Sole Proprietorship in Czech Republic. The process of legalizing one’s own entrepreneurial activity in the Czech Republic in the form of a Sole Proprietorship — is not a simple procedure, as it requires deep knowledge of Czech legislation and modern practical skills. The slightest mistake at any stage, as a rule, leads to problems and delays in the registration procedure.
Our experts at PERSPEKTIVA IMPEREAL s.r.o. possess deep knowledge of Czech legislation and practical experience in the field of Sole Proprietorship registration. Therefore, if you wish to maximize the opportunities for conducting commercial activities in the Czech Republic, secure professional support.
You can ask all questions by filling out an online form on our website, by calling us or sending a question to our email address. Our managers will promptly respond and provide detailed information on the topic of opening a Sole Proprietorship in the Czech Republic.
Trust the professionals who will take care of all legal intricacies of registering a Sole Proprietorship. Meanwhile, you can focus on developing your business.
Advantages of Sole Proprietorship Status in the Czech Republic
Advantages of Sole Proprietorship Status in the Czech Republic. Opening and running a business in the Czech Republic as an individual entrepreneur has several significant advantages:
- Fast registration and liquidation of Sole Proprietorship.
- Ability to work independently or hire employees.
- No property tax on assets used in entrepreneurial activity. This allows for tax optimization.
- Simplified accounting and tax reporting procedures. This significantly simplifies business administration.
- Simplified decision-making process. No meetings, minutes, or other formalities are required, unlike with legal entities.
- Free disposal of earned funds without additional taxation.
- No requirements for startup capital.
- Ability to quickly change the scope of activity by adding or expanding licenses.
- Independence from other founders.
Thus, the status of Sole Proprietorship in the Czech Republic provides extensive opportunities for doing business and significantly simplifies many organizational and administrative aspects.
Sole Proprietorship in the Czech Republic: Registration Instructions
Sole Proprietorship in the Czech Republic: Registration Instructions. Opening your own business in the Czech Republic in the form of a Sole Proprietorship (individual entrepreneurship) — is an important and responsible step that requires compliance with a number of mandatory procedures. Let’s examine them in more detail:
Step 1. Document Preparation
To begin, you will need to fill out a special application form for opening a Sole Proprietorship in the Czech Republic and provide the following documents:
- scanned copy of the foreign passport data page;
- scanned copy of the first page of the internal passport and the registration page;
- scanned copy of the Czech residence permit card (if available).
Step 2. Contract Conclusion and Service Payment
After submitting the documents, you conclude a contract with the company providing Sole Proprietorship registration services. Payment for their services is then made via bank transfer or cash.
Step 3. Power of Attorney Preparation
The company’s specialists will prepare the necessary powers of attorney for opening a Sole Proprietorship, which you will need to sign and certify. If you are outside the Czech Republic, the powers of attorney can be drawn up in Ukrainian, Russian, English, or another language for certification by a local notary. If you are in the Czech Republic, the powers of attorney will be drafted in Czech, and you can sign them at a CzechPOINT or with a Czech notary.
Step 4. Document Submission
You must send the following documents by express mail to the company’s address in the Czech Republic:
- a certificate of no criminal record (original) from your country of citizenship, valid for no more than 2 months. It is important to note that if you have a refugee visa, the certificate is not required;
- signed and certified powers of attorney;
- printed and signed contract with the company.
If you are in Prague, you can sign the power of attorney directly in the presence of our employee.
Step 5. Sole Proprietorship Registration
Upon receiving your document package, the company’s specialists will handle the registration of your Sole Proprietorship with the trade licensing office and obtain the necessary licenses. As a result of this stage, you will receive a certificate of individual entrepreneur registration.
Step 6. Tax Registration
Next, your Sole Proprietorship will be registered with the tax office and the social security administration. You will be assigned an individual tax identification number.
Step 7. Receipt of Final Document Package
At the final stage, you will be sent a final package of documents confirming the successful opening of your Sole Proprietorship in the Czech Republic.
Provided all documents are correctly prepared, the entire process of opening a sole proprietorship (FOP) in the Czech Republic takes about 1 week. To avoid possible errors and speed up the procedure, we suggest seeking help from professional lawyers specializing in opening entrepreneurial activities in the Czech Republic.
Requirements for FOP when opening a business in the Czech Republic
Requirements for FOP when opening a business in the Czech Republic. If you have decided to open your own business in the Czech Republic in the form of a sole proprietorship (FOP), then you must meet a number of mandatory requirements established by the country’s legislation.
Age
The first and most obvious requirement is reaching the age of majority. According to Czech laws, an applicant for opening an FOP must be at least 18 years old.
Education and qualification
In addition to the age limit, Czech legislation also imposes additional conditions depending on the chosen type of activity. For some areas, special education, a license, or confirmation of qualification may be required.
For example, if you plan to engage in activities related to construction, medicine, or law, you will need to provide documents confirming your professional education and work experience in that field.
It is important to note that in the Czech Republic, most types of activities fall under the category of simple licenses, which do not require special education or qualifications. Of all license applications, only about 10% are for complex licenses, while 81 types of activities are regulated by simple licenses. Thus, for most entrepreneurial initiatives in the Czech Republic, it is sufficient to obtain a simple license, which does not impose high requirements for education or experience.
