Ministry of Industry and Trade
+420 224 851 111
Czech and Slovak
10,708,981 (as of July 2020)
Q: What is the process for forming a company in Czech Republic?
A: The process for forming a company in Czech Republic involves obtaining approval for your company name, drafting and signing the company's articles of association, obtaining a trade license, registering your business with the Commercial Register, obtaining a tax ID number, and registering for social security and health insurance.
Q: What are the different types of companies I can form in Czech Republic?
A: The most common types of companies in Czech Republic are the Limited Liability Company (s.r.o.) and the Joint-Stock Company (a.s.).
Q: What is a Limited Liability Company (s.r.o.)?
A: A Limited Liability Company (s.r.o.) is a type of company where the liability of the shareholders is limited to their share capital contribution. s.r.o.s are the most popular type of company in Czech Republic, and are often used for small and medium-sized businesses.
Q: What is a Joint-Stock Company (a.s.)?
A: A Joint-Stock Company (a.s.) is a type of company where the shareholders own the company through the ownership of shares. The liability of the shareholders is limited to the amount of their share capital contribution.
Q: What are the minimum requirements for company formation in Czech Republic?
A: The minimum requirements for company formation in Czech Republic include having at least one shareholder or member, a registered office address, and a minimum share capital contribution, which varies depending on the type of company you are forming.
Q: How long does it take to form a company in Czech Republic?
A: The time it takes to form a company in Czech Republic can vary depending on the type of company you are forming and the specific requirements involved. Generally, it can take between one to four weeks to complete the entire registration process.
Q: What are the tax implications of forming a company in Czech Republic?
A: Companies in Czech Republic are subject to a range of taxes, including corporate income tax, value-added tax, and social security contributions. The specific tax obligations will depend on the type of company you are forming and the nature of your business activities.
Q: What are the ongoing compliance requirements for companies in Czech Republic?
A: Companies in Czech Republic are subject to a range of ongoing compliance requirements, including filing annual financial statements, maintaining proper accounting records, and renewing their business registration and other permits as required. It is important to work with a qualified professional to ensure that you remain compliant with all applicable laws and regulations.
"The Czech Republic has a strong and growing economy. According to the World Bank, the Czech Republic's GDP in 2019 was $242.3 billion, a 4.2% increase from 2018. The country's GDP per capita was $20,845, which is higher than the average for Central and Eastern Europe. The unemployment rate in the Czech Republic is also low, at 2.7% in 2019.
The Czech Republic has a strong export market, with exports accounting for over 70% of the country's GDP. The main exports are machinery and transport equipment, chemicals, and raw materials. The Czech Republic also has a strong manufacturing sector, with the automotive industry being the largest contributor.
The Czech Republic has a strong banking sector, with the Czech National Bank being the central bank. The banking sector is well-regulated and has a high level of financial stability.
Overall, the Czech Republic has a strong and growing economy, with a low unemployment rate and a strong export market. The country's banking sector is well-regulated and has a high level of financial stability."
Taxation in the Czech Republic is regulated by the Czech Ministry of Finance. Both individuals and corporations are subject to taxation on their income in the Czech Republic.
Personal Income Tax:
In the Czech Republic, individuals are required to pay taxes on their income, including salaries, wages, and other sources of income. The tax rate is based on a progressive tax system, where the tax rate increases as the income increases. The tax rates for individuals range from 15% to 32%, depending on the income level. The tax year in the Czech Republic runs from January 1st to December 31st.
Corporate Income Tax:
Corporations in the Czech Republic are also required to pay taxes on their income. The corporate income tax rate in the Czech Republic is a flat rate of 19%. However, there are some tax incentives available to companies in certain industries and regions. The tax year for corporations in the Czech Republic is also from January 1st to December 31st.
Process and Calendar for payments:
In the Czech Republic, the tax payment process involves filing a tax return and paying the tax due within a specific deadline. For individuals, tax returns are due on March 31st of the following year. For corporations, tax returns are due within three months of the end of the tax year.
In addition to income taxes, there are other taxes and fees that individuals and corporations are required to pay in the Czech Republic. These include value-added tax (VAT), real estate transfer tax, and social security contributions.
It's also worth noting that the Czech Republic has signed tax treaties with many countries to avoid double taxation on foreign companies that do business in the Czech Republic.
In summary, the Czech Republic requires both individuals and corporations to pay taxes on their income. The tax rates are based on a progressive tax system for individuals and a flat tax rate for corporations. Tax returns are due within specific deadlines, and there are other taxes and fees that individuals and corporations are required to pay.
Company incorporation application form
Chosen company name
Main business activity
Legal address of director
Your inquiry has been submitted. Thank You!
We will contact you shortly…