Czech Republic

Should you register or buy the company in the Czech Republic? It all depends on your goals

Business in the Czech Republic is attractive for several reasons – the speed and ease of registration, reporting, stability of the country’s business policies, favorable investment climate, the availability of benefits for people opening a business.

All these figures are getting even better year by year: Czech Republic in 2014 according to the World Bank’s Doing Business rating was ranked 75th in the world and in 2015 – it took already 36th place. The country surpassed by the investment comfort Romania, Bulgaria, Croatia, Hungary , Italy, Montenegro.

As to the international trade Czech Republic has become the absolute leader not only in Europe but in the world; crediting area took 28th place; the speed and ease of registering property – 37th.

Czech Republic is one of the best places in Europe to have your own business. You can already start your business here by founding a new company or buying a shell one.

Buying a family business: you can even do it using bank credit.

There are currently more than 300 000 small and medium-sized enterprises in the Czech Republic. Most of them are – “oiled” family business with good connections, customers, production facilities, etc. Recently, there is a tendency that children do not want to continue their family business. That is why about 60% Czech entrepreneurs (according to Ipsos research agency) are willing to sell the business, successful for years. In the manufacturing industry, the figure is even higher: according to idnes.cz, it is more than 70%.

 If you do not have enough money, you can buy the company using bank credit. Buying a business with the positive history has significant advantages in lending, that is to the prospects of the bank who sees its investment acquisition of working business. Lending rate for amounts of up to 30 million crowns on average just over 3% per year, over 30 million crown- less than 2% per annum. A yield of finished business is about 30% of the investment cycle in 36 months.

Creating a new business

New laws are extremely simplified the creation of new businesses in the Czech Republic. Now you can start a company – or rather, Ltd. (Czech: sro – společnost s ručením omezeným), with a starting capital of 1 crown and the number of employees – 1. For example, in Slovakia, which is in the overall ranking ahead of the Czech Republic, opening of such business requires share capital of 5 000 euros.

As well you will not require a business plan, and you can register a company in the apartment (if you have it in the Czech Republic) or on a virtual Czech address.

Once a year (March 31) you have to file an annual report on the company’s activities to the tax office (in the presence of employees – even in health insurance companies, pension funds). This reporting can be zero, but with a company that has zero rates is now impossible to get a residence permit.

Having s.r.o, you get the same features as the Czech companies, including – and to EU investment programs that are active on the territory of the Czech Republic.