How to start a business in the Czech Republic in 2020

How to start a business in the Czech Republic in 2020

The Czech Republic is a European state, that is popular among those, who wish to start a business in Europe. The capital of the Czech Republic is Prague. The national language is Czech. An official currency is Czech koruna.

If you want to register a company in the Czech Republic, YB Case specialists are ready to provide you with their qualified assistance.

It is worth noting, that the Czech economy is based mainly on the following platforms:
  • the engineering;
  • a sewing industry;
  • an automotive industry;
  • a chemical industry;
  • the information technology.

This article was written in order to notify potential investors of the most pressing issues regarding doing business in this jurisdiction.

Why is it worth starting a business in the Czech Republic?

The Czech Republic has numerous valuable personnel at the level of the European market. Also, an active economic growth is observed in this jurisdiction, which is supported by foreign investors.

Another reason to open a company in the Czech Republic is the possibility of reducing an income tax to 5%, or even to 0%.

The information for investors

The Czech Republic is a reliable haven for investment. This is confirmed by the fact, that in recent years the number of investments has increased. Foreign businessmen should pay attention to the fact, that main investors of this country are Germany, the Netherlands, France and Austria.

We want to note, that there is no need for foreign investors to obtain a special permission to conduct business in the Czech Republic. An exception can only be made, if a company is registered in the field of nuclear energy or national security.

Procedures, that must be completed in order to register a Czech company

To begin you should choose the legal form. There are several of them:

  • a Closed Limited Liability Company;
  • an Open Joint-Stock Company;
  • a Partnership;
  • a Cooperative;
  • a branch of a foreign company;
  • a Joint Venture.

The most popular are: a Private Limited Company and an Open Joint Stock Company.

The company must also be registered in the licensed office (Trade License Office). This is a prerequisite for those, who wish to do business in this country.

After the registration of the company, the entrepreneur will have a maximum of 90 days in order to register in the Commercial Register of the Regional Arbitration Court.

Read also:
To open a commercial firm in the Czech Republic, you must follow these steps:
  • To provide a certificate stating, that you were not convicted;
  • To register a legal address;
  • To open a corporate account in the Czech Republic;
  • To create your own print;
  • To pay state duty;
  • To collect all necessary documents;
  • To come up with a unique company name;
  • To have at least 1 director and 1 shareholder.
Czech taxation

In order to open a company in the Czech Republic, the shareholder should familiarize himself with the main taxes.

The tax rate for Czech enterprises is 19%. The exceptions are pension and investment funds. Their tax rate is 5%. But at the same time a VAT is 21%.

You should remember, that the owner of the company will have 15 days from the date of registration in order to apply for a tax number.

Conclusion

Given the low tax rate and a good investment support from other jurisdictions, we can conclude, that registering a company in the Czech Republic is a good idea for startups. YB Case team of specialists is ready to advise you on this matter.

You can find out any other questions, regarding business in the Czech Republic, by contacting us through contacts, listed on our website.

The field must be filled
How can we contact you?*
Please enter a valid e-mail
Please enter a valid phone number