Registration of companies in the EU, financial licenses. Legal services in the EU

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24.11.2025

In 2024 the global financial services market faced an unprecedented rise in fines for anti-money laundering violations: in Europe alone the total amount of sanctions exceeded €6 billion, and the average fine for financial institutions increased by 45% compared with the previous year. But the numbers are only the tip of the iceberg. Behind every fine are frozen accounts, loss of access to international payments, blocked transactions and, most importantly, severe reputational costs that can be fatal to a business.

Companies like ZISIF15, operating at the intersection of traditional and digital finance, are particularly vulnerable: their activities are under the scrutiny of regulators in the EU, Asia and the CIS, and requirements for transparency and transaction controls are tightened every year. In these circumstances AML audit becomes not just a formal procedure, but a strategic tool for protecting the business, minimizing risks and increasing investment attractiveness.

In its practice the COREDO team has repeatedly encountered situations where clients who neglected regular AML audits faced the threat of account freezes and sudden inspections by regulators. Unlike a classic financial audit, the task of an AML audit is not only to reconcile the numbers but also to identify vulnerabilities in the internal control system, verify the relevance of AML policies and procedures, assess the effectiveness of the AML program and ensure the company’s real AML compliance.

Essentially, an AML audit for ZISIF15 companies is a comprehensive review for compliance with international and local requirements in anti-money laundering and countering the financing of terrorism (CFT), including analysis of KYC processes, transaction monitoring, risk assessment and readiness to interact with regulators. Such an approach makes it possible not only to avoid fines and blocks, but also to build trusting relationships with banks, investors and partners.

AML audit for ZISIF15 in 2025

Illustration for the section «AML audit for ZISIF15 in 2025» in the article «Practice of AML audit for ZISIF15»

International standards in the field of AML compliance are constantly evolving. In 2025, the key benchmarks for ZISIF15 companies remain the FATF recommendations, as well as the EU directives: 4AMLD, 5AMLD and 6AMLD, which set standards for customer identification, transaction monitoring and reporting. In Asia and the CIS, requirements are increasingly being aligned with European and international norms, while local regulators introduce their own supervisory mechanisms.

COREDO’s practice confirms: for ZISIF15 companies it is critically important not only to have a formal AML program but also for it to be actually operational. Regulators require:

The presence and regular updating of AML policies and procedures reflecting the specifics of the business and risks.
Implementation of effective KYC procedures and beneficiary verification tools.
Continuous AML monitoring of operations and control of suspicious transactions, including cryptocurrency operations.
Preparation and storage of AML reporting (including SAR – Suspicious Activity Report) in accordance with the requirements of FATF and local regulators.
Appointment of a person responsible for AML, internal controls and regular staff training.

For ZISIF15, requirements for transparency of ownership structure, automation of monitoring and integration of RegTech solutions become especially important. In the EU and the United Kingdom the emphasis is on automated systems, eKYC and digital identity, while in Asia and the CIS it is on adapting procedures to local realities and rapid response to changes in the regulatory environment.

Company AML audit: step-by-step process

Illustration for the section 'AML audit of the company: step-by-step process' in the article 'AML audit practice for ZISIF15'

The AML audit practice for ZISIF15 companies: a step-by-step guide is not just a formal check, but an important tool for identifying vulnerabilities and improving the effectiveness of internal control. Such an audit makes it possible to timely identify gaps in the anti-money laundering system and prepare recommendations to eliminate them, based on real experience in conducting AML procedures.

Preparation for the AML audit

First step: a thorough review of KYC procedures and client Due Diligence mechanisms. COREDO’s experience shows that it is at this stage that the main vulnerabilities are revealed: outdated questionnaires, insufficient verification of beneficiaries, absence of a client’s digital profile.

Transaction monitoring and control

Modern AML audit is impossible without automation. Solutions developed at COREDO include the implementation of RegTech platforms and AI algorithms for AML monitoring of operations and AML control of transactions. This approach allows real-time detection of anomalies, conducting AML checks of cryptocurrency, building transaction graphs and applying risk scoring to evaluate suspicious addresses.

Reporting and interaction with regulators

Preparing SAR (Suspicious Activity Report): a key element of reporting. In practice, COREDO has implemented automated templates for SAR preparation, which speeds up the process and reduces the risk of errors. It is important not only to submit reports on time, but also to maintain transparent communication with regulators and be ready for unscheduled inspections and requests.

