COMPANY FORMATION
CZECH REPUBLIC is located in whole heart of Europe. It boarders with Poland, Germany, Austria and Slovakia. It’s a full member of European Union and Schengen zone.
ADVANTAGES OF IMMIGRATION TO EUROPE, CZECH REPUBLIC
There are numerous advantages of immigration to Czech Republic in comparison with other European countries :
1. Convenient geographical position is a big IMMIGRATION PLUS.
Czech Republic is situated in the center of Europe, this means that within 2 hours you can reach Poland, Austria, Germany, Slovakia, within six hours by car you can get to France and Italy.
After official immigration to Czech Republic and getting residence permit
you will be able to visit all European countries visa free.
2. Czech Republic is member of European Union and Schengen zone.
In 2004 Czech Republic became a member of European Union, and at the end of 2007 became a part of Schengen zone.
3. High standard of life.
People of the Czech Republic has got high standard of life. Highly developed economy, law system that protects people makes ones sure in bring and prosperous future. Czech medical and education system are highly developed. Czech is 27th in a rating according to standards of life criteria.
Czech Republic has recently became member of European Union, that’s why prices of products, medical services and consumer services are lower than in other EU countries.
Nowadays there are several projects controlled by Czech government that invites specialists from foreign countries to work and live abroad in Czech and allows them to get permanent residence permit in short time.
4. Highly developed bank infrastructure
There are several tens of Czech banks that work on the territory of Czech Republic; they are mostly controlled by American, German, Austrian capital. They make financial system of the country stable and allow keeping money on the accounts without being scared about it.
5. Safety and freedom of religion
Population of the Czech Republic is friendly towards foreigners and tolerate to different religions.
6. Procedure of emigration to Czech is simple and rather cheap. Government does not demand big contributions into business before a person reaches Czech. There is no need to rent office or hire employers before emigration. According to Czech law its allowed for a company to be in sleeping positions for the first 3 years (this means that a company does not make any profit and thus does not pay any taxes).
SCHEME OF EMIGRATION TO CZECH
Registering a company in Czech is the most effective and cost-less ways of emigration to Czech. Procedure of emigration to Czech includes two steps: registering a company in Czech and preparing documents for applying for Czech residence permit (long-time business residence permit).
In many countries of Schengen zone, government demands detailed business plan before starting new business in Europe. Czech Republic does not have such demand and even a person without any business experience has right to register a company and get residency on the basis of being owner or co-owner of Czech company (s.r.o.)
After getting permanent residence you can go visa free to any European country, can work and do business in Europe according to same laws with citizens of the country. After official emigration, getting permanent residence permit and living in Czech for 5 years you can apply for Czech citizenship to emigration services of the country.
Usually the process of emigration to Czech lasts up to 5 months: it takes 1 month to register a company for a client and prepare all documents needed for getting Czech residence permit + 1-3 month to embassy to issue visa.
When being Czech it will be easy to find a job, ATMSH Group helps its clients to find employer for free.
1. Client collects information about emigration to Czech and take decision about emigration.
2. Client signs contract with ATMSH Group about registering a company in Czech and provide us documents we need for starting the process of emigration to Czech. Client has to provide:
• Passport for traveling abroad;
• Address of living written in English;
• Police clearance certificate proving that a client hasn’t committed any crime in his native country;
• Approximate names for Future company (its better to provide 2-3 names);
• Division of shares in case if a company has two or more share holder;
• Birth certificate of future company’s president.
3. You pay 50% of the contract and lawyers of ATMSH Group prepares powers of attorney that Client has to sign in Czech consulate in presence of notary and with their help lawyers start the procedure of registering a company for you according to Czech commercial laws.
4. In 3-4 weeks your Czech company will be registered and you will get proof that you are its 100% owner and president.
5. ATMSH Group prepares pack of documents needed for residence permit (including proof of accommodation, certificate of ownership, company’s registration certificate, translated uncriminal record from native country, Czech police clearance certificate, trade license, contract for juridical address)
6. Scanned copies of all certificates are sent to a client, Client pays remaining 50% of ATMSH’s fees
according to contract.
7. Original of all needed documents are sent by currier (DHL or TNT) to client.
8. Client applies in Czech consulate for multiple residence permit with purpose of running business.
DEPENDANTS
Children below 18 and parents can come to Czech Republic along with main family member as ependants. Dependants have right to get permanent residency status after 5 years of living in the country. It’s advisable for main family member and his wife to become company’s coowners, and children will come to Czech as their dependants.
