FAQs related to establishing new company
We provide we provide our clients complete business consultancy agenda including standard tax advisory, accounting, payroll, company formations but also consultancy aimed on their core of business. As you know each core of business has it is own legislation meaning that every client is regulated on the national level as well as on EU level by different set of laws and acts. Moreover on demand, we prepare for start-ups the whole on boarding process guide such as information about common salary level in particular branch and region of Czech Republic, etc. We are able to provide you with such information due to our performance on University and membership in various Trade Chambers.
Here are some frequently asked questions (FAQs) related to Establishing of new business:
1. What documents are needed to set up a limited liability company for a foreigner?
This varies depending on the shareholder/founder. Either it is private foreign person or foreign corporation.
Shall the new Czech entity be subsidiary company of foreign one; we need Business register extract of the founder not older than 3 months. Depending on the country and concluded international conventions, such document must be certified by notary, court or similar institution, certified with Apostille (according to Haag convention) or super-legalized by embassy. Depending on the language, sometimes it is necessary to let certified translate the extract into Czech (unless it is not language of EU).
Private foreign persons need just passport.
The requirements for shareholders are hence minimal. However there are some more for foreign CEOs (criminal record extract for non EU citizens, declaration of honor for EU citizens as well as non EU).
2. How long does it take to set up a company and for how long does a client need to come to your country to complete the formalities?
Once all documents are prepared, the notary writes the record to Business register and the company is established the next day. So to establish a company is almost immediate. However you need to order a meeting by notary or in some case wait for certified translation etc. From the public administration point of view, it takes 1 day. Before this we do partnership agreement and claim trade license. The client must come at least once in order to sign relevant Power of Attorney by notary. If everything is prepared, he is able to do it in 30 minutes as our office has within range of 500 meters 4 notaries.
3. Do you have any ready-made companies for sale? If yes, what does the process look like in this case and what documents are required?
No. We do not sell any companies and we would never recommend anyone to purchase any. Ready made companies are one huge scam that is eventually more expensive than establishing new company, because the buyer must perform the same steps as I mentioned in previous point (notary record). Moreover, you never know about hidden debts, blank bills, in 99 % of cases the seller do not fulfill all legal requirements such as keeping books, submitting Income Tax returns etc. So once you buy it, these all is your issue and you must to deal with it. To sum it up, ready made companies have a lot of risks, are more expensive and the process is not faster anymore.
4. Do you assist in opening bank accounts as part of the service? If yes, in what banks? How does the process look like? What are the required documents? Is it possible for a client to set up (or buy) a company and open company bank accounts during a single visit? In what banks one can open accounts fairly fast?
Yes, we do open bank accounts for the clients on the basis of Power of Attorney (previous point). Once the company is established by notary, we on the basis of PoA, act as Basic Capital administrator open a bank account in the bank. Once the client pays the basic capital, we are able to activate such account for common business purposes and the whole process finishes. The process could take about one week as you need to arrange a meeting in bank. Then we have to wait until the basic capital is paid.
We do not prefer particular bank. We can open bank account in any bank on Czech market, there is no difference for us. We recommend particular bank depending on needs of the client – foreign currency exchanges, credit card terminals, API applications, bookkeeping connection etc.
However for business purposes later on, the Czech company can use any bank account within EU area.
5. Do you assist foreign companies registered in the EU, e.g. Polish, British, or French, in opening accounts in the banks in the territory of your country? If yes, in what banks? How does the process look like and what documents are required?
Again, it is practically the same as in previous point. We act on Power of attorney that must by certified by notary. Either in Czech Republic (which is than bit easier) or PoA signed in the country of origin confirmed with Apostille and send us in original per post.
6. Are there any differences with regard to the documents required from citizens from the EU and outside the EU?
Yes, see point 1. Foreign non EU CEO must provide us with criminal records extract not older than 3 months.
7. Do you have any addresses to register companies under (virtual offices) and do you offer accounting services?
Yes, we provide our clients with business address in our house in the city center, where our office is located as well. Accounting is naturally part of our services.
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