A comprehensive AML review makes it possible to identify and eliminate gaps in advance, minimizing the likelihood of fines and sanctions. In case suspicious transactions are detected: promptly initiate an internal investigation and, if necessary, freeze accounts until the circumstances are clarified.

AML audit of cryptocurrency transactions

Illustration for the section «AML audit of cryptocurrency transactions» in the article «AML audit practice for ZISIF15»

Cryptocurrency transactions require a special approach to AML checks. International studies (Chainalysis, FATF, JBA) confirm: more than 60% of money laundering cases in 2023–2024 were related to digital assets. For ZISIF15 companies, this means the need to implement specialized tools:

AML monitoring of transactions using blockchain graph analysis algorithms and risk scoring of crypto addresses.
Automated AML screening of cryptocurrency taking into account transaction specifics (mixers, privacy coins, DeFi).
Use of RegTech solutions to integrate data from external sources (sanctions lists, databases of suspicious addresses).

In one of COREDO’s cases for an EU client, a system was implemented that allows real-time detection of suspicious transactions across more than 30 blockchains, which reduced the number of false positives by 40% and helped avoid a regulatory fine.

How to scale an AML program during expansion

Illustration for the section «How to scale an AML program during expansion» in the article «AML Audit Practice for ZISIF15»

Expanding business into new markets requires adapting the AML program to the requirements of each jurisdiction. COREDO’s practice shows: there are no universal solutions, and a successful strategy is built on flexibility and deep localization.

For the EU, compliance with 6AMLD, implementation of eKYC, and automation of reporting are critical.
In Asia – consideration of national standards, integration of local registries, and staff training on the specifics of regional risks.
In the CIS – regular auditing of current procedures, updating policies, and moving from manual monitoring to automated systems.

When registering companies in Europe and Asia, the COREDO team always conducts a preliminary AML audit to identify potential gaps between corporate standards and local requirements. This approach helps avoid delays in opening bank accounts, reduce operational risks, and ensure sustainable scaling.

AML audit in international companies – best practices

Illustration for the section «AML audit in international companies - best practices» in the article «AML audit practice for ZISIF15»

Effective AML audit is built on integrating KYC and AML processes, ongoing staff training and the use of modern technologies. At COREDO we implement the following practices:

Integration of KYC/AML/KYT into a single platform, enabling monitoring of the entire customer and transaction lifecycle.
Regular AML training for staff that reflects new threats and changes in legislation.
Use of artificial intelligence and RegTech solutions to automate monitoring, transaction analysis and reporting.
Conducting stress tests and scenario modelling to assess the resilience of the AML program.

In one recent project for an international fintech company, COREDO implemented an automated anomaly detection system, which reduced internal investigation time from 5 days to 12 hours and significantly improved the quality of compliance.

How to evaluate the effectiveness of an AML program

Evaluating the effectiveness of an AML program: the key to increasing ROI and reducing operating costs. At COREDO we recommend using the following metrics:

Number of detected and prevented suspicious transactions.
Incident response time and SAR preparation speed.
Ratio of false positives to confirmed alerts.
Level of automation and integration with external data sources.
Number and quality of trained staff.

Implementing a comprehensive AML system not only reduces the likelihood of fines, but also increases trust from banks, investors and partners. In the long term, this directly affects the company’s value and its competitiveness in the international market.

Comparison of AML audits in the EU, Asia, the CIS and Africa

Region	Key requirements	Features for ZISIF15	Typical risks	Recommendations
EU	6AMLD, AMLR, AMLA	High fines, automation, eKYC	Sanctions risks, account freezes	Implement RegTech, prepare for compliance audits
Asia	FATF, local laws	Variety of requirements, increasing regulation	Money laundering risks via cryptocurrencies	Adaptation to local rules, staff training
CIS	6AMLD, AMLR	Partial eKYC implementation, manual monitoring	Lower fines, local regulators	Audit of existing procedures, policy updates
Africa	FATF, local laws	Developing regulatory framework	Money laundering risks via cryptocurrencies	Implement automated systems, training

Guide for ZISIF15 Leaders: Practical Steps

To pass an AML audit and minimize risks, I recommend the following approach:

Conduct a preliminary AML audit involving external experts to identify weaknesses.
Update KYC procedures and implement digital onboarding.
Implement automated AML systems for transaction monitoring and graph-based transaction analysis.
Appoint a person responsible for AML and internal control, and regularly train the team.
Ensure transparency of ownership structure and sources of funds.
Develop and implement procedures for preparing and submitting SARs.
Conduct regular stress tests and update AML policy in accordance with changes in legislation.