REGISTERING COMPANY IN CZECH
The procedure if company’s registration in Czech Republic is not completed but demands attention and obedience to laws.
According to Czech laws there is no difference between a company with limited responsibility registered by Czech citizen and foreigner. This means that procedure of registering a company is the same for all and requirements to company’s activity are also same.
There are several kinds of Czech companies that differ in amount of authorized capital and activities companies can make. A Company with limited responsibility has minimum 200 000 koruns (7600 Euro) as authorized capital while other forms of companies may have authorized capital up to 2000 000 komns (76 000 Euro).
S.R.O. (company with limited liability) is a very attractive form of enterprise for immigrants as it’s very easy to provide annual tax and book-keeping reports. Registering a company with limited responsibility gives right to its owner and co-owners to obtain one-year multiple visas that can be converted to Czech permanent residence permit in 5 years.
Czech company can have many directors, all company’s co-owners can become directors and take decisions together.
If to describe the procedure of registering a company without unnecessary details, it will look like signing registering documents (company’s regulations, application to trade court, and other documents that describe company’s activities) by notary and providing documents to Trade Court where all Czech companies are registered. According to Czech law, actions needed for company registration can be done by owner himself or by a person to whom an owner has given warrant.
There is no need for a client to be present in Czech for registering a company; all a client has to do is to provide to ATMSH Group’s specialist powers of attorney for registering a company in Czech.
After finishing company registering procedure, it will be registered in tax bureau. All the steps of company registration will be controlled by a client, I as we are sending copies of all the documents to our client as soon as we get them. The fact, that a company has been registered, you can check on the official site of Ministry of Justice in Czech Republic www.justice.cz.
A whole procedure of company registration usually continues 3-4 weeks (from the moment notary has signed registering documents). But one should realize that a time for registering a company will be a bit longer (up to 1,5 months) as after a client signs contract with ATMSH Group he has to prepare documents (warrants), give company’s name and send documents to Czech.
AUTHORIZED CAPITAL
The minimum authorized capital needed for registering s.r.o. is 200 000 Czech korums, that is equal to 7 600 Euro. According to Czech law, after company will be registered its owner can use it for running Business (paying salary to workers, advertisement, office rent). The procedure of putting authorized capital to client’s company account is described in contract between client and ATMSH Group. It is possible that ATMSH Group uses its own money for contributing authorized capital; a special contract is to be signed in such case.
It can up to 50 co-owners of Czech company, but because of strict embassy requirements ATMSH Group’s specialists never register a company with more than 5 co-owners. Any person who reached 18 years old can become co-owner of Czech company. Company’s "life" is not limited; you can do business and use its means as long as you wish. But each year before end of March a company’s owner has to submit annual report about company’s activity.
TYPES OF BUSINESS FOR CZECH COMPANY
1. Provision of services for agriculture, horticulture, fishing and hunting;
2. Professional forest management;
3. Production of forest management plans and outlines;
4. Handling of the reproductive material of forestry plants;
5. Animal breeding and training (with the exception of animal production);
6. Treatment of minerals, extraction of peat and mud;
7. Manufacture of food and starch products;
8. Fruit distillation;
9. Manufacture of feed, compound feed, additives and pre-mixtures;
10. Manufacture of textiles, textile products, clothing and clothing accessories;
11. Manufacture and repair of footwear, saddlery and harness products;
12. Wood processing, manufacture of wooden, cork, straw and plaiting products;
13. Manufacture of pulp, paper and paperboard and of goods made of those materials;
14. Publishing, printing, binding and copying;
15. Manufacture, reproduction, distribution, sale, rental of audio and audiovisual recordings, and manufacture of blank data and recording carriers;
16. Manufacture of coke, raw pitch and other solid fuels;
17. Manufacture of chemical substances, fibers and preparations, and cosmetic products;
18. Manufacture of fertilizers;
19. Manufacture of plastic and rubber products;
20. Glass manufacture and processing;
21. Manufacture of building materials, porcelain, ceramic and plaster products;
22. Manufacture of abrasive products and other non-metallic mineral products;
23. Technical and jewellery stone cutting;
24. Production of iron, precious metals, non-ferrous metals and their alloys;
25. Manufacture of metal structures and fabricated metal products;
26. Artistic and craft working of metals;
27. Surface treatment and welding of metals and other materials;
28. Manufacture of measuring, testing, navigation, optical and
29. Manufacture of electronic components, electrical equipment, and manufacture and repair of
electrical machinery, appliances mid electronic equipment powered by low voltage;
30. Manufacture of non-electric domestic appliances;
31. Manufacture of industrial machinery;
