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 Easy Visa s.r.o. can help you apply for both simultaneously. For more informations see www.czvisa.com.
- Business seat (www.businessseat.cz)
We provide virtual office and virtual business seat for companies and self-employed persons.
Our business seat allows you to register your business there and use that address for the authorities (tax office, social and health insurance offices, etc.); we will provide the permission of the landlord required for registering at that address.
- 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:
The costs of establish an s.r.o. is 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. You can`t simply withdraw money earned from the company, but you have to wait till the year end and than distribute/use the net profit of the company.
- 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.
- Social insurance
The height of the social insurance charges, depends on the revenue you claim in personal income tax return. The minimum for 2018 is 2189 CZK per month. 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.
- Health insurance
1) 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 amount 2024 CZK per month (in 2018) 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.