COREDO’s practice shows: a comprehensive approach to AML review not only reduces the likelihood of fines, but also helps identify vulnerabilities, improve the quality of internal control, and build a resilient business model.

How an AML audit affects a company’s strategy

In today’s environment, an AML audit is not just a regulatory requirement but a strategic tool for risk management, enhancing transparency and trust. Companies that invest in developing AML compliance gain a competitive edge: access to international markets, the trust of investors and partners, reduced costs for internal investigations, and a lower likelihood of fines.

COREDO’s implemented solutions for clients from the EU, Asia and the CIS show: a properly designed AML program not only helps prevent money laundering and the financing of terrorism, but also helps build the reputation of a responsible and reliable player in the global market. In the long term, this directly affects the value of the business, its resilience and investment appeal.

If you strive for sustainable development, transparency and risk minimization, an AML audit should become an integral part of your corporate strategy. The COREDO team is ready to share its expertise, offer tailored solutions and support your business at every stage – from registering a legal entity to building an effective AML risk management system.

23.11.2025

Legal Opinion for crypto projects specifics and risks

In 2025 the global digital assets market exceeded $2.5 trillion, and the number of crypto projects facing regulatory claims grew by 40% over the past two years. In the EU alone more than 300 tokens were blocked last year due to the absence of a proper legal opinion. How do you structure a business so as not to become one of those who lose investments and partners’ trust because of legal missteps? Why is a Legal Opinion for crypto projects becoming not just a formality but a critical element of a strategy for entering the international market?

In a situation where borders between jurisdictions are fading and regulators’ requirements are tightening, even one unaddressed risk can lead to a token being blocked, lawsuits, or the inability to list on an exchange. I see every day how entrepreneurs who ignore Legal Opinion requirements lose months and hundreds of thousands of euros, whereas those who approach the issue systematically gain access to investment, protect investors’ interests, and scale their business without fear of sanctions.

In this article I will examine in detail what a Legal Opinion for crypto projects is, what features and risks accompany its preparation, and I will also provide practical recommendations based on COREDO’s experience supporting dozens of international projects in the EU, Asia and the CIS. If you want not just to survive but to become a leader in the digital assets market, read to the end: you will receive strategic tools and a clear action plan.

Legal Opinion for crypto projects – what it is and why it’s needed

Illustration for the section “Legal Opinion for crypto projects - what it is and why it's needed” in the article “Legal Opinion for crypto projects - features and risks”

Legal Opinion for crypto projects is a key legal instrument that confirms the legality of a project’s structure and operations in the crypto industry, and also helps reduce risks and meet the requirements of regulators and investors. Understanding what a Legal Opinion is and why it is needed is important for recognizing its role in ensuring transparency, legality, and the successful development of crypto projects.

Legal opinion in the crypto industry

A Legal Opinion for crypto projects is a qualified written opinion by an independent lawyer or law firm, confirming the legal status of a token, project, or transaction in a specific jurisdiction. Such a document not only determines whether a token falls under regulation as a security (security), a utility token, or another digital asset, but also serves as an official confirmation of the project’s compliance with applicable law.

In COREDO’s practice, a legal opinion on cryptocurrency becomes a key tool for listing tokens on exchanges, conducting ICOs, DeFi projects, and tokenizing assets. It is not just a formality, but a risk management and transparency tool for all market participants.

Legal Opinion for Crypto Business: Objectives and Advantages

Protect investors’ rights in a crypto project by providing a transparent classification of the token and a description of fund return mechanisms.
Provide legal protection to crypto investors, minimizing the risk of claims and litigation.
Formalize the token’s status, which is critical for access to banking services, insurance of crypto assets, and interaction with financial institutions.

A solution developed at COREDO for one of the major European DeFi projects not only enabled listing on leading exchanges, but also attracted institutional investors for whom having a Legal Opinion is a mandatory requirement.

Legal Opinion: attracting investments and partner trust

A Legal Opinion for ICOs and other crypto projects becomes a kind of “passport of trust”. Investors and partners demand legal guarantees for crypto assets that are confirmed by an independent opinion. Without such a document, a project risks remaining outside the view of major funds and banks and may face refusals for exchange listings.

