Setting up a company in the Czech Republic costs €950 + VAT.
heart of Europe, has a strong economy, a stable infrastructure and a wealth of talent to draw on.
you can recruit. These are by no means the only advantages of doing business in the Czech Republic.
of setting up a business in a Czech Republic. The European country is also financially attractive, with the average Czech worker
monthly wage is relatively low, the cost of living is minimal and the business tax rate is low (19%).
Currently, different types of business forms can be established in the Czech Republic:
– General Business Partnership (G.C.P.)
Where two parties act under a common name and are equally liable and responsible for the business to the extent of their individual contributions. The partners are liable for all their assets and the company is liable for all its assets.
– Limited Liability Partnership (LLP)
There is a company in which all the shareholders are liable for the company’s obligations to the extent of their contributions, whether paid or not, as is the case with as shown in the commercial register.
– Limited liability company (S.R.O.)
Is the most common type of company incorporated in the Czech Republic. As in most countries, the shareholders of a private limited company are only liable for the company’s obligations up to the amount of capital they originally contributed to the company.In the Czech Republic, the share capital of a private limited company can be as low as CZK 1.
–Joint Stock Company (A.S.)
The articles of association, including the company statutes, and the issue of shares establish a public limited company. Shares can be freely traded without being registered in the Czech Republic’s Commercial Register, which makes it attractive if you are planning to list your company on the stock exchange.
The minimum share capital of a limited liability company must be CZK 2 million (about 79000€). At least 30% of this amount must be paid up at the time of incorporation. A branch is not technically a Czech company, but simply a representative of your foreign company in the Czech Republic. Branches are subject to quite significant restrictions and must specify all their proposed activities in their application to the business register. The company must also appoint an office manager who is a foreigner with a long-term residence permit in the Czech Republic.
Setting up a company in the Czech Republic involves several types of taxes:
Corporate income tax.
VAT – the standard VAT rate is 21%, but some products may be subject to VAT.
at a reduced rate of 15% or 10%.
Road tax – applies only if you intend to use a motor vehicle for your own business. Road tax rates vary, but are between 1 000
CZK (about 40€) to CZK 5 000 (about 200€).
Dividends and other income from limited liability companies or partnerships are taxed at a rate of 15%.
LCPC aims to provide you and your business with high quality assistance. Setting up a company is one of the first steps in building your business and we will help you on this journey together!
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