Company Formation Czech Republic
Czech Republic is a small country with a population of about 10 million people. The country has a GDP of more than $215 billion. Czech Republic’s neighbours are Germany, Austria, Slovakia, and Poland. It is a landlocked country that is known for its historic castles, high rates of urbanization, and historic sites. It joined the European Union in 1995. The main sectors of its economy are manufacturing and services. The latter takes about 60% of the GDP.
Why Register a Company in Czech Republic?
- Highly industrialized – Czech Republic is a highly industrialized country, which makes it easy to do business.
- Infrastructure – Czech Republic has highly-developed infrastructure. It has the densest rail network in the world.
- Fast internet speeds – Czech Republic has some of the fastest internet speeds in the world. This makes it simple and easy for doing business.
- Low tax rates – The corporate tax rate in Czech Republic is 19%. This is lower than that of the EU average of 22%.
- Part of EU – Czech is a member of the European Union. This makes it possible for businesses to do businesses in all EU member states.
- Strong neighbouring countries – Czech Republic has strong neighbouring countries, which makes it easy to do business in them.
How to Register a Company in Czech Republic
There are a number of steps that you need to follow when you are registering a company in Czech Republic. These are:
- Police certificate – You and all directors need to get a police report.
- Tax clearance – Get a tax clearance certificate from the revenue office. This will ensure that no director has tax arrears.
- Signatures from directors – You should download forms from the government and fill them. The signatures of directors are mandatory.
- Open a bank account – Use the name of your company and deposit the minimum share capital.
- Apply for commercial register – This is a process that is done within a few months.
Documents Needed to Register a Company in Czech Republic
- Identification documents of directors.
- Police clearance certificate.
- Tax clearance certificate.
- Bank documents.
- Physical location address.
- Memorandum of Association.
- Legal stamp
- Resident documents.
FAQs on Company Registration in Czech Republic
What is the corporate tax rate in Czech Republic?
The corporate tax rate in Czech Republic is 19%. There is a standard VAT of 21%.
How long does it take to register a company in Czech Republic?
It depends on the type of business. For sole proprietorship, it takes less than 24 hours. It takes a few weeks or months to register a limited liability company.
What are the types of companies you can register in Czech Republic?
- General commercial partnerships. Also known as VOS.
- Limited partnerships. These are known as k.s. All partners are liable for companies obligations.
- Limited liability company. Also known as s.r.o. These are the most common types of businesses.
- Joint stock company. These are also known as a.s. They allow shares to be traded freelu without registration.
- Cooperative – This is a company that is owned by members. Their goal is to improve the wellbeing of members.
- Branch office – This is a foreign company that sets up an office in the country.
- Joint venture – This is a foreign company enters into a partnership with a local Czech company.
Do I need to be present physically?
There are steps where you must be present physically when registering a company in Czech Republic.
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