Premium Company Formation Services in Czech Republic
FormationWise is here to assist global business owners to expand their operations with a swift and easy company formation process in Czech Republic.
Why Czech Republic
Czechia, or the Czech Republic as many call it, is a highly developed country in Central Europe. The country has a social market economy, which helps to explain why so many investors want to learn about Company Formation in Czech Republic.
Some of the reasons these investors are looking for information on Czech company formation have to do with its proximity to western Europe. The presence of a well-educated labor force has also helped in making it an attractive investment destination.
Who we are
FormationWise is your partner in all aspects of establishing your offshore business. We will make this difficult process swift and easy for you. All you need to do is sit back and relax.
What we do
From helping you get through the initial company registration, assisting with accounting services to even creating the perfect business website – we can do it all!
Why you need us
You can rely on our expert team to guide you through the process and help with every query you might have. Our experts will assist with building your business strategy, represent you before the relevant institutions, help you set up a bank account and more.
Placing an order is easy
- 1
Select your desired package
Simply choose the right package for your needs by filling out our form, by call or by placing an order on our website.
- 2
Make a payment
After finalizing the correct package make the payment for your selected services and send us your documents.
- 3
Send your documents
Forward us all the necessary documents through an email with documents attached or by phone
- 4
Company formation
Once we receive the payment and the required documents, we will start the company incorporation process in Czech Republic
- 5
Open a bank account
We will help you open a corporate or personal account with a reputable bank in Czech Republic
Types of Companies That Can Be Registered in Czech Republic
An offshore company setup in the country can take on any one of the following seven legal forms:
General partnership
When it comes to company formation in Czech Republic, a General Partnership refers to a company that’s owned by a minimum of two people. Once registered, such a company will need to conduct operations under a common business name.
Additionally, these companies are jointly owned, and their owners are, in their personal capacity, responsible for their debts and obligations. Investors don’t need to raise a minimum paid per capita to set up this type of business.
Representative office
A Representative Office refers to a company that’s only allowed to promote its parent company’s operations or undertake market research. Such a company can’t sign contracts or conduct business in the country.
The administration treats it as a branch office, implying that the tax filing procedures are similar to that of the former.
Limited partnership
Its requirements are similar to those of the general partnership, except for the fact that it comes with two types of partnerships:
- General Members:
These people bear unlimited liability for the company’s debts and obligations.
- Limited Members:
This refers to investors who are only liable for their initial investment in the firm as set out by the Articles of Association governing the partnership.
Other types of companies you can register in Czech Republic
Apart from the three mentioned above, the other types of companies you can register are:
- Joint Stock Company
- Cooperative
- Branch Office
Minimum Share Capital For A Czech Company
The minimum share capital for offshore incorporation is as shown in the table below:
| Type of Company | Minimum Share Capital |
|---|---|
| General Partnership | No requirement for minimum registered capital |
| Limited Partnership | The Articles of Association should set the minimum share capital |
| Limited Liability Company | CZK 1, as set by the Business Corporations Act |
| Joint Stock Company | EUR 80,000 or CZK 2,000,000 |
| Cooperative | The Business Corporations Act doesn't specify the minimum share capital requirements |
| Branch | No minimum contribution or registered share capital |
The time frame for the incorporation
The time taken to complete the offshore company formation services will depend on the type of company you want to set up. For example, if you want to establish a capital company, the process can take as long as ten business days.
On the other hand, a partnership will typically take up a shorter period and can be completed within five business days. Formation Wise will advise you on the time frame during your first consultation.
Do you provide a registered office address or a virtual office?
Yes
Is bookkeeping or an annual return required?
Yes
Foreign-ownership allowed?
Yes
Our Services
Reasons to form a company in the Czech Republic
Geographic location / strategic advantage
The Czech Republic significantly benefits from its strategic location as it's an investment hotspot for investors from both Eastern and Western countries. These investors can easily access its economy, which is characterized by a one-of-a-kind infrastructure system.
