About Czechia
The Czech Republic has come a long way in the business world since its inclusion in the European Union in 2004. It is now known for its stable economy, low tax rates for EU citizens and excellent business conditions for foreigners. It also has excellent business links with China through a strategic partnership.
The official language is Czech, but the country, and particularly its capital city, Prague, are known as English-speaking hubs. The business environment is in a period of growth following the lowering of corporation tax to 19%, and several financial incentives are now in place in order to continue this growth. For instance, manufacturing investments are entitled to 10 years’ corporate tax relief and technological and new investment costs are subsidised by up to 50%.
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Capital City
Prague
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Population
10.56 million
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Land Area
78,866 km²
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Currency
Czech Koruna
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Economic Activities
Export-oriented
manufacturing and inovation
Benefits of the Czech Republic
The Czech Republic has several obvious benefits that make it the jurisdiction of choice for many businessmen across the world.
The Czech Republic is exceptionally business-friendly, with options for 2-year business visas, and licenses being extremely easy to obtain. There are no requirements for specific qualifications or experience, and a business license allows you to carry out 80 different activities.
The Czech Republic is a highly respected and stable country, with membership of the EU, NATO, the OSCE and the Council of Europe. Its infrastructure is advanced, with excellent access to medical funds and pension grants, and its banking is exceptionally well-priced for transactions.
The Czech Republic’s infrastructure benefits from a highly-skilled workforce that stems from an excellent education system. With regards to liability, companies can be structured simply with no personal liability for company members, only one registered founder and a minimum registered capital requirement of 1 koruna (0.04 Euros).
- BUSINESS VISA
- 2-year business visas are easy to obtain and renew .
- FLEXIBLE BUSINESS LICENSES
- Business licenses allow for 80 different types of business activity.
- EU MEMBERSHIP
- The Czech Republic is also a member of NATO, the OCSE and the Council of Europe .
- LOW-COST BANKING
- Transactions are well-priced and deposits held in Czech koruna are automatically insured by the state .
- HIGHLY-SKILLED WORKFORCE
- A well-educated society with skilled workers across a wide range of trades.
- LIMITED LIABILITY
- One founder, no minimum capital requirements and no liability for company members.
FREE E-BOOK: INCORPORATE IN CZECH REPUBLIC
Learn more about company formation in Czech Republic.
Company types
There are 4 types of company you can set up in the Czech Republic. All the types are tax exempt but have different benefits and restrictions.
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SRO
LIMITED LIABILITY COMPANY
This is a resident company with shareholders only liable for their committed contributions. Shares can be held by either companies or individual foreign investors, with only one founder required, and a minimum shareholder contribution of 1 koruna.
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AS
JOIN STOCK COMPANY
This is a join stock company with minimum requirements of two shareholders and minimum share capital of 2,000,000 koruna (80,000 EUR) or 20,000,000 (800,000 EUR) if the company is established through a public share offer.
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KS
LIMITED PARTNERSHIP
This is a limited partnership with liability apportioned to unpaid contributions for limited partners and entire partnership liability for general partners. There is no minimum registered capital requirement for a KS.
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VOS
GENERAL PARTNERSHIP
This is a general partnership with complete shared liability for the partners. As with a KS, there is no minimum registered capital requirement for a VOS.
