A company in the Czech Republic can be a tempting solution for entrepreneurs dealing with various types of business activity, who want to expand foreign markets. The most popular legal form of a Czech company is společnost s ručením omezeným – abbreviation sro. It is the equivalent of a Polish limited liability company. The structure of an sro company can be one-person. Moreover, in the Czech Republic, another legal person, e.g. a Polish company, may be a member of the management board.
An undoubted advantage of a Czech company is its low share capital, which may amount to as little as CZK 1 (approx. PLN 0.19). Nevertheless, such entities are negatively perceived by public institutions. Certainly, the advantage of having a Czech company is the ability to buy a car without paying excise duty. For comparison, in Poland, when buying a passenger car with an engine capacity of more than 2000 cm3, the excise tax is as much as 18.6% of the tax base. Another advantage of buying a car by a Czech company is the possibility of deducting the full VAT.
Every entrepreneur conducting business activity in the Czech Republic is obliged to keep a databox. Because in the Czech Republic, communication with administrative authorities, tax offices, etc. takes place electronically at every level. Through the databox, among others, annual financial statements are submitted for each completed financial year. Electronic communication with Czech institutions has deformalized bureaucracy. An entrepreneur can settle any matter without leaving home.
Czech institutions are known for their high tolerance towards entrepreneurs, they prioritize help and conversation. Only in the case of reprehensible behavior of the entrepreneur, more decisive steps are taken.
Apart from the advantages of having a company in the Czech Republic, there are also disadvantages. One of the difficulties is the obligation for board members to present a certificate of no criminal record.
Czech tax rates:
– Corporate income tax – 19%
– Personal income tax – 15%
– VAT – 21%
– Dividend withholding tax – 15%
Dividend withholding tax – 15%
Only one meeting is enough to register or purchase a ready-made Czech company. Registration, rewriting the existing Czech takes about 1.5 weeks. By using our services you will experience a minimum of formalities and maximum time savings. We can process the above-mentioned services remotely, based on the power of attorney granted to us.
We deal not only with the registration or sale of ready-made Czech companies. We also provide all the necessary tools to start and run a business, i.e. full accounting, legal support, assistance with corporate changes and so on. We focus on long-term cooperation with our clients, who can count on our help and industry support at any time.
