SRO formation in Czech RepublicBenefits of our SRO Company formation service:
- We look at your plans before registration the right kind of business (SRO or a Self-employment? In >90% of the cases, self-employment is the better choice),
- We answer all of your questions about Income Tax, VAT, business abroad, Social / Health charges, Visa / Residence Permit
- We take care of all required registrations: registration of the business itself, Income Tax, and (optionally) VAT, Employees - You do not have to be present, we can even do this remotely (with you abroad)
- We work with a partner that does nothing else than registering new SROs and selling Ready-made SROs. This cooperation has been perfect for many years. They do the formation, we do the consultancy / accounting.
After the SRO formation, you probably will need:
- Preparing an SRO Corporate Income Tax Return (for simple business, the only thing you'll need)
- Expat Accounting services in English (for more complex businesses),
- VAT Registration & Filing Services (required for invoicing to EU Clients)
The idea is that we get you fully prepared as business owner in Czech Republic. Unlike other providers, we are experts at accounting- and tax questions.
If you are unsure about how to proceed, or just would like to talk to someone about your plans and all the steps of registration - by all means, book first a single consultation here: Business Consultation for Foreigners.
We offer consultations in our office, by Phone / Skype and by email. We guarantee that in 1 hour you'll get more information than a week browsing the Internet!
With us, you have a one-stop shop for all your business needs.
Important Information for ALL SRO typesFOREIGN POLICE CLEARANCE of EVERY DIRECTOR: This document is absolutely required if you are not a Czech citizen or do not have permanent residence in Czech Republic. As a foreigner, you will need to get it from the country that you have a passport / long-term residence permit of, AND of all countries you have stayed more than 6 months in within the last 3 years.
In most cases, the police clearance needs to have either an apostille stamp or superlegalization. Getting the police clearance and apostille stamp / super legalization may take weeks and some countries require you to visit the authorities personally.
A police clearance cannot be older than 3 months the day it will be filed at Court. The police clearance must have an attached court-translation into Czech - this we can arrange on your behalf.
CZECH POLICE CLEARANCE of EVERY DIRECTOR: A foreigner who assumes the role of Director also must have a Czech police clerance made. This is done at the notary, and is included in the formation fee.
CZECH BANKS and OPENING OF ACCOUNTS: Czech banks require at least one director to come and open the account. The banks really want to see the Director in person for identification & signature sample. For some Middle-East nationals is is almost impossible to open a bank account, due to embargos or internal regulations of banks (!)
We can open the bank account for depositing the share capital - but eventually the director has to come to the bank to activate the account.
After the Director has placed the signature sample, it is possible to be represented by another POA for normal interaction with the bank in future, and no further presence of the Director at the bank will be required.
SHARE CAPITAL: If you form a new SRO, you will need to deposit the Share Capital in a Czech bank. Make sure you are able to deposit the Share Capital (it can be any amount between 1 CZK and 200.000 CZK), else the company formation process cannot continue.
VAT REGISTRATION: After registration of the new / readymade sro company in Commercial Court a request for VAT registration can be filed at the Tax Office. As accountants, we can file the request on your behalf. Note that nowadays the Tax Office is very reluctant to issue Full VAT registrations, see Czech VAT ID Registration
New SRO company formation - can have multiple directors / shareholdersA new SRO company from scratch, exactly to your specifications is registered in about 2 weeks*
We'll go to the authorities to pick up all required Czech documents and have your foreign documents translated.
Power of Attorneys: You only have to sign a couple of Power of Attorneys at our Prague notary. That's it.
2 weeks from receiving all documents required for directorship transfer.
The preparation of the POAs, company formation documents and opening the bank account is a matter of days / hours.
Ready-made SROs - always 1 Director with 100% of sharesReady-mades are usually not so suitable for a simple reason. 90% of the clients require changes, such as:
- changing the Business Name
- changing the Business Address
- adding/ changing (amount of) Directors / Shareholders
- adding / changing the Business Activities (Trade Licenses)
Power of Attorneys: After signing the Powers of Attorney, you are technically immediately director and can start trading, although it will take at least 2 weeks before changes are visible in Commercial Court *.
1-hour Business ConsultationWe highly recommend booking a 1 hour of business consultation before you buy an SRO. This can be done online, and you select a day / hour that is suitable for you. The consultation can also take place by email.
We will guide you in the process from your idea to a working business in Czech Republic, including topics such as Accounting, Taxes, VAT, health insurance, residence permit / visas and any other question you may have.
Registration at the Taxoffice, Filing a Corporate Income Tax ReturnAfter the company formation is complete, it must be registered within 30 days at the tax office for corporate income tax (and optionally for VAT and employees).
The registration for corporate income tax (CIT) is included in the price of the company formation.
A company must file a corporate income tax return each year, even if the company has had no activities.
VAT RegistrationWe do not sell SROs that are already VAT-registered, we can only file a request for VAT registration after the sro company has been registered at Commercial Court and the ownership has been transferred.
Nowadays, registration for VAT has become a slow and complicated process - many questions need to be answers / paper proof needs to be provided before the Tax Office will even consider the application.
If the expected turnover from Czech sources in 12 consecutive months is over 1.000.000 CZK, the SRO has the obligation to register for Full VAT.
When providing / using goods or services from the EU, a VAT-Light registration is almost always an obligation.
The VAT regulations in Czech Republic have been adjusted almost every year. We have written a rather extensive article on VAT / trading in the EU, which you can find here:.