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

Dubai- business hub of the 21st century

Unlocking Business Opportunities in the UAE: A Comprehensive Guide to Commencing Your Entrepreneurial Endeavor Initiating a business venture within the United Arab Emirates (UAE) has undergone a profound transformation, courtesy of the groundbreaking Bashr service, instituted by the UAE Government. This seamlessly integrated eService has heralded a new epoch for entrepreneurs, conferring upon them the...

Offshore Trusts in Belize

Entrance corporations in other countrysides permit you to conduct certain blessings when doing interaction. This applies to any company`s type, including trusts. Today, trusts are created all over the world, and their main purpose is confidentiality and lack of public disclosure of the names of inheritors from the trust-activities. Therefore, they are often set up...

Labuan Forex license in 2023

Broker-organizations are commercials helping organize deals engaged purchasers and vendors in financial markets. Such firms that work as intermediaries and charge a certain fee for their services should obtain a certain permission to carry out these transactions. Labuan Forex broker license is of great intrigue to entrepreneurs: this’s a rather promising solution, as this state...

Gaming licenses in Zambia

Online-gambling has been actively developing for several years. This fact made Zambia`s governance think about adopting certain legislative acts to restrain this endeavor. The main purpose of such documents is to identify fraudulent organizations, to ensure the safety of data about players and their accounts, and to provide fair and honest rules on the accrual...

What is DeFi? Decentralized finances concept

Decentralized finances functioning (DeFi) works on blockchain technologies. DeFi removes rights of intermediaries and gatekeepers to manage operations with assets, giving people opportunities to perform direct exchanges. Linking DeFi and Blockchain Blockchain is a key aspect enabling decentralized financial development to exist. It’s “distributed” within decentralized systems: all parties using DeFi have same public ledger...

Company registration in Saint Lucia

Saint Lucia, situated in the Caribbean, is an appealing destination for individuals seeking dual citizenship through funding. With advantages such as visa-free travel, access to European banking services, tax optimization, and the ability to register businesses and assets for a second passport, affluent individuals are enticed by the prospect of acquiring Saint Lucia citizenship. In...
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