COREDO’s practice confirms: having a professional Legal Opinion increases the chances of successful attracting investments and reduces the cost of capital, as investors see transparency and manageability of legal risks.

Features of a legal opinion for crypto projects

Illustration for the section «Features of Legal Opinion for crypto projects» in the article «Legal Opinion for crypto projects - features and risks»

The specifics of preparing a Legal Opinion for crypto projects are driven both by the complexity of regulating digital assets and by the high importance of legal certainty for market participants. In practice, such a document requires not only an in-depth analysis of the applicable law but also a careful choice of jurisdiction, which becomes the lawyer’s first key task when working with crypto projects.

Analysis of legislation and jurisdiction

The key task is to determine the applicable law and the jurisdiction where the project will be implemented or listed. International regulation of crypto assets is highly fragmented: the EU, Asia and the CIS impose different requirements for token classification, AML/KYC and licensing.

The COREDO team has implemented projects in offshore and onshore jurisdictions, including Estonia, Cyprus, the Czech Republic, Singapore and Dubai. For example, for clients targeting the Asian market, we analyze not only local cryptocurrency legislation but also international FATF standards to provide maximum protection against regulators’ claims.

Token classification and the Howey Test

One of the key stages is classifying tokens as securities or utility tokens. Methods used for this include the Howey Test, Family Resemblance and Risk Capital tests.

Criterion	Howey Test	Family Resemblance	Risk Capital
Applied where	USA, EU	USA (alternative)	Japan, Korea
Main question	Investment contract?	Similar to a traditional security?	Is there a risk of capital loss?
Significance for tokens	Determines status as a security or utility	Flexible classification	Analyzes the economic substance

In one of COREDO’s cases for a European crypto exchange, applying the Howey Test made it possible to avoid recognizing the token as a security and to obtain a positive Legal Opinion for listing on the exchange.

Features of a Legal Opinion for ICOs and DeFi

A Legal Opinion for ICO projects requires a specific focus on disclosure, KYC/AML procedures and investor protection. For DeFi platforms and asset tokenization projects, it is critical to analyze smart contracts, governance and profit distribution mechanisms, as well as compliance with international standards.

The COREDO team supported the launch of a DeFi platform in Estonia, where special attention was paid to the Legal Opinion for asset tokenization taking into account EU requirements and MiCA.

Compliance and AML/KYC in the preparation of the opinion

Exchange compliance and AML/KYC checks are an integral part of preparing a Legal Opinion. A risk-based approach to cryptocurrency requires not only formal client identification but also analysis of sources of funds, monitoring of suspicious transactions and integration of international sanctions lists.

COREDO’s experience shows: implementing comprehensive compliance procedures reduces the likelihood of account freezes, fines and criminal prosecution.

Legal risks of crypto projects and how to minimize them

Illustration for the section «Legal risks of crypto projects and ways to minimize them» in the article «Legal Opinion for crypto projects - features and risks»

The main legal risks of crypto projects are often related to ambiguous token classification and the lack of clear regulation at the international level. Understanding these aspects is the first step to minimizing potential problems and protecting the interests of both investors and project organizers.

Risks of token classification and regulation

Cryptocurrency risks are directly linked to uncertainty in token regulation in the EU, Asia and the CIS. Incorrectly classifying a token as a utility token may lead to accusations of unlawful issuance of securities, fines and prohibition of activities.

Legal risks of DeFi platforms include issues of decentralized governance, the absence of a single responsible entity, and difficulties in protecting investors’ rights.

Risks of money laundering and terrorism

Money laundering using cryptocurrency and the financing of terrorism remain a focus for regulators. International AML standards require the implementation of KYC, transaction monitoring and reporting of suspicious operations.

In one of COREDO’s cases for a crypto exchange in Singapore, the implementation of an automated AML system made it possible to pass a Monetary Authority of Singapore audit and obtain a license to operate.

Risks of lawsuits for investors

Legal protection for crypto investors becomes relevant in cases of an exchange’s bankruptcy, wallet hacks or fraudulent actions by a token issuer. Protecting investors’ rights in crypto projects requires clear mechanisms for fund recovery, claims handling and arbitration clauses in smart contracts.

COREDO’s practice confirms: having a well-thought-out legal structure minimizes the risk of lawsuits and provides for pre-litigation dispute resolution.

Technical and operational risks of an exchange: volatility, attacks, bankruptcy

Price volatility, fraud in cryptocurrency trading, exchange bankruptcy and irreversible loss of funds are key operational threats. The absence of crypto-asset insurance and compensation mechanisms increases these risks.

