Czech Republic LLC Formation

General information

Company structure

• Only one shareholder (can also be a legal person, no nationality restriction or residency restrictions)
• Only one executive director (natural person, no nationality or residency restrictions)

Confidentiality

• Beneficial owners' details – disclosed to the authorities
• Shareholders' details – part of the public record
• Directors' details – part of the public record

Taxation

• All companies registered in the Czech Republic are liable to corporate income tax. It is payable on worldwide taxable income and capital gains. The tax base is calculated from the accounting profit/loss shown on the relevant financial statements, prepared according to the Czech accounting legislation. A corporate income tax rate is 19%. A corporate income tax rate of 5% applies to investment funds, unit funds and pension funds. Czech legislation allows taxpayers to change their accounting period from calendar year to fiscal year, and vice versa by simply notifying the Tax Authority.

Other benefits

• There is no restriction on form of meeting for shareholders and directors and no restriction for place of meeting.

Accounting requirements

Legal regulations regarding accounting and audit in the Czech Republic are in compliance with the legislation of the European Community. All accounting records must be in the Czech language. Companies registered with the Commercial Register are obliged to use double entry bookkeeping. Single-entry accounting will be no longer used. The Act No. 563/1991 Coll., on Accounting, as amended (the “Accounting Act”) requires that consolidated financial statements must be prepared for an accounting unit that is a managing or controlling entity.

There is no obligation to file an annual return and to pay annual government fees. However, it is necessary to prepare financial statements and file a corporate income tax return every year, within three months after the end of the accounting year. As the accounting year usually corresponds to the calendar year, the deadline for filing the CIT and paying the income tax (19%) is March 31st.

Secretary

Not Required

Registered Agent

Not Required

Registered office

Required

Company name

• Language: Any
• Letters: From Roman alphabet
• Company name will end with suffixes or their abbreviations:r.o
• Names Requiring Consent or a Licence: Bank, building society, savings, loans, insurance, assurance, reinsurance, fund management, investment fund, trust, trustees, Chamber of Commerce, university, municipal

N.B.

• Restricted connections for company name: name of state, national or local government.
• Any name that implies illegal activity or implies royal or government patronage is restricted.
• Registrar may reject any name which it considers undesirable or contrary to the public interest.
• Company name is restricted to be identical or similar that of an existing company.
• In case when foreign language is used for company name the translation must be provided to Registrar which will ensure conformity to above listed restrictions.