SET UP BUSINESS IN CZECH REPUBLIC TODAY
Introduction to Czech company formation
Entrepreneurial even during the Communist era, Czechs have seized every opportunity to demonstrate their free-market credentials since joining the EU in 2004. Today the Czech Republic offers a stable and welcoming home to foreign investors. But to make the most of the opportunities here, you need local knowledge. As specialists in Czech company registration we can help you to set up business in Czech Republic and provide a wide range of Czech company formation services. Please contact us for more information.
What are the main types of Czech company registration?
There are four main kinds of Czech company formation for foreign investors, as follows:
limited liability company (SRO)
joint stock company partnership (AS)
partnership
branch office
What are the main features of a limited liability (SRO) company?
total share capital to be at least CZK 200,000 (€7,000), at least 50% paid up
each shareholder to contribute minimum of CZK 20,000 (€700)
an individual may be sole shareholder in no more than three SROs
a reserve fund from profits to be built up to 10% of registered capital
What are the accounting/audit requirements for a limited liability (SRO) company?
A statutory audit is mandatory if at least two of the following criteria are met:
balance sheet exceeds CZK 40 million (€1.4 million)
net turnover exceeds CZK 80 million (€2.8 million)
number of employees exceeds 50
What are the main features of an (AS) joint stock company?
minimum share capital CZK 2 million (€70,000)
if via a public offering, minimum share capital CZK 20 million (€700,000)
30% of share capital to be paid up
two-tier system comprising management and supervisory boards
reserve fund from profits to be built up to 20% of registered capital
What are the accounting/audit requirements for an (AS) joint stock company?
A statutory audit is mandatory if at least one of the following criteria is met:
balance sheet exceeds CZK 40 million (€1.4 million)
net turnover exceeds CZK 80 million (€2.8 million)
number of employees exceeds 50
What are the main forms of partnership in the Czech Republic?
There are two main kinds of partnership under Czech corporate law:
general partnership (all partners have equal and unlimited liability)
limited partnership (at least one partner has limited liability)
What are the main features of a branch office?
branches are not separate legal entities, but part of a foreign parent
branch manager may be Czech or foreign national
branch requires trade licence before it can be registered
accounting records to be prepared in Czech language
Czech Incorporation
How easy is it to recruit staff in the Czech Republic?
The unemployment rate in the Czech Republic is much lower than in neighbouring Poland and Slovakia. Nonetheless it remains a pressing ussue and if you are seeking to hire Czech staff, you should have no trouble finding well-educated and motivated applicants. Labour laws are complex, however. If you are considering Czech incorporation, for advice on the best way forward, contact one of our recruitment specialists in Prague.
What is the regulatory environment like for those considering Czech incorporation?
The Czech Republic has made strong progress in its efforts to liberalise the business environment. 85% of the economy is now in private hands, corporate tax was cut from 26% to 24% in 2006, and foreign investment, reflecting this trend, has soared. But there’s still plenty of red tape around, which is why it is essential to secure expert advice on legal and accounting issues. For more details, please contact us if you wish to set up business in Czech Republic.
Are there financial incentives available?
Czech authorities offer a wide range of financial incentives for foreign investors considering Czech company registration:
new manufacturing investment: ten years’ full relief of corporate tax
technology and business investment: the state pays up to 50% of costs
substantial job-creation and training grants
Czech Company Formation
And what about banking facilities?
Foreign investors are well served by an array of international and local banks now operating in the Czech Republic. It is worth noting, however, that setting up a corporate bank account can be a complex procedure. Make it simple – talk to us if you are considering Czech incorporation and we’ll arrange everything.
How can I get more information on Czech company formation?
If you wish to set up business in Czech Republic as swiftly and efficiently as possible, we’re the people who can make it happen. Please contact us to discuss your Czech company registration requirements – and let’s get to business!
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