Open A Branch In The Czech Republic

Introduction to setting up a Czech branch

The Czech Republic encourages foreign investment into the country and treats foreign investors equally with Czech domicile businesses. Czech branches generally have the same requirements as a Czech legal person, but branches can benefit from greater tax arrangements and an abridged procedure for establishment and dissolution. The Commercial Code, the Trade Licensing Act and the Act on International Private and Procedural Law regulate the establishment of branches in the Czech Republic.

 

What are the formalities regarding Czech branches?

  • A copy of the parent company’s Certificate of Incorporation
  • Memorandum and Articles of Association of the parent company
  • A copy of the parent company’s Certificate of Good Standing if provided by the domicile country’s jurisdiction
  • A Czech representative to act as Head of Branch – not required to be a Czech citizen
  • A registered office
  • Registration with the Trade Register to state the purpose of the branch’s business activity
  • Resolution of the parent company of the establishment and appointment of the Head of Branch
  • The documents above are required by the Czech Commercial Register in order for branch registration and to obtain a Czech identification number.

All documentation must be notarised and translated into Czech by a certified translator, or prepared in the bilingual version.

 

What are the accounting requirements for a Czech Branch?

The relevant Czech Tax Authorities should be notified by the branch for registration of all forms of tax.

The branch’s accounts must be kept in accordance with the Czech Accounting standards; VAT returns should fulfil monthly legal requirements and be submitted quarterly, and tax returns annually.

For further information on accountancy and tax rates in the Czech Republic please contact us.

 

What office facilities are available when registering a branch?

The following types of office are available in the Czech Republic:

  • Registered offices are a minimum requirement, providing an address for branch correspondence
  • Virtual offices provide off-site telephone, fax and mail forwarding services, maintaining business professionalism without a physical office
  • Serviced offices provide all the essential business facilities ready for immediate occupation

 

Branch formation packages

Our unique one stop solution caters for all European formation requirements. A part of this is our branch formation package which includes services such as branch registration and office provision. All actions can be done upon granted Power of Attorney, so we can manage every aspect of your branch formation even without your presence in the Czech Republic.

In addition to single branches, our team can use their experience and expertise to support you in establishing multiple branches. We will guide you through the entire multiple branch formation process from start to finish, so you can just enjoy benefits such as increased client security and exposure to new markets.

 

For further information please send an enquiry or contact us using the form below.