Czech Republic is a country in the CEE region with a population of over 10 million. Since 2004 it has been a member of the European Union. The official currency of the country is Czech koruna (CZK). IT is the 44th richest country in the world in terms of nominal GDP.
Czech capital, Prague, is not only Eastern Europe’s top travel destination but also the country’s buzzing business centre, where numerous international corporations have their presence, e.g. ExxonMobil, SAP, and IBM.
Business entities in Czech Republic are formed based on the provisions of the Act on Business Corporations. The local law provides for several types of business entities, including, but not limited to, limited liability company (s.r.o.), joint-stock company, general partnership and limited partnership.
In the case of s.r.o., the most popular business structure, a symbolic 1 CZK share capital is enough to register an entity. Company information is available for viewing in the Commercial Register. There are no limits with regard to the number of shareholders. Articles of Association need to have the form of a notarial deed. The managing director of the company may be a legal entity.
Residents of Czech Republic pay corporate tax at the rate of 19%. There are no group taxation provisions. Dividend pay-outs within the EU are exempt from the withholding tax under certain conditions, e.g. the parent company needs to hold at least 10% of shares of the payer company for the period of 12 months. 15% withholding tax applies otherwise. A 35% rate applies if the payment is made to an entity registered in a jurisdiction with which Czech Republic has no tax exchange information agreement.
Czech Republic is a country with stable economy and currency. After the fall of the communism and the transitional period, the country is making a steady progress in terms of GDP growth, creating good business environment, attracting foreign investment, and improving the standard of living. Currently, Czech Republic is one of the fastest developing states in Europe.
Czech Republic is a parliamentary constitutional republic with its capital in the city of Prague. The country is divided into 14 administrative regions. The head of state and the head of the government are the President and the Prime Minister respectively. Czech Parliament consists of the Chamber of Deputies and the Senate. MPs are elected in general elections held every four years.
The largest banks in the country are Česká spořitelna, Československá obchodní banka (ČSOB), Komerční banka and Unicredit Bank. Financial institutions in the country are supervised by Czech National Bank, which is a member of the European System of Central Banks. The financial sector in the country is stable.