Company Structure in the Czech Republic
Company names in the Czech Republic must be pre-approved for availability and acceptability; our trained staff will check the proposed corporate name with the registry of the regional commercial court and inform you of its availability. Some words, such as “bank”, are not allowed or require approval. Your company name must end with sro
A Czech sro is required to have a registered agent and a registered address where all official correspondence can be legally served. This is provided as part of our incorporation service.
A Czech company only needs one person to act as a manager. This person can be of any nationality and be a legal person. The names of the directors are registered in the public register.
Only one shareholder is required and a maximum of fifty shareholders is allowed. The shareholder can be of any nationality and be a legal person. The names of the shareholders are registered in the public register.
The standard authorized share capital is CZK 200,000, with a minimum paid-up share capital of CZK 100,000.
An sro is required to file an annual declaration, a register of directors and accounts.
It takes from one to two weeks to set up a new company from the moment we have your proof of address and your identity document. Please note that the company will not be ready for trading until a bank account is opened and the share capital is released.
Key figures of companies in the Czech Republic
|Official name||Czech Republic (Czech Republic)|
|Proper noun||Česká republika (cs)|
|Population||10,681,161 inhabitants (2019)|
|Population growth||0.40 % / year|
|Density||135.43 inhabitants / km²|
|GDP||244.105 billion $USD (2018)|
|GDP / capita||22,973 $USD (2018)|
|GDP growth||2.90 % / year (2018)|
|Life expectancy||79.20 years (2018)|
|Birth-rate||‰ 10.40 (2019)|
|Fertility rate||1.63 children / woman (2016)|
|Mortality rate||‰ 10.80 (2019)|
|Child mortality rate||2.80 ‰ (2019)|
|Literacy rate||100,00 % (2019)|
|Change||Czech Koruna (Kč CZK)|
|HDI||0,891 / 1 (2018)|
|Nature of State||parliamentary republic|
|Head of state||President Miloš Zeman|
|National Holiday||October 28 (Czech Republic 1918)|
|Codes ISO||CZ, CZE|
|Tourists||10,175,963 people (2017)|
A demographics that are on the rise again timidly
The Czechia (Czech Republic in long form) is a central European country without access to the sea, surrounded by Poland to the northeast, Germany to the northwest and west, Austria to the south and Slovakia At the South-East. Bringing together the historic regions of Bohemia, Moravia, and part of Silesia, the Czech Republic has been independent since 1er January 1993 on the occasion of the split of the Czech and Slovak Federal Republic, in other words Czechoslovakia, which therefore brought together Czechia and Slovakia.
The Czech Republic is located at the geographical heart of the enlarged European Union, and is gradually becoming an important communication hub. Transport infrastructure, including major highways, now connects the country to its neighbors and to large cities such as Dresden, Berlin, Munich or Vienna.
Tourism is developing, Prague being a city steeped in history and remarkable architecture. It is now part of the world heritage of humanity at UNESCO.
After years of stagnation and a decline in the early 2000s, the population is currently recovering and the Czech Republic is once again gaining inhabitants thanks to both a slightly more dynamic birth rate (but not sufficient to renew the generations) and an increase immigration, especially from eastern Europe and West Asia. The emigration of young people, very strong in the 1990s and 2000s, slowed down thanks to job opportunities there and the consequent improvement in living standards. This growth remains relatively anecdotal, however, with +0.15 % in 2015, +0.24 % in 2016, +0.34 % in 2017 and +0.37 % in 2018.
Corporate Taxation in the Czech Republic
Corporate tax rate (IS)
|Global CIT rate (%)||19|
Corporate tax (IS) due dates
|CIT return deadline||Within three months of the end of the tax period (four months if filed electronically), and within six months for auditees or entities whose tax return is filed by a registered advisor.|
|CIT final payment due date||Within three months of the end of the tax period (four months if filed electronically), and within six months for auditees or entities whose tax return is filed by a registered advisor.|
|Estimated due dates for CIT payments||Tax advances are paid semi-annually or quarterly.|
Personal income tax rate (PPI)
|Global PIT rate (%)||15% and 23% on revenues exceeding approximately CZK 1.7 million|
Personal income tax (PIT) due dates
|PIT return due date||April 1 or May 1 for electronic filing|
|IRP final payment due date||Within the filing deadline of the income tax return (i.e. April 1 / May 1)|
|Estimated PIT Payment Due Dates||Usually monthly for employment income. In other cases, semi-annual or quarterly tax installments may be required.|
Value added tax (VAT) rate
|Standard VAT rate (%)||21|
Withholding tax rate (WHT)
|WHT rate (%) (Div / Int / Roy)||Resident: 15/0/0;
Non-resident: 15/15/15 (35% WHT applies to residents of countries outside the EU and EEA with which the Czech Republic does not have an enforceable TNT or TIEA)
Capital gains tax rate (CGT)
|Corporate capital gains tax rate (%)||Capital gains are subject to the normal corporate tax rate.|
|Tax rate for individual capital gains (%)||Capital gains are subject to the standard IRPP rate.|
Wealth / Equity Tax Rate
|Global wealth / equity tax rate (%)||N / A|
Rate of inheritance and gift tax
|Rate of inheritance tax (%)||N / A|
|Gift tax rate (%)||If taxable, the gift is subject to the normal PIT rate.|