Czechia has a strong business reputation among other European countries and continues to develop across various sectors. At present, it is developing particularly in industry and services. The country attracts foreign entrepreneurs with low taxes, transparent business legislation, and stability. Let us look at how to start a business in Czechia and how Maira Consult can help.
Key features of the most popular company legal form in Czechia
The country regulates commercial relations through two main laws:
the Commercial Code;
the Business Corporations Act.
Under these regulations, the most common legal form of business in Czechia is Společnost s ručením omezeným, or SRO for short. In Ukraine, this legal form is known as a limited liability company, or LLC.
Maira Consult lawyers emphasize that, regardless of the type of company, it is necessary to obtain state authorization to operate in the relevant sector. Specifically, a license must be obtained. Licenses are divided into:
Simple. No proof of qualifications is required to obtain this type of license.
Complex. In this case, the applicant must have certain professional skills and provide proof of them. If the company owner does not have the necessary skills, they can appoint a responsible person with the required professional experience.
Any individual, including a non-resident, may become a founder and director of a company in Czechia. However, it is mandatory to provide documents confirming the person’s good standing, such as a certificate of no criminal record. A legal entity may also act as a founder, although it is preferable for it to be registered in one of the European countries.
Step-by-step process for opening a business in Czechia with the help of Maira Consult
Opening a company in Czechia is a relatively simple and quick procedure. However, it requires attention to detail and knowledge of the relevant legal requirements. What does the process of registering a company in Czechia look like? Read the complete guide from Maira Consult lawyers.
Preparation
It is possible to open a company in Czechia without the owner being physically present in the country. However, the founder must authorize a lawyer to handle the matter. To do this, a power of attorney must be prepared and notarized. The following documents must also be prepared:
a copy of the passport;
a copy of the birth certificate;
the original certificate of no criminal record.
The complete set of documents must then be sent to Czechia for review. These are the first steps in starting a business in Czechia.
Opening a corporate account and paying the share capital
Under Czech law, share capital must be paid when establishing a company. Its minimum amount is currently 1 Czech koruna, although more than 100,000 korunas is recommended. These funds will be used for the company’s needs. After opening the account and depositing the funds, a bank statement must be obtained. This document is mandatory for opening a company in Czechia.
Company registration
At this stage, the documents are submitted to the Commercial Court so that the company can be entered in the register. The result is a court decision confirming the company’s registration. This can be verified on the website of the Czech Ministry of Justice. The company is then registered with the tax inspectorate and the Czech Statistical Office.
Obtaining licenses
Company registration is not the final step in the process of establishing a business. Obtaining licenses is mandatory for starting a business in Czechia. State licenses are issued for an indefinite period and are divided into several main types:
Registration licenses. These licenses specify the company’s business activities, which may be carried out subject to certain conditions and upon payment of an administrative fee. It should be noted that the company’s operations are considered to begin on the date of its registration. Registration licenses are also divided into free, tied, and craft licenses.
Concession licenses. To obtain permission to carry out these types of activities, a concession must be obtained from a higher-level authority, such as a ministry.
Thus, obtaining simple licenses is very straightforward because it can be done at the same time as company registration. This takes approximately 4 to 6 weeks. Obtaining a complex license requires more time, depending on the company’s activities. Overall, the process may take up to 3 months.
Fast legal assistance from Maira Consult
You now know how to start a business in Czechia. If you need assistance with any legal matters relating to your new business, contact Maira Consult. We can help with the following:
registering a business;
providing advice on bookkeeping and accounting requirements;
assisting with the preparation of tax reports;
independently preparing the necessary documents for the tax authorities;
obtaining a VAT number when necessary;
closing or liquidating a foreign company in accordance with all applicable requirements;
registering the company’s unique trademark;
opening an account with a foreign financial institution;
obtaining a business license;
conducting a company audit.
Would you like to receive more detailed legal advice on how to start a business in Czechia? Book a free consultation today.
