Business in Prague. How to open your own business in the Czech Republic

Business immigration to the Czech Republic is the most common way to move to Europe. Opening your own company in this country provides the business owner with several important advantages: obtaining a business visa valid for one year, reducing the costs of running your own enterprise, the opportunity to obtain a mortgage for the purchase of real estate, and the chance to obtain a residence permit.

When submitting documents again to extend a visa, a businessman has the right to transport his family to the Czech Republic under the program of reunification with relatives. After five years of successfully running a business, an entrepreneur can count on receiving a residence permit.

Business structure

Any foreign citizen who has reached the age of majority can open a company in the Czech Republic. You can register an enterprise under several structures: joint-stock company, LLC, OJSC, branch, and so on. It should be noted that Russian citizens predominantly choose such a form of business as a limited liability company (LLC).

In order to open a business in the Czech Republic using the LLC structure, you must have an authorized capital of at least 200 thousand crowns. Each member of the society must contribute a minimum of twenty thousand crowns. The founder of an LLC can be either a legal entity or an individual. The latter should not be a member of more than three societies.

Just a few years ago, in order to open your own business in this country without the personal presence of the business owner, it was necessary to provide a power of attorney certified by a notary. Before entering a company into the trade register, you need to decide on the type of business activity.

There are many affordable ideas for starting a business in the Czech Republic that do not require special permission or licenses. A special document is required in cases where the enterprise’s activities are aimed at producing a specific material or product in the Czech Republic. In this case, the founder must have special education and at least some experience in conducting such activities.

In the Czech Republic, the hotel and restaurant business is considered predominantly developed. In addition, many businessmen open food stores or rent out their own real estate. Also, in this country no permit or license is required for work related to creativity.

Requirements for an entrepreneur for business immigration to the Czech Republic

First of all, the following condition must be met: the registered company must have a legal address in the Czech Republic. Before opening a business in the Czech Republic, you need to decide on the composition and number of founders, choose a name for the company and develop a charter.

An LLC in the Czech Republic is registered on the basis of a constituent agreement, which describes in detail all the rights and obligations of the parties. The agreement must be certified by a notary. It is also necessary to notarize an application for company registration in the Prague Commercial Court, an application from the director with samples of signature and seal, and an application from the contribution manager. The registration process takes approximately three to four weeks.

Documents for business registration

To open a business in the Czech Republic, you must provide the following documents to the registration chamber:

A copy of a foreign passport.
Certificate of no criminal record in the applicant’s country of residence. The document must be translated into Czech and certified by a court translator.
A certified copy of the birth certificate and a translation of this document into Czech, also certified.

Activities

Depending on the type of activity you have chosen, you will need to obtain a special permit or license. The Czech Entrepreneurship Office is responsible for issuing these documents. In this country there is the following division of activities.

“Free” - registration of such a business requires only a statement written on behalf of the company.
“Professional” - in this case, it is necessary to have a responsible and unconvicted representative, a citizen of the Czech Republic. In addition, you need to prove professionalism in conducting a specific type of activity. This refers to the presence of education, work experience, qualifications and competence.
“Concession” - registration of a business in this case is possible only with special permission from regulatory authorities.

It is worth noting that this type of activity, such as renting out real estate, does not require a license, but only if the provision of other services is not provided. Permission to do this can be obtained from the court when registering the company in the Trade Register.

Czech tax system

The taxation system in the Czech Republic controls compliance with the conditions of equal competition and is quite conducive to business development. The income tax in this country is 20%. The Czech tax system is adapted to European standards. It cannot be said that the rates in the republic are the lowest in Eastern Europe, but, nevertheless, there are over 150 investment projects here, thanks to which it was possible to attract 3.6 billion euros into the economy.

The Czech Republic has entered into bilateral agreements with 37 countries to avoid double taxation. That is, business in the Czech Republic for Russians and citizens of other countries is a rather promising and profitable solution. The government is gradually reducing corporate taxes. A single rate has been introduced, and income tax for legal entities has already been reduced by 9%.

How founders can obtain a residence permit

If you are planning to open a business in the Czech Republic, then you should know that this gives you the additional advantage of obtaining a residence permit in this country. This opportunity applies not only to the business owner, but also to his family members if they are the founders of the company. You can obtain permanent residence in the Czech Republic after five years of successful business, if the state and the tax service do not have any claims against you.

