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 Prague tax office – 700 CZK per hour.
- VAT Registration at a Prague tax office – 1500-3000 CZK.
- Preparation of the Termination forms for Tax, Trade licencing and Social office - 800 CZK each.
- The Certificate of coverage for social security purposes (CZ/USA 1 Form) - 1000 CZK.
- Formation of S.R.O. (limited liability company) - 20 000 CZK.
OTHER USEFULL INFORMATIONS:
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. Our partner company CZ visa s.r.o. can help you apply for both simultaneously. For more informations see www.czvisa.com.
- 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. You will need the landlord`s written confirmation with the business seat. If you can`t get the confirmation, you have to buy the business seat somewhere else.
We can provide you with the Business seat confirmation. it costs 5400 czk per year to use our business seat.
- 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.
S.r.o. Company – disadvantages:
Set up costs are around 20 000 Czk. You can`t use a standard expense deductions 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 withrew the money from the Company whenever you want.
- CIT (corporate income tax)
All companies have to use double-entry bookkeeping which requires a trained person. Corporate income tax return has to be ready before the end of March. If you use certified tax advisor , the deadline is exteded to the end of June (we can manage it for you). Financial statements (Balance sheet, Profit and loss account and footnotes) has to be attatched to CIT return.
CIT is 19% from 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. To set up s.r.o. takes usually one week and can be done based on Power of attorney. We can help you also to open the bank account for the company.
- Social insurance
The height of the social insurance charges, depends on the revenue you claim in personal income tax return. The minimum for 2020 is 2544 CZK per month. In the first year you will pay the minimum social charges of 2544 CZK per month, 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.
- Health insurance
1) EU and US 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 amount 2352 CZK per month (in 2020) 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.
2) 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.