How to open a business in the Czech Republic?
The Czech Republic is a country with an excellent reputation, a developed economy and a sustainable developmental policies. Advantageous geographical position, characterized by location in the centre of Europe, attracts foreign investors of various scale.
Business in the Czech Republic
The Czech Republic has a high level of economic development. Deliberate and wise domestic policy of the country's leadership led to reducing the level of corruption.
The developed economy in recent periods demonstrates a rapid uptake, allowing practically any businessman to achieve success in any field of entrepreneurship. In addition, in the Czech Republic local and foreign investors are absolutely equal in their rights.
The following factors, which attract investors to open business in the Czech Republic, should be mentioned:
- Accessible markets of the European Union,
- Ability to obtain a long-term work visa with subsequent registration of permanent residence for family members,
- Low level of corruption,
- Low lending rates,
- Easy and simple ways to register an enterprise,
- Minimum registration cost,
- Favourable conditions of the tax system.
Establishing Business in the Czech Republic
In the Czech Republic there are a lot of forms of registering companies, simple and complex. The direction of business in the Czech Republic and the choice of the tax system determines the structure of the enterprise. The most optimal among are the following:
- Self-employed individual.
Any natural person may be the founder. The liability of the company extends to the property of the owner.
- Limited liability company.
It is the most common form among small and medium businesses. Both natural person and legal entity are entitled to establish a company. The number of participants and the amount of the authorized capital are not limited.
- Open and closed joint stock company.
The liability of the founders is limited to the amount of the invested funds in the form of shares. The number of participants may be limited. The size of the share capital is not limited.
- Unlimited partnership.
This form may be founded by at least two founders. It does not require initial investment. Participants are personally liable for the company's obligations.
- Cooperative society.
This type is formed for entrepreneurship and other needs of participants. The liability extends to its own property. Personal liability of participants for the obligations of the cooperative society is excluded. Authorized capital is formed by membership contributions.
There are no serious restrictions in local legislation for those intending to open a business in the Czech Republic.
Business Registration in the Czech Republic
Previously, it was problematic to open a company in the Czech Republic. Indeed, the procedure was simplified with the entry into force of the new Civil Code.
Business registration in the Czech Republic includes the following stages:
- Preparation of the required package of documents,
- Checking the uniqueness of a company name,
- Notarization of constituent documents,
- In some cases, a license is acquired,
- Depositing of financial assets in the bank in the form of authorized capital,
- Direct registration in the municipal court,
- Registration with the tax authority,
- Registration in the social services bodies.
Registration does not take a long period, but in some cases it is easier for investors to buy a business in the Czech Republic.
The process of opening a company requires a diligent and thorough approach. We recommend receiving detailed instructions by contacting our company: qualified experts specialize in starting a business in completely different countries.
Please select interests you the legal form of the company:
- «SRO» - Limited Liability Company
- «AS» - Joint Stock Company