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* Takes place simultaneously with another procedure.
Registration Requirements Details
Procedure 1.
Check business name for uniqueness
Time to complete:
1 day
Cost to complete:
no charge
Name of Agency:
Comment:
The uniqueness of the company name can be verified by accessing a database on the Ministry of Justice's Web site.
Procedure 2.
Obtain extracts at Municipal Office, Czech Post Office and/or at Czech Chamber of Commerce
Time to complete:
1 day
Cost to complete:
CZK 50 (criminal records) +CZK 100 (extract of real estate) + CZK 1000 ( extract of Trade license)
Name of Agency:
Comment:
This applies only to the extract from the Czech Criminal Register, if the executive is a citizen of another EU Member State, an extract from the criminal register of that EU Member State (if the State does not keep a criminal register, the extract may be replaced by an affidavit signed by the executive in front of a notary); if the executive is a citizen of a non-EU country, an extract from the Czech Criminal register and an extract from the criminal register of the country of which he/she is a citizen and of the country in which he/she spent three consecutive months in the previous three years (all extracts must be less than three months old)
Procedure 3.
Notarize articles of association
Time to complete:
1 day
Cost to complete:
CZK 23,950 (for 5 copies of 10 page notarial record) + CZK 30 per notarized signature (excluding 19% VAT)
Name of Agency:
Comment:
Fees to notarize the articles of association depend on the amount of the company’s registered capital and on the number of copies of the notarial record required by the company's founders. The minimum fee is about CZK 4,000, and the maximum is about CZK 113,000, including 19% VAT. The notary public is responsible for the compliance of the contents of the company’s articles of association with Czech law. The notary prepares the wording of the articles of association according to the founders' requirements. Certain notaries public require the following documents before executing the articles of association: - A clean criminal record. - An affidavit from the company managers. - Confirmation from the owner of premises where the seat will be located that the company is entitled to have its seat on those premises, along with an extract for the premises from the Real Estate Register.
The founders must comply with the requirements stipulated by the Czech Commercial Code. They must confirm their compliance in an affidavit submitted to the City Court, and they must also submit their signature specimens to the City Court in two copies.
Procedure 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.
Time to complete:
2 days
Cost to complete:
Until the company is registered, the registered capital is usually blocked in the special bank account
Name of Agency:
Comment:
Opening a special bank account usually costs about CZK 5,000. However, some banks open special accounts for nothing on condition that the company will open current bank accounts in the bank after its incorporation.
Procedure 5.
Register in the Business (Commercial) Registry of the Regional Commercial Court
Time to complete:
7 days
Cost to complete:
CZK 5,000 (paid in the form of court stamps)
Name of Agency:
Comment:
The Czech Commercial Code and the Czech Civil Procedure Act were amended to comply with European Community law (effective July 1, 2005) and to simplify and speed up registering in the Commercial Register. The amendment introduced standard forms for applications, reduced the number of participants to the proceedings, introduced a simplified procedure for registration (by entering the data without substantive review for certain types of entries), stated the exact time limits for decisions and their issuance and entries, introduced the "silence-is-consent" rule, and set limits for implementing the full electronic administration of the Commercial Register. Since July 1, 2006, the time limit for the court to decide on registration is 5 working days. To register a newly founded company in the Commercial Register, an application must be submitted to the relevant court administering the register. This application must be completed on a standard form and signed by all first directors of the company (or their proxy, if applicable) before a notary.
The following documents must be enclosed with the application for company registration in the Commercial Register: (a) the company’s articles (memorandum) of association in the form of a notarial deed; (b) documents proving the company's title to the premises in which its seat is located (as described in Procedure 3); (c) a confirmation from the administrator of the contributions into the company's registered capital confirming that each founder paid up at least 30% of his or her monetary capital contribution and that the total paid up capital contributions are at least CZK 100,000; (d) a confirmation from the relevant bank that the capital contributions are held in the company's special bank account for the registered capital; (e) documents on the company managers/executive; and (g) the executive's affidavit with notarized signature, his or her sample signature, and his or her consent to their registration into the Commercial Register.
Procedure 6.
Register for taxes
Time to complete:
1 day
Cost to complete:
no charge
Name of Agency:
Comment:
Deadlines for registering with the Tax Office: - Income tax and general registration: 30 days (any change must be announced within 15 days). - Withholding tax and payroll tax registration: 15 days. - For the VAT obligatory registration: submit the registration form within 15 days following the end of month in which the conditions are met. - For the VAT voluntary registration: submit the registration at any time.
Upon submitting the application for income tax registration, the company receives a tax identification number (same number as for the VAT and the income tax).
Procedure 7.
Register for social security
Time to complete:
1 day
Cost to complete:
no charge
Name of Agency:
Comment:
The company must register within 8 days as of the date when the first employee enters into work (the employee's and employer's registration are in practice be made at the same time). A 8-day notification deadline applies in case of certain changes occur.
Procedure 8.
Register with health insurance
Time to complete:
1 day
Cost to complete:
no charge
Name of Agency:
Comment:
The same rules apply as for social security registration.
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