Many people dream about business in the Czech Republic. After all, the country is on 27th place in the list of favorable countries for the development of entrepreneurship. In addition, business in this country is also convenient because there are many other European countries around. And this gives certain advantages, which we will describe in the article.
Business Privileges
Business in the Czech Republic is also beneficial because entrepreneurs have a number of privileges. Among them are the following:
- The possibility of obtaining a European loan to promote the business. As a rule, in this case, the borrower receives a loan on special conditions.
- You can use numerous investment programs.
- For business in the country there are a lot of benefits.
- Legislation in every possible way welcomes and supports new entrepreneurs.
- Subsidies are provided for businesses.
- If a person has a business in the Czech Republic, then he can take advantage of business emigration to Europe.
Undoubtedly, business in a European country is much more profitable than in the post-Soviet space. After all, the Czech government very much supports the development of entrepreneurship, and, therefore, the state economy.
Mandatory Information
If a person is going to open a business in the Czech Republic, it is natural that he is studying a lot of data on this topic. But it’s worth remembering the main thing - in this country they do not limit the opening of a business for a foreigner. You just need to take, open, and, of course, work. Everything that relies to the local population (including state support) also applies to emigrants. According to Czech laws, you can open a new business, become a co-founder, open a subsidiary or even found a company in a Czech company.
Business Registration
Before you open a business in the Czech Republic, you must obtain a license for it. To be issued, you need to apply to the Czech Trade Office. It will cost about thirty euros. Under the law, such an application can be considered within five days, but, as a rule, after two days the license is issued on hand.
Another important point is the person’s qualifications for which he is going to open a business in the Czech Republic. Most often choose a tourist destination. Even though the competition in this business is high, the direction is still not fully occupied and you can try to find your niche.
But if a person does not have a special education or at least work experience, then to open, for example, a travel agency, you will have to sweat. First of all, you will need to take special courses. Further, with existing experience, in addition to the application to the trade department, he can submit:
- Diploma of education (copy and original).
- Certificate of education. The view is the same.
- A document that confirms qualifications or work experience in a particular field. Only documents of those people who have been working for more than a year are approved.
- Certificate that confirms qualifications. The item is executed only if there is a document.
But not everything is so complicated. There are areas of both small business in the Czech Republic and large, for which a license is not needed.
These include:
- Trade and intermediary services.
- The agricultural industry.
- Tailoring.
- Tissue production.
- Occupation by a photograph.
Naturally, this is an incomplete list. You can get acquainted with all positions on the official website of the trade department. If a person wants to formalize entrepreneurship in an area where a license is not needed, then he needs to submit only:
- passport (the applicant must be an adult);
- certificate that he is competent;
- certificate that a person in his country did not violate the law and conducted positive activities.
After the analysis of the submitted papers is carried out, the future businessman becomes the owner of the Unified Registration Form, with the help of which they register the business in the Commercial Register. This must be done at the place of residence of the entrepreneur and at the location of the business. After which, after five days, a court decision is issued. It will cost about two hundred euros. When registration in the Commercial Register is passed, and the court decision is received, you must go to the tax office. There you must appear no later than fifteen days after registration in the Commercial Register.
But behind all these manipulations, one should not forget about no less important things:
- Choosing a company name and checking its absence on the basis of the Ministry of Justice.
- Notarization of the lease agreement, as well as the charter of the enterprise.
- Opening a bank account.
If a businessman wants to hire staff, then he must also submit papers to the insurance and social services.
Czech business ownership
To understand what kind of business you can open in the Czech Republic, you need to know the forms of ownership that exist in this country:
- Joint-stock company.
- Limited liability company.
- Cooperative.
- Private enterprise.
- Public trading company.
- Limited partnership.
As in many other countries, the most popular is a limited liability company. This form of ownership can be chosen if you want to open a small or medium business. For example, for the hotel business in the Czech Republic this form is not suitable.
In order to open a limited liability company, it is necessary to meet the requirements of:
- the presence of one founder;
- unlimited number of shareholders;
- authorized capital may consist of at least one crown;
- it is allowed that there is a block of shares.
The founder of an LLC can be either a citizen of a country or a foreigner.
If you want to create a large company, it is better to register as a joint stock company.
The requirements for this form are slightly different:
- no matter how many founders there are;
- the number of shareholders also does not matter;
- the number of shares may not be limited;
- authorized capital should not be less than eighty thousand euros.
It is important that shareholders do not always have responsibilities to the company.
The remaining forms of ownership can be considered as individual entrepreneurship.