32. Manufacture of motor vehicles and their trailers and bodies;
33. Design and manufacture of vessels;
34.Manufacture, development, design, testing, installation, maintenance, repair, modification and structural changes lo aircraft, aircraft engines, blades, aircraft parts and equipment and aviation ground facilities;
35.Manufacture of rail traction units and rail vehicles on tramways trolley-bus tracks and cableways, and railway fleets;
36. Manufacture of bicycles, wheelchairs and other non-motor vehicles
37. Manufacture and repair of upholstered products;
38.Manufacture, repair and maintenance of sport products, games, toys and prams and pushchairs;
39. Manufacture of medical devices;
40. Manufacture and repair of sources of ionizing radiation;
41. Manufacture of school and office equipment, except paper products, the manufacture of costume jewellery, brooms and brushes, made-up articles, souvenirs;
42. Manufacture of other manufacturing articles;
43. Operation of water supply and wastewater services, and water treatment and distribution;
44. Waste management (except dangerous waste);
45. Preparatory of finishing work, specialized construction activities;
46. Glazing, framing and mounting;
47. Intermediation in trade and services;
48. Wholesale and retail trade;
49. Pawn broking and retailing in second-hand goods;
50. Maintenance of motor vehicles and accessories;
51. Transport via pipelines and land transport (except rail and road motor transport);
52. Storage, packaging of goods, cargo handling and technical and technical activities in transport;
53. Forwarding and representation in customs procedure;
54. Operation of postal and international postal services;
55. Accommodation services;
56. Provision of software, information technology consulting, data processing, hosting and related activities and web portals;
57. Activities of information and news agencies;
58. Real estate services, facility management and maintenance;
59. Leasing and loaning of movables;
60. Guidance and consulting activities, production of expert studies and opinions;
61. Land consolidation design;
62. Preparation and production of technical designs, graphic and drawing work;
63. Design of electrical equipment;
64. Research and development in the field of natural and technical sciences or social sciences;
65. Testing, measurement, analysis and inspections;
66. Advertising, marketing, media representation;
67. Design and arrangement activities and modeling;
68. Photographic services;
69. Translation and interpreting;
70. Administrative services and services of an organizational and economic nature;
71. Operation of a travel agency and guide services in the Held of tourism;
72. Extra-curricular education, organization of courses, training, including instructor services;
73. Operation of cultural, educational and entertainment facilities, organization of cultural productions, events, exhibitions, fairs, festivals, sales and similar events;
74. Operation of physical education and sports facilities and organization of sports activities;
75. Domestic washing, ironing, repair and maintenance of clothing, household linen and personal goods;
76. Provision of technical services;
77. Repair and maintenance of household goods, items of cultural nature, precision equipment, optical equipment and measuring devices;
78. Provision of personal and personal hygiene services;
79. Provision of services for the family and households;
80. Manufacture, trade and services not elsewhere specified.
BUSINESS PLAN FOR EMIGRATION TO CZECH REPUBLIC
As in any business, owner of a company solves his own problems and reaches his own aims on the basis of the individual circumstances and available means. We hope that after reading this article you will certainly know which amount of money you need to have for starting new life in Czech. In this article we want to propose you the algorithm of business- plan, possible expenses and the spread of prices for these expenses. The only thing the future emigrant has to do is to use our formulas and to bring its expenses into correspondence with the money he has. By doing this he can forecast his future level of life and understand whether it will satisfy him.
We are going to create a business algorithm of calculating emigratory expenses on the basis of one of the European countries – Czech Republic. ATMSH Group’s specialists for more than 14 years give consultations about emigration to its clients and got great practical experience of solving problems of new emigrants.
Czech Republic is not an emigratory country in its real sense, as we may say about Australia, New Zealand or Canada. If you intend to emigrate to Czech you must register a company that will become a basis of your permanent stay in Czech and getting permanent residence permit after 5 years of having Czech residence permits.
The fact that you are an owner of Czech company gives numerous advantages to you. First of all, you can buy a property in Czech for your company’s needs (as physical person a foreigner do not have right to buy property in Europe). After registering a company and becoming both its owner and president you can use its property for your personal needs.
As in any business, owner of a company solves his own problems and reaches his own aims on the basis of the i n d i v i d u a l c i r c u m s t a n c e s a n d available means. We hope that after reading this article you will certainly know which amount of money you need Secondly, a Czech company has right to give services to other Czech or foreign companies. This means that if an emigrant is an excellent engineer and docs not intend to become a businessman he can provide engineering service to other companies.