Please note that after the latest amendment to Czech legislation regarding immigration laws, a primary visa can only be obtained for six months and can be extended on the spot. When re-registering, all details are taken into account - company data, business history, income level and living conditions of the owner. To obtain a visa and residence permit, the applicant must appear in person first at the consulate and then at the Ministry of the Interior.

Why Czech Republic

Business in the Czech Republic opens doors for Russians to many countries that are part of the European Union. In this country, Russian citizens with in-demand professions, such as programmer, IT specialist, and so on, have excellent business prospects. Knowledge of languages is also welcome - English, German and, of course, Czech. In this case, there are practically no problems with employment and communication. The Czechs themselves are very loyal to citizens of other states who honor their traditions and way of life.

Of course, the global crisis has affected the economy of this country, and now it has become more difficult to find a job. The Czech authorities recommend that their companies hire Czechs first, and only then turn to the services of citizens with permanent residence in this country or an EU passport.

Features of life in the Czech Republic

According to many Russian citizens living in the Czech Republic, the local mentality is very different from the Russian one, although both peoples have Slavic roots. Czechs are slow and are not used to showing excessive initiative; they do not like being rushed in business. For Russians, this approach to business is very unusual, especially for those who moved from large cities and are accustomed to value their time.

As in all countries of the world, the most expensive life in this country is in the capital - Prague, as well as in resorts. This is understandable, since it is in these places that most of the jobs and many tourist routes are concentrated. Russian citizens note that the Czech Republic attracts them with its order, calmness and leisurely pace.

The government of this country cares about its citizens and is kind to nature and animals. Czechs are accustomed to honoring and protecting family values and relationships; they strictly adhere to work schedules and are not distracted by work during weekends and holidays.

In general, Russian emigrants get used to Czech reality quite well and become almost true Czechs with Russian roots.

Private entrepreneurs from abroad are attracted to this Central European country not only by its excellent reputation, but also by its stable economy and low starting capital threshold. Foreign business in the Czech Republic has government support and comfortable conditions have been created for it. Who can register a company, in which area it is preferable to open a business, and other important topics are covered in this article.

A high level of comfort, developed infrastructure, and affordable medicine attract immigrants to the country. ? The average salary in the republic is slightly lower than in Germany or Austria, but prices for food and housing are significantly lower. The country has free education, and local universities issue diplomas recognized in any EU state.

It is not surprising that many citizens of the post-Soviet countries would like to. Our compatriots are also attracted by the fact that the republic is located in the center of Europe. This allows you to get to your home country extremely quickly if necessary.

One of the ways to get legalized here is business immigration to the Czech Republic. It must be emphasized that it is a rule-of-law state, and that is why entrepreneurs here are comfortable both from an economic and social point of view. In addition, international exhibitions with the participation of representatives of the world's largest companies are regularly held in major cities.

In order to open a business here, a Russian first of all needs a business visa. This long-term permit is issued at the Czech diplomatic mission in the Russian Federation. It is worth understanding in more detail how to proceed competently and what a future businessman needs to know.

How to register a company

Doing business in the Czech Republic is easier than in Germany or Austria, which is why there are many Russians among the local owners of firms and companies. Investments in the opening amount to a symbolic value of 1 crown, although back in 2014 the amount of start-up capital started from 200 thousand. Servicing the company will cost less than in other advanced European countries. Opening a company in the Czech Republic for Russians in 2019 is allowed without submitting a business plan to the authorized agency for approval. What do you need to register your business in the country? Is it possible for a citizen of another country to purchase a ready-made company?

Requirements for a candidate

A foreigner who decides to open a business in the Czech Republic must:

be of legal age;
to be capable;
have no criminal record or other problems with the law either in the Russian Federation or in the Czech Republic;
have no debts to government agencies of the republic.

Knowledge of the Czech language is not mandatory for an entrepreneur, but if he is going to register a company on his own, then it is necessary.

Submission of documents

Company registration is carried out with a local notary. To do this, you need to prepare a set of papers:

passport (original and copy);
birth certificate;
paper about no criminal record;
proposed company name;
amount of authorized capital;
document confirming the applicant’s qualifications;
information about the director and founders;
address, lease agreement for the premises where the registered company will be located;
business license.

The certificate of good conduct is certified by a court interpreter. After visiting a notary with the received deed, passport, document with the consent of the owner of the premises, license (if required), you should register in the Register of Entrepreneurs. After this, the authorized capital is formed - the required amount is deposited into the bank and an account is opened. Registration is carried out in the Trade Register. At the final stage, an application for registration is submitted to the tax office (Finanční úřad).

