Business Start-up Costs in Czech Republic
Business Start-up Costs in Czech RepublicUpdated on Sunday 26th January 2020
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The process of registering a new company in the Czech Republic is comprised of numerous compulsory steps which have to be fulfilled by the applicant. Each of these processes involves the assistance of various specialists, as well as the intervention of the local authorities. Although some of the steps which refer to the incorporation process may be free of charge, most of them require the payment of a certain fee. Such fees may vary, in accordance with the documents needed for the registration, but also with the legal entity chosen by an investor. Our team of Czech lawyers provides assistance on the incorporation process, as well as on the costs involved when opening a new business in Czech Republic.
Free of charge registration procedures in Czech Republic
Some of the steps which have to be completed when opening a new company in Czech Republic are free of charge. For example, the company should be represented by a trading name, which has to be unique on the Czech territory. The procedure can be completed at the Ministry of Justice, by verifying the online data provided by the institution. In Czech Republic, the bank at which the investor opened a bank account to deposit the minimum share capital, must provide a confirmation in this sense, which is also free of charge.
The new company should also be registered for tax and social security purposes and both procedures are also free. It is also important to know that the registration for each of these institutions lasts less than one day; our team of Czech attorneys can offer more details on these services.
Registration costs in Czech Republic
The final costs for the new businesses incorporated in Czech Republic are also set out in accordance with the legal entity of the company (some may require a larger share of paid-up capital). The company’s documents will have to be notarized at a public notary, which imposes a fee in accordance with the value of the capital.
As such, the notaries request the following taxes:
- • 2% of the value, for a paid-up capital of CZK 100,000;
- • 1,2% of the value for a capital up to CZK 500,000;
- • 0,6% - for a sum up to CZK 1,000,000;
- • 0,2% - for a sum of up to CZK 20,000,000.
The incorporation of a business in Czech Republic can be handled by one of our advisors who can also help you register for VAT.
What are the costs at the Commercial Register?
Each business must be registered with the Commercial Register or the registration court for which a payment of CZK 6,000 is necessary. This fee is applicable to businesses that register for the first time in Czech Republic. It is good to know that joint stock companies are subject to a CZK 12,000 fee and the registration in this sense must respect the Czech Commercial Code. Please bear in mind that particular forms need to be filled at the Commercial Register when incorporating a company. The legal aspects can be entirely explained by our team of lawyers in Czech Republic.
The costs for the Articles of Association
A company in Czech Republic is registered as soon as the Articles of Association are provided. These contain complete information about the owners, the activities of the firm, and the rights and liabilities of each member of the company. CZK 2,000 represent the notary costs for the Articles of Association of your firm in Czech Republic. It is good to know that notarized Articles of Association are necessary when opening a bank account for your firm.
Costs for building lease contract
The building lease agreement needs to be certified before running the activities as a brand-new firm. This is subject to a public notary cost of CZK 30 plus 21% VAT. A notarized copy of the premises lease contract is also necessary at the time the company is registered in the Czech Republic.
Businessmen who are interested in receiving further information on the start-up costs in Czech Republic can address to our Czech law firm.