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Czech Republic company formation

If you’re thinking of opening an offshore company in the Czech Republic, there are both benefits and drawbacks to consider. This country isn’t a classic offshore jurisdiction and, therefore, is not the most obvious choice for online casinos. Still, it may be a favorable option for online gambling businesses seeking the best ways to enter the European markets. 

 

Since the Czech Republic isn’t a classic offshore territory, all companies including foreign ones are required to pay income tax. The income tax rate is 19%. The tax must be paid either every six months or quarterly and is based on the previous year’s profit.

 

In addition to the income tax, companies in Czech Republic pay VAT. This applies for businesses having a turnover of CZK 1 million or more. 

 

Offshore companies in the Czech Republic wishing to run online gambling business are required to obtain a license. 

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Czech Republic company

register

Both an individual and a business entity can register a company in the Czech Republic. The process is quite simple, yet collecting application documents may be difficult. For this reason, it makes sense to contact professionals for complete advice. Our team specializes in the Czech Republic company formation and guides you through the entire process.

The requirements towards opening a Czech offshore company are as follows:
  • providing information about the company’s owners and shareholders
  • registering a business address on the territory of the Czech Republic
  • registering an authorized capital of at least CZK 200,000
  • hiring a director who must be a Czech citizen
  • providing a proof that each of the shareholders has fulfilled his/her previous tax obligations

Once the company is registered, it’s possible to open an offshore account in the Czech Republic. Businesses are subject to audits each six months. Annual financial reporting is mandatory.

Benefits and drawbacks of a Czech Republic offshore company

 

In order to open offshore companies in the Czech Republic, an online gambling business should be prepared to bear significant costs. Strict legislation, tax burden and frequent auditing create an additional strain on the business. 

At the same time, a company registered in the Czech Republic enjoy significant benefits:
  • an impeccable business reputation
  • free access to the European markets