Obtaining a license

This can be done in the department for business activities (Živnostenský úřad), which are located in almost every locality of the republic. Licenses can be free (simple) or bundled. If you need to register a company in Prague or another city in the Czech Republic, the first type of license will be required. Issued under the following conditions.

An application filled out on a special form is submitted to the structural unit of the local government.
You must also have a lease agreement or proof of ownership of the premises.
The package of materials must contain an extract from the Trade Register with a registration date within the next three months.
Foundation agreement with fixed types of activities requiring a license.
A fee is paid. The size depends on the area of entrepreneurship of the future company (production, commercial, financial).

When there are no complaints about the submitted papers, a license will be issued after 2 weeks. The validity period of the document is not limited. A related type of such permit is of two types: professional and concession licenses. The first option can be purchased by a foreigner with a residence permit who has a diploma in a specialty corresponding to the chosen profile of activity, qualifications and work experience. The issuance of concession permits is regulated by the state and requires obtaining a license from a higher organization, such as: State Energy Inspectorate, Ministry of Industry and Trade, Ministry of Agriculture.

When a license is not needed

There is no need to draw up special paperwork if the company is engaged in leasing its own real estate. But it should be noted that many companies registered by entrepreneurs from the Russian Federation indicate precisely this type of activity. This can have negative consequences, since migration officials often begin to doubt the true goals of the foreigner. As a result, you may be refused to grant or extend a residence permit.

What forms of ownership exist

In the Czech Republic, as in many other European countries, the most common is LLC - limited liability company. Let us list the main characteristics of such an economic entity.

It is enough to have one founder.
The number of shareholders is not limited.
The size of the authorized capital is 1 crown.
There are no restrictions on the maximum possible shareholding.
An individual or legal entity and not only a citizen of the republic, but also a foreigner can become a founder in the Czech Republic.

This form is used by small and medium businesses. As in Russia, the second most popular type is the joint stock company. Unlike an LLC, the minimum authorized capital is 80 thousand euros. In addition to the indicated forms of ownership, business is conducted in the republic in the form of private enterprises, public trading companies, and cooperatives.

Tax policy of the country

The system in force in the Czech Republic is oriented towards European Union standards. Each type of monetary collection is fixed in a specific legislative act. Business taxes in the Czech Republic are regulated and collected by the Ministry of Finance of the Republic and local subordinate structures. With proper business management, you can optimize costs, the rates of which in 2019 are as follows.

On profit with a base value of 19%. A reduced percentage applies to investment and pension funds – 5%. The declaration must be submitted within 3 months after the end of the reporting period. If a company has a zero balance, then this type of tax is not paid.
VAT with a base rate of 21%. For food production, book publishing, and medicine production, reduced rates are applied - 15 and 10%. Since 2016, a new law has come into force, according to which control reports on VAT are submitted monthly.
If an entrepreneur owns real estate, he must pay a tax, the amount of which depends on the area, method of use, and other characteristics of the property.

In addition to the above, in the Czech Republic there are monetary fees for value added, environmental, excise, road and others.

Popular types of business in the Czech Republic

When choosing a field of entrepreneurial activity, each person is guided by his own experience and financial capabilities. Beginners are recommended to engage in small forms, gradually expanding their business. There are a huge number of areas and areas of activity. If you have sufficient funds for investment, the win-win path is to open production using innovative technologies. The Czech Republic is export-oriented, so finding a market will not be difficult, and in the long term, profits in industry will be significantly higher than in the service sector. We will analyze what kind of business to open in the Czech Republic that is guaranteed to be profitable.

Tourist

This industry is the first one that comes to mind. Monuments of medieval architecture and ancient castles have been preserved in the cities of the republic. The Czech Republic has a rich cultural heritage. Despite the lack of access to the sea, there are many resorts, sanatoriums, and boarding houses.

Every year the country is visited by a huge number of travelers, pilgrims and vacationers from different countries. Various international exhibitions are constantly held here. It is obvious that business in the tourism industry in the center of Europe is quite promising. Moreover, this area is associated with transport, excursion services, food, entertainment, accommodation, transport rental, and equipment.

Export and import

Locally produced goods have high quality characteristics and reasonable prices. In many ways, they represent a “golden mean” between expensive products from Western EU countries and cheap, but problematic in properties, from the eastern countries of the commonwealth. Data on the export of goods from the republic is growing every year. Automotive products occupy the leading position.

