Why Set Up an LLC (Limited Liability Company) in the Czech Republic

czech republic

The Czech Republic, a central European country and a member state of the EU (European Union), is one well acknowledged to be a developed country. It is known for its Ornate castles, rich and eventful history, and also notable for its wealth of Gothic, Renaissance, and Baroque buildings; many of which house restaurants and shops. It is a country with an advanced, high income export-oriented social market economy based in services, manufacturing , and innovation while at the same time, offers universal healthcare system, tuition-free education and ranks as the 6th safest or most peaceful country. All these factors undoubtedly make the Czech Republic a dream country for anyone to set up a business in and enjoy high returns on investment.

Among the types of commercial companies that may be established and operated in the Czech Republic is the Limited Liability Company (LLC). The Czech Republic LLC (known as společnost s ručením omezenŷm or SRO) is the most preferred type of business venture in the country. This is due to its simplicity in registration and structure, and the vast amount of advantages and benefits it offers to its owners, managers, and partners.

The Czech Republic Limited Liability Company (SRO) is one of the cost-friendly types of companies considering the low company registration fees and relatively low amount of minimum basic capital. It requires a minimum equity capital of CZK 200,000 and every individual shareholder’s investment contribution must be at least CZK 20,000. Also, each member may contribute in the basic capital of the company with only one investment.

For a limited liability company in the Czech Republic, the liabilities of shareholders is limited to the (fully deposited) share capital, not the personal assets of investors. This way, no shareholder will incur more loss than the other, with respect to their level of investments in the company and this undoubtedly brings relief to any willing investor. It should be noted that in LLC, a single shareholder (who may be a natural or legal person, an individual or a corporate body) can have total control of the business.

Limited Liability Companies operating in the Czech Republic can benefit from several tax deductions. These deductions can be obtained on; travel expenses, costs of the company’s assets that have a low value, operating expenses or transfer of know-how, and research and development (R&D) expenses. Also, SRO has low demands on administration.

One other important benefit of setting up a limited liability company in the Czech Republic is due to the fact that the country is a full member of the European Union (EU). This factor increases opportunities to do business with other member countries and definitely comes with many other attached benefits.

So, are you into trading and manufacturing activities, and are in need of the right business to set up in a country? Go ahead and establish a limited liability company in the Czech Republic, as you’ll be guaranteed of a profitable business venture in a very safe and economical stable environment.