Explore Countries for Living & Doing Business
Find and compare the best jurisdictions for your business
Find and compare the best jurisdictions for your business
Compare with other jurisdictions or get in touch for expert guidance.
Central European EU member with strong industrial base
Region
EASTERN EUROPE
Corporate Tax
21%
Setup Time
3 weeks
Currency
CZK
The Czech Republic, located in the heart of Central Europe, combines industrial heritage with EU membership and competitive costs. The country's stable business environment supports company registration for manufacturing, services, and European market access.
With a population of 10.5 million, the Czech Republic offers European quality at moderate costs. Czech is the official language, with German and English common in business. Prague provides cosmopolitan living, while regional cities offer lower costs.
Healthcare is good through mandatory insurance with quality public and private options. Safety is excellent with low crime rates. The cost of living is lower than Western Europe, making Prague affordable relative to comparable cities.
The rich cultural heritage, beer culture, and central location attract international residents.
Corporate tax rate stands at 21%. Personal income tax is flat at 15%, with higher rates for top earners. VAT applies at 21% standard rate. The tax burden is moderate for the region.
The Czech koruna remains the currency, though EU membership ensures regulatory alignment. The manufacturing sector is sophisticated, with strong automotive and engineering industries. The workforce is educated and skilled.
Company registration through the Commercial Register is established. The s.r.o. (limited liability company) is the standard vehicle for most businesses. Foreign ownership faces no EU restrictions.
Company formation takes approximately 2-4 weeks. Minimum capital is CZK 1 (approximately EUR 0.04) for s.r.o.s following recent reforms. At least one executive is required. Annual compliance involves financial statement filing.
The Czech Republic regulates virtual asset service providers under its AML framework through the Trade Licensing Office. Registration is required for crypto businesses. The approach implements EU directives.
The environment is relatively permissive, with Prague hosting a notable crypto community. MiCA implementation will harmonize requirements with EU standards.
The Ministry of Finance regulates gambling through licensing for casinos, betting, and online operations. The gambling license framework is functional with clear requirements and established operators.
The domestic market is moderate in size, requiring regional or export focus. The Czech koruna creates some currency considerations for Eurozone-focused operations. Language capability is helpful for navigating local requirements.
Banking access is good through local and international banks. Professional services are well-developed. The central location provides excellent logistics for European operations.
The Czech Republic suits manufacturing, shared services, and businesses seeking central European positioning for their business setup.
Local: s.r.o.
Local: a.s.
Local: Pobočka
| Corporate Tax Rate | 21% |
| Personal Income Tax Rate | 23% |
| VAT / Sales Tax | 21% |
| Capital Gains Tax | 23% |
| Withholding Tax | 15% |
| Reduced Corporate Tax Available | Yes |
| Non-Resident Withholding Exempt | No |
| Tax Treaty Network | Yes |
| Banking Access | MEDIUM |
| Financial Privacy | LOW |
| Currency Controls | NONE |
| Local Bank Account Required | No |
| Non-Resident Bank Account Allowed | Yes |
| Physical Presence for Banking | Yes |
| Banks Restrictive (High Risk) | Yes |
| AML Officer Required | No |
| MLRO Required | No |
| Compliance Officer Required | No |
| Data Protection Officer Required | Yes |
| Bookkeeping Frequency | Annual |
| Local Bookkeeping Required | Yes |
| Mandatory Audit | No |
| License Required | Yes |
| Local Director Required | Yes |
| Local AML Director Required | Yes |
| Local Legal Address Required | Yes |
| Local Physical Office Required | Yes |
| Required Share Capital | $50,000 |
| Capital Maintained in Account | Yes |
| Compliance Program Required | Yes |
| Travel Rule Compliance | EU Transfer of Funds Regulation (TFR) / FATF Travel Rule |
| Business Plan Required | Comprehensive 3-year business plan with financial projections, governance structure, risk management, and compliance frameworks required |
| Personnel Required | CEO with EU residency, AML Compliance Officer (MLRO), Chief Compliance Officer (CCO), fit and proper assessment for all key personnel |
| Insurance Required | No |
| Remote Incorporation Possible | Yes |
| 100% Foreign Ownership | Yes |
| Min. Shareholders | 1 |
| Min. Directors | 1 |
| Shareholder/Director Same Person | Yes |
| Registry Public | Yes |
| Registry Access | Czech National Bank maintains register of licensed CASPs |
| Renewal Period | Annual |
| Accounting Filing Required | Yes |
| Accounting Filing Frequency | Annual |
| Financial Statement Required | Yes |
| Financial Statement Frequency | Annual |
| Accounting Audit Mandatory | No |
| Compliance Audit Mandatory | Yes |
| Technical Audit Mandatory | Yes |
| Corporate Income Tax Applicable | Yes |
| Dividend Tax Applicable | Yes |
| Capital Gains Tax Applicable | Yes |
| Territorial Tax Regime | No |
| VAT Applicable | No |