The solution implemented by COREDO for one of its clients in the UK included the deployment of a cold-storage key backup system and insurance for digital assets.

Environmental and reputational risks of mining and stablecoins

Environmental risks of cryptocurrency mining are associated with high energy consumption and negative perception by society and regulators. Legal opinions on stablecoins require separate analysis, as regulators in the EU and the US are tightening requirements for collateralization and transparency of such assets.

The process of obtaining a legal opinion: stages and key points

Illustration for the section «The process of obtaining a Legal Opinion: stages and key points» in the article «Legal Opinion for crypto projects - features and risks»

The process of obtaining a Legal Opinion includes several distinct stages, at each of which it is important to consider key points to ensure the quality and reliability of the opinion. Choosing a competent lawyer or law firm: the first and decisive step that influences the effectiveness of the entire process.

How to choose a lawyer for a legal opinion?

Deep knowledge of international cryptocurrency legislation.
Experience in supporting projects in the chosen jurisdiction.
Experience working with regulators and financial institutions.

COREDO assembles a team of experts with specialized profiles for each task – this makes it possible to take into account the specifics of the jurisdiction and the industry.

Analysis of facts and documents

Legal expertise begins with examining the factual circumstances: analysis of the business model, token structure, smart contracts, sources of funding and documentation. The legality check is conducted taking into account the latest changes in the regulatory framework.

In one of COREDO’s cases for a Singaporean startup, a thorough audit of the documents made it possible to identify potential risks and adjust the White Paper before applying for listing.

Preparation of the Legal Opinion

Official status and confirmation of the token’s status.
Description of the applicable law and jurisdiction.
Analysis of compliance with legislation, including AML/KYC and compliance.
Recommendations for risk minimization and further actions.

COREDO standard: to provide a Legal Opinion recognized by leading exchanges and financial institutions.

Timeframe and cost of obtaining a Legal Opinion

The process of obtaining a Legal Opinion takes from 2 to 6 weeks depending on the complexity of the project and the jurisdiction. The cost of a Legal Opinion ranges from €5,000 to €30,000 depending on the scope of the review and the specifics of regulation.

I recommend starting preparation of the Legal Opinion at an early stage, before launching the token or conducting an ICO. This allows timely adjustment of the business model and helps avoid costly mistakes.

International Regulation of Legal Opinion

Illustration for the section 'International regulation of Legal Opinion' in the article 'Legal Opinion for crypto projects - features and risks'

International cryptocurrency regulation is becoming increasingly strict and standardized, however jurisdictional specifics continue to have a decisive influence on the practice of applying the rules. A Legal Opinion on the crypto market requires a clear understanding of the differences between regions, especially in the key jurisdictions of the EU, Asia and the CIS.

Cryptocurrency regulation in the EU, Asia and the CIS

Regulation in the EU (for example, MiCA), Asia (Singapore, Hong Kong, Japan) and the CIS differs significantly in approaches to token classification, AML/KYC requirements and licensing. In the EU the emphasis is on investor protection and transparency, in Asia on innovation and technological development, in the CIS on adapting international standards.

The COREDO team has implemented projects in the Czech Republic, Slovakia, Cyprus, Estonia, Singapore and Dubai, which allows taking into account the nuances of each jurisdiction and choosing the optimal strategy for registering a crypto project.

Choice of law and arbitration in crypto contracts

The choice of applicable law and the inclusion of arbitration clauses in smart contracts are critical for protecting the parties’ interests in cross-border transactions. Pre-litigation dispute resolution, claims work and clearly defined conflict resolution mechanisms minimize the risk of court proceedings.

COREDO recommends using international arbitration centers and jurisdictions with developed case law on digital assets.

Registration and licensing of crypto projects by jurisdiction

Registration of a crypto project and Licensing of crypto business require taking into account requirements for authorized capital, the presence of resident directors, maintaining registers of controllers and compliance with ongoing compliance. An offshore jurisdiction for crypto projects can provide flexibility but requires special attention to AML and reputational issues.

COREDO’s practice shows: the right choice of jurisdiction and timely licensing open access to international markets and protect against regulatory risks.

Practical recommendations for entrepreneurs

Practical recommendations and key conclusions for entrepreneurs and executives will help reduce legal risks when launching and scaling a crypto project. In a rapidly changing regulatory landscape, it is important to take legal aspects into account in advance and build a strategy considering current requirements.

