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Company formation in
Czech Republic
Czech Republic
Comprehensive assistance in company formation, including banking services
How to form a company in Czech Republic
1
Document submission
You submit to us necessary documents of the future founders and directors for the purposes of company formation in Czech Republic and opening a bank account in Czech Republic
2
Payment of services
Payment of our services for company formation in Czech Republic and/or bank account assistance in Czech Republic
3
Company formation
We register a new company in Czech Republic for you. Upon completion of the registraion corporate documents are either delivered to you or submitted to a bank for the subsequent opening of a bank account
4
Bank account opening
In case you request an assistance with a bank account, we arrange an interview at the bank for you, inform you about the date of the visit and accompany you on your way to the bank. After the bank account is opened and active you receive corporate documents of the formed company as well as the access to the bank account
Key aspects to consider prior to forming a company in Czech Republic
Minimum capital requirement in Czech Republic for a limited liability company (s.r.o.) is just CZK 1
1. Founders of a company in Czech Republic can either be resident or non-resident in Czech Republic. Founders can be either individuals or legal entities.
2. A resident or a non-resident individual can be a director in Czech Republic. It is not required to register a company in Albania with a resident individual as one of its shareholders or directors.
However, if a corporate bank account is needed in a Czech bank, the director in a company should be a Czech citizen due to the fact that:
In July 2018 Central Bank of Czech Republic issued a regulation, according to which it requires that Czech banks shall decline banking services to Czech companies, which do not conduct any activity in Czech Republic, as well as to Czech companies, whose director does not have at least a temporary residence permit in Czech Republic.
In this regard, we provide services of a nominee director for company formation in Czech Republic.
3. One individual can be simultaneously a shareholder and a director in a Czech company if such company is registered as a s.r.o. (a limited liability company).
4. There is no requirement for creating substance in Czech Republic - no need to hire local employees or rent an office in order to conduct business in Czech Republic, however, in order to receive a VAT-number for a Czech company it is required to provide information about a rented office of such company and about its employees, as well as information about planned or existing contracts with Czech business-partners or clients.
5. Minimum share capital that is required to register a company in Czech Republic as a s.r.o. (a limited liability company) is just CZK 1.
6. Information about company founders, shareholders and directors after a company is registered in Czech Republic is publicly available in the state corporate register.
7. A company in Czech Republic can be registered remotely, on the basis of a power of attorney. It is necessary for the director of the new company to travel to Prague for 1 day in order to open a corporate bank account.
2. A resident or a non-resident individual can be a director in Czech Republic. It is not required to register a company in Albania with a resident individual as one of its shareholders or directors.
However, if a corporate bank account is needed in a Czech bank, the director in a company should be a Czech citizen due to the fact that:
In July 2018 Central Bank of Czech Republic issued a regulation, according to which it requires that Czech banks shall decline banking services to Czech companies, which do not conduct any activity in Czech Republic, as well as to Czech companies, whose director does not have at least a temporary residence permit in Czech Republic.
In this regard, we provide services of a nominee director for company formation in Czech Republic.
3. One individual can be simultaneously a shareholder and a director in a Czech company if such company is registered as a s.r.o. (a limited liability company).
4. There is no requirement for creating substance in Czech Republic - no need to hire local employees or rent an office in order to conduct business in Czech Republic, however, in order to receive a VAT-number for a Czech company it is required to provide information about a rented office of such company and about its employees, as well as information about planned or existing contracts with Czech business-partners or clients.
5. Minimum share capital that is required to register a company in Czech Republic as a s.r.o. (a limited liability company) is just CZK 1.
6. Information about company founders, shareholders and directors after a company is registered in Czech Republic is publicly available in the state corporate register.
7. A company in Czech Republic can be registered remotely, on the basis of a power of attorney. It is necessary for the director of the new company to travel to Prague for 1 day in order to open a corporate bank account.
Cost of services
Formation of a s.r.o.
