News: Registration of company in Czech Republic - A.S.

Registration of company in Czech Republic

The Czech Republic is situated in Central Europe. The country shares border with Poland in the north, with Germany - in the northwest and the west, with Austria - in the south, and with Slovakia - in the east.

Prague is the capital of the Czech Republic and the country's largest city and the most important tourist attraction.

The Czech Republic is the member of NATO starting from 1999, and also the member of the European Union since 2004.

The Czech language has the official status.

The Czech koruna is the national currency of the Czech Republic.

Nowadays, registration of business in the Czech Republic is the legal and the most affordable way to obtain residence permit in the Czech Republic in the future, as well as to acquire leasing for car or mortgage for real estate.

Forms of doing business

It is possible to register or buy company in the Czech Republic in such organizational and legal forms as:
- "S.R.O." (společnost s ručením omezeným), Limited Liability Company;
- "A.S." (akciová společnost), Joint Stock Company;
- «Živnostenský list», Private entrepreneur;
- "V.O.S." (veřejna obchodní společnost), Public commercial company;
- "K.S." (komanditní společnost), Limited partnership;
- «Družstvo», Cooperative in the Czech Republic.

Registration of A.S. and S.R.O. companies in the Czech Republic is the most popular.

In order to register company in the Czech Republic, the potential owner shall usually go through the following stages:

- verification of the name of the future company;
- certificate on absence of previous criminal record, translated into Czech;
- obtaining legal address (initial one) for 1 year;
- opening bank account;
- preparation of the necessary constituent documents;
- payment of state fees;
- notarized Memorandum of Association;
- registration of company in the commercial court and the financial authority;
- processing seal of the future company.

Assignation of the initial legal address for use within 1 year is one of the main components of the complete package of documents for company formation in the Czech Republic. Thus, obligatory mail correspondence with state authorities will become possible.

In case of the acquisition of real estate, it is possible to change the legal address.

If the company's activities in the Czech Republic imply obtaining license, it is necessary to be aware of such types of existing licenses as:

• ordinary license. Designated representative is not required in order to obtain it. However he will be required, if there is not license which is needed to conduct the selected type of activity in the list of ordinary licenses.

• license for obtaining of which the designated representative is required (he is the person who has residence permit / permanent residence in the Czech Republic or is citizen of the Republic). The person is fully responsible for the selected types of activities.

In addition, it is advisable to include in the company's charter all the possible types of activities of the company. In the future, you may need this. Otherwise, it will later be necessary to make amendments into the charter, which is expensive procedure.

For company formation in the Czech Republic, it is not necessarily to be personally present. You can go through the procedure by issuing power of attorney.

The foreigner (the owner and co-owner of the company in the Czech Republic) can run his business in the country and in all countries of the European Union almost without any restrictions. Nowadays, the owner of the company can also buy real estate in the Czech Republic due to his passport.

After the visa has been extended for more than 90 days, the foreigner is entitled to obtain residence permit in the Czech Republic for the period of two years. Permission is granted on the basis of conducting business activities.

After five years of residence in the Czech Republic, the foreign person can obtain permanent residence in the Czech Republic and status of the European resident.

S.R.O. company formation in the Czech Republic. Main information

• Duration of the company's operation is not limited. It is possible to strike off the company only according to the court decision.
• Annual report is submitted by the company once per year until March 31 of the following year, and given large turnover - quarterly.
• The director can be the founder of the company.
• Number of the founders ranges from 1 to 50 people. As a rule, the founders are adult members of the family and folks.
• According to the law, the director can not have work permit in the company, but work there according to the contract as the natural person who has concluded the agreement with his company.
• The number of directors is unlimited. The director has the right to independently resolve any issue concerning his company, unless otherwise provided by the charter.
• It is necessary to contribute the authorized capital in the bank. The amount of it is not limited and can start from 50 euros. When registering, it is possible to contribute 50% of the authorized capital. The remaining part should be paid within 5 years.
• The term of the company registration in the Czech Republic is usually 15-20 working days from the date of submission of all required documents from the founders.

A.S. company registration in the Czech Republic

• Primary capital of the company is divided into the number of shares which determine the rights of shareholders.
• There are no restrictions on the number of founders, and the foreign citizens can be in the composition of the company.
• The minimum authorized capital equals to 2 000 000 korunas. There is no upper limit.
• The managing bodies include: the Board of Directors, the Supervisory Board, the General Meeting of Shareholders and the Directors.
• Legal regulation of the company’s activities is conducted on the basis of the relevant sections of the Commercial Code.
• The name of the joint-stock company usually contains the abbreviations "akc. spol." or "A.S.".
• The shareholders are not liable for the obligations. Their damages from the activities of the company are determined by the value of their shares.
• The Board of Directors shall consist of at least three people. The participants of the Board should be registered with the Trade Register, where all changes to the Council are recorded. The participants of the Board are elected or recalled by decision of the general meeting of shareholders.

Advantages of A.S. company:

• Prestige of the company;

• It is convenient to increase the scale of the company;
• A. S. is one of the most reliable and stable forms of doing business in the Czech Republic;
• Some types of activities can only be carried out by joint-stock companies (banks, funds, insurance agencies);
• The shareholder is not liable by his personal property for the obligations of the JSC.

Bookkeeping in the Czech Republic

• The accounting report shall be submitted once a year until March 31 of the following year (it is possible to postpone the deadline until June 30).
• Submission of documents with reporting can occur both once per year (convenient for companies conducting small business) and monthly (especially important for VAT payers).

Taxes in the Czech Republic

Income tax equals to 19% for legal entities, and 15% - for natural persons.

VAT is 15-21% (depends on the type of activity of the company).

We will register ready made company in the Czech Republic for you within the shortest time possible. Buying company in the Czech Republic is now easier than ever. Registration of company in the Czech Republic is one of the simplest and cheapest ways to start legitimate international business. Registration of companies in the Czech Republic is one of the main directions of our work.