How to minimize legal risks of a crypto project

Regular audit of the business model and documentation.
Implementation of compliance procedures and transaction monitoring.
Updating the Legal Opinion when legislation or business strategy changes.

How to ensure compliance and investor protection

Crypto exchange compliance and AML/KYC checks should be integrated into every stage of the project’s lifecycle.
Legal protection of investors is achieved through transparent refund mechanisms, insurance of crypto assets and implementation of corporate governance standards.

Choosing a lawyer for your crypto business and legal support

Legal support for crypto companies requires not only expertise but also the ability to operate in conditions of high regulatory uncertainty. Criteria for the quality of a Legal Opinion are international recognition, experience working with regulators, transparency and accountability.

What should I do if the legal opinion is negative?

Consequences of a negative Legal Opinion can include listing refusals, account freezes and lawsuits. In such a situation it is important to:

Conduct a repeat legal review.
Adjust the business model and documentation.
Use mechanisms for judicial protection of crypto investors and pre-trial settlement.

Comparison of key tests for token classification

Test	Jurisdiction	Criteria	Relevance for crypto projects
Howey Test	US, EU	Investment contract	Determines security/utility status
Family Resemblance	US	Resemblance to a traditional security	Flexible classification
Risk Capital	Japan, Korea	Risk of loss of capital	Economic analysis

Major legal risks of crypto projects and their mitigation

Risk	Mitigation methods
Incorrect token classification	Professional legal opinion, audit
AML/KYC violations	Implementation of compliance procedures
Investor lawsuits	Transparent documentation, arbitration clauses
Volatility and loss of funds	Asset insurance, reserve mechanisms
Environmental and reputational	Impact assessment, ESG reporting

Stages of obtaining a Legal Opinion for a crypto project

Analysis of the business model and project objectives
Selection of jurisdiction and applicable law
Collection and audit of documents
Token classification and risk analysis
AML check/KYC and compliance
Preparation and approval of the Legal Opinion
Implementation of recommendations and updating documentation

COREDO’s experience confirms: a strategic approach to a Legal Opinion is an investment in the resilience, trust and scalability of your crypto business. If you want to stay ahead of the market, act systematically and professionally, and legal risks will then become not a threat but a manageable tool for growth.

23.11.2025

Investment companies in the Czech Republic taxation and benefits for investors

In 2025, the Czech Republic once again confirms its status as one of the most attractive jurisdictions for international investors: according to the European Commission, foreign direct investment in the country increased by 18% over the past year, and the average time to obtain a permit for a major investment project has been reduced to 60 days thanks to the introduction of investment passports. But behind these figures lies a much deeper question: why is the Czech Republic becoming the strategic choice for those who build a business aimed at long-term tax efficiency and transparency?

Many entrepreneurs face a paradox: on the one hand, they need access to EU markets and a stable legal environment, and on the other, they are looking for ways to minimize their tax burden and obtain guarantees for investment protection. In a context of constant changes to tax legislation and tightening disclosure requirements, the choice of jurisdiction becomes critically important.

In this article I will describe in detail how the COREDO team helps investors not only to register a company in the Czech Republic, but also to build an optimal tax and corporate structure, using all available benefits, subsidies and capital protection tools. If you are looking not just for an overview but for a practical guide to effective investing in the Czech Republic – I recommend reading to the end: you will get answers to key questions and learn about strategies that really work.

Main taxes for investment companies in the Czech Republic

Illustration for the section ‘Main taxes for investment companies in the Czech Republic’ in the article ‘Investment companies of the Czech Republic - taxation and advantages for investors’
In COREDO’s practice we regularly encounter questions about the tax structure in the Czech Republic. Understanding tax obligations is the foundation for making strategic decisions.

Corporate tax rates and features for 2025

In 2025, the corporate tax in the Czech Republic remains at 21%. This rate applies to all resident companies, as well as to foreign companies conducting activities through a permanent establishment. It is important to note that the tax base is formed on the basis of worldwide income if a company is recognized as a tax resident of the Czech Republic. For large companies with turnover exceeding €750 million, a minimum tax of 15% is being introduced, which reflects European trends towards tightening tax discipline and combating aggressive tax planning.

COREDO’s experience shows: by properly structuring a business and using international agreements on the avoidance of double taxation, you can significantly reduce the effective tax burden, particularly for holding and investment structures.

