Sales of a company in the Czech Republic

The sale of a company in the Czech Republic is a quick way to gain business opportunities based on the legal regime of the Czech Republic. Many Polish entrepreneurs moved their businesses to the Czech Republic due to the numerous tax benefits that exist in this country. We will try to show you the basic advantages and benefits that result from running a business in the Czech Republic. We will also tell what the disadvantages may be.

The basic advantages of running a business in the Czech Republic:

– linear income tax for companies in the amount of 19%,
– low-income tax for natural persons in the amount of 15% and 22%,
– VAT of 21%,
– withholding tax at the source of 15%,
– very stable and transparent tax law,
– a higher tax-free amount,
– the possibility of deducting tax on the purchase of ancillary items such as car and fuel,
– very good infrastructure connected with the south of Poland,
– the possibility of signing the founding act in Poland,
– limited penalties for entrepreneurs in the event of failure to perform formal or financial obligations in relation to the tax administration,
– no obligation to have a cash register,
– concessions and subsidies for persons using additional social security systems,
– a simplified form of financial reporting for persons conducting sole proprietorship or limited income,
– big possibilities to include expenses in tax costs, especially for the purchase of cars and machines,
– the principle of the presumption of innocence being strictly adhered to as regards penal and fiscal proceedings,
– agreement signed with Poland regarding the avoidance of double taxation,

Disadvantages of doing business in the Czech Republic:

– very high costs of health and social insurance, especially in the highest income categories,
– relatively high share capital which must be paid in order to set up a company,
– the need to provide full and accurate documentation confirming the criminal record of the entrepreneur,
– difficulties in VAT registration for new entrepreneurs who do not have turnover,
– an obligation to appoint a partner and director of the company,

Due to the different legal practice occurring between the Czech Republic and other countries, it is often necessary to hire a local accounting office and possibly a law firm to serve the company. Few lawyers abroad have knowledge