We can also help you with the following situations
- Visits to authorities at the Prague tax office, social office or health insurance – 700 CZK per hour.
- Personal or Corporate Income Tax Registration at a tax office
- VAT Registration at a tax office
- Preparation of the Termination forms for Tax, Trade licencing and Social/Health office
- The Certificate of coverage for social security purposes (CZ/USA 1 Form)
- Formation of S.R.O. (limited liability company) - 20 000 CZK.
Are you thinking about living and working in the Czech Republic? One of the best ways to do that is to apply for a Long-Stay visa and register for a trade license on the Živnostensky or "Živno" list.
We can help you to set up the trade licence and register you for the income tax, social and health insurance.
Our "sister" company will take care of your Visa. Ask us for more details.
When you set up the trade licence, you need to provide the Confirmation about your business seat.
You can put your business seat to the flat which is your own or to the flat where the landlord agrees with it.
If you can`t get the Confirmation from your landlord, you can pay for the Virtual business seat.
Price: 5400 czk per year (or 500 per month, if you pay for less months)
Address: Zahradnickova, Prague 5
S.r.o. or trade licence?
Is it better to have just a trade licence or to establish an s.r.o. company?
See advantages and disadvantages of both below:
S.r.o. Company – advantages:
If you want to run the business together with other person/people, the only way is to establish an s.r.o. company. S.r.o. companies can have up to 50 partners.
It is easy to add more partners during your business or to sell your share.
It is easier to get a loan or to win a state job bid because s.r.o.s seem more reliable to people.
Owners are not liable for the debt of the company with their personal property.
S.r.o. Company – disadvantages:
Set up costs are around 20 000 Czk. You can't use a standard expense deductions (60% lump sum) in the tax return.
Changes in the scope of the business or the liquidation of business is more difficult and more expensive.
You can't simply withdraw the money from the Company whenever you want. The taxation of the corporate profit is 19%. The additional taxation of the profit distribution is 15%.
CIT (corporate income tax)
All companies have to use double-entry bookkeeping which requires a trained person. Corporate income tax (CIT) return has to be ready before the end of March.
Financial statements (Balance sheet, Profit and loss account and footnotes) has to be attached to CIT return.
CIT is 19% from the tax base which is calculated as the profit amended of nontaxable costs and revenues.
Formation of s.r.o company (limited liability company)
We can set up s.r.o. for you.
In fact, we have ready made companies and it takes usually one week to change the ownership to you.
It is very easy, cheap and with no stress.
The price for the ready made company is 20 000 czk.
We can help you also to open the bank account for the company.
- US, EU Citizens and 3rd-Country Nationals with Permanent Residence Permit and 3rd-Country Nationals who have previously been an employee in the EU must pay minimum charges in the first year of the business. Similarly to social insurance, after filing the income tax return of the first year, you must calculate if those minimum charges were sufficient or if you have to pay extra charges for the year.
For 3rd-Country Nationals with a long-term D-Visa the situation is different. They must have Commercial Complex Care Health Insurance.
If you need help with registration to social and health insurance, please contact us.
The height of the social insurance charges depends on the revenue you claim in personal income tax return. In the first year you will pay the minimum social charges, independent of the revenue.
After filling the income tax return for the first year, you have to calculate if those minimum charges were sufficient or if you must pay extra charge for this first year. Also, based on the income of the previous year, you have to calculate adjusted monthly charges for the new tax year.