REGISTRATION OF THE COMPANY (LLC) IN THE CZECH REPUBLIC

For registration businesses in the Czech Republic provided two legal forms – a limited company liability (s.r.o.) and a joint stock society (AS).

Each of them has its pros, but entrepreneurs provide the advantage of LLC, especially if it concerns foreign subjects.

LLC attracts people because of limited responsibility, speed discovery companies, optimal taxation, a liberal reporting system, and ease of management.

At the same time, the LLC has its own disadvantages:

• Organizational restrictions: There exist certain limitations of transfer shares in the constituent capital and other organizational limitations;
• Audience: some company information such as name members, charter, and others, may be publicly available;
• Equal rights of participants: participants have equal management rights by a company that may create conflicts in acceptance solutions;
• Tax obligations: sometimes tax rates can be considered tall compared to other jurisdictions.

Registering an LLC is not so easy, there are a number of requirements, in particular for the director, financial reporting, and authorized capital. So, let’s start!

The requirement of minimum authorized capital is purely formal – 1 Czech crown. The contribution of authorized capital happens until the moment the registration company’s administrator deposits, which is assigned to the founder’s meetings. After opening a corporate account, administrator contributions are made by the statutory body capital for the settlement score company.

The LLC must have a director (at least 1 physical director). or legal entity). At the same time, a foreigner can also be a director.

Take into account that some information in relation to the LLC must be publicly available: name company, company identification number, legal address, director, type of activity, statutory capital, and financial reporting.

Beneficiary information is not publicly available but is still available to be submitted in closed Register actual owner’s companies of the Czech Republic.

You need to choose a good accountant who will lead the accountant’s accounting for your LLC and will submit financial reporting.

When opening limited company responsibility in the Czech Republic provide for sprat steps that can help you:

• Choice names companies: First of all, you need to choose unique a name for your LLC that is not already in use by none of the other companies.
• Creation of the company charter: The charter is the rules according to which your company will function. you can take a standard charter or fold your own.
• Fill out the application: Fill in the statement of incorporation company. It includes the main one’s information about the company, its structure, and its founders.
• Receiving identification number: After submission of the application will be assigned to your company identification number.
• Registration in the regional trade register: Registration in the trade register is required for the creation legal entity.
• Discovery banking account: You will need it bank account for the financial operations of your company.
• Tax register: Register your company in the tax office and get the tax number
• Receiving licenses (if necessary): IN dependencies from the look of your activity may be necessary to receive special licenses.
• Record in social insurance: Registration your companies in the system of social insurance for employees.
• Registration in local City Hall: Some cities can require additional local registration levels.

LLC owners have considered tax-driving load business in the Czech Republic, in particular, corporate tax (income tax) – 19%, VAT – 21% (provided the possibility of reduced rates of 15% and 10%), tax on dividends, royalties, interest – 15%.

Turn over attention! If annual turnover is more than 1 million kroner within 1 year, required to register a VAT-paid company LLC.

Because stage registration can a little bit change depending on circumstances, we recommend contacting the professionals in this business. Our specialists will provide you with quality legal help!