Benefits of Doing Business in Czech Republic
- Located in the centre of Europe, the Czech Republic acts as a gateway to both the eastern and the western markets. The place is less than 2 hours by air from most European countries.
- As a member of the EU, any company in the Czech Republic benefits from the country’s trade relationships and commercial ties with most of the business centres in the world. In addition, the country is bereft of a majority of trade burdens.
- There is no dearth of literate, skilled and professional workforce in the country, so employability standards are conducive for business operation.
- The Czech Republic shows a high degree of entrepreneurship and favourable conditions for doing business.
- The country features high standards of living, a vibrant economy and a refreshingly aesthetic landscape.
How to Register a Company in Czech Republic?
The process of company formation in Czech Republic is as follows:
1. Decide a Company Name
Business name registration in Czech Republic is subject to availability and acceptability. The proposed company name can be checked with the Registry of the Regional Commercial Court.
2. Provide Criminal Record Clearance
Arrange for certificates of a clear criminal record of the managers [an extract from the Criminal Register from their country of origin – for EU citizens; or an extract from the Criminal Register of the country where one has spent at least 3 consecutive months in the 3 previous years – for non-EU citizens].
3. Provide Real Estate Register Clearance
Submit proof of the registered office of the company.
4. Advance the Minimum Share Capital
During company incorporation, the minimum share capital, if any, must be placed in a bank.
5. Obtain Trade Licence and Clearances
Depending upon the type of activity your company would be engaging in, file for the required trade licences and permits.
6. Get the Articles of Association Notarized
Draft the Articles of Association (AOA) of the company, and get them, as well as company statutes, verified by a public notary in Czech Republic.
7. Register Your Company at the Commercial Register
For completing the registration process, get the motion to the relevant Regional Court signed by all the first managers in front of a notary public, and then submit it at the Companies Registry.
8. Get a Tax Identification Number
Registration for income tax happens simultaneously, and a company receives its Tax Identification Number on submission of company application.
Documents Required for Company Registration in Czech Republic
- Company business name
- Address of registered office, along with its proof (lease agreement)
- Details of the activities to be carried out by the company
- Memorandum and Articles of Association (MAA)
- Trade authorization certificate
- Specimen signatures of shareholders and directors
- Proof of deposited bank capital
- Extract from the Criminal Registry for each member of the company
