How to open your own business in the Czech Republic in 2020

How to register a business in the Czech Republic

The very first stage is obtaining a license to carry out business activities. To do this, an application of the established form is submitted to the Czech Point organization (trade department). The cost of this initial procedure is approximately 30 euros (1000 CZK). The submitted application must be considered within five days, usually this takes no more than two days.

In order to open a business in the Czech Republic , you must have qualifications in the direction in which a person plans to work. The most common type of activity is tourism. But despite the high competition in this type of activity, the service remains in demand. Read also: How to open your own business in Germany.

However, if a person does not have a certain education or has not worked in this direction, it will be difficult for him to open a travel agency. But after taking specialized courses, this will be much easier. If a person has experience in this area, along with the application to the trade department, he provides the following documents (original and copies):

diploma of education;
certificate;
a document confirming qualifications in this type of activity and work experience in this area for at least a year;
certificates confirming qualifications (if any).

There are a number of areas that do not require a license. This:

agricultural activities;
trade or intermediary services in trade;
tailoring;
textile production;
photography and more.

The full list can be viewed on the Commerce Department website. To register a business in specialties that do not require a license, the applicant submits the following documents:

passport (age at least 18 years);
certificate of legal capacity;
a certificate of positive activity in your country and absence of violations of the law.

After analyzing the documents provided, the future entrepreneur receives a Unified Registration Form, which is necessary to register the business in the Commercial Register. This is done at the intended location of the business and the place of residence of the entrepreneur. Court decisions can be obtained in no more than five days. The cost of such a procedure is about 200 euros (6000 CZK). After receiving a court decision and registration in the Commercial Register, it is necessary to register the business with the tax service. This must be done 15 days from the date of registration in the register.

In addition to these important and necessary procedures, the entrepreneur will have to:

select the company name and check if it is missing from the Ministry of Justice database;
notarize the office lease agreement and the charter of the enterprise, if any;
open a bank account.

If an entrepreneur plans to hire people, it is necessary to provide data to social and insurance services.

How to register a company yourself

To open a business in the Czech Republic, you need to meet the following requirements:

Age over 18 years.
Legal capacity.
No criminal record and no debt to tax authorities.
Profile education and confirmation of qualifications in the chosen industry (for types of activities that are subject to licensing in the Czech Republic).

The requirements for Russians who are going to open a business in the Czech Republic are the same as for Czech citizens.

The business registration program in the Czech Republic can be divided into preparatory and main stages. To get started you need:

Select a field of activity. Some types of business in the Czech Republic require licensing, while others can be operated without a license. Sometimes certain conditions must be met to obtain a license. For example, tour operators must have a higher specialized education and at least 6 years of experience in this field. If you do not meet the necessary requirements, you will have to find a co-founder or director who has the necessary education and experience.
Choose a name for the company. It must be unique and not coincide with the names of existing Czech companies. You can check the originality of the name for free on the website. 3-4 options are submitted for approval.
Select the legal address of the company. If you have a house or apartment in the Czech Republic, you can register a company at your home address. If not, then you can use the address of your rented house, apartment or industrial premises as a legal address. This will require the notarized consent of the owner. In the Czech Republic, services are provided for renting a legal address; it will cost 200-800 euros for one year.
Decide on the division of powers. Any enterprise must have a founder (společník) and a director (jednatel). When opening a private business or limited liability company, the founder and at the same time the director can be one person. The company is allowed to have from 1 to 50 founders with different shares of contributed starting capital and several directors (depending on production needs).
Determine the size of the authorized capital. Since 2014, a law was passed in the Czech Republic according to which a company with one founder can have an authorized capital of 1 crown. But if you really want to engage in business and expect to be taken seriously, the size of the authorized capital must correspond to the type of activity. A company is considered trustworthy if its authorized capital is at least CZK 100,000 (EUR 3,850).

Main stage of registration:

Register your company with a notary (Notářský zápis). The cost of the service is about 3000-4000 CZK.
Register the company with the Business Administration. (živnostenský úřad).
Open a temporary bank account and deposit authorized capital into it. Once the company registration is approved by the Commercial Court, the temporary account is closed and a permanent account is opened.
Submit documents for company registration to the city Commercial Court (Městský soud).
Register a company with the Tax Office (Finanční úřad). To do this, you must contact the territorial office at your legal address. The application review period is 7-14 days. Your company will receive an individual taxpayer legal entity number.

