Opening a joint stock company in the Czech Republic in 2021

Registration of a joint-stock company in the Czech Republic in 2021 gives you the opportunity to do business legally in a respectable country with a high standard of living. It is easy enough to create a joint-stock company in this country, and it is possible to buy a ready-made company. You only need to reissue the documentation.

The advantages of doing business in the Czech Republic

You can highlight several advantages, why it is worth opening a joint-stock company in the Czech Republic in 2021. The main ones are the following:

• There is an opportunity to enjoy some of the privileges that are characteristic of business in Europe;
• The financial sector is well developed;
• The country's banks offer low service fees;
• It is possible to ensure maximum privacy;
• It is possible to use nominal services;
• Opening a business gives the opportunity to obtain a residence permit;
• The country is stable economically and politically.

Creating a JSC in this state gives the opportunity to open an account in a European bank. To learn more about the nuances of opening a company, contact our experts at IT-OFFSHORE.

Peculiarities of registering a joint stock company

Opening a company in the Czech Republic requires a rather high cost and compliance with a number of conditions. If the authorized capital is smaller, it will not be possible to create a company of this type. In total, at least one participant, who is a shareholder, is required. It can be either a natural person or a legal entity. Participants must be of legal age. A unique name for the company is needed, to have a legal address.

What documents will be required:

• Passport;
• Approved name of the company;
• Proof of amount of registered capital;
• Confirmation of absence of a criminal record of participants.

It is possible to purchase a ready-made company, which has no debts and obligations, clean records, and paid-up share capital.

Taxation of companies in the Czech Republic

The tax system of this country is standard because the country is not offshore and is not included in the blacklist of low-tax jurisdictions. The corporate tax rate can vary from 5 to 19%. VAT is 21%.

Any company that is duly registered acquires the status of a tax resident. The taxation of legal entities is regulated by the Income Tax Law. The taxable base depends on the type of company and the amount of its income.

Income that was received from the sale of assets is included in the taxable base, a deduction is made according to the statutory corporate tax rate. The VAT rate is 21%. For some goods and services, there are reduced rates of 15%. Some categories of goods are not subject to VAT. A.S. companies are required to file returns every year. Tax returns have to be filed with the Czech authorities every year.