No criminal record
Another important requirement is the absence of a criminal record. For registration, you will need to provide a certificate of no criminal record, issued by the competent authorities of your country.
To ensure that you fully meet all necessary requirements, we recommend seeking advice from professional lawyers specializing in this matter in the Czech Republic. They will help you correctly prepare all documentation and complete the registration procedure for FOP without much difficulty in the Czech Republic.
Taxation issues for Czech FOPs opened by Ukrainian citizens
Taxation issues for Czech FOPs opened by Ukrainian citizens. According to Czech law, by the end of March, all Ukrainians with a temporary protection visa who receive income must report to the Czech tax authorities. This is related to the determination of tax residency in the Czech Republic.
Residents of the Czech Republic are considered persons who pay income tax. Czech residents are obliged to pay taxes only on income in their Czech accounts. Non-residents are taxed only on sources of income in their home country.
If a Ukrainian citizen has an FOP (sole proprietorship) in Ukraine, then they pay taxes on the income from this Ukrainian FOP only in Ukraine. This income received in Ukraine through the Ukrainian FOP is not taxed in the Czech Republic.
However, if this Ukrainian citizen opens an FOP directly in the Czech Republic, then they are obliged to pay taxes in the Czech Republic on the income received through this Czech FOP. Taxes are levied only on income received through the Czech FOP, and not on any other sources of income, be it a business in Ukraine or other sources.
Simplifying life for FOPs in the Czech Republic: unified income tax
For self-employed individuals in the Czech Republic, there is an attractive opportunity to simplify the tax payment process and reduce bureaucracy. The unified income tax regime allows freelancers and FOPs to pay a fixed amount, instead of calculating percentages of income and additionally making insurance contributions.
This regime not only simplifies the lives of the self-employed but also makes the tax payment process more transparent and understandable.
For Ukrainian FOPs in the Czech Republic, it is especially important to calculate and pay tax without errors. In this case, it is worth contacting our professionals specializing in tax consulting. They will help you understand all the nuances and ensure the correctness of calculations, guaranteeing peace of mind and confidence in your dealings with the tax authorities.
Comprehensive support for Ukrainian FOPs in the Czech Republic from our company
Comprehensive support for Ukrainian FOPs in the Czech Republic from our company. If you are a sole proprietor (FOP) in Ukraine and were forced to relocate to the Czech Republic due to the war, our company is ready to provide you with comprehensive support in organizing and conducting your commercial activities under the new circumstances.
In particular, we can:
- Prepare all necessary powers of attorney for FOP registration.
- Carry out registration in the Czech Business Register, including remotely.
- Arrange a license for entrepreneurial activity for you.
- Pay all state duties and notary fees.
- Register the FOP with the Tax Office and social institutions in the Czech Republic.
- Help obtain a certificate of no criminal record in CIS countries.
Our employees, possessing deep knowledge in this field, will accompany you through all these stages in the Czech Republic.
Our additional capabilities in the Czech Republic
In addition to FOP registration and resolving taxation issues, we also offer a wide range of related services:
- Opening a bank account for doing business in the Czech Republic.
- Assistance with renting office or production premises.
- HR administration.
- Accounting reporting.
- Legal support.
Our team of employees is ready to offer comprehensive support to our clients regarding opening a sole proprietorship in the Czech Republic. They will help clients successfully adapt and develop their commercial activities in new conditions. Contact us today and we will do everything to make this process as convenient and efficient as possible for you.
Why is it profitable to contact us for sole proprietorship registration services in the Czech Republic?
Why is it profitable to contact us for sole proprietorship registration services in the Czech Republic? Here we present to your attention the most important advantages of our company.
Comprehensive approach
We will handle the full range of work for opening and maintaining your sole proprietorship in the Czech Republic — from application submission to registration with the tax authority. Our specialists, fluent in Ukrainian, will accompany you every step of the way, ensuring the fastest possible completion of the procedure without errors.
In-depth knowledge of legislative law
Our experts have thoroughly studied all the intricacies of local legislative law in the field of opening a sole proprietorship in the Czech Republic. They are aware of all current changes and nuances that must be taken into account for the successful launch of commercial activities.
Practical experience
Our team has many years of experience in supporting the registration of a sole proprietorship in the Czech Republic. We know how to properly prepare all necessary documents, interact with government agencies, and resolve any issues that may arise.
Individual solution
Every client is unique to us. We carefully study the specifics of your commercial activities and offer optimal solutions tailored to your circumstances. Our consultations are always personalized and aimed at achieving your goals.
Cost savings
By contacting us, you free yourself from the need to independently delve into all the intricacies of Czech legislation. We will take on all the routine work, allowing you to focus on developing your business. Moreover, our services are significantly cheaper than potential fines and penalties for registration errors.
Efficiency of execution
We value your time and strive to complete the entire necessary registration process as quickly as possible. We can guarantee prompt registration of a sole proprietorship within the shortest possible timeframe.
Confidentiality
We treat all information about our clients and their businesses as strictly confidential. Your data is securely protected and used only within the scope of providing services.
Entrust the registration of your sole proprietorship in the Czech Republic to the professional staff of our company. You will receive a guarantee of fast, error-free, and high-quality processing of all required documents. Write to us, and we will help you start the successful development of your activities in the Czech Republic!