If you are both the founder and director of a company, you need to draw up documents that will allow you to perform the duties of a director in your own company. This can be done using a contract or registering yourself as a hired employee.

If you employ employees (including yourself), you must register with the Social Security Administration as an employer and obtain health insurance for your employees.

Documents required to register a business in the Czech Republic

To register a company with a notary, you will need the following documents:

Copies of passports of all founders and directors (for foreigners - foreign passports and the page of the national passport on which the registration address at the permanent place of residence is indicated).
Certificates of good conduct of founders and directors (výpis z rejstříku trestů). Foreign applicants must receive the certificate in their home country no more than 2 months before submitting it to the notary. In the Czech Republic, it will need to be translated into Czech and certified by a court translator. In addition, it is necessary, based on a copy of the birth certificate, to obtain a certificate of no criminal record in the Czech Republic.
Statement from each director of the company (čestné prohlášení jednatele a souhlas se zápisem do obchodního rejstříku) with consent to their inclusion in the commercial register.
Consent of the owner of the premises you rent to register the company's legal address (souhlas vlastníka s umístěním sídla). If you yourself are the owner of the property, then you draw up this document on your own behalf. The application is written in free form and certified by a notary.
Request for registration in the commercial register (návrh na zápis do obchodního rejstříku). To submit it, you need to go to, fill out the electronic form, print it, sign and have the signature certified by a notary.
Application for depositing the amount of starting capital (prohlášení správce vkladu).
List of statutory activities of the company.

Based on the submitted documents, the notary will issue you a notarial deed (notářský zápis). The document indicates the founders and directors of the company, the monetary contribution of each of them and other issues related to the activities of the company. Registration takes no more than 1 working day and costs from 3000 to 4000 CZK (115-154 euros).

To register a company with the Business Administration (živnostenský úřad), you must provide:

Passport.
Notarial deed (notářský zápis).
Consent of the property owner who provides the legal address (souhlas vlastníka s umístěním sídla).
If the business you plan to engage in requires licensing, you need to provide originals and copies of documents that confirm your qualifications and work experience (education diplomas, certificates of completion of training courses, certificates of work in this field, etc.). A big plus will be documents that confirm the history of your successful business in the past.

The fee is 1000 CZK, registration takes place within 5-7 days.

To open an account in a Czech bank and deposit authorized capital, you must have your passport and a copy of the notarial deed with you. The bank will issue you a certificate for the Commercial Court.

To register a company with the Commercial Court, you must bring:

all the documents that you provided to the notary,
notarial deed (notářský zápis),
certificate of registration with the Office of Business Activities (výpis z živnostenského rejstříku),
a certificate from the bank confirming the contribution of the authorized capital,
receipt of payment of the court fee (6000 CZK).

The application is reviewed within 7-10 days.

Registration of a company with the Tax Administration and the Register of Employers, registration of health insurance for employees is carried out online and does not require much time.

Opening a company in the Czech Republic takes about 20 days.

The annual report is submitted to the Tax Administration by March 31. You must post scans of the report on the website. Failure to do so will result in heavy fines.

When the company registration is completed, you can apply for a long-term business visa to the Czech Republic (type D). It allows you to stay in the Czech Republic for more than 90 days.

When the visa expires, you can obtain a residence permit in the Czech Republic for a period of 2 years.

After 5 years of residence in the Czech Republic, you have the right to receive a permanent residence permit (permanent residence in the Czech Republic), and after another 5 years - Czech citizenship.

Czech business and its forms of ownership

There are several forms for doing business in the Czech Republic:

Limited Liability Company.
Joint-Stock Company.
Private enterprise.
Cooperative;
Limited Partnership;
Public trading company.

The most popular form, as in many other countries, remains the LLC (limited liability company). This form is usually used by medium and small businesses. To open such a company, you must meet the minimum requirements:

one founder;
the number of shareholders may not be limited;
minimum amount of authorized capital, up to 1 crown;
it is possible to have a block of shares.

Both a citizen of the Czech Republic and a representative of another country have the right to be a founder of a Limited Liability Company.

Large companies usually register joint stock companies. The following requirements are required for registration:

the number of founders is not important, there may be one person;
unlimited number of shareholders;
authorized capital of at least 80 thousand euros (2 million crowns);
unlimited number of shares.

Community shareholders may have no duties to the company. Other forms of doing business can be considered as individual entrepreneurship.

