Eternity Law International News Business in the Czech Republic for Foreigners

Business in the Czech Republic for Foreigners

September 9, 2022

What is “business in the Czech Republic”?

In compliance with Czech legislation, a business is any ongoing activity that an entrepreneur engages in on their initiative, in their name, and under their authority to make a profit.

In the Czech Republic, running a business often has the form of:

  • a business of individuals or OSVČ (Osoba samostatně výdělečně činná)

It means that a person on their initiative and responsibility freely conducts a profitable activity in the form of a trade or in a similar way.

OSVČ (Osoba samostatně výdělečně činná) is a person who engages in a business endeavor (a self-employed person). Self-employment can exist as a primary or auxiliary activity. You can engage in self-employment as a secondary activity if you’re still working, on maternity and paternity leave, or getting a retirement benefit.

In the Czech Republic, trading is a regular type of commercial activity. Nevertheless, it is conceivable to do business while working in a so-called liberal profession. It is required to join a professional chamber for some liberal occupations (such as law and medicine), but just optional for others (journalists).

  • a business of a juridical person

There are a lot of types of corporations for establishment. Among the most popular is LLC (SRO in the Czech) or joint-stock company (AS).

But it is significant that for all corporations and cooperatives enrollment in the Obchodní rejstřík (register for firms) is required. No business may be legally recognized without it. Thus, it is important to distinguish between creating a corporation, which is the first stage and maintaining a legal presence, which comes next.

What does “outgoing activity” mean?

If an action occurs regularly, it is seen as ongoing. For instance, an episodic activity that gives you a profit, but was conducted one time, does not qualify as company revenue. Even if the activity only occurs a few times a year, it counts as a business if you intend to continue with it.

What does “on your initiative” mean?

It means that businessmen are independent. You as an entrepreneur organize your work and take care of the expenditures associated with running your business on your own if you choose your hours of work and the location of your company.

Moreover, you should look out for unfair labor methods, notably the Švarc systém.

The Švarc systém is a sort of economic scheme in which people who work for an entrepreneur regularly in a dependent relationship pose as independent business owners (usually self-employed).

Requirements for Foreigners to do a business

  • The same rules that apply to the Czechs apply to other EU citizens, other signatories to the “European Economic Area” agreement, as well as Swiss Confederation citizens.
  • If you are from a non-EU nation, you must have a more complicated process of getting permission. Firstly, you ought to submit an application for a lengthy business visa at the embassy of your nation. You will be begged to demonstrate that you have the wealth required for a lengthy visa stay. If you fulfill the requirements you can essentially run a business in Czech as a resident.

What do you have to obtain a long-stay visa?

  • A bank account report for a bank or other financial entity account held in the name of the foreign citizen confirming that he or she is permitted to utilize the funds in the necessary amount while on Czech Republic territory. It had to be abundantly evident in the supplied documentation that the foreign citizen is qualified to use the money in the Czech Republic.
  • Additional document about economic stability proves that the inhabitant from the other country has the necessary economic resources available to him or her, or that he or she has obtained funds to pay the expenses related to his or her presence in the country.

A legitimate, globally accepted credit card that is not prohibited from usage in the Czech Republic. The non-resident is obligated to concurrently present a declaration from a bank account held in a bank or another financial institution, demonstrating that he or she is authorized to spend the funds in the stated amount during his or her presence in the country, upon request from an official authority.

Please contact us to get more information.

You can see our current offers in the categories “Cryptocoins and licensing of cryptocurrency operations”, “Ready-made companies”, “Banks for sale” and “Licenses for sale”.

You could be interested

Overview of recent changes to the PCMLTFA regulations

On April 5, 2022, a number of modifications to the PCMLTFA regulations were published. This article provides an overview of recent amendments to the AML/TF regulations, which have implications for crowdfunding sites, and may bring a substantial impact on money service companies subject to their operational format. Updated PCMLTFA regulations: what is new? By virtue...

Company registration in Cuba

For many years Cuba has been trying to create the most favorable conditions for attracting foreign investment. Today, it is a low-tax jurisdiction that is loyal to non-residents and offers opportunities for interaction with American and European corporations. Cuba is an offshore company with a progressive investment legislative base and signed agreements on avoidance of...

Investment fund: how it works

Funds are fairly considered one of the most frequently applied products for getting gains. To receive the most out of them, it makes sense to figure out what they represent and what classes are best for different types of investors. What is an investment fund (IF)? A fund organized for investing purposes is a structure...

CFC in Ukraine

NEW TAX ERA IN UKRAINE: CFC RULES IN UKRAINE On January 16, 2020, the Verkhovna Rada of Ukraine voted for the adoption of draft law No. 1210, he put an end to many years of disputes over the reform of the tax legislation of Ukraine and the CFC in Ukraine. Implementation of the BEPS plan,...

Obtaining the citizenship for an investment

Obtaining citizenship for investment – urgent issue for many. It would seem that everyone who has a supply of cash will now want to invest them in a profitable way, since it can be much cheaper to buy something useful, including second citizenship, during a crisis. But the unpredictability of COVID-19 and the lack of...

Investing in Belarus

BELARUS. SUSTAINABLE DEVELOPMENT FOR INVESTORS Lately, doing business abroad has become quite popular. This direction is explained by several factors: the desire of the entrepreneur to successfully invest his capital, the desire for financial development and knowledge of foreign markets and economies. And it all becomes more accessible. Belarus has also become open to foreign...
Fill the blank:


Dreikonigstrasse, 31A, Stockerhof


Baseina street, 7


Grosvenor Gardens, 52


Lochrin Square, 1


Jacovides Tower, 5 floor


Kesklinna linnaosa, Tuukri 19


Esplanade, 7 floor


Gediminas Avenue, 44A

New York

New Rochelle, Huguenot St, 175


20 Martin Place


3 Fraser Street, #08 DUO Tower

Hong Kong

18 Harbour Road, 35/F, Central Plaza, Wanchai


2609 Avenida da Boavista


Revaz Tabukashvili Str., N 45, area N 7