Company in the Czech Republic
Company in the Czech Republic
The Czech Republic is a relatively new country formed in 1993 after the collapse of Czechoslovakia. Only 10 million residents who officially speak Czech have settled there. As you know, the capital of this Central European country is Prague and the currency is the Czech Koruna.
Taxes in the Czech Republic
In relation to the changes in the tax law and the implementation of a single income tax, the phrase “company registration in the Czech Republic” has become a top search result on Google Polish browser. In practice, entrepreneurs decide to register the Polish equivalent of a limited liability company, i.e. to open company in the Czech Republic called s.r.o.
Opening a business in the Czech Republic brings a lot of advantages which could include mainly all taxes as follows: 15% and 22% of personal income tax 19% of corporate income tax, 21% and 15% VAT.
It should take into account that only a small distance which separates us from our southern neighbors tempted Polish organizations founded the company there. Moreover, the Czech Republic includes a number of incentives, such as exemption scheme car transport and reduced costs associated with the formation of the company. It can be said that it’s thanks to the above benefits that entrepreneurs from all over the world choose to open a business in the Czech Republic.
Company formation in the Czech Republic
A company called s.r.o. in the Czech Republic may be founded by natural and legal persons in the form of memorandum or articles of association- however, a notarial deed is required. The date of entry into the register is considered the moment of establishment of the company. Entrepreneur, before deciding to open a company in the Czech Republic, should determine the purpose for which the company will be opened. If our purpose is to actually start a businnes in this country then such a procedure, with the appropriate calculation and advisory support, can be beneficial and profitable for us.
If we set up a company in the Czech Republic for tax reasons and continue our business in Poland, we may be exposed to liability on the part of the Polish tax authorities. This activity may be considered as contrary to the tax avoidance clause, as well as lead to the taxation of all Czech income in Poland. Such warnings were included in the statement of the Ministry of Finance of June 12, 2017, so you can expect increased fiscal controls in the field of Czech companies founded by Poles.
The process of opening a company in the Czech Republic lasts from two to four weeks. Interestingly, most of the activities related to the registration of the company in the Czech Republic can be made electronically which is not only great facilitation but also speeds up the whole process. Furthermore, thanks to this solution, all state authorities (includes tax authorities) have easy access to information about the entrepreneur.
Our Law Firm offers comprehensive legal services in the scope of completing all formalities, as well as assistance in obtaining necessary permits and concessions.
In contrast to Polish limited liability company (sp. z o.o.), share capital in Czech equivalent of a limited liability company (s.r.o.) is significantly lower and amounts to 1 euro. As you can see, this is a huge difference compared to the capital in the amount of 5,000.00 zł, which must be paid by entrepreneur who decide to open a Polish limited liability company.
The vehicle in a Czech company
The company in the Czech Republic, which will purchase the vehicle is entitled to a tax refund of the purchase, even before the actual start of business.
Ready made company in the Czech Republic / Purchase of a company in the Czech Republic
Many customers are increasingly choosing to buy a company in the Czech Republic. The subject of transaction is then a ready made company in the Czech Republic which already has a certain history, capital, and has already registered for VAT. It lets in many cases allows you to start your business more efficiently.
With specialists from our law firm a buying the company in the Czech Republic is proceeding very smoothly. We comprehensively organize the entire procedurę so buying a company in the Czech Republic is not a problem then.
Are you interested in establishing a company in the Czech Republic or do you want to talk about it? Entrust this task to professionals. Contact us.