If we talk about imports, a potential entrepreneur should keep in mind that the Czech market is balanced. Large foreign firms occupy a strong place here. It is possible to take a position among them only by making more favorable offers in terms of conditions and cost. In addition, it must be taken into account that the Czech Republic has a population of 10.5 million citizens and this factor limits the market for consumed services and goods. At the same time, it is possible to export from the territory of the republic to neighboring Slovakia, Poland, and Hungary.

Hotel and restaurant

In this case, one should take into account the fact that the flow of tourists in the Czech Republic is constantly growing, and the bulk of them go to Prague and other places not only for cultural experiences, but also for the purpose of entertainment. Tourists visit restaurants, cafes, and pubs. In addition, local residents also quite often allow themselves to spend an evening with their family in a cozy establishment. When deciding to open a restaurant, it is important to choose the location of the premises well in order to ensure good attendance. Hotels and guesthouses located in tourist areas, if properly organized, can bring good profits.

Acquisition of a ready-made business

Many foreigners are considering not creating their own company, but purchasing an existing one. Obviously, in this case the financial risks will be increased, but the benefits are also more significant. First of all, it saves time and increases the chances of obtaining a residence permit in the future.

Before you buy a ready-made business in the Czech Republic, you should soberly assess your capabilities. You need to understand that no one will sell a profitable company without compelling reasons. Often, in order to increase the price of their business, owners hide important points, masking problems under such common reasons:

deterioration of health;
moving to another city or country;
family circumstances.

The right step in this case would be an assessment of the company by an independent expert company and a full audit of its activities.

Finally

Running your business in the Czech Republic, as in any other foreign country, is not so easy. You need to have a good understanding of local legislation and know the mentality of the population. Our compatriots should take into account that when purchasing products, Europeans pay attention to the brand. Buyers carefully study information about the manufacturer, consumer reviews, and experience in the stated field. New brands cause distrust among Czechs, so it will not be easy to compete with established companies.

Like all Europeans, local residents have such traits as practicality and economy. The wealthiest citizens of the republic will not throw money away. Therefore, to run a profitable business, you need to adapt to the mentality of the Czechs.

Particular attention should be paid to quality customer service. In Europe, service comes with smiles and friendliness. Our entrepreneurs must meet these requirements. In order for a businessman to become successful in the Czech Republic, he must carefully study not only marketing, legislation, profitable industries, but also the state itself, its customs, cultural and value orientations of the population.

It was also already an urgent need, and not an attempt to show off; we do everything primarily to save money and nerves of students. In this whirlpool of business tasks, I accidentally came across summaries of the financial results of all companies registered in the Czech Republic, published by the Ministry of Justice. Openly for each company you can see income, expenses, profit!

Preamble

Even now, many people coming to the Czech Republic remember how 4 years ago it was possible to open an LLC in the Czech Republic (Czech. s.r.o.) and receive a long-term entrepreneurial visa, and then a residence permit, which after 5 years of problem-free and free living in the Czech Republic turned into. Beauty! There were entire Russian conveyor belts for opening companies, the so-called. “openers”, where you paid a couple of thousand euros and were given a ready-made package of documents for applying for a visa. There was no business plan, the typical scheme was to open a company, buy an apartment with a mortgage, and then rent it out to the owners of the company. It’s all just “real estate agencies”.

When I came to the Czech Republic in 2009, I saw many times in Prague people who didn’t know a word of Czech, didn’t conduct any business activities, but at the same time took out apartments on a mortgage, received residence permits for all family members, and used ready-made infrastructure Czech cities, including kindergartens, schools, universities. They use everything, but give nothing. They imposingly, like kings, went to the post office and demanded an extract from the trade register for the next renewal. Ladies of about 45 years old with clearly excessive kilograms of makeup and bouffant “a la the 70s” came up to the window and began right in the lady’s face in Russian to demand that they be given an extract. Don’t beg, don’t ask, but demand, while simultaneously chewing gum. There was no attempt to speak Czech or reformulate the question as clearly as possible. If the lady did not understand, then the Russian lady began to speak louder and louder, without changing either the speed or the phrase - apparently, the louder you speak, the better it is understood. These people had a strong feeling that the Czech Republic owed them, and the Czechs should crawl and lick their feet for their “investments in the impoverished Czech economy.” In fact, 99% of such entrepreneurs did not pay a single crown of taxes, just like in general these visas were given to the founders, they did not even pay themselves a salary (i.e. normal medical insurance, social insurance, at least some kind of personal income tax), but “ investments" were limited to paying for the services of "openers" and buying a cheap apartment somewhere on the outskirts of Prague. Most of the “entrepreneurs” lived in the Czech Republic permanently, while a minority traveled to the Czech Republic on weekends. When I saw such people in public places, I wanted to crawl under the nearest bench out of shame.

