After establishing your company, you are required to keep accounting records. The accounting records, along with prepared financial statements and a corporate tax return, must be filed with the financial office by the 31st of March. For companies that require a registered tax advisor, the deadline of filing is automatically extended to the 30th of June. It is important to not forget to file the additional audit papers with the court.
A registered finance advisor can visit your office regularly until you appoint your own full-time administrative person. The services that are provided usually include control of bank accounts, preparation of information reports, advising on financial controls of cash, bank, sales and purchases, and general advice on how to minimize your company’s costs.
If you are planning to employ people you should register with the social and health insurance offices. Paying social insurance contributions is obligatory for everyone who works in the Czech Republic. Foreigners who have a permanent residency are obliged to register with the health insurance.
Individuals with a Czech residency who spend at least 183 days of the year in the Czech Republic have to pay taxes on their world-wide income. If they are present for less than 183 days, they pay the taxes of the Czech source income only.
Corporate taxation is required after entering into the Commercial Register. Registration for VAT tax is usually voluntary; however exceptions exist. For example, you will be required to pay if your company exceeds CZK 1 million over one year.