Value Added Tax (VAT) for investors

VAT in the Czech Republic is set at 21%, with reduced rates of 10% and 15% for certain categories of socially significant goods and services. Accelerated VAT refund procedures are provided for export-oriented companies, which is especially relevant for technology projects and startups operating in international markets.

A solution developed by COREDO for a number of clients allowed them to optimize their supply structure and achieve regular VAT refunds within 30–45 days, which significantly improved cash flow and increased the investment attractiveness of the business.

Tax on dividends and capital gains

Dividends paid by Czech companies are subject to a withholding tax (Srážková daň) at a rate of 15%. However, for EU parent companies holding at least 10% of the shares for 12 months, a participation exemption applies, allowing dividends to be completely exempt from taxation. Capital gains are taxed at the corporate tax rate, but exemptions are possible under certain conditions, for example, on the sale of shares that have been held for more than three years.

COREDO’s practice confirms: proper structuring of share ownership and timely obtaining of parent company status can significantly minimize taxes on dividends and capital gains, which is especially important for investment funds and holdings.

Tax incentives for foreign investors

Illustration for the section 'Tax incentives for foreign investors' in the article 'Investment companies of the Czech Republic - taxation and advantages for investors'
Czech legislation offers a wide range of tax benefits and incentives aimed at attracting long-term investments, especially in innovative and technological projects.

Profit tax exemption for up to 10 years

For new investments in priority sectors (technology, scientific research, manufacturing), a profit tax exemption regime of up to 10 years is provided. This allows companies to reinvest profits in business development without diverting resources to tax payments.

The solutions implemented by the COREDO team have already allowed several clients to obtain tax holidays for the entire investment cycle, which has significantly increased their competitiveness in the market.

Subsidies for technological equipment and scientific research

The state subsidizes up to 50% of the costs of acquiring technological equipment and also provides tax relief for companies investing in scientific research and innovation. To obtain such subsidies, preparation of a comprehensive business plan and undergoing an audit procedure are required.

Our experience at COREDO has shown: with proper document preparation and process support, the probability of subsidy approval exceeds 80%.

Preferential loans from the state fund: grants for future investments

Investors can use preferential loans for business development through the state fund Dotace pro investice do budoucna.

The amount and lending terms depend on the sector and investment volume, but in some cases the loan rate can be significantly below market. The COREDO team accompanied clients at all stages of obtaining such loans, from preparing the application to monitoring the targeted use of funds.

Taxation of income from investments

Illustration for the section «Taxation of income from investments» in the article «Investment companies of the Czech Republic - taxation and advantages for investors»
For effective tax planning, it is important to consider the specifics of taxation of different investment instruments.

Taxation of income from the sale of securities and unit certificates

Income from the sale of securities that have been held for more than three years is exempt from profit tax. Separate rules apply to unit certificates: income from them is taxed at a rate of 15%

, However, when reinvesting funds into Czech assets, tax deductions may be available. Solutions implemented by COREDO have allowed clients to structure transactions so as to maximize tax exemptions and minimize liabilities upon exit from investments.

Tax consequences of holding shares and stakes in companies

Holding stakes in Czech companies through a parent company structure (with a stake of at least 10% and a holding period of at least 12 months) allows taking advantage of the participation exemption. This allows not paying tax on dividends and capital gains when the stakes are later sold. This approach is widely used in international practice and has proven effective in COREDO’s cases.

Changes in Czech Tax Legislation 2025

Illustration for the section «Changes in Czech Tax Legislation 2025» in the article «Investment Companies of the Czech Republic - taxation and benefits for investors»
The 2025 developments require special attention in strategic investment planning.

Introduction of a minimum tax for large companies

From 2025, a minimum tax of 15% is introduced for companies with revenues exceeding EUR 750 million. This aligns with global trends and is aimed at combating aggressive tax planning.

For investment structures this means the need for a thorough assessment of the tax burden and a review of corporate strategies. COREDO’s experience shows that with the right choice of holding jurisdiction and the use of international agreements, it is possible to maintain a competitive tax rate even under the new rules.

Increase in social and health insurance contributions

In 2025 mandatory social and health insurance contributions increase, affecting overall business profitability.

For entrepreneurs using the simplified tax system, it is important to take the new contribution ranges into account and plan the budget considering these changes.

