Download Snímek 1

Doing business in the Czech
Republic 1.1.2015
BUSINESS (self-employed) OR
EMPLOYMENT?
Entrepreneur/businessman (živnostník/podnikatel) = Self-employed
(osoba samostatně výdělečně činná)
Business activity = continuous activities carried out independently, under
one’s own name and at one’s own responsibility to achieve a profit
Trade license = „živnostenské oprávnění" does not have to mean "small
business", you can have a turnover of millions and even employ own
employees; you can have trade license and be employee at the same
time, or put it on hold while you're employee
2 types of business
1/ Entrepreneur (živnostník), Self-employed
(osoba samostatně výdělečně činná)
2/ Legal personality, limited liability company,
etc.
Whatever type of business you choose, you
will be responsible for tax payment, health
and social insurance payment
4 types of trade licenses
• independent (unconditioned)
• dependent (conditioned)
• craft (conditioned)
• concession (conditioned)
Trade license can never be issued
for the following business:
• Agriculture production; forest and water
management
• Author’s fees and IP rights
• Independent jobs (writers, actors, musicians)
• Business done and regulated according to
special state regulation and usualy
preconditioned by state exams  for example,
tax advisors, lawyers, executors, brokers,
interpreters, healers, etc.
Starting your business
• Register your business with the Trade license office
(živnostenský úřad) for which you need:
• Passport, residence permit, copy of criminal record
from criminal register (from the Czech Republic and
from the country of origin), business address, 1000
CZK administration fee
• Register business at the Financial office (finanční
úřad) for tax purposes and tax specific number (DIČ)
• Register with the Social Security Administration
• Once registering at Trade license office you can tick
an option for the Trade license to register you at all
the other necessary offices on your behalf
Financial office - taxes
• You are obliged by law to register your business with the
Financial office (finační úřad) for which you need trade
license copy, bank account, residency permit
• Every year you need to hand it tax return form by 31st
March
• Tax return form is obligatory for every license holder
• If your yearly income exceeds 30 000 CZK, you will be
required to pay monthly tax down payment in the next
year
• Tax = 15%
• Any changes in business must be registered within 15
days
Financial office - taxes
• a/ tax register – you pay tax from real costs (i.e. you account for
real expenditure proven by bills, invoices, etc.)
• b/ you pay tax from costs which are measured by pre-set flat
rate calculated from percentage of income, which is very
convenient and favourable
• Therefore there are over 2 300 000 trade license holders in the
Czech republic
•
•
•
•
Taxable income differs according to type of trade license
80 % craftsmen and agriculture
60 % other entrepreneurs except craftsmen and agriculture
40 % special work
Social insurance
•
•
•
•
•
•
•
•
•
Pension insurance contribution is compulsory
Sickness insurance – not compulsory (covers costs connected
with loss of income during illness or pregnancy, it is NOT health
insurance)
Social insurance – compulsory
Down payments for 2015 = 1943,- CZK/month
Income below 63865,- CZK requires no down payment
One month after handing in tax return form one must hand in
social insurance overview to Social Security Administration
If you do not pay, you will have debt for which you can be sued by
the state administration
All changes must be registered by the 8th day of next month
Social Security Administration is obliged to share changes with
the Ministry of Interior and its foreigner department
Health insurance
Type of health insurance depends on type of residency
permit:
1. Permanent resident, employee, family member of EU
resident, holder of tolerance visa, asylum, subsidiary
protection  public insurance from General health care
insurance, minimum 1797,- CZK/month
2. Temporary resident – private insurance min 1 200
CZK/month covering the whole period of residency; private
insurance companies: Slavia, Maxima, PVZP, Uniqua, Ergo
• All changes must be registered within 8 days
If you want to pro-long your long term
temporary residency for the purpose of
business (done at Ministry of Interior)
1. Green form;
2. Passport;
3. Trade license;
4. Financial office stamp that you are debt free;
5. Social Security Administration that you are debt free;
6. Enough financial resources – copy of your tax return
form, or 3 months old bank account statements,
income slips
7. Proof of accommodation ;
8. Proof of private health insurance;
9. Administration fee 2500 CZK
Minimum income
You have to prove that your income exceeds or
equals to the minimum income of all members of
the household:
3410 for the individual
3140 for 1st person
2830 for next person above 15 years of age
2450 for a child between 15 – 26 years of age
2140 for a I child between 6 – 15 years of age
1740 for a child up to 6 years
Accomodation
Regulated accommodation costs set by law (rent +
other costs such as electricity, gas, water)
7068 individual
10144 two persons living in household
13813 three persons living in household
17269 four and more persons living in household
- If you own you own apartment, obligatory
accommodation costs are lower – real costs
Proving your obligations
* Prove income from tax return form
* Ministry of Interior may control purpose
and reasons of your residency
* You must be legal resident in the Czech
republic for minimum 2 year
http://www.businessinfo.cz/cz/
http://jakpodnikat.cz/
http://www.podnikatel.cz/
http://portal.gov.cz
http://www.mesec.cz/
http://www.migrace.com/
[email protected]
Thank you for your attention!

Have a great weekend!
[email protected]
[email protected]
[email protected]