This did not last long and in the spring of 2010 (if it was later, please correct) a new version of the law “On the stay of foreigners on the territory of the Chechen Republic” came into force. The changes primarily affected entrepreneurs. Firstly, it became impossible to obtain a visa through embassies and consulates. In practice, everyone began to be refused, although the theoretical possibility remained (and therefore some “openers” are still alive, misleading people). Secondly, it became possible to change the purpose of stay to “entrepreneurship” after at least 2 years of stay for another purpose (for example, training), this was done to avoid the arrival of “entrepreneurs” for semester or annual courses and the subsequent receipt of an entrepreneurial residence permit. Thirdly, long-term visas and residence permits for founders of companies were abolished; only directors (Czech) remained entitled to them. jednatel), and they, in turn, are obliged to pay themselves at least a small salary (and from it personal income tax, social and medical insurance, which is at least about 5 thousand crowns per month). At once the entire flow of new people wishing to become a “business owner in the Czech Republic” was cut off, and those who had arrived earlier began to think whether the game was worth the candle (i.e. 6 thousand crowns per month). First, the “weekend entrepreneurs” disappeared, then they were insulted by the payment of 6 thousand crowns “extorted by ungrateful Czechs.”

At the moment, we have a situation where at least 10 thousand companies have been opened in the country by immigrants from the CIS. According to entrepreneurial residence permits, there are many immigrants from the CIS in the country. Non-working pensioners, students, employees of various companies (usually Russian). Among students, it is usually the most unreliable students who resort to entrepreneurial residence permits, those who are often expelled and therefore have a precarious visa situation. Workers receive an entrepreneurial residence permit for the sake of banal employment, because If you don’t have a more or less intelligible education, then to get a job in a clothing store on tour. the center will ask you first. Only a few of this number run a real business and pay some taxes. The above-mentioned 6 thousand are not money, of which the country receives at most 1 thousand crowns in personal income tax, the rest goes to social services. insurance (essentially a pension) and medical care. insurance. But I would not like to talk about them; for them, the opportunity to have an entrepreneurial residence permit will clearly end soon (more on this below). I would like to talk about those who actually do business and do not pay.

What does the Czech Republic give us?

I consider myself a rather grateful person and do not consider due all the good that the people around me or the state give me. From an early age, I was raised that no one owes me anything and that I should achieve everything myself, while always helping others. I came to the Czech Republic and saw the attitude of the authorities towards the population that was unusual for me. The relationship is not ideal, but orders of magnitude more human than we are used to seeing at home. Clean streets, well-groomed cities, convenient and cheap transport, accessibility to kindergartens, schools, universities, hospitals. You can live comfortably. As with the beginning of my doctoral studies, although not in millions, the authorities of a foreign country supported my education very significantly. While at home I studied for free and essentially survived. I am grateful to the Czech Republic, sincerely grateful to Podebrady and want to participate in their development. I don’t want to deceive, much less steal. This is not about throwing away money, but about the absence of banal theft from a country that has become a second home.

Unfortunately, very few people share my point of view, and readers could even notice this in the comments to a number of notes. Many foreigners who come say “Give, give, give,” but do not want to give anything in return. They don’t want to develop the language, they are not interested in Czech culture, politics and life in general. They want to live ready and do nothing. Such a convenient consumer position, the Czech Republic owes it all to them. Some also manage to complain about “evil xenophobe Czechs” and “backward Czech Republic,” but for some reason they do not move their butt from Czech soil either back to the east or further to the west.

I believe it is necessary to participate in the development of the place in which you live. Whether it’s taking good care of your dorm room, whether it’s participating in meetings of apartment owners, whether it’s elections, whether it’s paying taxes. If everyone takes a consumer position “a la Rus”, then there will be no Czech Republic, there will be a second Russia, Ukraine or Kazakhstan. Where they steal from each other's throats and drive gold BMWs through broken streets in the middle of shabby houses. Do you want to live like this? Me not.

Average Russian entrepreneur

What finally prompted me to write this note was my acquaintance with the website of a Russian company. I will deliberately not indicate its name, address or real names of the owners, so that no one’s tender nerves will be disturbed by the “monstrous insult.” It is enough to describe this site and the company behind it in general terms; they are typical of Russian “entrepreneurs”.