Timeframe - 8 business days
Timeframe - 8 business days
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Advantages of forming a company in Czech Republic
Attractive business-environment
- Close to major European markets
- Highly-developed infrastructure
- Open economy, no trading restrictions
- Low inflation rate
Stability and
security
security
- Political stability
- Secure legal and justice systems
- Comprehensive protection of property rights
- Comprehensive personal security
- Investment protection
Tax benefits
- Relatively low corporate income tax rate in comparison to the majority of the EU states - 19%
- Dividend, interest and royalties withholding tax rate, if these payments are made to an EU incorporated legal entity is - 0%
- Multiple double tax treaties
No foreign exchange controls
- Czech Republic state regulations do not impose foreign exchange controls. Individuals and business-entities, either resident or non-resident in Czech Republic may open bank accounts in local banks in any currency
Ease of establishing and doing business
- 100% foreign ownership of a company is available
- Fast company formation in Czech Republic
- Remote company formation in Czech Republic is available
- Low costs of company formation in Czech Republic
More about Czech Republic
Czech Republic is located in Central Europe, its territory amounts to 64,589 square kilometers. Czech Republic borders Poland, Germany, Austria and Slovakia. Czech Republic is a part of the European Union and OECD (Organization for Economic Cooperation and Development).
Population of Czech Republic amounts to around 10.6 million people.
Population of Czech Republic amounts to around 10.6 million people.
Official currency of Czech Republic is Czech koruna (CZK).
Czech Republic's GDP in 2017-2018 grew by 3,5% and amounted to USD 372.6 billion.
Czech Republic has a developed export focused economy that is based on service sector, industrial manufacturing and innovations. Industrial sector's share is 37,5%, whereas service sector's is 60%, and agricultural sector's is just 2,5%. Primary industrial sectors are high-tech manufacturing and engineering, electronic equipment production, car industry and machinery, production of steel, defense industry, chemical industry and pharmaceutical industry.
Czech Republic's GDP in 2017-2018 grew by 3,5% and amounted to USD 372.6 billion.
Czech Republic has a developed export focused economy that is based on service sector, industrial manufacturing and innovations. Industrial sector's share is 37,5%, whereas service sector's is 60%, and agricultural sector's is just 2,5%. Primary industrial sectors are high-tech manufacturing and engineering, electronic equipment production, car industry and machinery, production of steel, defense industry, chemical industry and pharmaceutical industry.
Foreign investors establish business in this jurisdiction for trading in the EU, investments in industrial sector, provision of financial services, IT-services, restaurant business, hotel business.
Restricted for foreign entrepreneurs are the following sectors:
Restricted for foreign entrepreneurs are the following sectors:
- defense industry
- telecommunications
- television, radio
- postal services
- air transport.
- Corporate income tax - 19%. Tax returns are filed on an annual basis. Advance income tax payments are made on a quarterly basis by most companies
- Dividend withholding tax - 0%, if dividends are paid to legal entities incorporated in the EU, otherwise the standard tax rate - 15%
- Interest withholding tax - 0%, if interest is paid to legal entities incorporated in the EU, otherwise the standard tax rate - 15%
- Royalties withholding tax - 0%, if royalties are paid to legal entities incorporated in the EU, otherwise the standard tax rate - 15%
- Capital gains tax - 0%, if shares in Czech companies are sold by their parent companies that are incorporated in the EU, otherwise standard tax rate - 19%
- VAT - Standard tax rate 21% or a reduced rate from 0% up to 15%, or tax exempt. Tax returns are filed on a monthly or a quarterly basis
- Personal income tax - from 15% up to 23%.
Apart from such traditional business entity types as a limited liability company (Společnost s ručením omezeným - s.r.o.) and a public limited company (Akciová společnost - a.s.), Czech corporate law offers to establish a business as:
1. General partnership (Veřejná obchodní společnost - v.o.s.)
2. Limited partnership (Komanditní společnost – k.s.)
3. Cooperative society (Družstvo)
To receive a detailed description of the company formation procedure in Czech Republic and information about documents necessary for company formation in Czech Republic please contact our experts.
1. General partnership (Veřejná obchodní společnost - v.o.s.)
2. Limited partnership (Komanditní společnost – k.s.)
3. Cooperative society (Družstvo)
To receive a detailed description of the company formation procedure in Czech Republic and information about documents necessary for company formation in Czech Republic please contact our experts.
Send a request for company formation in Czech Republic
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128 City Road,
London, EC1V 2NX
Phone: +44 20 8157 4037
Email: request@pil-services.com
