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Frequently Asked Questions

Frequently Asked Questions

Updated on Tuesday 20th August 2019

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FAQ-czech-lawyers.jpgOur Czech lawyers often receive varied frequently asked questions from foreign investors on how to set up their own business or about employment issues they might encounter in the country they want to move to. We have gathered below some questions and answered them, mentioning that we have a vast experience in numerous domains, including litigation, company liquidation, divorce and marriage matters.


1. What are the legal aspects for opening a company in the Czech Republic?


For some business activities conducted in the Czech Republic, a trade license or other special permits have to be issued depending on the type of business. Czech law generally states that a foreign citizen may operate a business under the same conditions as the Czechs. The most popular business entity established in the Czech Republic is the limited liability company and this can be done helped by our law firm in Czech Republic.


2. What are the phases of a business litigation case in the Czech Republic?


The majority of the local litigations are handled by regular courts of law. There are four areas of law in the Czech Republic, namely: civil, criminal, constitutional and administrative. In the preliminary proceedings, the court usually assists the parties in settling their litigation and then follows the first instance proceedings, the appellate ones, the proceedings that involve judicial review of decisions and finally enforcement proceedings.


3. What are the legal requirements for a foreign investor who wants to open a business entity in the Czech Republic?


The first step that must be completed when wanting to form a legal entity in the Czech Republic is to decide on a name for your company and reserve it with the Ministry of Justice agency, then you need to open a bank account, register for taxes with the Tax Office and also register with the Commercial Registry of the Regional Court.


4. Do I need a visa in order to enter the Czech Republic? If so, how do I acquire it?



As the Czech Republic is an European Union member state and also part of the Schengen Area, generally, EU foreign citizens, do not need a visa to visit this country, only an ID card for EU citizens or a valid passport. Thus, depending on the situation, residents of other countries outside EU have to check the visa terms at their country’s Czech embassy.


5. Are special permits or licenses required for my new company in the Czech Republic?


Depending on the company’s business activities, licenses or special permits can be necessary, but our Czech lawyers will ensure customized advice on how to open your company as soon as possible.


6. What are the employment requirements in the Czech Republic?


EU member states’ citizens benefit from the same employment rights as the Czechs do. Speaking and writing Czech are quite important, but not mandatory (depending on the job you want) and applications do not have to be submitted in the Czech Republic, as this can be done online. As a foreigner, you need to obtain an employment permit (if required by the Employment Act) and also a permit of residence, an Employee Card or a Blue one.


7. What do I have to do in order to obtain Czech citizenship?


For acquiring a citizenship in the Czech Republic, you need to hold a residency permit for a minimum of five years and to spend important part of that time in this country, then prove that you intend to give up your citizenship. This application must be submitted with the local office of the Ministry of Interior.

 

8. What are the marriage regulations in Czech Republic?

 
The Office of Vital Statistics in the Czech Republic registers the marriage of foreigners with Czech nationals. The birth certificate, information about the permanent residency and the legal status, plus the divorce certificate if it is the case are among the needed documents for getting married in the Czech Republic. The ceremonies are held in the Czech language, however, spouses can benefit from the services of an interpreter.
 

9. What is the divorce procedure in Czech Republic?

 
No-fault and at-fault divorces are two types of separation in the Czech Republic involving a series of legal steps. The child custody and alimony, plus the distribution of the assets are among the stages of a divorce in the Czech Republic. The amicable procedure is the no-fault divorce through which the spouses agree on all the marital aspects including the ones mentioned above. Our divorce lawyers in the Czech Republic are here to provide immediate legal advice for such cases.
 

10. What is the EORI number? Do I need such a number for my business?

 
EORI is the Economic Operators Registration and Identification or the unique number that it is needed for companies having operations in the trading sector since 2009, in the Czech Republic. This kind of number is recognized within the territory of each European country and it is allocated to companies with businesses in the import and export sector. Filling an application and providing the company’s documents are sufficient for obtaining an EORI number in the Czech Republic.
 

11. How do I register a trademark in Czech Republic?

 
An application and the graphic representation submitted to the Industrial Property Office are the first steps for registering the trademark of your business in the Czech Republic. According to the legislation of this country, letters, words, numbers, drawings, colors, and signs are permitted as trademarks for companies in the Czech Republic. One must observe the application fees for registering a trademark, but for legal advice, feel free to talk to one of our Czech attorneys.
 

12. What is the corporate tax in the Czech Republic?

 
19% is the rate of the corporate tax in the Czech Republic and it is imposed on companies that have commercial activities established in the country. Such a tax is also imposed on the capital gains obtained from the company share sales. Complete tax planning and support can be provided by our Czech lawyers to international entrepreneurs interested in opening businesses in this country.
 

13. What is the VAT rate in the Czech Republic?

 
The standard VAT rate is set at 21% and it applies to most of the products and services meant for sale purposes in the Czech Republic. It is good to know that a VAT rate of 15% is imposed on food products, public transportation, water supply, the publishing industry, and varied entertainment events. We remind that the registration for tax purposes is mandatory for companies in the Czech Republic, so do not hesitate to get in touch with one of our Czech lawyers and ask for comprehensive legal advice and support.
 

14. Does Czech Republic have signed double tax treaties?

 
Yes, the Czech Republic signed around 80 double taxation agreements with countries worldwide for the avoidance of paying the taxes twice on incomes. All foreign companies with establishments in the Czech Republic are protected by the provisions of double tax treaties signed by this country, so there are numerous tax benefits to consider in this matter.
 

15. How is debt collection made in Czech Republic?

 
Debt collection in the Czech Republic can be commenced and handled by our Czech lawyers who will initiate the amicable procedure to collect debts. This is the step where the debtor receives a payment notice, and if he or she cannot conclude the financial obligations, the case can go to the District Court for litigation matters. Our debt collection lawyers in the Czech Republic have experience in such cases and can be hired to act on behalf of your company or interests in matters of financial debts.
 

16. Do I need legal advice for opening a business in the Czech Republic?

 
Yes, it is recommended to have the support of an experienced lawyer in business formation in the Czech Republic, especially if you are a foreign entrepreneur. They can explain the applicable laws and act in respect to the imposed rules and regulations in this country.
 

17.  Can I receive real estate due diligence?

 
Yes, if you would like to buy a property in the Czech Republic it is recommended to ask for real estate due diligence through which a complete property verification is made, in order to detect if there are any litigation issues.
 

18. Can I receive legal advice for company contracts?

 
Yes, you can talk to our specialists and find out more about the legal aspects of a business contract before it is signed. Some might not understand the local legislation, so advice for issuing and signing contracts with a company can be offered on request.
 

19. Do I need legal advice for mergers and acquisitions?

 
It is recommended to have the assistance of an experienced lawyer in mergers and acquisitions in Czech Republic and be ready before ay kind of transaction. Some legal aspects might seem complicated for foreign investors, but if you have the legal support by your side, you can rely on the fact that the mergers and acquisitions procedures will have a correct track.
 

20. How do I close a company in Czech Republic?

 
The liquidation process of a company might prolong for a couple of months, especially if a foreign business is involved. All the legal requirements can be handled by our Czech team of attorneys, concerning the general and local rules of the company closing.
 


For other questions and legal advice, feel free to contact our lawyers in the Czech Republic.