Requirements After Company Formation In Czech Republic
starting a business in Czechia

Requirements After Company Formation In Czech Republic

     Greetings everyone! in the previous blog I presented you all the procedures related to Company Formation In Czech Republic, I will still outline the benefits of investing in Czhech Republic . As this topic is very sensitive across nations and especially for foreign investors we have decided to divide this topic into two parts in order you to better perceive the whole way you’re gonna take to while company registration procedure in Czechia. So In the last blog we gave you information directly about steps and procedures related to company registration in CR, but here we are going to introduce you post company registration period and requirements in Czech Republic. Please do not forget that it is also important to find a legal address for you business in CR, sometimes foreigners find it difficult do do lastmentioned alone but as we offer company pre-registration and after company formation support we offer assistance for finding legal address in the country, too.

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The Benefits of investing in Czech Republic

starting a company in CR
Advantages of company formation in Czech Republic
Taxation:                                   Tax rate is – 20% 
Double Taxation Treaty Access                    Yes it has Treaty Access
Account Filing Requirements:                                                                         Yes accounting / reporting requirements
Annual Return Filing Requirements:                                                                      Yes annual return/ reporting requirements
Audit Requirements:                                Yes audit is required.
minimum Share Capital:                    Minimum paid up share capital is CZK 1
Bearer Shares:Yes it is Allowed
Registered Office Required:                                       Yes it is required and must be maintained in Czechia
Shareholders:              Minimum number is one
Your Company language:Czech                                     
Directors:                                                                                                                                      directors can be any nationality , it means it is not required to be native one .Corporate directors allowed.
  1. To form a company in the Czech Republic, you can not use your company names without justifying the words: “Bank”, “Trust Company”, “Trust”, “Construction Company”, “Trust Company”, “Kingdom”, etc.
  2. there isn’t restriction on trading
  3. Not allowed without a license: Fund Management, Insurance, Banking, Reinsurance, Guarantee, Trust Management, Collective Investment Schemes, Tutoring.

Available records, Powers of nominated shareholders and nominated directors are allowed, there is no disclosure of useful benefits to the government.
Meetings of any directors and shareholders to be held anywhere ( recommended is Cyprus) will ensure confidentiality and distinctive reputation.

Post company registration period and requirements in Czech Republic

 

mainly, we can be focused on the post-incorporate work :

You know that Incorporation is a first step you must take in Czechia. But as may you guess, that is not absolutely enough and you have to satisfy the left obligatory steps followed after Incorporation. I can mention that it as a reason why you have to ask your advice experienced workforce such as layers, accountants and so on. Our experienced team offers you our best consult service for all of above-mentioned steps.for more about or services you can check our page description and contact us.

Another one of the last steps after company formation is VAT Registration, we will introduce all about it , of course.                                

requirements after company formation in Poland

VAT Registration In Czech Republic 

  • What is the Czech VAT registration threshold?
    For foreign businesses trading in the Czech Republic, registered with VAT / GST / tax registered in their home country, the VAT registration threshold is ZERO.
  • For EU VAT registered companies that sell goods online to consumers in the Czech Republic, the VAT registration threshold (remote sale) is CZK 1,140,000 per year.
  • What information do you need to get a Czech VAT number and register?
    The Czech Tax Service requires you to fill out the appropriate forms and submit the following documents:
  1. VAT certificate to confirm the business is registered for VAT elsewhere in the EU, if necessary.
  2. License to perform economic activities.
  3. Extract from the National Trade Register of the company.

The above documents must be translated into Czech by a certified translator.

  • Where are the Czech VAT registrations presented?
    To register for Czech VAT you must submit an application (in Czech) and a hard copy of the electronic application confirmation must be submitted:

    Financni urad pro hlavni mesto Prahu
    Stefanska 619/28
    111 21 Prha1
    Czech republic

  • What is the form of the Czech VAT number?
    After registration, which usually takes about thirty days, the company is given a unique Czech VAT number. All EU member states have a defined form of VAT numbers. In the Czech Republic, it contains the prefix CZ.

Opening a Bank Account in Czechia

       Every company in the Czech Republic needs to open a bank account, providing the firm with key documents, similar to the association’s charter. First a temporary bank account is opened to store the minimum share capital, and then a permanent bank account serves the financial operations of the company. Banks must be charged at the time of registration. We can also help you with this matter, contact us. 

Company Liquidation in CR

company liquidation in Czech Republic

        We would never wish anybody to close down their business in Czech Republic, but we are also ready to assist even in this case. Liquidation is a means of terminating the activities of a legal entity. At the end of the liquidation process, the legal entity is removed from the commercial register. Appointed person, so called – Liquidator, carries out the process. Anyone can act as a liquidator, however because liquidation is a complicated process, many clients prefer to appoint someone to act on their behalf.

  1. What should be checked before liquidation?

    At the beginning of the liquidation process it is necessary to find out whether the company is overdue with debt, ie whether it has more assets than liabilities (debt) to creditors. If he has more obligations than his assets and his creditors have not agreed to write off parts of the loan, then instead of initiating the liquidation process, the company should file for bankruptcy. If a company has more assets than liabilities or as many assets as liabilities, it can proceed to liquidation. The same applies if the company has no liabilities or assets.

  2. I decided to liquidate my company. How do I proceed?   It’s not very tough I would say! We will make an appointment with a notary, where the highest body of the company will decide on the liquidation of the company. At the same time, they will appoint a liquidator. From that moment on, the liquidator takes care of the whole process.
  3. What does the liquidator do?

    The liquidator’s task is to evaluate all assets and fulfill all obligations. This part of the process may require the cooperation of the company’s regulatory authorities (for example, during the inventory of assets, the transfer or approval of their financial statements). The liquidator must receive the application. 25 different actions before the company can be eliminated from the commercial register.

     

  4. How long does the liquidation process take and what does it cost?

    The liquidation process varies from company to company depending on the amount of the liability and the status of its assets. The process is not limited in time, although it takes at least 4 months (even in the case of a small company). This is due to the publication of the company’s liquidation intention in the commercial bulletin within the time limit set by law and then the 90-day waiting period. This is why the liquidation process takes 4 months or more and the price can vary. The liquidation price of a company that is not in operation and has no assets starts at CKK 35,000.

What about accounting fees in the Czech Republic?

accountant service in the Czech Republic

    What about the accounting fees, it depends a lot on your business. You do not need to hurry up to hire an accountant as soon as you commence a company. As soon as you start operations, go through the accountants. There are many activities based on the job of accounting, how much work and it is difficult for a tax officer or an accountant to do their own thing. We therefore need to select our pricing range for companies based on the activity invoices they submit. I should also mention that our basic package starts at $ 70 and goes up. I think this is a very reasonable market price to offer

If something still is unclear for you, do not hesitate to contact us, we will assist any kind of requirement… 🙂

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