide you with a legal address (souhlas vlastníka s umístěním sídla).
The passport.
If the activity you have chosen belongs to the category of 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 chooses free activities that do not require proof of your qualifications (this includes, for example, wholesale and retail, providing hotel services, provision of hosting, IT consulting, translation and teaching in language courses, provision of real estate agent services, etc.).

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

7. Depositing the amount of start-up capital to the bank

Bring your passport and a copy of the notarial deed with you. After that, the bank will issue you the confirmation required for the registration of the company in the Commercial Court. An overview of banks in the Czech Republic 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 in the Commercial Court is 6,000 CZK. Have the following documents with you:

All documents that you have taken to the notary.
Notarial deed (notářský zápis)
Confirmation of the bank on depositing the amount of start-up capital.
Certificate of registration with the Business Office (výpis z živnostenského rejstříku).

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

8. Registration of a company in 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 that, you will receive a notification of registration by mail within 1-2 weeks with the assignment of a TIN number to you. A company, depending on its turnover, may or may not be a VAT payer. You should already discuss these nuances in detail with your accountant in the Czech Republic. General view about taxes in the Czech Republic can be compiled from our article.

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

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 company. In fact, you can only sign documents and contracts of your company. If you want to work in your company, you will have to conclude 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 file an annual return with the Internal Revenue Service (by March 31st) and, if you have employees, Pension Fund and Medical insurance company. Scans of the annual report must be posted on Justice.cz. Failure to comply with this obligation entails huge fines!
The previously practiced topic with firms 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 on the basis of a company in the Czech Republic, you need to be active: enter into agreements with other companies, have income to the account. In addition, it is obligatory to conclude with you, as a director, an Agreement for the performance of the functions of a company director (Smlouva o výkonu funkce jednatele) with the payment of a certain amount of remuneration (which will be determined by your accountant). In addition, monthly contributions to the Pension Fund and the Health Insurance Company are indispensable: at a minimum, they amount to a total of about 4,700 CZK per month.
In the event that your company is a VAT payer, you can buy with it miscellaneous goods without paying VAT.

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-performing "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 additional costs for maintaining financial statements, you do not need to maintain a legal address and submit annual reports.
You do not visit the Czech Republic and cannot physically control the reporting of your company. As I mentioned above, ignorance of Czech laws does not exempt you from liability, and you can run into a fine even if your company does not conduct any activity at all.

In the event of liquidation of the company, all obligations will be removed from you, and you will no longer owe anyone. It’s not easy to figure out the process of liquidating a company on your own, so it’s better to turn to professionals in order to definitely not leave any tails.

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

We present you the story of a young businesswoman who will be happy to share with you ideas for doing 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 research 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 kroons, about 55,000 rubles for rubles.

Czech habits

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

Of the emigrants, mostly Vietnamese, Ukrainians and Russians. We do not take Slovaks, they are similar in habits to the Czechs.

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

Unique excursions.

For 6 years of my life in Prague, I have never come across a typical “Petersburg” theme – a rooftop tour. Although Prague is made for this, because all the houses are covered with red tiles and the view is simply amazing. Also an interesting option would be a trip on a water boat or a vintage car, dinner in 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 trucks.

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 coffee is the biggest cheat (the cost of coffee is no more than 10 kroons, and you can sell for 100 or more)

Male striptease.

Everyone knows that a lot of porn is filmed in Prague, prostitution is legal. Nobody will stop you from organizing something like this for the weaker sex. Czechs also have bachelorette parties, birthdays, and we also don’t forget about tourists who come in search of fun, take a break from everyday life, husband and children.

Quest room.

Enough new topic, the more students change every 3-5 years and it will not become outdated. Students in Prague are quite wealthy and do little study, drinking and smoking weed is also annoying all the time, everyone will come for a change.

Mini Hotel.

The season in Prague is practically all year round. The flow of tourists is about the same all year round. Try to go to booking and select dates in 2 months (it will show you that 88% is already taken). 7 million tourists a year is 550 thousand per month, all these people want to live inexpensively and comfortably.

Rental of 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 used to comfort and luxury (Arab Emirates, Americans, Russians). The cost of one transfer in a car is no more than 2,000 kroons, but they are sold for no less than 10,000 kroons.

Own clothing line.

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

Franchise Pizza Hut or sushi wok.

A very simple way, if you do not want to invest in the promotion of a new brand, buy something that consumers from other countries already know. With good pizza and sushi in Prague has always been a big strain. And as we know, Americans cannot do without their pizza, just like Russians without sushi.

Hookah bar.

Of course, there are enough hookahs in Prague, but if you are a very sociable person and you have many friends in Prague, you already 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, and you have always been a party-goer and you don’t really want to understand paperwork.

Bakery.

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

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