Required documents
In 2017, the Czech parliament approved amendments to the law that regulates the stay of foreigners in the country. Previously, under this law, a foreigner's stay was limited to 90 days, after which a visa extension was required. Now this term has changed. Now for those who want to open a business in the country or are traveling for seasonal work, the length of stay has increased to six months.
Thanks to such amendments, investors and businessmen from abroad developing entrepreneurship in the country can obtain a residence permit and visas for up to two years. These amendments have not yet been signed by the president and the Senate, but are likely to approve them. After all, the EU directive requires it. All this is planned, but what is needed in order to open an enterprise now? The following is a list of required securities:
- Application form for a business visa to the Czech Republic.
- Copy and original of passport.
- Two photographs measuring 3.5 * 4.5 centimeters, on the back of which are written the name and surname.
- A paper that confirms financial stability. A bank statement and a plastic card are suitable. On the account should be a little more than four thousand euros.
- A document that confirms the purpose of the trip. For example, a photocopy of a certificate of entrepreneurial activity.
- Help from the place where the person will live. As well as a rental contract certified by a notary.
- Certificate that the person has no criminal record.
- Receipt of payment of visa fee.
- Medical insurance policy.
If parts of the papers are not on hand, then care must be taken to present them in the near future. The only thing that can be presented later is a certificate on the rental of a dwelling.
The Czech government is developing its business and is interested in attracting entrepreneurs to the country. After all, it brings great benefits to the state economy and increases competitiveness in the European market.
When the necessary papers are on hand, the applicant goes to the embassy. He is waiting for an interview, the results of which will make a decision on whether to issue a business visa to the Czech Republic specifically for this person or not. If the decision is positive, then you can take out medical insurance.
Czech taxes
Taxes in the Czech Republic are exactly the same as in other EU countries. They correspond to a market economy. In fact, you can conduct and optimize business in the country on your own. To do this, you need to know what taxes in the Czech Republic exist.
They are as follows:
- income tax (nineteen percent, but the rate may be reduced to five percent for investment and pension funds);
- VAT at two rates (basic twenty-one percent, lowered - fifteen);
- transport tax;
- income tax;
- excise;
- ecological;
- property tax.
The most popular business in the country
Naturally, the first thing that comes to mind is a tourist destination. This is a good business in the Czech Republic for Russians and other foreigners. And this does not mean that the tourism sector ends at a travel agency. This also includes:
- Fast food.
- Cafe.
- Hostel and hotel.
- Bar.
- Scooter and bicycle rental.
- Sale of souvenirs.
These are the most popular types of business in the Czech Republic for Russians and other foreigners. The competition here is high, and even more so for the newcomer businessman, but nevertheless the result is worth it.
You can consider other options for entrepreneurship, which also bring good profit. Among them:
- veterinary clinics and pet stores;
- pharmacies;
- real estate agency;
- construction industry;
- Beauty Salons;
- taxi service;
- rent a car;
- hairdressing salons;
- openers.
It is also interesting that almost all entrepreneurship in the country is family-owned. It is not Germany, so it is difficult to buy a ready-made business in the Czech Republic. If in this country they sell some business, then it will not bring profit, and the owner is simply trying to recapture the invested money. Local people value their business, and therefore expanding only within their region. It is unlikely to be able to get into such a thing, because people from the side there the road is closed. The Czechs profitable business passed from generation to generation.
What are bottle openers
In the list of profitable business options was such an item as openers. This is a problem of many emigrants. When a person thinks what kind of business to open in the Czech Republic, one of the first thoughts that come to mind is an agency to open his own business. This is where the trap stands. Some time ago, agencies were actively opening in the Czech Republic in order to help immigrants from the CIS countries establish business in the country and collect documents. To date, such agencies are retrained in real estate companies.
And everything seems to be fine, but there is a small snag. The problem is that this market is already so busy in the country that it is simply impossible to compete there. Another caveat is that in this matter, the population trusts their compatriots more than visiting businessmen. Therefore, the so-called openers are obviously a failed business. It’s better to buy several rooms and arrange a hostel in them.
Which business will not work in the Czech Republic
Starting a business in the Czech Republic should be a balanced decision. Since most niches are in the family business, problems can arise. The problem is that it seems that a good idea can burn out with a foreigner and bring good profit to the local.
For most foreigners, a restaurant seems like a completely win-win option. But they will be very disappointed. This is because Czechs only go to trusted places. They choose places they have known for years, and they won’t be surprised at the new kitchen or the friendly staff.
