Eternity Law International News Start a business in the Czech Republic

Start a business in the Czech Republic

Published:
September 9, 2022

The Czech Republic is a desirable jurisdiction for establishing a foreign firm because of its advantageous location, own sovereign currency, and wide network of European relationships.

The most preferred option among foreigners is SRO, an alternative to a well-known LLC.

Company formation in the Czech Republic

The Czech Republic has a satisfactory integration into the legislative and financial systems of the European Union. Thus this state is a desirable place for foreign nationals from all over the world to create a legal company.

The country is appropriate for firms of every size, from sole proprietorships to joint stock corporations or cryptocurrency funds. The authorities proactively encourage the growth of businesses and make an effort to entice resources from abroad.

  • Duration of formation: approximately 2 weeks

In 2022 the process of establishing a legal organization has become even more simplified and comfortable. Since one of the most important modifications was done. In 2014, the minimum size of the authorized capital that is allowed for limited liability companies was cut from 200,000 to 1 kroner.

Why should you start to do business in the Czech Republic?

  • Own currency

The Czech crown is the official unit of money. The Czech Republic is one of the nations in the EU that still has its own national currency in 2022

Maybe it can seem to be a disadvantage, but actually, experience has demonstrated that the Czech krona is as stable as it can be and that it can be stable even during extremely difficult times. Some people even compare the Czech Republic’s financial system and stability with Switzerland.

  • Organization

The complete transparency of the whole process of doing business, from incorporation to business closure.

  • Accessibility for foreign businessmen

For many people, the simplicity of registering creates concerns. After all, even in 2022, a sizable package of paperwork must be gathered, particularly in comparison to Estonia or the Balkan nations. A hefty packet of paperwork won’t be a problem for you, though, if you have a competent helper with you. A special system, where all paperwork can be received and filed in one location, is also actively being developed in the nation.

Although registration is not the simplest, it is still straightforward enough with a helper to list as one of the benefits of selecting this jurisdiction. Additionally, all of the prerequisites have been established for foreigners, so they are not need to find citizens for registration or have ongoing meetings inside the nation, among other things.

  • Easy doing business

The convenience of conducting business is a fact that is undeniably true since even the statistics support it. Inspections of businesses engaged in trading or contributing traditional services are quite uncommon, but once every 147 years, the Czech enterprise is examined.

Reporting is just one example of how officials’ loyalty is demonstrated. If your business does not pay VAT, even LLC must file one report annually. Thus, you cannot have an accountant on staff and must instead turn to professionals when responsibilities need it.

  • Banks with staff who speaks Ukrainian and Russian

The conduct of commerce is not restricted by the crown. If it is preferred or required, you may create an account for the business in euros as well as in more than ten other currencies.

There are more than 20 banking institutions which employ people who understand Russian and Ukrainian languages.

Types of companies in the Czech Republic

Entrepreneurs from other countries have the same abilities as native ones.

Among the most popular legal entities:

  • SRO (Společnost s ručením omezeným) – Limited liability company
  • ŽL (Zivnostenskýlist) – Individual entrepreneur
  • AS (Akciová společnost) – Joint-stock company

How to launch a business in the Czech Republic

You can start the registration procedure after selecting a legal entity’s structure.

Everything that you need is:

  • Copy of foreign passport
  • Certificate on the absence of previous convictions

Any business must have a “sidlo”, or legal location, which under Czech law may be nominal. For example, for 300–400 € annually, you may rent a “post box.” The essential prerequisite is that you must be able to be reached by government organizations. Therefore, keep in mind that the price of the services covers correspondence when selecting a legal address for a Czech firm.

Additionally, the business needs a bank account. Beforehand, an account had to be opened in advance if the minimum permissible capital, even for an LLC, was to be deposited.

A power of attorney is required if you start a corporation with the aid of an agent. This is practical because the whole process could be accomplished remotely without travelling to the Czech Republic.

So, the Czech Republic is the very favored option among the EU states for starting businesses.

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

Gaming License in Isle of Man

The Isle of Man, a self-governing British Crown dependency nestled in the Irish Sea, has long been a global hub for the gaming industry. Known for its regulatory rigor, the island nation offers a welcoming environment for gaming and betting companies. In this article, we will delve into the details of getting a gaming license...

Forex license in Panama

Are you thinking about opening a business and acquiring an FX license in Panama? It’s crucial to stay updated with the peculiarities of the legal framework, the costs associated with the licensing process, and the rules you will need to adhere to. This guide will provide an overview of Panama’s FX licensing process and its...

Jersey investment fund registration

Introduction Jersey has for some time been perceived as a main place for laying out seaward assets, drawing in worldwide patrons, advertisers, reserve directors, counsels, and financial backers. The purview has stayed at the bleeding edge of global improvements in the asset business, offering a large number of designs and administrative ways to deal with...

MSB License in the USA

Introduction Within the intricate framework of the financial services sector in the United States, Money Services Businesses (MSBs) occupy a central role, facilitating a broad spectrum of financial transactions. These enterprises provide a diverse range of services, encompassing currency exchange, money transfer, and payment processing. To operate in compliance with U.S. laws, MSBs must obtain...

Swiss asset management: overview

With its outstanding history of financial market operation, Switzerland is one of the leading countries in the domain of asset managing. Asset management companies in Switzerland constitute literally the core pillar of its financial center. Read on to find out the main peculiarities of this industry. Overview of asset managing in the Swiss jurisdiction The...

Overview of a regulatory and legal regime for blockchain in the EU

The EU executive, the Cοmmission, recognizes the significance of transparency of regulatory and legal regime for blockchain. Fields related to cryptocoins are getting more popular nowadays as the virtual currency market is now being regulated by the law. The EU demonstrates support for established regulative norms for blockchain regulation aiming to prevent legit and regulative...
Fill the blank:

Zurich

Dreikonigstrasse, 31A, Stockerhof

Kyiv

Baseina street, 7

London

Grosvenor Gardens, 52

Washington

1629 K St. Suite 300 N.W.

Vilnius

Gediminas Avenue, 44A

Tallinn

Kesklinna linnaosa, Tuukri 19

Edinburgh

Lochrin Square, 1

Nicosia

Jacovides Tower, 5 floor

Riga

Esplanade, 7 floor

Hong Kong

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

Singapore

Level 42, Suntec Tower Three, 8 Temasek Boulevard

Sydney

20 Martin Place

Porto

2609 Avenida da Boavista

Tbilisi

Revaz Tabukashvili Str., N 45, area N 7