The company, oddly enough, is owned by a couple from the Russian hinterland; they opened the company in 2008, bought a budget apartment on the outskirts of Prague and moved into it with several children. As the authors write on their website, they were “strangled by Russian reality and the authorities,” because They lived in the border region and made their living by transporting goods back and forth for resale.

As you may have guessed (since the scheme is again typical), they now have a website offering transfers and “individual tours” in the Czech Republic and surrounding countries. The site is alive, clearly the owners are doing well, the company is easy to find in various catalogs and directories on the Internet. The grammar suffers and in general the entire site is made very poorly, but tourists are hooked. By the way, I absolutely don’t understand the desire of tourists to go on an individual tour with a person with dubious knowledge about the object being visited, and in addition to overpay a lot of money for it. In the Czech Republic there are buses, trains, and tours. objects always have at least a sheet in Russian or English with all the information about the object. But no, they are looking for a “guide” who doesn’t know Czech himself, tells tales and jokes he makes up on the fly and doesn’t forget to take them to the necessary exchange offices and contract stores. I myself wouldn’t mind going to a castle or another tour if I have a day off. object and therefore sometimes on the spot I come across Russian guides walking like a goose, and tourists run after them like ducklings. These “guides” personify, excuse me, incompetence.

In their blog, entrepreneurs do not hesitate to describe their endless travels throughout Europe (the Czech Republic clearly does not interest them) and their rather immodest life. A huge number of incorrectly written Czech words in Cyrillic (for example, “ezdenka”) suggests that the authors have problems with Czech. As soon as I came across their website, I assumed that we were talking about people who had just arrived, but then I started digging and realized that this was a really clear typical case. They did not give me the impression of being needy, highly spiritual or intelligent. I was leaving people of this kind all the time - first from Kamchatka, and then from Irkutsk to the Czech Republic. It’s sweet to smile at the client and at the same time take money out of his pocket for unqualified services, and then skip the “earnings” with pomp. If nothing forces such people, then they usually do not work at all. Personally, I would die from an idle life.

Unfortunately, for such people the Czech Republic is only a convenient place to live. Weak control of tax authorities, low prices, convenient location, a relatively simple language for everyday communication, an abundance of Russian-speaking tourists. People further tour. facade they don’t see the Czech Republic even after 5 years of living, they don’t understand further than the Russian ghettos of Prague in Czech life. They brought their life from the Russian province (where their contribution to society was zero), a kind of Russian little world in a Prague apartment, and that’s how they live. And there is no need for them to care about what is happening in the country that has sheltered them, how it lives, whether they should give it something in return. The main thing for them is not to forget to open their beaks on time and receive a free kindergarten, school for children, walk on clean streets, ride on government-subsidized transport, etc.

Closer to the body taxes

Lately, I’ve been looking at an extract from all the Russian companies I come across on the website of the Ministry of Justice, where in the collection of documents (Czech. Sbírka listin) there is a Finnish results for each year. In accordance with the requirements of the Commercial Code of the Czech Republic and the Law on Accounting Every company is required to submit its annual financial results to the commercial court for publication. no later than the end of the next reporting period, because the report for 2012 must be submitted during 2013. If you do not see a report on the Ministry of Justice website, it means that the company is either breaking the law, or it is hiding its financial results and may be in a catastrophic state. In case of failure to fulfill this obligation, the Commercial Court can recover up to 20 thousand crowns from the company, and the Tax Inspectorate - up to 3% of assets.

In order to avoid unnecessary gestures for readers, I will immediately post statistics on profit before taxation for each year of existence of the above-mentioned company:

2009 - minus 78 thousand crowns
2010 - minus 242 thousand crowns
2011 - minus 74 thousand crowns
2012 - minus 240 thousand crowns

For anonymization, I changed the amounts by a few percentage points, but in general the situation is clear - the company has been unprofitable since its very opening, not a single crown of taxes on the company’s profits, and especially VAT (the company is not a VAT payer), does not go to the budget. The entire “contribution to the Czech economy” consists of buying an apartment, but the benefits of it are extremely doubtful, because... As a result of Russians buying up real estate in Prague, prices rose and thus housing became less affordable for Czechs. Are the Czechs happy? No.

Key questions:

If the company is unprofitable and does not pay taxes, then at whose expense is the banquet in the form of clean streets, roads, public transport, schools and kindergartens for the children of these “entrepreneurs”?
If the company has been unprofitable for many years, then why give entrepreneurial visas to would-be entrepreneurs? Isn’t it better to expel them from the country?