Businessmen who have been involved in restaurant business quite successfully buy a room or rent it out, hoping for a good profit. But they forget that successful institutions in the Czech Republic are not for sale.
This is for the restaurant for the indigenous population, but there is another type of catering, which is aimed at tourists. As a rule, the institution is located in places of their mass congestion. In this case, there is a chance that the business will be profitable. Special preference is enjoyed by Ukrainian, Russian or any other national cuisine.
The hotel is another option that should not be considered if a person is worried about how to build a business in the Czech Republic. That's because this niche is already crowded. There is only one option that can pay off in the future - this is a very cheap hostel. But this will only work if there is a room in the property. Because in this country utilities, rent, maintenance of staff and the hotel itself are very expensive.
You should not open a building materials store. The Czechs are a stingy nation. Therefore, they make repairs with their own hands, and they prefer materials of local production. The sale of Chinese building materials will be the least profitable, although any foreign production will be met with distrust.
To understand how to open a business in the Czech Republic to Russians, you need to study the market well. And the first thing that you do not need to do in this country, according to experienced reviews, is to rent out real estate. This is a completely unprofitable enterprise, there are no exceptions. Even if you succeed in passing the property, then there will be practically no profit for the following reasons:
- In this country, it is impossible to hide the delivery of an apartment, and the tax is equal to fifteen percent.
- It will be necessary to allocate funds for the repair of household appliances.
- Utilities are very expensive, and the landlord pays for them out of pocket.
- The apartment should have a good repair and working household appliances.
Cleaning companies are also not the best business. For a simple reason - natural economy and thrift of local residents. Czechs are better at doing everything themselves than they will pay for cleaning. But they with great desire pay tutors, nurses or nannies.
Profitable business
It is difficult to build a business where there is a different mentality and customs. But you can try, if you know their specifics. For example, no matter how wealthy a Czech he is, he will never buy a very expensive useless thing. For this reason, the revenue-generating business in our country will burn out in the Czech Republic. If, nevertheless, a person has already decided on business emigration to the Czech Republic, then the following areas can be considered:
- Recruitment agency.
- Hostel
- High tech.
- Freight transportation.
- Taxi service.
- Restaurant for tourists.
- Sale of souvenirs.
- Veterinarian services.
- Production of high quality household goods.
- Bicycle and scooter rental.
- Hairdressing services.
- Sewing textile.
Yes, the choice is small, but if you want, you can try to develop some of the areas. After all, it is with the development of business that there is a good opportunity to cling to a European country and stay there to live. This is very important for the younger generation, because the Czech Republic has a program according to which university graduates are supported in starting their own business.
What do the Czechs trust?
This nation does not trust foreign products and services, but they greatly respect emigrants from other countries. Most of all it concerns people who arrived from the post-Soviet space. This respect can be felt as soon as you cross the border. The state provides legal services for businesses. In the Czech Republic, you can take advantage of information assistance from the government.
The Czechs are a very distrustful people, and therefore we must maintain our reputation and not scatter it. Only an open and honest business can generate income in this country. Any fraud and deception are very quickly revealed, which means that the business ends. You can make good money in this country, but you should not wait for millions. Because only people with centuries-old enterprises can afford to be millionaires.
Language barrier
Of course, it is quite difficult to open a business in a country where the language is foreign. But all this can be solved if there is a great desire to conduct their business.
Summing up, we can say that business in the Czech Republic is a very profitable business if the goal is not to receive a lot of money, but to obtain a residence permit. In other matters, the country is rather difficult for business. And not because the state does not support entrepreneurship and small business. Here, on the contrary, the country is only happy with new injections. The thing is the mentality of the nation. As mentioned above, the Czechs are a thrifty people, frugal, if not stingy. They do not trust the new, preferring the time-tested. They have high domestic competition in many business areas, and family business is also widespread. All this does not speak in favor of thinking about your own business in the Czech Republic. Nevertheless, if you earn the trust of this people and the respect of local residents, then investments in business will pay off handsomely and there will be an opportunity to expand in other European countries. In addition, starting a business in the Czech Republic is much easier for graduates. After all, they are very well supported by the government.
The Czech Republic is a great way to test your business ability. If things went smoothly in this country, then any other business will be successful. The main thing is not to be afraid, go ahead and believe in a happy future. We must not forget that we must work honestly. This is the only way to earn recognition and trust not only of Czechs, but of the rest of the world. It was not for nothing that they came up with the proverb “the courage of the city takes”.