Anyone in the Czech Republic can set up a company or business association, whether he/she is a member of the EU Member State or a private or legal person outside the EU. However it is important to know, that the allocation of the Community Tax Number is a complicated operation and in many cases it can take up to half a year which makes the life of entrepreneurs more difficult.
What are the advantages of establishing a Czech company?
As it was mentioned already the establishment of a Czech company is a rather cumbersome process the procedure of which is the following:
Not only individuals but also legal entities can set up a company, open a branch or raise a tax number in the Czech Republic. If the owner of the company is a Czech company, then all the documents of the parent company and its certified translation will be necessary to establish or to purchase the company from that legal entity.
In most of the cases we do not recommend our clients to set up a new company as this process is extremely time-consuming and to get a tax number for the new business is very difficult. It is much more expedient and more time-consuming to purchase a VAT registered company with an EU Tax number. The conversion time is only 2 weeks and after the change is entered one can issue VAT-free invoices for companies that are in other EU Member states.