Starting business in the Czech Republic

Starting business in the Czech Republic

It is known that it takes on average seventeen days to form a new company in the Czech Republic. It is a complicated process, so it is advisable to use a help of the legal expert.

Requirements for foreigners

Czech law enables foreigners to run their business activities under the same conditions as Czech entrepreneurs. In order to start a business in the country, applicants are usually issued a residency visa for a period of ninety days to one year. After this period, the visa can be either extended or a long-term residency permit can be issued for an additional period of two years.

Establishing a company

When establishing a company, you have to sign a company statement as a sole-founder or between partners which contains basic details of the company and its organization. It includes basic information such as the business name, registered seat, business activities, names of the partners, size of their ownership interests and other details.

Memorandum of Association

The Memorandum of Association and the Founder’s Deed have to be authenticated by the Czech notary. After the Memorandum is signed, it becomes legally binding only for the shareholders, though the company does not yet exist as a separate legal entity. Before the formation of your company, you also have to sign a contract for the premises where the company’s registered seat will be situated.

The budget

In order to register a company in the Czech Republic you have to prove that you have funds to start your business. The amount of money needed depends on the type of the company you want to establish. You are able to invest anything that has a financial value. If you are investing anything else than money, you have to have a written expert valuation. The payments are deposited in a bank account that is opened for the purpose of the future company. The amount is recorded in the Commercial Register and is publicly known.

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