One of the most attractive destinations for registering a company in the EU is the Czech Republic. This jurisdiction provides not only a fairly simple and fast way to register a company but also to further open a corporate account in the Czech Republic.
Benefits of registering a company in the Czech Republic
The Czech Republic is not only a country with a stable economic and political situation but also an attractive place to live in general. However, to get the opportunity to live in Europe, there are many obstacles for representatives of foreign states.
The Czech Republic offers the opportunity to obtain a residence permit (residence permit) in the Czech Republic, but the process is also laborious, and to obtain a residence permit in the Czech Republic based on a business, be prepared that you will need to live in the country.
The residence permit of the Czech Republic gives a lot of privileges associated with the EU. This applies not only to living in the Czech Republic but also to the ability to move freely within the EU, establish your own business, open a bank account, rent or purchase real estate in the Czech Republic, as well as rent out your real estate. Also, a Czech residence permit gives the right to education in the country, inviting for up to 90 days, etc. But most importantly, after 5 years of living in the Czech Republic, you get the right to permanent residence – a permanent place of residence, and after another 5 years, you will be able to apply for a Czech passport.
In addition to a residence permit in the Czech Republic, you can also take advantage of other privileges. This is an opportunity to do business in the EU, as well as the registration of a company itself, which happens very quickly and easily.
When establishing s.r.o. in the Czech Republic, you do not need the participation of Czech citizens in the company as founder or director of the company, and the amount of the authorized capital is only 20,000 kroons.
Officially, the size of the authorized capital is only 1 crown, but now companies with such a size of the authorized capital are not registered, as this may cause additional, undesirable, attention from the state. organs. In practice, the generally accepted recommended amount of the share capital is 20 thousand kroons.
Residence permit in the Czech Republic
As you already understood, you can get a Czech residence permit in several ways:
- Based on a work visa;
- Establishing a company in the Czech Republic or doing business as a private person;
- When studying at a local university;
- By reuniting with your family.
The simplest and most attractive way to obtain a residence permit in the Czech Republic is to establish a company. A company in the Czech Republic will allow you to legally conduct your business in the EU, as well as reside in the Czech Republic. After 5 years, you have the right to apply for a permanent residence permit (permanent residence) in the Czech Republic.
Main characteristics of the companies of the Czech Limited Liability Company / s.r.o. Czech Republic
One of the most flexible and attractive legal forms of companies in the Czech Republic is the Limited Liability Company (s.r.o.). This form of company has no restrictions regarding the business activities of the entrepreneur and the duration of the company.
Share capital s.r.o. Czech Republic
The minimum capital is 1 CZK, but the generally accepted 20 thousand CZK is 800 euros
As an individual or legal entity, there are no restrictions on the citizenship and residence of persons
Requirements for founders and directors of the company
A businessman must be over 18 years of age, he must also have no criminal record and have no debt or other obligations concerning the governing bodies of the Czech Republic
Taxation in the Czech Republic
Czech companies pay 19% income tax. As well as value-added tax in the amount of 10.15 and 21%, depending on the type of service provided, goods.
However, as a rule, VAT of 10 and 15% is a rather rare thing; socially significant types of activities are subject to such VAT, for example, the sale of medicines, etc.
By establishing a company in the Czech Republic, you also get the opportunity to freely own local real estate. You can use this property for personal purposes, or rent it out. When selling real estate that is registered to your company, you are exempt from a sales tax of 4% by selling shares in your company. At the same time, you can attribute all the costs of maintaining and maintaining real estate to the company’s expenses, which perfectly helps to reduce the company’s tax burden.