You can independently check statements for any companies on www.justice.cz, where in the company search results, by clicking on “Sbírka listin” you will see a list of all documents, incl. constituent, sample signatures, as well as financial. results (Účetní závěrka, VZZ, etc.). In indicators, it is worth relying on “Výsledek hospodaření před zdaněním” (Russian. Financial results before taxation). I looked at a huge number of different Russian companies, flaunting the most “respectable” signs and flaunting dozens of employees, an office on Wenceslas Square, etc. Everyone pays a pittance that has nothing to do with real activities. The difference is tens or even hundreds of times. I can count on the fingers of one hand the Russian companies making a more or less adequate contribution to the Czech economy.

You probably immediately have a question about how they hide taxes. Unfortunately, in the Czech Republic the tax office is not vigilant enough and there are enough opportunities for fraud.

About future

I am receiving information from different sides that from 2014, when renewing an entrepreneurial residence permit, the Ministry of Internal Affairs will take into account the financial status. results of the company's activities over the past years. Rumor has it that an interview will also be introduced, where the business plan, current work, and plans will be closely discussed. If the company is not efficient, then the residence permit will not be renewed. I think this is generally correct.

Is it my business?

I believe that this is my business, because... I try my best to support Czech society, to integrate as much as possible, to be a full and useful member and not a leech. I make a significant contribution to the same taxes (we are talking about a 6-7-digit amount per year) and it is not clear to me why not so poor, but very illiterate compatriots, benefit from the taxes I pay. I regularly pay for the same honey. insurance, but in 4 years I asked for help exactly 1 time. I pay into the social fund. insurance, but I think about my old age.

Secondly, I don’t want to face a situation at the hour when I turn to the Czech authorities for help and hear in response “You Russians have given nothing to our country.” Already, many Czechs are wondering why foreigners study for free in universities built over decades of scooping taxes from the pockets of Czechs. After all, the parents of these foreigners paid taxes somewhere, these taxes were invested in something by the authorities chosen by these parents - so let them study there. This opinion is not mine, this is a brewing question among Czechs. The Russians who arrived earlier have proven themselves poorly and therefore the new arrivals are treated the same way.

I don’t want to see leeches here, I left Russia from them. In Russia, I worked at full capacity, gave the maximum to society, wanted to make the world a better place, but everything went to pieces because of hordes of leeches and a schizophrenic bureaucracy. In the Czech Republic, I see that I am moving society forward, I meet positive assessments from the Czechs and the Czech authorities of my activities and my thoughts, which was absolutely not the case in Russia; at best, even my parents considered me an idealist.

Do you want to buy a business in the Czech Republic?

What can attract a potential entrepreneur in this country? Of course, the opportunity to move to a permanent place of residence, safe running of business and reliable safety of the invested money. Do you have a desire to purchase a ready-made business in the Czech Republic and start running your own business? It is with us that you can get high-quality advice on this issue, choose the appropriate option from the proposed list, complete the purchase and sale and start running your own business abroad.

Opening a business in the Czech Republic: all the nuances

On the way to opening your business in the Czech Republic, you need to take into account the following factors, which will actually comprise the process of forming your company.

Decide and name the company, appoint its director and co-founders;
Prepare and certify a certificate of no criminal record (necessarily with a translation into Czech);
Opening a bank account;
Preparation of constituent documents;
It is necessary to determine the initial legal address;
Draw up a founding agreement and have it notarized;
Registration of business activities in the Czech Republic.

Common types of business

As in any country in the world, in the Czech Republic there are many areas of entrepreneurial activity where you can build your business and make a profit. The most profitable areas for business are:

Tourist;
Hotel business;
Restaurant;
Business in the field of construction;
Pharmacy;
Souvenir and veterinary businesses.

Also, other areas bring good results in doing business, namely real estate, beauty salons, taxi services, online stores and the sale of essential products.

What documents are required

When you have decided on the area of business, you need to go through the procedure of registering a new company that will represent your business. To do this, you need to collect a list of documents on the basis of which the process of registering and formalizing your business in the Czech Republic will take place. The following documents must be collected and submitted:

A copy of the international passport, namely the first two pages;
A notarized copy of the birth certificate;
Certificate of no criminal record;
Power of attorney for company registration from all co-founders;
Statement from the director of the company;
Addresses and contact details of all company participants;
Variants of the proposed company name in the amount of 4 pieces.

It is worth considering the fact that most activities in the Czech Republic require a license.

