With a central position in hearth of Europe, every big market is close and easy to reach. Majority of people in cities are English and / or German speaking, and 40 year and older people can speak Russian. Thanks to EU membership, citizens and companies from EU have easy access to everything as local Czechs, with no or minimal bureaucracy. Today the Czech Republic offers a stable and welcoming home to foreign investors.
What are the main types of company in the Czech Republic?
There are four main kinds of business entity for foreign investors as follows:
- limited liability company (SRO)
- joint stock company partnership (AS)
- branch office
Main features of a limited liability (SRO) company
- The sum of CZK 1 (5 euro cents) is the minimum registered capital
- An individual may be sole shareholder in no more than three SROs
Accounting/audit requirements for a limited liability (SRO) company
A statutory audit is mandatory if at least two of the following criteria are met:
- balance sheet exceeds CZK 40 million (€1.4 million)
- net turnover exceeds CZK 80 million (€2.8 million)
- number of employees exceeds 50
The unemployment rate in the Czech Republic is the lowest in the EU. Nonetheless it remains a pressing issue and well-educated staff is not hard to find. Labour laws are complex, however.
The Czech Republic has made strong progress in its efforts to liberalize the business environment. 85% of the economy is now in private hands, corporate tax was cut to 19% in 2010, and foreign investment, reflecting this trend, has soared.
Czech authorities offer a wide range of financial incentives for foreign investors:
- new manufacturing investment: ten years' full relief of corporate tax
- technology and business investment: the state pays up to 50% of costs
- substantial job-creation and training grants
Please contact us and we will be pleased to discuss matters in greater detail.