The Czech Republic (also known as Czechia) is a landlocked country in central Europe with an area of 78,900 sq. km, situated between Germany, Poland, Austria and Slovakia. The population is 10.7 million and the capital city, Prague, is an important communications and tourist centre. The climate is continental temperate, with warm summers and cold winters.
The constitution provides for a tiered bicameral legislative assembly. The lower house, the Chamber of Deputies, has 200 elected members. The upper house is the Senate and comprises 81 elected members. The president is elected for a five-year term and is head of state. The president appoints the prime minister and the ministers of the government, who together form the executive. The current president is Miloš Zeman, who has been in office since 8 March 2013 and is now in his second term.
The Czech koruna (‘crown’) is the currency and the Czech Republic is not expected to adopt the euro for some years due to political resistance in the country. The economy is one of the strongest of the emerging Eastern European nations. GDP per capita at PPP was US$39,088 in 2018. There are strong ties with Germany, the country’s main import and export partner. There is a highly skilled workforce and the major industries include the automotive industry and the manufacture of machinery and equipment.
There is a rapidly growing telecommunications infrastructure, with more than 12 million mobile phones – more than one per head; more than 8 million people have internet access. Prague has a major European airport, with excellent links to many other European cities, including London, Frankfurt, Amsterdam and Brussels. The rail infrastructure is currently being modernised and there is an excellent road network throughout the country. There are three major navigable rivers flowing through the country.
Corporate and personal income tax rates are comparatively low, though VAT is higher than in some other countries. Incentives are available for foreign investors looking to invest in business in the Czech Republic, by way of corporate tax relief and state grants.
Czech Republic is one of the strongest of the emerging Eastern European economies; GDP per capita was USD27,000 in 2012, just below the EU average. There is a highly skilled workforce and the major industries include the automotive industry and the manufacture of machinery and equipment. There are strong ties with Germany, the country’s main import and export partner. The Czech Republic is outside the eurozone (the local currency being the koruna) being the and is likely to remain so for the foreseeable future. The telecommunications infrastructure is good, and the Czech Republic is also well connected to the rest of Europe via air and road. Corporate and personal income tax rates are comparatively low, though VAT is higher than in some other countries. Incentives are available for foreign investors looking to invest in business in the Czech Republic, by way of corporate tax relief and state grants.
- Headline tax rates: CIT 19%, PIT 15%, VAT 20%
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- TIEA Jurisdictions: Andorra, Bahamas, Bermuda, British Virgin Islands, Cayman Islands, Guernsey, Isle of Man, Jersey, Monaco, San Marino, Sint Maarten
- Suitable for: Insurance, Shipping, Aviation, Yachting, E-gaming
- Company Types: Limited liability companies, joint stock companies, general partnerships, limited partnerships, co-operatives and branches
- Formation Cost: 1700 – 2900 USD
- Formation Time: 7 – 14 days
- Maintenance cost: 700 – 1300 USD
- Decide a Company Name: Business name registration in Czech Republic is subject to availability and acceptability. The proposed company name can be checked with the Registry of the Regional Commercial Court.
- Provide Criminal Record Clearance: Arrange for certificates of a clear criminal record of the managers (an extract from the Criminal Register from their country of origin – for EU citizens; or an extract from the Criminal Register of the country where one has spent at least 3 consecutive months in the 3 previous years – for non-EU citizens).
- Provide Real Estate Register Clearance: Submit proof of the registered office of the company.
- Advance the Minimum Share Capital: During company incorporation, the minimum share capital, if any, must be placed in a bank.
- Obtain Trade Licence and Clearances: Depending upon the type of activity your company would be engaging in, file for the required trade licences and permits.
- Get the Articles of Association Notarized: Draft the Articles of Association (AOA) of the company, and get them, as well as company statutes, verified by a public notary in Czech Republic.
- Register Your Company at the Commercial Register: For completing the registration process, get the motion to the relevant Regional Court signed by all the first managers in front of a notary public, and then submit it at the Companies Registry.
- Get a Tax Identification Number: Registration for income tax happens simultaneously, and a company receives its Tax Identification Number on submission of company application.