This is approximate scheme of emigration to Czech that a future emigrant must know to understand his expanses. Now we will try to find out the price of each step to happy future on European land.
The first reservation. If a person think seriously about emigration to Czech and listen to advices of ATMSH Group’s specialists he should calculate every step and make strict self-control of his personal expenses: if he intends lo spend 500 USD for renting a flat, he must not spend 550 USD; if he intends to buy a flat for 30000 Euro- he must not buy for 32000 Euro; if he plans to visit his native land once per year- do not visit it twice even if you really start missing your friends and relatives.
The second reservation. When you are planning to make small repairing of a flat, specialists advice you to add to your list of approximate expenses 30 or 40%. Situation is same with emigration: make a strict plan of possible expenses but always have some money for "possible circumstances".The third reservation. Before forecasting future expenses please calculate money that you can spend on emigration, you must have more money that emigration costs otherwise your “emigration game” will be lost for you.
PREPARATORY PERIOD
Preparatory period of emigration to any country is legalization. Its price consists of expenses for registering a company and getting business visa. There is no need to be present in the country which you have chosen for emigration during preparatory period.
TRANSITIONAL PERIOD
The duration of transitional period totally depends on emigrant’s quickness and desire to live as soon as possible in Europe. Some emigrants do everything quickly: they pack their things, sell flats in native land, quit job and move to Czech; some -having residency in passport do not want to move to Europe at once and prefer to wait and think about it seriously.
One should have in mind: slowness in emigration is expensive, when your visa expires you must prolong it. It costs only 30 Euro when you are staying in Czech and 300-400 Euros if you want emigratory company to do that instead of you if you stay outside Czech. Besides you have to receive letters, provide annual reports to governmental authorities. If you live in Czech and do everything by yourself- it will be free for you, and it will cost you about 400 Euro if you want advocates to do it instead of you.
It’s advisable to rent a small flat for begging and thus to save money. Approximately one needs 400 Euro for renting 1 room flat in Prague and 300 Euro per month for renting same flat in a small cities of Czech. Expenses for food for one person come for 100 – 150 Euro monthly. Annual ticket to all kinds of public transport is 30 Euro.
Experts suggest using a simple rule while buying property: choose for a long time- buy at once. You should go to several reality agents and ask them to show many flats or houses of the type you prefer so that you can compare its prices and quality. When you find a flat that you like? Buy it at once, good flat are sold at once, and after several days you can find that somebody else already bought it. You can also use internet and compare the price of one square meter of a fiat in different districts of Czech Republic.
After solving housing problems many emigrants start looking for a good job. We always advice not to wait till you can find highly – paid job, but to do any work, which can bring you money. After several months of being in Czech you will understand what you really want to do there and will start looking for a new job while doing your main (old) one.
If you are planning to do business in Czech do not start it at once. Organization of own business needs special knowledge about the country and people, and this requires some time for studying and analyzing.
There is one more thing that demands money that is studying Czech. As soon as you will learn Czech language and start communicating in it you will be able to find well job and become a full member of Czech society. Usually it takes 3-6 month to finish transitory period.
STARTING NEW LIFE
Emigration specialists refuse to tell the sum of money with which you can start good life in a foreign country. But if you do not have at least 3000 Euro for the first several months of live in Czech do not plan to emigrate. Of course everything depends on a person, his character, quickness of finding a job and good sense of life
If you are a businessman and planning to do business in Czech please mind that your business may not bring you high profit in Czech. Gaining 30 – 40 % profit means very good business in Czech.
What to do if you do not have big sum of money for emigration? In this case specialists suggest to rent a flat not in Prague but small towns near it, it will take you about 1 hour to get to work by bus but will save you money. Difference in price of one square meter of a flat in the center of Prague and 20 km away from it is really huge.
Your future job will depend much on experience you got in native land. If you know two foreign languages it will be easy for you to get a job with a salary 1200 Euro per month, 400 Euro you will spend on renting perfect flat in Prague and 800 will be left for good life in Europe. If you do not know any language and do not have experience in any field of life you can not get high-paid job in Czech, the maximum salary you can get is 15-17 000 CZK (700-900 Euro per month), so your life level will be a bit lower than perhaps you expected at least till the time you learn Czech language.