| Regulators | Czech National Bank (ČNB) for licensing, Financial Analytical Office (FAÚ) for AML |
| Licensing Fee | $0 |
| Licensing Fee Details | No state application fee under MiCA; professional and compliance setup costs range EUR 60,000-90,000 |
| Permitted Business Models | Exchange, Custody, Trading Platform, Order Execution, Portfolio Management, Advisory, Transfer Services |
| Permitted Activities | Crypto-to-fiat exchange, crypto-to-crypto exchange, custody and administration, order transmission and execution, placement of crypto-assets, advisory services, portfolio management |
| Restricted Activities | Staking and crypto-backed lending not covered by MiCA; separate authorization may be required |
| Cross-Border Service Allowed | Yes |
| Physical Inspection Required | Yes |
| Derivatives Allowed | No |
| RWA Tokenization Allowed | Yes |
| App Store Listing Allowed | Yes |
| Crypto Custody Allowed | Yes |
| License Required | Yes |
| Local Director Required | No |
| Local AML Director Required | Yes |
| Local Legal Address Required | Yes |
| Local Physical Office Required | No |
| Required Share Capital | $50,000,000 |
| Capital Maintained in Account | Yes |
| Compliance Program Required | Yes |
| Travel Rule Compliance | N/A for gambling |
| Business Plan Required | Detailed game plan for each gambling type, operational procedures, responsible gambling measures, technical specifications |
| Personnel Required | Clean criminal record required for all directors, supervisory board members, beneficial owners; AML compliance personnel |
| Insurance Required | No |
| Remote Incorporation Possible | No |
| 100% Foreign Ownership | Yes |
| Min. Shareholders | 1 |
| Min. Directors | 1 |
| Shareholder/Director Same Person | Yes |
| Registry Public | Yes |
| Registry Access | Ministry of Finance maintains register of licensed operators |
| Renewal Period | 6 years maximum for basic license |
| Accounting Filing Required | Yes |
| Accounting Filing Frequency | Annual |
| Financial Statement Required | Yes |
| Financial Statement Frequency | Annual |
| Accounting Audit Mandatory | Yes |
| Compliance Audit Mandatory | Yes |
| Technical Audit Mandatory | Yes |
| Corporate Income Tax Applicable | Yes |
| Dividend Tax Applicable | Yes |
| Capital Gains Tax Applicable | Yes |
| Territorial Tax Regime | No |
| VAT Applicable | No |
| Regulators | Ministry of Finance (Ministerstvo financí) |
| Licensing Fee | $5,000 |
| Licensing Fee Details | CZK 5,000 application fee per license type; surety deposit CZK 20,000,000 minimum (Group 1) up to CZK 300,000,000 (Group 4) based on gambling tax |
| Permitted Business Models | B2C online and land-based gambling |
| Permitted Activities | Odds betting, totalisator games, technical games (slots), live games (table games), lotteries, bingo |
| Restricted Activities | Tombola and small card tournaments cannot be offered online; live dealer studios must be in licensed land-based casinos |
| Cross-Border Service Allowed | No |
| Physical Inspection Required | Yes |
| Player Fund Segregation | Yes |
| B2B/B2C Separate Requirements | No |
| License Required | Yes |
| Local Director Required | Yes |
| Local AML Director Required | Yes |
| Local Legal Address Required | Yes |
| Local Physical Office Required | Yes |
| Required Share Capital | $350,000 |
| Capital Maintained in Account | Yes |
| Compliance Program Required | Yes |
| Travel Rule Compliance | FATF and EU compliant |
| Business Plan Required | 3-year business plan with financial projections, governance framework, risk management, AML/CFT policies, IT security measures |
| Personnel Required | CEO with professional competence, AML Officer, Compliance Officer, adequate staffing for operations; fit and proper assessment required |
| Insurance Required | Yes |
| Insurance Details | Professional indemnity insurance may be required depending on services |
| Remote Incorporation Possible | No |
| 100% Foreign Ownership | Yes |
| Min. Shareholders | 1 |
| Min. Directors | 1 |
| Shareholder/Director Same Person | Yes |
| Registry Public | Yes |
| Registry Access | Czech National Bank maintains register of licensed payment institutions and EMIs |
| Renewal Period | Indefinite (subject to ongoing compliance) |
| Accounting Filing Required | Yes |
| Accounting Filing Frequency | Annual |
| Financial Statement Required | Yes |
| Financial Statement Frequency | Annual |
| Accounting Audit Mandatory | Yes |
| Compliance Audit Mandatory | Yes |
| Technical Audit Mandatory | No |
| Corporate Income Tax Applicable | Yes |
| Dividend Tax Applicable | Yes |
| Capital Gains Tax Applicable | Yes |
| Territorial Tax Regime | No |
| VAT Applicable | Yes |
| Regulators | Czech National Bank (Česká národní banka - ČNB) |
| Licensing Fee | $0 |
| Licensing Fee Details | No state application fee; professional setup costs EUR 60,000-90,000; annual supervision fees apply |
| Permitted Business Models | EMI (Electronic Money Institution), PI (Payment Institution), Small-scale EMI, Small-scale PI |
| Permitted Activities | Electronic money issuance, payment services, money remittance, payment account management, card issuing, payment initiation, account information services |
| Restricted Activities | Banking services (deposit-taking, lending) require separate banking license |
| Cross-Border Service Allowed | Yes |
| Physical Inspection Required | Yes |