Foreign legal entities are allowed to conduct trade activities, including acquisition of real estate, under the same conditions and to the same extent as Czech companies.

There are four different legal forms of companies; the most common are limited liability companies (s.r.o.) and joint-stock companies (a.s.). The trade name of the company must be unique. You can find more information on setting up a business in the Czech Republic in the attachments or on the CzechInvest portal. 

 

Visa 

If you’re planning to reside in the Czech Republic, you will need to get a Long-Term Residency Visa. The Ministry of the Interior of the Czech Republic has plenty of useful information about visas.

 

Taxes, VAT and other fees

If you establish a business in the Czech Republic, you can expect to pay two or three kinds of taxes:

1. Corporate tax- Currently 19%.

2. VAT- The standard VAT rate is 21%, however some products may be taxed at the reduced rate of 15% (mostly foodstuffs) or 10% (infant nutrition, medicine, books).

3. Road Tax- Applicable only if you plan to use a motor vehicle in your business. Road tax rates are variable, but fall between CZK 1000-5000 annually.

 

Here, you can find up-to-date information on taxation in the Czech Republic.