Starting a Business in Czech Republic : Guide
Formal registration of companies has many immediate benefits for the companies and for business owners and employees. Legal entities can outlive their founders. Resources are pooled as several shareholders join forces to start a company. Formally registered companies have access to services and institutions from courts to banks as well as to new markets. And their employees can benefit from protections provided by the law. An additional benefit comes with limited liability companies. These limit the financial liability of company owners to their investments, so personal assets of the owners are not put at risk. Where governments make registration easy, more entrepreneurs start businesses in the formal sector, creating more good jobs and generating more revenue for the government.
Below is a detailed summary of the bureaucratic and legal hurdles faced by entrepreneurs wishing to incorporate and register a new firm in Czech Republic. It examines the procedures, time and cost involved in launching a commercial or industrial firm with up to 50 employees and start-up capital of 10 times the economy's per-capita gross national income.
| No. | Procedure | Time to Complete | Associated Costs |
|---|---|---|---|
| 1 | Check business name for uniqueness | 1 day | no charge |
| 2 | Obtain extracts of criminal record and real estate at Czechpoint Offices | 1 day | CZK 200 |
| 3 | Notarize articles of association | 1 day | CZK 20,310 |
| 4 | Obtain confirmation of the administrator of the capital contribution of the company along with the confirmation of the bank that the capital contribution is held in the company’s special bank account for the registered capital. | 2 days | no charge |
| 5 | Register with the Trade Licensing Office and obtain extract of the trade license | 5 days | CZK 1000 |
| 6 | Register in the Business (Commercial) Registry of the Regional Commercial Court | 7 days | CZK 6,000 (paid in the form of court stamps) |
| 7 | Register for taxes | 1 day | no charge |
| * 8 | Register for social security | 1 day (simultaneous with previous procedure) | no charge |
| * 9 | Register with health insurance | 1 day (simultaneous with previous procedure) | no charge |
