Maintenance of a Company

Company maintenance

When talking about registering a company and its maintenance one should realize two possible variants:

1. Registering a company as a basis for emigration and getting residence permit in Czech

According to Czech law a newly registered company can be in "sleeping" form up to 3 years, this period is viewed as preparatory for further company's activities and there are very less requirements to company during first three years:

* to provide annual report about company's activities to tax bureau once per year;

* to reply the official letters that comes to company's juridical address;

* to reply inquiries governmental authorities send.

After three years you must do minimum actions for giving effect of company's activity. According to Czech law any amount that comes to company's account is a proof of company's activity, so "making effect" will not cost you much. It will be enough if you show profit of 100 Euro to tax bureau and pay taxes from it on the third year of company's existence.

2. Registering a company for business purposes

If you want to do business in Czech and Europe it will be interesting for you to know the amount you need to spend for company's maintenance and tax rates. In the table Futurum Group's specialists made you can compare prices of company registering and maintaining in different countries of European Union. (see here)

Taxation of a company in Czech is not strict and allows businessmen to get profit. There are many taxes in Czech Republic but you will not pay them all as taxes you pay depends on activities your company does. Tax reports are not difficult for filling in, but if needed you may ask specialists to help you (prices for making book-keeping and tax reports are low in Czech, usually prices for company maintenance vary from 100 to 500 Euro).

If a company gets profit you have to pay 31% taxes, but there are legal ways of reducing taxes in Czech and maximizing your profit. For example: if you want to buy a car its better to legalize it as company's property. In this case you can minimize the profit, use credit for buying it and all expenses about car maintenance (petrol, car repairing and others) will be company's expenses. Even if car is legalized as company's property you can use it for your own needs.

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Maintenance of a Company