Purchase of a company in the Czech Republic

If you do not like bureaucratic procedures or live outside the Czech Republic, you can entrust the opening of a company to an intermediary company. You provide the dealer with a power of attorney, all the necessary documents and instructions regarding the charter of the future enterprise, and after 3 weeks you receive a company registered in your name.

In addition, you can buy an already opened and registered company, which has a legal address, authorized capital and is included in the Czech tax register. When re-registering a company, you can change its name, registered activities, founders and directors. The re-registration period is about 10 days.

Documents for registering a business in the Czech Republic

On January 11, 2020, the Czech Parliament approved amendments to legislation providing for the stay of foreigners in the country. Previously, on the basis of such a law, a foreigner could stay in the Czech Republic for 90 days, after which it was necessary to extend the visa. Now for people planning to develop a business in the Czech Republic or for those staying for seasonal work, a visa is issued for six months.

Also, based on the amendments, foreign entrepreneurs and investors developing business in the country have the right to receive a residence permit and long-term visas for up to two years. But the amendments have not yet been signed by the Senate and the president of the country. However, there is an assumption that this will be done, since such requirements are put forward by a European Union directive. In the meantime, if you want to open and register a business in this country, you need to collect the following package of documents:

visa application form;
foreign passport (original, copy);
two photographs with first and last name on the back, photo size 3.5x4.5 centimeters;
a document confirming the availability of finances, a bank statement and a plastic card for this account (at least 110 thousand crowns, just over 4 thousand euros);
document confirming the purpose of the trip (copy of business certificate);
a certificate of residence in the Czech Republic, a notarized rental agreement;
certificate of no criminal record;
receipt of payment of the visa fee;
medical insurance policy.

Many of these documents may not be available at the time of registration. But this does not mean that they will not need to be presented in the near future. for example, a rental agreement can be presented a little later. All other documents are important.

The Czech government is taking all measures to make business in the country even more attractive for foreign citizens. They are confident that such actions will bring enormous benefits to the country’s economy, attract multimillion-dollar investments in its development, and increase the competitive ability of the Czech Republic in the European market.

After all the documents have been collected, the applicant makes an appointment at the embassy for an interview. Medical insurance can be obtained if the result is positive at the embassy.

Doing business in the Czech Republic: features and 7 basic steps to start your own business

The Czech Republic is a small country that attracts an increasing number of immigrating foreign citizens every year.
It gives Russian representatives the opportunity not only to purchase real estate on their territory, but also to open a private enterprise. Many large Russian investors have already invested in the economy of this state, and some have moved to live here forever. The Czech Republic is not a place where you can quickly and easily earn capital. But the conditions created by the state for business are quite comfortable.

In this article you will learn how to open a company from scratch, where to buy or sell a ready-made project, and also about the main nuances that may arise on your way.

Tax policy of the country

Taxation in the Czech Republic is unique to the systems of all EU countries and is based on principles in accordance with a market economy. But running a business in the Czech Republic and optimizing taxes on your own is quite possible. The following types of taxes apply in the country:

income tax -19% with a reduction in the rate for pension and investment funds to five percent;
VAT at two rates, reduced - 15 and basic - 21 percent;
income tax;
transport tax;
environmental tax;
excise;
property tax.

Documents for business registration

To open a business in the Czech Republic, you must provide the following documents to the registration chamber:

A copy of a foreign passport.
Certificate of no criminal record in the applicant’s country of residence. The document must be translated into Czech and certified by a court translator.
A certified copy of the birth certificate and a translation of this document into Czech, also certified.

The most popular types of business in the Czech Republic

When thinking about doing business in the Czech Republic, tourism comes to mind for any sane person. The flow of tourists into the country is huge and to open a business you should not limit yourself to just a travel agency. This particular business is developed quite widely and it is too difficult for a beginner, especially a foreigner, to overcome the high competition. Tourism is not limited to travel and excursions. It could be:

cafe;
fast foods:
bars;
hotels or hostels;
sale of souvenirs;
rental of bicycles or scooters.

These are constantly in demand areas of business and successful, especially if the right place to operate has been chosen. The following types are no less popular and profitable:

pharmacies;
veterinary clinics and shops:
construction;
real estate agency;
construction;
Taxi;
Beauty Salons;
hairdressers;
Car rent;
openers.

