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10 ADVANTAGES OF OPENING A COMPANY IN THE CZECH REPUBLIC
Opening a company in the Czech Republic is intended for anyone who provides services or sells goods in the Czech Republic or the EU. We have listed for you the main ten advantages of opening a company in the Czech Republic.
- Czechs almost always prefer to buy from and do business with a company that is located in the Czech Republic.
- If you want to receive VAT refunds in the Czech Republic on various services or goods that you have purchased for the company’s activity this is possible only through a company registered in the Czech Republic.
- You can’t set up a Czech “licensed business” without a long-term residential visa, so the only option of setting up a business in the Czech Republic is to set up a company.
- The financial and accounting procedures are much more convenient when a Czech company is involved.
- Employing workers legally in the Czech Republic is only possible through a company registered in the Czech Republic.
- Although the conditions for receiving visas to the Czech Republic have been toughened, the possibility of receiving a business visa is much smoother through a company active in the Czech Republic.
- Receiving finance from EU funds is possible only for companies registered in one of the EU countries.
- In most cases a local Czech company will be given preference over foreign companies in participation in government tenders.
- The annual company tax in the Czech Republic is lower than in Israel.
- In the Czech Republic, unlike in Israel, there is no annual toll on the company.
Other advantages and points that should be taken into account
We highly recommend setting up a European company for anyone who wants to distribute their products in the EU. For this purpose you can set up a company in any of the EU countries but the cost of setting up a Czech s.r.o. company is significantly lower than in the Western European countries.
A business that wants to market its products in the Czech Republic should set up a company or a subsidiary company in the Czech Republic, as the Czechs have a clear tendency to do business more with local companies than with foreign ones. Potential buyers will rely on a Czech company more than on a foreign one and will prefer to buy products specifically from a company that is based in the Czech Republic. A company that deals with trade between Israel and the Czech Republic such as imports and exports will need to open a Czech subsidiary company in order to establish its business there.
If you want to buy real estate in the Czech Republic, you can do so privately, but we recommend setting up a company because then you can enter the expenses resulting from managing your assets into the company, and benefit from a lower amount of tax on the company’s profits.
The process of opening a Czech SRO company
We in Conbiz are very experienced in setting up companies with no need to go to the Czech Republic personally – we have done this dozens of times for our clients. Read here about the process of opening a company or contact us in order to receive a price quote.
