Doing business in 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 %
Our firms in Czech Republic
How can Kreston grow your business?
Select your business type:
Latest news
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As the Government implements new audit reforms and the market shifts away from the Big Four, what does the change mean for small audit clients?
Advice for firms with clients who have UK operations
From 1 April 2023, companies will need to digitally pre-notify HMRC of any planned R&D claims, and within six months of the end of the period to which the claim relates.
Top rankings for our German member firm
Congratulations to our German member firm, Kreston Bansbach, whose consulting arm Bansbach Econum, has been ranked among the top consulting firms in Germany in the Handelsblatt 2022 Best Consultants list.
