Eternity Law International News Company registration in Czech Republic

Company registration in Czech Republic

December 20, 2020

The Czech Republic offers quite comfortable conditions for entrepreneurs planning to create a solid and profitable commercial structure. The basis for this was a stable economic ground and a loyal fiscal field. An important factor is the support from government bodies and their reasonable control.

Opportunities for entrepreneurs who registered a company in the Czech Republic

Another reason why foreign investors seek to open a business in the Czech Republic is the attractive rates for tax duties. For the income received, 15% is established, the corporate tax is 19%, VAT is 21%. Taxation does not cover dividends and capital gains. Subsidiaries outside the EU can be exempted from tax according to Czech legislation.

Besides the fact that the Czech jurisdiction is a business perspective, this state offers good opportunities for immigration. Non-residents are entitled to the following if they open a company in the Czech Republic and support its activities:

  • apply for a work visa for 3 months;
  • after that, obtain a residence permit for a period of 2 years, with the right to further extend it;
  • after 5 years, get permanent residence, which, in turn, gives a businessman the status of a resident of the eurozone.

Organizational forms S.R.O. and A.S.

For non-residents, the best option would be to open a company in the form of either S.R.O. or A.S., which are similar in structure to LLC and JSC, respectively. Having a company created in the form of a joint-stock company, one can conduct insurance activities, work with the banking field and incorporate fund institutions. The founders of the company are not personally liable. There are no restrictions to the capital, as well as to the residence of founders and shareholders.

What attracts external entrepreneurs to S.R.O. is a simplified registration procedure, completely free of all formalities related to meetings with shareholders and other nuances inherent in JSCs. It is the LLC that is the most popular form for Czech companies. The term of their work is not limited. To close such a company can only be compulsory in accordance with a court decision. When registering, you need to deposit 50% of the capital. The owner may personally be listed as a director.

Registration procedure

The first stage is making the final decision on the direction of the company’s professional activity. After that:

  • a name for the company is selected. It is imperative to check if it is free;
  • the composition of the founders is determined. The number does not exceed 50 people;
  • a director is appointed;
  • corresponding official papers are being prepared: a certificate of no criminal record, identity documents, birth certificates certified by a notary office, and so on.

Company formation takes no more than 10-15 days, excluding weekends. Only those persons who meet the following requirements can open a commercial business in the Czech Republic:

  • age: 18+;
  • fully capable, that is, they can make reasonable decisions related to the legal field;
  • have no problems with the law.

If we are talking about further immigration and this is exactly the goal, then it is imperative to choose a legal address. For non-residents, this is one of the most important aspects. The address is indicated in the Statute of the company.

If you need to register a company in Czech Republic, our specialists will help you register a company quickly and efficiently. Also, you can buy a ready-made company in Czech Republic. Write to us in the CRM form and we will help you register a company.

Eternity Law International specialists will provide you with qualified advice on the acquisition of an offshore company, opening a bank account in any jurisdiction, as well as further support of your company’s activities at any stage.

We offer ready-made European and offshore companies. It takes 2 days to reissue documents for new owners.

If you have any questions or need advice on registering or buying a company, call us at the phone numbers listed on the website, or write to us in the CRM form located at the bottom of the page. Our specialists will answer you online.

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