{"id":35492,"date":"2024-11-13T09:20:09","date_gmt":"2024-11-13T08:20:09","guid":{"rendered":"https:\/\/www.thompsonstein.com\/?p=35492"},"modified":"2026-01-29T14:49:59","modified_gmt":"2026-01-29T13:49:59","slug":"company-in-the-czech-republic","status":"publish","type":"post","link":"https:\/\/www.thompsonstein.com\/en\/company-in-the-czech-republic\/","title":{"rendered":"COMPANY IN THE CZECH REPUBLIC"},"content":{"rendered":"\t\t
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The possibility of establishing a\u00a0company in the Czech Republic\u00a0<\/strong>is very popular among entrepreneurs interested in moving their companies abroad. Its location in the heart of Europe and its stable legal system make establishing a\u00a0company in the Czech Republic<\/strong>\u00a0a tempting opportunity. Corporate income tax in the Czech Republic is 19%, while personal income tax is 15% and is increased by a 7% solidarity surcharge for top earners. Are these differences sufficient arguments in favour of changing one\u2019s tax residence?<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t

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Call us! Our lawyers will be happy to answer your questions and advise you on the best place to start a company.<\/p>\n\t\t\t\t<\/div>\n\t\t\t<\/div><\/div>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t

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Is establishing a company in the Czech Republic a good idea?<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t
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A company in the Czech Republic<\/strong>\u00a0can represent an attractive solution for entrepreneurs from many sectors. The undoubted advantage of owning a\u00a0company in the Czech Republic<\/strong>\u00a0is the possibility for Czech companies to purchase cars without excise duty and deduct full VAT. Corporate income tax for the\u00a0companies in the Czech Republic<\/strong>\u00a0is 19%, which is even higher than for small companies in countries such as Poland or Lithuania. Another advantage of establishing a\u00a0company in the Czech Republic<\/strong>\u00a0may be the low initial capital requirement of CZK 1. However, such\u00a0Czech companies<\/strong>\u00a0are often perceived as shell companies, and establishing a\u00a0company in the Czech Republic<\/strong>\u00a0involves high administrative fees (up to CZK 10 000 for drawing up the notarial deed or court fees).<\/p><\/div><\/div><\/div><\/div><\/div><\/div>

An unquestionable advantage of owning a\u00a0company in the Czech Republic<\/strong>\u00a0is the friendly and straightforward tax system, which allows a Czech company to deduct between 40% and 60% of its business expenses without having to document them. When establishing a\u00a0company in the Czech Republic<\/strong>, it is also worth noting that the basic VAT rate is 21%, while it is either 15% or 10% at the reduced rate. The VAT exemption limit for the turnover on the Czech market is CZK 1 million. When deciding to set up a\u00a0company in the Czech Republic<\/strong>, one must take into account the complex process of registering for VAT (registration takes about 30 days), the high costs of health insurance (in the case of high earnings for employed workers), and the need to provide a clean criminal record certificate.<\/p><\/div><\/div><\/div><\/div><\/div><\/div>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t

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Advantages of owning a company in the Czech Republic<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t
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  • \n\t\t\t\t\t\t\t\t\t\t\t\n\t\t\t\t\t\t\t<\/i>\t\t\t\t\t\t<\/span>\n\t\t\t\t\t\t\t\t\t\tLow share capital required<\/span>\n\t\t\t\t\t\t\t\t\t<\/li>\n\t\t\t\t\t\t\t\t
  • \n\t\t\t\t\t\t\t\t\t\t\t\n\t\t\t\t\t\t\t<\/i>\t\t\t\t\t\t<\/span>\n\t\t\t\t\t\t\t\t\t\tA friendly and straightforward tax system<\/span>\n\t\t\t\t\t\t\t\t\t<\/li>\n\t\t\t\t\t\t\t\t
  • \n\t\t\t\t\t\t\t\t\t\t\t\n\t\t\t\t\t\t\t<\/i>\t\t\t\t\t\t<\/span>\n\t\t\t\t\t\t\t\t\t\tVAT at 21% (with a reduced rate of 15% and 10%)<\/span>\n\t\t\t\t\t\t\t\t\t<\/li>\n\t\t\t\t\t\t\t\t
  • \n\t\t\t\t\t\t\t\t\t\t\t\n\t\t\t\t\t\t\t<\/i>\t\t\t\t\t\t<\/span>\n\t\t\t\t\t\t\t\t\t\tFlat corporate income tax rate (19%)<\/span>\n\t\t\t\t\t\t\t\t\t<\/li>\n\t\t\t\t\t\t\t\t
  • \n\t\t\t\t\t\t\t\t\t\t\t\n\t\t\t\t\t\t\t<\/i>\t\t\t\t\t\t<\/span>\n\t\t\t\t\t\t\t\t\t\tIncome-based contributions and entrepreneurial pensions<\/span>\n\t\t\t\t\t\t\t\t\t<\/li>\n\t\t\t\t\t\t\t\t
  • \n\t\t\t\t\t\t\t\t\t\t\t\n\t\t\t\t\t\t\t<\/i>\t\t\t\t\t\t<\/span>\n\t\t\t\t\t\t\t\t\t\tNo obligation to have cash registers<\/span>\n\t\t\t\t\t\t\t\t\t<\/li>\n\t\t\t\t\t\t\t\t
  • \n\t\t\t\t\t\t\t\t\t\t\t\n\t\t\t\t\t\t\t<\/i>\t\t\t\t\t\t<\/span>\n\t\t\t\t\t\t\t\t\t\tOfficial matters can be handled remotely<\/span>\n\t\t\t\t\t\t\t\t\t<\/li>\n\t\t\t\t\t\t<\/ul>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t
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    A company in the Czech Republic \u2013 who can find it a good solution?<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t
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    A\u00a0company in the Czech Republic\u00a0<\/strong>is top-rated among entrepreneurs from the transport and logistics industry. It is a potentially attractive location for people doing business close to the Czech border. E-commerce, marketing, services, and trading businesses also often choose to establish a Czech company. A\u00a0company in the Czech Republic<\/strong>\u00a0may represent an attractive solution for businesses whose net annual income exceeds EUR 50,000.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t

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