Company registration procedure

In the Czech Republic, foreign persons, namely Russians, can be founders without any restrictions. It is necessary to register in the trade register, which can be done traditionally through a court or a notary office. Simultaneously with registration in the trade register, it is necessary to obtain a business license. Without these processes, the company will not be able to conduct active business and will only manage its property. Carrying out business activities without an appropriate license is illegal and is punishable by a fine as an administrative violation.

Tax system

The newly registered company will be subject to taxes as in any other countries. Therefore, it is necessary to take care of timely submission of documents to the tax service so that problems do not arise in the future. The Czech Republic is promoting a solution to reducing key tax rates, which makes it very attractive for foreign residents to start a business. A new company that has emerged is obliged to submit documents to the tax service within a month and pay 19% of all income quarterly. It is believed that the taxation process in the Czech Republic is very complex, but the state helps improve conditions and creates favorable prospects for all entrepreneurs.

Features of the economy in this country

Today the Czech Republic is one of the most successful republics in the post-Soviet space. The Czech economy is developing rapidly and gaining momentum. Thanks to successful investments in metallurgy, mechanical engineering, light and food industries, services and agriculture, the Czech Republic has become a country capable of attracting the attention of foreign entrepreneurs who are ready to conduct their business in the state.

In the Czech Republic you cannot earn a lot of money, but you can honestly and calmly run your own small business, receiving a stable income sufficient for a prosperous life in the center of Europe. The conditions for doing business in the Czech Republic are more than comfortable, which attracts foreigners from all over the world.

There are many reasons why the Czech Republic: a stable legislative framework, a civilized judicial system, respect and protection of private property, a stable political environment, support for small businesses. In addition, many foreigners are attracted by the country itself, and their own business there becomes simply a source of money for them to live in the Czech Republic.

Business activity in the Czech Republic is regulated by two main documents: the Law “On Entrepreneurship” and the Commercial Code of the Czech Republic. According to §21-25 of the Commercial Code, foreign individuals and legal entities have the same rights when establishing an enterprise in the Czech Republic as citizens of the country. In other words, your company will have all the rights of a Czech legal entity, regardless of who is part of its founders. If necessary, foreigners can also buy real estate - houses, apartments, land - in the ownership of their company, but not in personal ownership - this is one of the features of Czech real estate, BusinessTimes will talk about it in detail in the material on real estate in the Czech Republic.

To open your own business in the Czech Republic, you do not need a large initial capital - as a rule, foreigners who come to do business in the Czech Republic start with small companies, and the main thing in this case is not so much money as an interesting, fresh idea. Therefore, the first thing you need is to decide on the scope of your business and develop a business plan.

What exactly can you do in the Czech Republic? The most common option is to open your own small restaurant. In Prague and other cities of the Czech Republic, due to the constant influx of tourists, such a business will quickly begin to generate income. Another option is your own store, which can be of various types. Beauty salon, fitness center, gym, excursion bureau for compatriots and more. For wealthier citizens, a business option in the Czech Republic is to buy real estate there for subsequent rental, which is also very profitable in the conditions of developed Czech tourism.

As for the funds needed to open this kind of business in the Czech Republic, with just 10 thousand dollars you can rent a small restaurant, shop, bar and in six months make a profit of about 1-1.5 thousand dollars a month. For the same money you can rent a small guesthouse, or organize the transportation of cars, say, from Germany to the Czech Republic.

The following organizational and legal forms of enterprises are most popular among foreigners in the Czech Republic:

- limited liability company
- Joint-Stock Company
— closed joint stock company
— branch of a foreign enterprise

Of course, as in many other countries of the world, the most popular form is LLC. The minimum authorized capital for an LLC in the Czech Republic is about 7.5 thousand dollars.

A peculiarity of business in the Czech Republic is that each type of business activity is regulated by a licensing law - you will need to obtain a license from the local business department, but this is quite simple: you only need to bring a few documents and pay an administrative fee.

In general, the procedure for starting your own business looks like this:

1. You come up with an idea for your company, decide on the founders, and write a business plan. The director of the company does not have to be a citizen of the Czech Republic. At this stage, you will also be required to come up with a company name.

2. Write the articles of incorporation and sign it at the notary.

3. Present documents proving your identity and confirming that you have no criminal record both in Russia and in the Czech Republic

4. You receive a license for the chosen activity. If everything is in order with your documents, it should be issued within 15 days.

5. Deposit the minimum authorized capital into the company’s account. It must be opened in a bank in the Czech Republic.

6. Register the company in the commercial register.

7. Within 30 days, register with the tax office. The income tax for small businesses in the Czech Republic is 24%.

Sample documents