Almost all businesses in the country are family-owned. There is no point in counting on a profitable purchase of a ready-made business. This only happens in Germany. In the Czech Republic, if a business is sold, it means it is truly unprofitable and there is no hope of making a profit. Czechs value their business and if they expand it, then only within their region. It is impossible to get into such a business from the outside, and it is sold quite rarely. If it exists, then all subsequent generations develop it.

Features of the Czech economy

The Czech economy can be described in one word – stable. And this is the essence of its prosperity. The global crisis with all its consequences, thanks to the thoughtful and smart policy of the state, had virtually no effect on the economic life of the country.

Even now, this type of investment, such as the purchase of real estate, remains relevant. There are enough places and objects in the Czech Republic, the restoration and repair of which can be a good opportunity to earn money. Property prices are still one of the cheapest in Europe. We should also not forget that the country is a confident leader in tourism development. Eight million tourists per day during the season is a staggering figure for a country whose population does not exceed 10.5 million. But all vacationers live somewhere, eat something and do shopping.

As we can see, there are more than enough opportunities for investment, so we can confidently say that small businesses in the Czech Republic have every prospect for growth and development.

A special point should be made about the standard of living of the country's population, which fully meets European quality requirements. An ordinary family can easily afford to visit a restaurant in the evening on an ordinary day or go on vacation for the weekend. As the country's economic prosperity grows, the financial capabilities of ordinary citizens also increase. At the same time, the increase in quality does not affect the cost of living, which is very important for ordinary ordinary Czechs.

What are "openers"

Many emigrants fall for such offers when they are offered to purchase a ready-made business in the form of a real estate agency. Why are they underway? The fact is that for a couple of decades, agencies have been popping up all over the country with the goal of helping emigrants from the countries of the former CIS collect documents and set up their own business in a foreign country. Today there is no such massive influx and gradually such firms began to retrain as real estate agencies.

But this area of entrepreneurial activity is quite well developed, the competition is enormous and it is impossible for a “stranger” to overcome it. When purchasing or selling a property, Czechs prefer to turn to their compatriots for help. “Openers” or Russian-language real estate agencies have remained unclaimed and are being put up for sale everywhere. Therefore, let the Czechs deal with real estate. If possible, it is more profitable to purchase a couple of objects in order to create hostels or mini-hotels from them.

Restaurant

Having a wealth of experience, practice, knowledge, many restaurant business sharks, arriving in the Czech Republic, count on huge profits, and imagine their disappointment when this does not happen. Czechs are quite demanding people who love to visit proven places. It is very difficult to earn a reputation with them, no matter how you smile. Even the cuisines of all the nations of the world cannot surprise them. They simply don’t like to go into new establishments or will go in just to have a look, nothing more.

Arriving in the country, previously successful restaurateurs are tempted by offers to purchase, but more often to rent, a restaurant or cafe. Worth remembering. That such establishments are sold only after unpleasant stories and complete collapse. This cannot be hidden from the local population, but for the arriving person who decides to start this business, a pre-planned complete collapse. And in tens of years, only visitors who know nothing about the former troubles will come here.

It’s a different matter for a restaurant or cafe in places where there are large numbers of tourists; they don’t care where. If only it was fast, inexpensive and tasty. In such places you can really realize yourself. Especially if it is a restaurant serving Russian, Ukrainian or other national cuisine.

Rental Property

Oddly enough, what brought a decent income at home becomes unprofitable when emigrating to the Czech Republic. This is exactly what can be said about this type of income. Our compatriots, having “extra” real estate and renting it out, may not think about work at all. They have enough money from rent to live comfortably. In the Czech Republic, such ideas cannot be brought to life.

Firstly, the demand for rental housing in the country is constantly falling. The flow of clients is decreasing. This can easily be explained by the fact that the country has favorable conditions for purchasing your own home. Even people without permanent residence have the right to take out a mortgage and the rate of such lending is only 6%.

If you are lucky and manage to rent out your home, the profit from this will be minimal. That's why:

the apartment must meet European standards, have good repairs and household appliances;
utility fees will be half the rent, tenants usually do not pay;
the tax is mandatory and is at least 15%, it is impossible to hide the fact of delivery;
funds for depreciation or repair of household appliances.

In short, landlords are left with practically nothing after such a transaction. If you're going to rent, it could be a hostel. You can get clients without any special requests for comfort and hide a small part of the profit.

What business will not work in the Czech Republic?

Opening a business in the Czech Republic should be a balanced decision. Since most niches are occupied by family businesses, problems may arise. The problem is that a seemingly good idea can fail for a foreigner and bring good profit to a local one.