The less money you have the harder adaptation process will be for you. You will not have enough time for communication with Czech friends as you will be busy doing job. It is not a rare case when an emigrant does one job in the morning, then goes to language courses where he studies Czech and then does one more job in the evening. Of course these are temporary difficulties in emigrant’s life, but one should realize them and be ready to cope with them.
The last expense you should plan is spending your free time. You must plan your free time and have a rest, as you are going to live in Czech a whole life and must have power to cope with many difficulties. Even if you have only 25 Euro you may have a trip to mountain regions of Czech.
COST OF LIFE IN CZECH
Life in Prague is cheaper than in any other capital of United Europe. The biggest expense is renting a flat or house for life. The smallest separate flat will cost you about 300 Euro per month, 3 rooms flat with furniture and electric devices will cost about 700 Euro per month. Gas, electricity and water fees you will
pay separately, it will cost you 50-100 Euro.
There are regions in Czech where it is possible to rent extremely cheap flats (less then 100 Euro for 3 rooms flat).
It is also possible to buy a flat in the north of Czech for 7 000 – 10 000 Euro for 3 rooms flat. Food is also cheap in Czech; usually a family from 3 members spends 200 Euro per month for buying food. There will not be problem with buying food you like and got used to; there are many shops for foreigners where all kinds of food are available.
Usually foreigners buy cloths and footwear on big sales in supermarket, where discounts can reach 70%.We recommend our clients to buy one year ticket for using public transport.
COMMON RECOMMENDATIONS
1. You should have at least 3000 Euro for starting new life in Czech. It will take some time to find a job and rent a flat you like, till that time you should be able to support yourself.
2. If you have problems with health do not try to save money on buying medical insurance. If everything is all right with you health you may not buy it.
3. Study Czech language.
4. Open bank account and keep money in bank. Do not carry big sums of money in a pocket; keep money on credit card that can be renewed if stolen.
5. Do not carry passport in a pocket. You may have Xerox copy of 1 st page of passport with you.
6. Do not be afraid of policemen, you can ask them any questions.
7. If you are going to buy a car do not buy the first car you like. There are many car markets with huge discounts, sometimes it is possible to buy same car with 20 % discount.
8. If possible try to find a job before coming to Czech; usually agents can do it for you for some 500 Euro. This can save you lots of money in future.
9. Never disobey Czech laws otherwise Czech police will put your name to list of criminals and you will not be able to visit any European country for 10 years.
10. If there is such possibility it is better to buy a flat instead renting it.
DOCUMENTS FOR SETTING
RESIDENCE PERMIT
• Police clearance certificate from country of origin / prepared by a Client
• Bank certificate with a prove of having 5000 Euro minimum / prepared by a Client
• Xerox copy of credit card from both sides/prepared by a Client
• Copy of birth certificate / prepared by a Client
• 4 colored passport size photos / prepared by a Client
• Company’s registration certificate / prepared by ATMSH
• Accommodation proof / prepared by ATMSH
• Ownership certificate / prepared by ATMSH
• Trade license / prepared by ATMSH
• Bank certificate proving that Client’s company has 200 000 CZK on its account / prepared by ATMSH
• Czech police clearance certificate / prepared by ATMSH
• Czech police clearance certificate / prepared by ATMSH
• Application form / prepared by ATMSH
• Medical insurance / prepared by Client
ABOUT ATMSH GROUP
ATMSH Group is a Czech company providing a wide range of services relating to opening and running new business in Europe, Czech; business emigration to Europe, work immigration to Europe.
The company has been operating in Czech Republic for more than 14 years. Since 1995 ATMSH Group has specialized in the provision of services associated with business programs, gradually expanding their range. Consequently, as a result of long-lime mutually beneficial collaboration, we have developed strong links with highly qualified professionals and governmental organizations that allow us to solve the most difficult problems in the fields of law, work permits, taxation, investment, loans, residence permits, citizenship, purchases of real estate and existing business.
We guarantee a high quality of service provision. ATMSH Consulting s.r.o. works with legal firms and tax offices, making it possible for you to obtain a multi-entry visa and get legalized in the country, start a company which operates in a way which corresponds to your profile, open a bank account, purchase real estate in Czech Republic and establish contacts with business partners in all countries in the European Union. Where necessary, we will appoint a commercial director who will be responsible for the provision of all documentation to the government and tax bodies in Czech Republic.
ATMSH Group prepares documents, makes all necessary translations, and supports clients on every step since applying Czech work or business visa till gelling permanent residence permit. ATMSH Group prepares documents, makes all necessary translations, and supports clients on every step since applying Czech work or business visa till getting permanent residence permit.