GSL / Offshore and International Law / Offshore zones / Eastern Europe / Czech Republic / Legislation of Czech Republic

Legislation of Czech Republic

Service packages Legislation Tax System

Tax treaties entered

Albania
Armenia
Australia
Austria
Azerbaijan
Bahrain
Barbados
Belarus
Belgium
Bosnia and Herzegovina
Brazil
Bulgaria
Canada
Chile
China
Colombia
Croatia
Cyprus
Denmark
Estonia
Ethiopia
Finland
Former Yugoslav Republic of Macedonia
France
Georgia
Germany
Greece
Hong Kong (China)
Hungary
Iceland
India
Indonesia
Iran
Ireland
Israel
Italy
Japan
Jordan
Kazakhstan
Korea (Democratic People's Republic of)
Korea (Republic of)
Kosovo
Kuwait
Latvia
Lebanon
Liechtenstein
Lithuania
Luxembourg
Malaysia
Malta
Mexico
Moldova (Republic of)
Mongolia
Montenegro
Morocco
Netherlands
New Zealand
Nigeria
Norway
Pakistan
Panama
Philippines
Poland
Portugal
Romania
Russian Federation
Saudi Arabia
Serbia
Singapore
Slovakia
Slovenia
South Africa
Spain
Sri Lanka
Sweden
Switzerland
Syrian Arab Republic
Tajikistan
Thailand
Tunisia
Turkey
Turkmenistan
Ukraine
United Arab Emirates
United States
Uzbekistan
Venezuela
Viet nam

Tax Exchange Information Agreement (TEIA)

Andorra
Aruba
Bahamas
Beliz
Bermuda
Cayman Islands
Cook Islands
Guernsey
Isle of Man
Jersey
Monaco
San Marino
Sint Maarten
Virgin Islands
British

List of state regulatory authorities

Government of the Czech Republic
Ministry of Foreign Affairs
Ministry of Finance
Czech Business Web Portal
Portal of the public administration of the Czech Republic
Financial Administration
Chamber of Certified Accountants
Union of Accountants
Czech Bar Association
Czech National Bank

Corporate info

Legal system
civil law
Types of entity
sole trader; joint-stock company; limited liability company; public trading company; limited partnership; cooperative
Shelf companies permitted
Yes
Incorporation timescale for a new company
5 days
Company suffix
s.r.o. or spol. s r.o.
Sensitive words
“Bank”, “Trustee Company”, “Assurance”, “Building Society”, “Trust Company”, “Royal” etc.
Cyrillic alphabet permitted in company name
No
Local registered office
Yes
Local registered agent
No
Information to be kept at the registered office
No requirements
Seal required, type of seal
not required
Redomiciliation (to, from) permitted
permitted

Director and secretary

Minimum number of directors
1
Residency requirements for directors
No
Corporate directors permitted
No
Directors’ meetings/frequency/location
Yes / no requirements
Disclosure to local agent
Yes
Disclosure to public
Yes
Company secretary required
No
Residency requirements for a secretary
No
Qualified secretary required
No
Corporate secretary permitted
No

Shareholder and beneficiary

Minimum number of shareholders
1
Residency requirements for shareholders
No
Corporate shareholder permitted
Yes
Meetings/frequency/location
Yes / annually/ no requirements
Disclosure to local agent
Yes
Disclosure to public
Yes
Beneficiary info disclosure to
No

Shares and share capital

Minimum authorized share capital
25000
Minimum issued share capital
25000
Minimum paid share capital
25000
Authorized capital payment deadlines
Before registration
Issued capital payment deadlines
Before registration
Standard currency
Czech koruna
Standard authorized share capital
25000
Standard par value of shares
1
Shares with no par value permitted
No
Bearer shares permitted
No

Taxes

Personal tax
15-23%
Min. rate for corporate tax
19%
Corporate tax (in detail)
Income tax is paid at the rate of 19%. With regard to income in the form of dividends, tax is paid at the rate of 15%
Capital gains tax
Regular rate
Capital gains tax. Details
generally included with other taxable income and taxed at the regular corporate income tax rate
VAT
21%
VAT. Details
The standard VAT rate is 21%. Reduced rates of 15% and 10% apply to some goods and services
Withholding tax
15%/15%/15%
Other taxes
Social contributions, Real estate tax
Exchange control
No
Government fee
Stamp duty

Accounts

Requirement to prepare accounts
Yes
Requirement to file accounts
Yes
Publicly accessible accounts
Yes
Requirement to file Annual Return
Yes
Publicly accessible Annual Return
No
Audit required
No

General information shortly

Location
Central Europe
Total area
78.866 sq. km
Population
10.693.939 (2020)
Capital
Prague
National currency
Czech koruna
Conditional reduction of currency
CZK
Against USD
22,95 (2022)
Climate, average max and min t°
temperate; cool summers; cold, cloudy, humid winters; avg. maximum temperature (August) +25°C; avg. minimum temperature (January) -15°C
Time difference from Moscow
- 1 hour
Dialing code
+420
State language
Czech
Ethnic groups
63.7% Czechs, 4.9% Moravians, 1.4% Slovaks, 29.9% others
Literacy rate
99%
History
The most powerful among the Slavic tribes were the Czech. The formation of the Czech State began in the 7th century. In the 10th century the principality of Czech was part of the Roman Empire. These territories were under governing of the German Emperors from the 9th to 14th centuries. The period of Interregna lasted from 1439 until 1452. The confrontation between the Protestants and Catholics provoked the Thirty Years’ War in the 17th century. Following the end of the war the Catholicism became the only religion to have legal status. Since the 17th century the territories were under governing of Habsburgs. German language became the language of teaching and state authorities in spite of the patriots’ efforts to introduce the Czech language. From 1867 until 1918 the Czech Republic was part of Austria-Hungary. In 1918 the independent Czechoslovakia was formed. In 1993 it was divided into independent Czech Republic and Slovakia. In 1995 the Czech Republic was the first state among the former social countries which was admitted to the OECD. In 1999 the Czech Republic became a member of NATO, and in 2004 it joined the European Union.
Credit rating
AA
Government type
Parliamentary democracy
Executive branch
Government headed by the Prime Minister
Legislative branch
bicameral Parliament: Chamber of Deputies (200 members) and Senate (81 members)
Judicial branch
Supreme Court, high courts, regional courts, magistrate courts
Unemployment
2,7% (2020)
GDP per capita rank
40 (2020)
Corruption perceptions index rank
54 (2021)

Need a consultation from a specialist?
Share on social media:
RU EN