VAT / corporate tax benefits
Completing the Czech company formation process enables you to benefit from a standard corporate tax of 19%. However, investment funds get taxed at a rate of 5%, with the government applying a standard VAT rate of 15%. Lower thresholds of 0% and 10% are available too.
Highly skilled workforce
The Czech workforce is among the most skilled in Europe and encompasses professionals with a high degree of discipline, dedication, and experience. Its professionals have specialized in various fields, with most university students focusing on science and engineering courses. Employment costs are also lower compared to other countries in the EU.
Suitable investor protection measures
Company formation in Czech Republic means your investment is sufficiently protected by the regulations in place. These regulations touch on shareholder power and the responsibilities of the company's managers.
Large recipient of foreign investments
The Czech Republic is among the largest recipients of foreign direct investments in the European Union. Its economy is also characterized by the presence of a large number of greenfield investments, many of which are from the USA and the EU.
Access to investment incentives
All entities operating in the Czech Republic – local and foreign – are eligible to apply for investment incentives offered by the administration. These incentives are tailor-made to focus on sectors such as:
- Business support services centers
- Technology centers or research and development facilities
- Manufacturing industry
If you satisfy the eligibility requirements in place, some of the incentives you can receive are in the form of:
- Cash grants for use in training your personnel
- Corporate income tax relief for your company for a period not exceeding ten years
- Cash grants to help you create more jobs for the local labor force
- Financial support to help you acquire tangible fixed assets. In this case, the government will cover up to 10% of the eligible costs, helping you save money in the long term.
From the six benefits mentioned above, it’s clear that the Czech Republic, more so its central parts is a great investment destination. Furthermore, the country lies close to the industrial lifeline in Europe, making it suitable for investments touching on transportation and logistics.
Why Choose Formation Wise To Set Up an Offshore Company in Czech Republic
FormationWise has years of experience providing offshore company registration services in the Czech Republic. Below is a look at the top reasons why you should let FormationWise handle your upcoming offshore company setup process.
Broad array of services
Our team of highly experienced professionals will provide you with a wide array of services ranging from bank account opening to accounting. We will also take care of your taxation and auditing needs and more to ensure that your operations in the Czech Republic aren’t affected.
Fully confidential
When you come to us for help in registering a company, you can rest assured that your treasured personal information, business data, and other records will remain secure. We never share client information with third parties.
Highly experienced
We take great pride in the amount of expertise our in-house team possesses. This is an expertise we have garnered over the years and use to assist investors, entrepreneurs, and companies setting up shop in the Czech Republic. Our expertise lies in the areas of trademark registration, tax planning, and company formation.
Free initial consultation
The first consultation we will hold with you when you approach us for help with offshore incorporation is free of charge. During this session, we will provide a brief overview of what it will take to form a company in Czech Republic and the time frames involved.
Fast and dependable
Looking at the benefits that come with setting up a company in the Czech Republic, it’s only fair that you get going as soon as possible. For this reason, we will do our level best to get your company up and running and in compliance with the local regulations within the shortest time possible.
Legal Requirements
The search for the best offshore company formation advisor in the Czech Republic calls for you to begin by understanding the legal requirements expected of you during the process. The first thing to note is that you or your advisor must register it with the Trade License Office.
Registration should take place within a 90-day window, i.e., since the day the trade license got released or when you set up the company. You and your business partners must also register it with the Commercial Register of the Regional Commercial Court.
Apart from supplying the standard application document, you’ll also have to submit:
- Clean criminal records of all the members registered in the company
- The articles of association
- A list containing the names of the company managers, their official signatures, and their formal consent for the company registration process
- Documents showing the right to conduct business activities in the Czech Republic
- A certificate from your bank indicating the startup capital deposited into your accounts
- An extract from the trade license registrar and a confirmation from the administrator of the capital you have registered during the setup process
The investors must hand over an application at the Tax Office for the VAT, income tax, payroll, and withholding tax registration within 15 days from the company registration date. These are needed for the entity to receive a tax identification number.
