Establishing company in the Czech Republic, establishing new business, opening Start-up
Before you start the whole process of company establishing, we recommend reading a brief article about running business in the Czech Republic. It should provide you the first insight and overview of the options including overview of potential taxes levied on the intended company. It is also convenient to read the article about Ready-made companies, or more precisely the comparison between purchasing an already existing company and establishing a brand new company.
Company foundation, business establishment
The whole process of establishing a new business in the Czech Republic can be split in to two stages – founding the company and establishing it as a legal person (incorporation to Business register). On the basis of relevant power of attorney signed by notary with apostille, we will perform all necessary legal steps.
For company foundation, it is necessary to
- Choose unique company’s name
One can check similar names online directly by typing in Czech Business register at www.justice.cz
- Make a decision about number of shareholders and provide us with their details, i.e. either Business register extract or personal identification of natural person
- Specify core of business, i.e. activities that will be performed
- Set number of CEOs and choose first persons, set rules how they act on behalf of the company (separately, jointly, jointly above some threshold etc.)
For the final incorporation to Business register following steps must be performed
- Choose a business address and prove it by property owner consent we offer business address in our own house for clients who co-operate with us after company establishment
- Open a bank account and pay basic capital
As determined administrator of basic capital we will open a bank account without your attendance
- CEO must prove their capacity to act legal steps (statutory declaration of honor with certified signature) and clean criminal record. The latter is proved by criminal record extract, for EU-citizen it might be substituted by statutory declaration of honor.
Finally we arrange trade licenses and registration to relevant tax and other authorities.
Special services for Start Ups but not just for them
Once you set up the company, there is a vast specific regulation depending on your activities that the company must follow. It is straightforward that it is difficult for foreigners to be well informed about specific conditions in the Czech Republic. Therefore it is important to find a trustworthy partner that helps you with large variety of specific issues. We help our clients with
- Fine-tuning their business plans regarding Czech conditions
- Setting Organization structure which is closely related to Funding schemes of the Company
There are always more options how to fund the company. To sketch the financing scheme before establishing company or at least at the very beginning is the most important thing that influences the future. Very often there are related companies (related persons) in the financing model so it is necessary to abide by the transfer pricing regulation. We help you to create proper Intercompany contracts in compliance with transfer pricing regulation and Bilateral Tax Conventions between the Czech Republic and the counterparty country.
- Preparation and drawing up company’s by-laws (in-house regulations) that are often required by the legislation
For instance: Car usage rules, accounting by-laws, Labor by-laws (home office, sick days), Occupational safety and health directives, Hygienic and safety standards etc.
- On-boarding process of new employees, screening of potential suppliers.
Probably the most important point is to find suitable colleagues and business associates. However even it is more important to know current market conditions in the Czech Republic. Due to our close relations and activities in academic field, we are able to provide you with complete information about price levels, salary levels within particular occupation or region, possible and also common benefits for your employees, employment and business standards, etc.
For more information about employment benefits see Human resources management web page
European VAT framework and linkage to EU budget
Have you ever asked yourself: How did VAT arise, Could the EU countries meet the competition by different tax rates, Is the VAT reverse charge system fair to all member countries, How is your country profiting from EU VAT concept and other similar questions connected to value added tax? If you want to know the answers, read on. As everyone knows, VAT belongs to indirect taxes. Indirect because it is imposed on consumption, no matter what goods or services (with exceptions naturally) you purchas... Read more
New Blog start up
With refreshing our website we are also starting up new blog. We would like to present you usefull actual information not just for your business. At the same time we hope that this blog will prove you our high professional knowledge and expert abilities in the field of tax, accounting and company consultancy, but also in the field of macroeconomics, financial markets, etc. In case of any questions or reactins to our articles, please do not hesitate to contact us by contact form or directly by e... Read more