Czech Republic Company Formation
The Czech Republic is one of the most stable countries in the EU. Offers of free-market credentials and financial incentives attract a number of foreign investors each year, and the strong economy and banking facilities support businesses established in the country.
Non-compliance with the bureaucracy in the Czech Republic can be detrimental to new companies setting up there. Universal Company Incorporations have the breadth and depth of experience to comprehensively support your incorporation and ensure the completion of all necessary legislation. Our services are wholly focused on your needs and will give your business the capacity to successfully compete in the Czech market.
Further Information
The types of company that foreign investors can choose to incorporate in the Czech Republic vary greatly in size, business suitability, and share capital requirements.
Four main forms most commonly set up in the country include:
- Limited Liability Company (SRO)
- Joint Stock Company (AS)
- Partnership
- Branch
The Czech government have taken big strides to liberalise the national business environment in order to attract inward investment. This has seen a 2% tax reduction for Corporate Tax and 85% of the economy being passed over to private management. Procedures are much quicker to complete but bureaucracy remains complex so an understanding of the local regulations is required to ensure compliance.
Businesses in the Czech Republic are supported by a comprehensive banking centre. Both international and local regional banks are established in the country and provide a range of services for all your commercial banking requirements. Setting up a corporate bank account can be complex however, and local advice is recommended.
There are a number of financial incentives available in the Czech Republic. These include ten years’ exemption from Corporate Tax for new manufacturing investment, and cost reclamation of up to 50% for technology and business investments. Grants may also be awarded to companies creating jobs and training programmes.
Staff in the Czech Republic are well educated and skilled. Although there isn’t an abundance of workers seeking employment – unemployment rates in neighbouring countries are considerable higher – it should not be too difficult to find staff that will be dedicated to your business. Labour laws in the country, as with general bureaucracy, are stringent and legal advice should be sought when drawing up employment contracts etc.