Documents Required for Registration
The Foundation Deed or the Articles of Association is the most important document needed during the Czech company formation process. If the establishing company is a Joint Stock Company or a Limited Liability Company, you must prepare it as a notarial deed.
- Lease agreement/ consent with the placement of a registered address. It shows that the company has a business address in the Czech Republic
- An affidavit from one of the company directors showing they are in a position to perform as an administrator in the firm
- A confirmation from the bank proving the payment of the registered capital
- An excerpt from the company registrar – it only applies to businesses that have already been established
What Is the Process?
Before we look at the process of company formation in Czech Republic, we would like to point out that different companies today operate in the country. Examples of these include government agencies, private companies, and commercial companies.
If you look at the classifications the Czech Republic uses, you’ll find that a supermarket is classified as a private company. On the same breadth, a grocery store falls under the commercial company category.
Please note that every broad category mentioned above comes with various other specializations. For example, a company can choose to focus on selling services or producing goods, or both, showing that there are further specializations within the company.
With this aside, let’s now look at the process followed in an offshore company registration process:
- Company name lookup and a check for locale and uniqueness in the registry
- Choosing the type of business registration organization
- Opening a business account in a bank located in the Czech Republic and transferring the minimum share capital (where applicable)
- Gather all the necessary documents and have them certified by the national rotary
- Register the business entity with the Register of Legal Entities
- Go to the Social Security Fund and register the company
- Register the corporation with the Czech Republic Tax Office
Cost of Company Formation in Czech Republic
If you have completed an offshore company setup before, you already know this process is bound to attract certain costs. The company formation in Czech Republic process is no different, and its costs are as shown below:
Registration fee
An investor will need to pay a basic registration fee for the offshore incorporation process completed through a public notary. The fee currently stands at CZK 2,000 (or EUR 75) for those registering a limited liability company. Please note that this fee may rise up to CZK 6,000 if you complete registration through the Registration Court.
Virtual office costs
Operating a virtual office is the best option for any investor with a business address in the Czech Republic. For this, you have to pay EUR 33/month.
Minimum share capital costs
Investors establishing limited liability companies are required to pay a CZK 1 minimum share capital.
Accounting and auditing costs
Included in these costs are tax assistance and bookkeeping services.
Taxes in the Czech Republic
Just like operating in any other country, you have to understand that the Czech Republic imposes various taxes on all investors operating in the country. Learning these taxes when looking for offshore company formation services can significantly ease the process.
The most notable taxes you’ll likely face in the country are shown in the table below:
Tax
Rate
Natural-person income tax
15%
Corporate income tax
19%
10% for books, special medicine, and baby food
Value added tax
15% for wood, medicine, plants, and food
21% for most other products and services
Apart from the natural-income tax, the employer also has to make health insurance and social security contributions for all their employees. These contributions typically amount to a further 34% addition to the gross salary base for their employees.
Each employee will then make additional contributions amounting to 11% of their gross salary.
FAQ
The Commercial Registers in the Czech Republic refers to a public database containing all corporate and company information. In it, you’ll find the details related to each company’s hierarchy, charters, and business activities.
Its contents cover everything from foreign companies to individual entrepreneurs, funds to partnerships, and non-profits to joint stock companies. Please note that the accuracy of the information contained therein is the duty of each individual company.
But while this is the case, failing to furnish the authorities with accurate data, either knowingly or unknowingly, can lead to serious sanctions. In the most extreme of cases, it could lead to the dissolution of your Czech offshore company.
Extracts obtained from the commercial register can be used to:
- File legal claims
- Obtain detailed information related to potential business partners
- Verify information regarding prospective employers
- Register legal entities that have foreign participants
- Negotiate foreign trade agreements
Apostille refers to a form of higher recognition of a file needed for the international reception of a foreign public text. You need the apostille when using the said document in another country.
