Purchase a Company in Czech Republic
Purchase a Company in Czech RepublicUpdated on Tuesday 17th March 2020
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Czech Republic offers a set of advantages to foreign investors who are interested in expanding their business activities here. Persons interested in opening a company in Czech Republic can perform this action through two main options: one refers to the incorporation of a new Czech company, while the other refers to the purchase of an existing business.
According to the business interests the investors have, they can start a business here by choosing one of these legal possibilities. Investors who want to establish their business operations in Czech Republic as soon as possible are advised to purchase a company, a process for which our Czech lawyers can provide legal assistance.
Czech ready-made company
A company that can be purchased is named a “ready-made” company or a shelf company. The main advantage of buying a ready-made business is that the company has already been incorporated and it can start its operations in 24 hours after the purchase. According to the Czech legislation, ready-made companies are businesses which have never carried out operations and which did not receive a tax number. Foreign investors interested in buying a shelf company should know that only the limited liability companies are available for this type of sale.
Entrepreneurs who want to purchase a shelf company should know that the process is rather simple: the only procedure that has to be completed is the transfer of ownership, a legal action that is supervised by a Czech notary; our Czech attorneys can provide you with further details on this topic. They can also help you register for VAT in the Czech Republic.
Who can buy shelf companies in Czech Republic?
Vintage companies in Czech Republic can be bought by any entrepreneur, domestic or from abroad, who wants to start the operations in a fast manner, without having to wait for the incorporation process of a company. This means that an entrepreneur can have a business in the Czech Republic by simply purchasing a ready-made company and skipping the registration procedures of a firm. The formalities are not complicated, and one of our Czech lawyers can provide complete and in-depth legal advice and assistance for those interested in buying vintage companies in the Czech Republic.
Is the purchase of a shelf company time-consuming?
No, buying a read-made company in Czech Republic is a fast process because the formalities are quite simple. You can talk to our Czech attorneys if you want to purchase a shelf company because we can handle all the procedures as soon as you give us a copy of the identification documents. The only thing left to do is wait for the ownership transfer and sign the documents of your company.
Do I need company due diligence for a shelf company?
No, there is no need to ask for company due diligence because read-made companies have no financial activities and therefore, no liabilities or debts. However, if you would like to know the history of this kind of company, you can ask for company due diligence and receive a report. Company due diligence processes normally reveal all the details about an existing firm, if it had operations on the market, if it was insolvent or if it was involved in a commercial litigation, for example. One of our Czech lawyers can provide company due diligence services if you decide on purchasing a ready-made company and need extra information.
Traveling to Czech Republic for buying a shelf company
Purchasing a vintage company is a simple process that doesn’t need your presence in the Czech Republic. You can simply get in touch with us, send us specific documents in a notarized form, complete some papers and then let us handle the entire process. You can have a shelf company in Czech Republic in about one day, as soon as you receive the ownership transfer and related documents. Feel free to talk to our lawyers in the Czech Republic and send your inquiries if you want to buy a shelf company in this country.
FAQ about shelf companies in Czech Republic
1. How fast can I buy a shelf company in Czech Republic?
Foreigners interested in buying a ready-made company do not need to wait for more than 24 hours, the time in which the documents for your future company are prepared.
2. Do I need to travel to the Czech Republic to buy a shelf company?
No, there is no need for you to travel to the Czech Republic to purchase a company because the entire process can be made online, with full support offered by our Czech lawyers.
3. Who can buy vintage companies in the Czech Republic?
Anyone who wants to start a business in the Czech Republic can purchase a shelf company and benefit from a fast business start on the market. Foreign investors can easily buy such companies, without any restrictions.
4. Does a vintage company have debts?
No, vintage companies in Czech Republic have no activities on the market and therefore no debts. These are safe businesses from a financial point of view.
5. Is there any fee or tax for buying a ready-made company in Czech Republic?
Our Czech lawyers can tell you more about the fees that might be involved in purchasing a shelf company. All the details about how to purchase a company in this country and about the fees involved can be received from our advisors.
Making investments in the Czech Republic
The favorable tax regime and the multitude of business opportunities of Czech Republic make the country a great business destination for international entrepreneurs. The tourism sector, textile, manufacturing, agriculture, and the automotive industry are prolific sectors that receive a large percentage of foreign direct investments on a yearly basis. The simple business registration formalities and the wide range of government incentives are important and appreciated advantages for foreign entrepreneurs in this country. The following numbers and facts might attract your attention regarding the economy of the Czech Republic:
- Approximately USD 155,024 million was the total FDI stock for the Czech Republic in 2018;
- The 2020 Doing Business report ranks Czech Republic 41st out of 190 economies in the world;
- Austria, Luxembourg, and Germany are the main investors in the Czech Republic;
- Most of the investments are directed to the automotive sector and the metallurgy industry in the Czech Republic.
Advantages of a Czech shelf company
A shelf company in Czech Republic offers limited liability to the shareholders; an important aspect is that the company must have only one director, who is not required to be a Czech citizen. Also, the investors can be sure of the fact that the company does not have any liabilities, since from the incorporation the business remained dormant.
Shelf companies are already registered at the Czech Commercial Register, but they are not registered for Value Added Tax (VAT); our lawyers can offer assistance for this process.
If you need further information on the purchase of a company in Czech Republic, please contact our team of Czech lawyers for more details.