Legal services and protection for businesses in Czech Republic - COREDO

Legal services and protection for businesses in Czech Republic

Legal services and protection for businesses in the Czech Republic COREDO

The Czech Republic has quite attractive conditions for doing business. The country’s economic system is considered one of the most stable and successful among post-communist countries. It is based on mechanical engineering, fuel energy, metallurgy, food, and chemical industries. Construction, services, tourism, and the financial sector are also developing rapidly.

The Czech Republic has created favourable conditions for the development of different start-ups, and young companies operating in financial technologies, artificial intelligence, energy, and digitalization are especially welcome. However, according to experts, the imperfection of the legal system of the Czech Republic and insufficient digitization of document management and public services can become an obstacle in the way of novice businessmen.


The Czech Republic was ranked 17th out of 165 countries in the Economic Freedom of the World report published by the Canadian Fraser Institute in 2022. Moreover, compared to the last year, it improved its position by ten lines at once, ahead of Germany and Great Britain. This indicates positive trends in the country, improving living standards and business conditions.

Registering a company in the Czech Republic is not very troublesome; both residents and non-residents are eligible to do it. Foreign businessmen here have the same rights and conditions for conducting business as Czech citizens. Small individual enterprises are widespread in this country, and family businesses are frequent. Foreign businessmen are entitled to obtain a residence permit on the condition of starting a company in the territory of the Czech Republic or participating in the business as a partner.


Taxation in the Czech Republic is formed according to the European model, and the norms of local tax legislation synchronise with the norms and requirements of the European Union more and more every year. The basic income tax rate in the Czech Republic is 19%, but there are several legal options for lowering it. VAT ranges from 10% to 21% and is mandatory for companies with turnover of more than 1 million CZK per year. Some services (for example, medical) are exempt from value-added tax. Contributions to various insurance funds (by the employer) amount to 33.8% of the total sum of wages paid. Capital gains in the Czech Republic are taxed at 19%.


All persons and entities planning to do business in the Czech Republic must obtain a trade licence (živnostenský list). It gives the right to do business in the country, but nothing more. Many activities require special permission from the state. There are 4 types of licences in the Czech Republic: free, professional or craft, special, and concession. As a rule, businessmen do not have any difficulties obtaining an activity permit, but different types of licences have subtleties that foreign businessmen need to consider when submitting documents.


Companies are required to submit their annual report by March 31st. For the convenience of the residents of the country and the transparency of potential partners, financial statements of companies must be published and freely available on the Internet. Relevant documents must be submitted to the Commercial Register for this purpose. If a company does not publicly disclose its financial statements, the Law of Accounting imposes a penalty of up to 3% of the company’s total assets.


COREDO offers a wide range of legal services to help our clients to do business in the Czech Republic more efficiently. Our experts will help to:

  • prepare and execute the documents necessary for setting up a company;
  • conduct a legal analysis of documents, agreements, and contracts;
  • apply to the administrative and executive bodies of the country;
  • prepare and submit tax reporting on time;
  • negotiate with contractors, resolve disputes in the pretrial order, and much more.

We guarantee the high professionalism and decency of our employees, and we will provide absolute confidentiality of information and a personalised approach to each client.


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