ممارسة الأعمال التجارية في Czech Republic

How quickly can I set up a business?

10-30 days.

What is the minimum investment needed?

The size of the investment depends on the type of project.

How can I raise finance?

Finance could be provided by the investor or in combination with an external financing body.

What are the legal requirements for setting up my business?

Basically, there are two options for business projects:

1) LLC with minimum subscribed capital of CZK 1
2) Joint-stock company with minimum subscribed capital of CZK 2.000.000

Kreston A&CE is able to help with setting up both of these options.

What structure should I consider?

Basically, there are two options for business projects and choosing one of these depends on the specific project:

1) LLC with minimum subscribed capital of CZK 1
2) Joint-stock company with minimum subscribed capital of CZK 2.000.000

What advice can you give me in regards to payroll and taxation requirements?

Current Income Tax rates for Corporations:

• Standard rate 19%
• Investment, pension and collective investment funds 5%
• Investment income received from abroad by Czech companies 15%
• Dividends distributed to non-residents 15%

Current personal income tax rates in the Czech Republic:

Band of income (EUR) Tax rate

0 – 46 000 15%
Over 46 000 23%

Current social security rates:

Band of income (EUR) – Social insurance / Health insurance

Employer Up to 46 000 – 24,8% / 9%
Over 46 000 – 0% / 9%

Employee Up to 46 000 – 6.5% / 4.5%
Over 46 000 – 0% / 4.5%

VAT rates:

• Standard 21 %
• Lowered 15 %
• Second lowered 10 %