A restaurant for most foreigners seems like an absolutely win-win option. But they will be greatly disappointed. This is because Czechs only go to trusted places. They choose places they've known for years, and they won't be surprised by new cuisine or friendly staff.

Businessmen who have been quite successful in the restaurant business buy premises or rent them, hoping for a good profit. But they forget that successful establishments in the Czech Republic are not for sale.

This concerns a restaurant for the indigenous population, but there is another type of catering that is aimed at tourists. As a rule, the establishment is located in places where they gather in large numbers. In this case, there is a chance that the business will be profitable. Ukrainian, Russian or any other national cuisine is especially preferred.

A hotel is another option that does not need to be considered if a person is concerned about how to build a business in the Czech Republic. This is because this niche is already crowded. There is only one option left that can pay off in the future - this is a very cheap hostel. But this will only work if there is a premises in the property. Because in this country utilities, rent, staff and the hotel itself are very expensive.

You shouldn't open a building materials store either. The Czechs are a stingy nation. Therefore, they do the repairs themselves, and prefer locally produced materials. The least profitable would be the sale of Chinese building materials, although any foreign production would be met with distrust.

To understand how to open a business in the Czech Republic for Russians, you need to study the market well. And the first thing you don’t need to do in this country, according to reviews from experienced people, is rent out real estate. This is a 100% unprofitable enterprise, there are no exceptions. Even if you manage to rent out the property, there will be practically no profit for the following reasons:

In this country it is impossible to hide the rental of an apartment, and the tax is fifteen percent.
It will be necessary to allocate funds for the repair of household appliances.
Utilities are very expensive, and the landlord pays for them out of his own pocket.
The apartment must be in good repair and have working appliances.

Cleaning companies aren't the best business either. For a simple reason - the natural economy and thrift of local residents. Czechs would rather do everything themselves than pay for cleaning. But they are more willing to pay tutors, caregivers or nannies.

So what to do in the Czech Republic?

Before planning to open a business in the Czech Republic, you should take into account everything stated above and the fact that this is a European country with economical, but quite demanding and practical people. Even wealthy people will not buy expensive but useless things. It is quite difficult to satisfy the Czech demands. What brought high income at home can become completely unprofitable in the Czech Republic. If the decision is final, and you still decide to take off, you need to realize that your business must become the best.

Well, you can become the best in the following areas:

hostel;
recruitment agency;
cargo transportation;
high tech;
national cuisine restaurant;
Taxi;
veterinary services;
sale of souvenirs;
rental of scooters and bicycles;
production of household goods, but of high quality;
tailoring, textile production;
hairdressing services.

The choice is small, but if the desire is inexorable, then you can try. In the end, this is a real opportunity to obtain a residence permit in a developed European country, and also opens up the opportunity to develop a business in another European country. This is especially important for young people, since, like in any other European country, there is a government program that helps university graduates start their own businesses.

A stable country, with an equally stable economy and politics, real conditions have been created here for running your own business.

How founders can obtain a residence permit

If you are planning to open a business in the Czech Republic, then you should know that this gives you the additional advantage of obtaining a residence permit in this country. This opportunity applies not only to the business owner, but also to his family members if they are the founders of the company. You can obtain permanent residence in the Czech Republic after five years of successful business, if the state and the tax service do not have any claims against you.

Please note that after the latest amendment to Czech legislation regarding immigration laws, a primary visa can only be obtained for six months and can be extended on the spot. When re-registering, all details are taken into account - company data, business history, income level and living conditions of the owner. To obtain a visa and residence permit, the applicant must appear in person first at the consulate and then at the Ministry of the Interior.

What do they trust?

Czechs, despite the high level of distrust towards everything foreign, have high respect for people who emigrated from other countries. This especially applies to citizens of the former CIS. This can be felt from the first minutes of your stay in the country and the attitude of municipal authorities during the registration of a business. The support is felt everywhere. Starting from business premises and ending with housing.

It is very difficult to earn trust from Czechs. Therefore, when starting a business in this country, it is necessary to maintain such a high respect for citizens of the former USSR; it is easy to lose. Any business must be conducted openly and honestly; deception quickly manifests itself and then one cannot count on success. You can earn decent money in the Czech Republic, but you won’t be able to become a millionaire. In the Czech Republic, only a few selfless Czechs who have been running a family business for several centuries are awarded this.