Company formation Czech Republic


Czech Republic is part of the EU since 2004 and is a member of NATO since 1999. The official currency of Czech Republic is Czech koruna. The official language is Czech language. 

The Czech Republic has one of the longest lists of signed double taxation prevention treaties; to date, this list includes more than eighty countries. 

The standard corporate tax rate is 19%. Along with this rate, there are two reduced rates: 5% for investment funds, and 0% for pension funds. 

Tax rates for dividends, royalties and interest income can be reduced under double taxation prevention treaties. Capital gains (from the sale of /assets) are included in annual income and are subject to the standard corporate tax rate. 

The standard rate of VAT is 21%, but there are also reduced rates of 15% and 10%. Some supplies are zero-rated or exempt from VAT. 

A company can be established by an individual or a legal person, both resident or non-resident. Remote registration is allowed, but a visit is usually required to open a Bank account. 

Czech companies must keep accounting records and submit the necessary reports (financial statements, VAT returns, etc.). 

A company in Czech Republic is especially interesting to those entrepreneurs wishing to establish their business there and obtain a residence permit.