Examples of documents you may need to use in other countries are:
- Extracts from the Penal Register
- Extracts from registers
- Birth certificates
- Diplomas
- Deeds
- Powers of attorney
- Marriage certificates
- Extracts from the Commercial Register
The Apostille Convention’s primary purpose was to reduce individuals’ need to seek consular or diplomatic legalization. Therefore, if you submit a foreign document for an official purpose, you’ll need to have an apostille affixed.
Make sure the apostille gets translated into the Czech language beforehand.
Both tax non-residents and corporate income tax residents are subject to the corporate income taxes established by the Czech Republic. A corporation becomes a tax resident if it’s managed, controlled, or incorporated in the Czech Republic.
Tax residents get taxed by the Czech Republic on their global income, with the tax non-residents only getting taxed on their Czech income. The tax authorities typically calculate the taxable income based on the accounting profits posted.
As a rule of thumb, all expenses incurred in obtaining, ensuring, and maintaining a taxable income are considered tax deductible.
The Czech Republic has imposed a corporate income tax that’s levied at a standardized rate of 19%. A reduced corporate income tax rate of 5% applies to all basic investment funds, with pension funds having to pay an income tax rate of 0%.
NB. The tax duration may either be a fiscal year or a calendar year. It’s upon you to calculate how much you owe the authorities in the way of corporate income tax. You’ll typically have a time limit of three to six months to file your returns, depending on various circumstances.
Investors who wish to make advance tax payments can do so semiannually or quarterly. The amount payable to the tax authorities will be based on the last known tax liability.
Yes.
If you look at the documents required for offshore incorporation in the Czech Republic, you’ll notice that the authorities expect you to supply them with a lease agreement. The lease agreement from a landlord proves that your company has a local business address.
If you’re a foreign investor, Formation Wise can handle this aspect for you during registration.
The Czech company formation process requires that the investor nominates one director. Fortunately, there are no restrictions in terms of their residency or nationality. Any person nominated as a director will have to supply the following:
- A criminal record check document – it applies to all individuals who are non-EU or EEA citizens or residents
- A criminal record clearance document from the Czech Republic and from their country of residence/citizenship
No.
The Czech Republic hasn’t put in place any statutory requirements for offshore companies registered in the country to have a seal.
No.
There is no legal requirement for a Czech limited liability company to have a secretary under its employees. However, it makes sense to have one, especially for a business whose operations involve interacting with locals and customers regularly.
A company secretary guarantees fast access to information for your clients and partners.
The business environment in the Czech Republic is booming, making it one of the top investment destinations in Europe. Apart from a skilled labor force, the country boasts of a strong business culture that has close proximity to other EU markets.
Establishing an offshore company here will open you to enjoying benefits such as:
- Minimum annual costs
- An opportunity to operate in the expansive and lucrative EU market
- The right to a residence permit
- Protection from double taxation
- Possibility of a VAT refund
- Access to a stable economy
- Minimum number of tax audits
In the past few years, the Czech Republic has emerged as an attractive location for doing business in the European Union. Here, you have the option to set up a business from scratch or buy a ready-made company, depending on your needs.
Luckily, the best offshore company formation services are available to locals and foreigners, thanks to Formation Wise. What this means is that you can set up your business and manage it from any location in the world.
But while the formation process isn’t complicated, as shown by this guide, you should note that you’ll face some bureaucracy. For example, even after entering the Czech Republic company register using Formation Wise, you’ll still have to visit the country at some point.
Yes.
We at FormationWise will work with you to help you register an offshore company remotely. Our services are tailored to assist you in gathering the documents needed to complete the company formation in the Czech Republic process.
Below is a look at the type of companies we can help you set up remotely in the Czech Republic:
- Veřejná obchodní společnost (VOS)/ General Partnership
- Komanditní společnost (KS)/ Limited Partnership
- Společnost s ručením omezeným (SRO)/ Limited Liability Company
- Akciová společnost (AS)/ Joint Stock Company
- Družstvo/ Cooperative
- Branch Office
- Representative Office
Please note that while the documents required for company formation in Czech Republic are the same, the minimum share capital required for each may vary. Formation Wise will advise accordingly during the process.