Updates to the simplified tax system

New tax brackets and fixed rates for small entrepreneurs are being introduced, which simplifies administration but requires regular monitoring of changes. COREDO’s solutions allow clients to adapt promptly to new requirements and avoid penalties for untimely fulfillment of tax obligations.

Registration of an investment company in the Czech Republic

Illustration for the section 'Registration of an investment company in the Czech Republic' in the article 'Investment companies in the Czech Republic - taxation and advantages for investors'
Company registration in the Czech Republic: is a strictly regulated process that requires attention to detail and compliance with all formal requirements.

Registration stages and required documents

The registration process includes several key stages:

Preparation of founding documents and selection of a unique company name.
Determination of the structure of shareholders and directors.
Submission of documents to the Commercial Register and tax authorities.
obtaining a license to carry out investment activities (if necessary).

The COREDO team supports clients at every stage, ensuring the correct preparation of documents and minimizing registration times.

Disclosure requirements for foreign investors

Since 2025, requirements for disclosure of information on beneficial owners and financial reporting have been tightened.

Foreign investors are required to provide an expanded set of documents confirming the source of funds and ownership structure. Our experience at COREDO shows: transparency and timely disclosure of information significantly reduce the risks of account freezes and claims from regulators.

Tax risk management and compliance

In today’s environment, effective management of tax risks has become an integral part of an investment strategy.

Data protection and GDPR compliance

Compliance with GDPR standards and personal data protection is a mandatory requirement for all companies working with EU residents.

COREDO’s solutions provide for the implementation of comprehensive data protection policies and regular audits of procedures, which minimizes the risk of fines and reputational damage.

Control of foreign tax rates and avoidance of double taxation

The Czech Republic has concluded more than 90 double taxation agreements, allowing taxes already paid abroad to be taken into account when calculating liabilities in the Czech Republic.

For investors, this is a key tool for tax optimization. COREDO’s practice shows that the proper application of international agreements can significantly reduce the overall tax burden and avoid double taxation on cross-border investments.

Practical steps for investors to reduce taxes

Moving from theory to practice, I will outline the key tools and solutions that enable investors to use the tax advantages of the Czech Republic as effectively as possible.

Using tax reliefs and incentives

Optimizing the tax burden begins with an analysis of all available reliefs: tax holidays, subsidies, accelerated VAT refunds, reduced rates for innovative projects.

The COREDO team has implemented projects where the overall tax burden was reduced by more than 30% through the effective use of these tools.

Application of the participation exemption regime

Structuring ownership through a parent company with a share of at least 10% and a holding period of at least 12 months allows dividends and capital gains to be fully exempt from taxation.

This approach is particularly effective for holding structures and investment funds operating with portfolios of Czech assets.

Accounting for foreign taxes and double taxation treaties

When planning international investments, it is important to take into account not only Czech but also foreign tax obligations. COREDO’s solutions provide for a comprehensive analysis of tax treaties and optimization of ownership structures to minimize the overall tax base.

Key takeaways for investors

The Czech Republic remains one of the most transparent and stable jurisdictions for investment business in the EU.
The corporate tax (21%) and the minimum tax regime (15% for large companies) require strategic planning, but with proper structuring and the use of incentives the effective tax burden can be significantly reduced.
Using investment passports, tax holidays, subsidies, and international agreements enables establishing an effective investment and tax strategy.
COREDO’s practice confirms: investment success in the Czech Republic depends on a comprehensive approach, from proper company registration to continuous monitoring of legislative changes and managing tax risks.

Comparison of taxes and incentives for investment companies in the Czech Republic, 2025

Tax/Incentive	Rate/Conditions	Notes
Corporate tax	21%	For all companies
VAT	21% (reduced rates 10-15%)	For socially significant goods
Dividend tax	15%	Withheld at source
Minimum tax	15%	For companies with turnover exceeding EUR 750 million
Corporate income tax exemption	Up to 10 years	For new investments
Equipment subsidies	Up to 50%	For technological equipment
Preferential loans	According to the fund’s terms	Grants for investments in the future

Conclusion

Investing in the Czech Republic: it is not just access to the EU market, but also an opportunity to build a business with an optimal tax structure, transparent rules of the game and access to government incentives. company registration in the Czech Republic and sound tax planning allow investors to implement long-term strategies, minimize risks and increase the profitability of projects. COREDO’s experience proves: success in the Czech Republic is achieved thanks to a comprehensive approach, expert support and continuous monitoring of changes in legislation.

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