Company registration in the Czech Republic in 2019
The Czech Republic is a state located in Central Europe. The country has borders with Germany, Austria, Slovakia. The capital, Prague, is one of the largest cities most visited by tourists. The Czech Republic joined NATO in 1999 and has been a member of the EU since 2004. The official language is Czech.
Business registration in the Czech Republic
Currently, in the Czech Republic you can register companies of various legal forms. There is the option of buying a ready-made company - a limited liability company, a joint-stock company, an open commercial company, a cooperative, etc.
The most popular are two forms:
• “S.R.O.” - limited liability company;
• “A.S.” - joint-stock company.
Often, to register an organization, the owner is required to compile the name of the future company, submit certificates of no criminal record with a translation into Czech, and issue a legal address.
The owner must open a bank account, prepare the required documentation and pay government fees, as well as produce stamps of the organization, register the company with the relevant authorities and prepare the memorandum of association. To learn more about the possible nuances of registration, please contact our IT - OFFSHORE specialists.
In some cases, you will need to issue a license to conduct activities. There are different types of permissions. A simple license can be obtained without a responsible representative, however, there is a type of license for which it is required. Responsible representative can be an individual with a residence permit or permanent residence, citizenship of the Czech Republic. Responsibility for the activities of this person.
Requirements to follow when registering
Features of registration of the company S.R.O. that the term of the company is not limited. You can close the organization by a court decision. It is required to submit a report annually; if the turnover is large, the report is required once a quarter. In total there can be from 1 to 50 founders who are often family members or acquaintances. The number of directors is not limited. The period of registration of such a company on average takes half a month after providing all the necessary documentation.
Registration nuances A.S. in the Czech Republic:
• There are no requirements for the maximum number of founders;
• Primary capital is divided into number of shares;
• The minimum amount of capital is 1 EEK;
• The board of directors should include at least three members.
The advantages of opening a joint stock company are that this is one of the most reliable and stable forms..
Advantages and disadvantages of opening a company in the Czech Republic
The main advantage of opening a company in the Czech Republic is that the jurisdiction has a good location for conducting international business. The country has a developed infrastructure. The owners of the company in the Czech Republic have the opportunity to purchase real estate in a given country by issuing a purchase and sale transaction in the territory of the jurisdiction.
There are practically no disadvantages of registering a company in the Czech Republic. The main disadvantage is that it will be necessary to contribute funds to support the company's activities. The cost of maintaining a business is quite large.