Czech

Czech Republic is a nice small European country with a good level of political, economic and financial stability, a safe haven for investors. Located in the heart of Europe, the Czech Republic is the most attractive country for property investment in the EU. Even during the global financial crisis, Czech Republic differs favorably from its neighbors in the EU. The stable exchange rate, minimal inflation, transparent and liberal tax legislation make this country an oasis of tranquility in the Europe.

Recently, some Western analytical companies have conducted a study of the Czech real estate market for its investment attractiveness. Their opinion was unanimous. At the moment, the Czech Republic is a very serious concern for investors. The following factors speak in its favor:
• accessibility of the market for investors and guarantees of a favorable investment climate from the state.
• the sanctity of private property institute.
• The real estate of the Czech Republic is one of the cheapest in the EU.
• continuing economic growth and rising prosperity of the population.
• geographical position, Czech Republic is the center of Europe.
• Czech Republic has joined to the Schengen zone, which allows free travel across Europe.

Do not ignore the similarity between the language of communication, which greatly facilitates the residence and business in the Czech Republic for citizens of Russia. In order to carry out the small and medium businesses we recommend opening Limited Liability Company (společnost s ručením omezeným, sro, spol. s.r.o.), the most common structure. Currently, Czech legislation does not allow a direct acquisition of real property and possession by a foreign individual. In order to overcome this limitation it is sufficient to register the company in the Czech Republic, which is possible, and with 100% foreign, i.e. Russian capital. The founders can be both physical and legal persons. There are two variants of the acquisition of the company in the Czech Republic.

The first option is to buy the ready-made company. Pluses of this transaction are:
1. After the signing of agreements of share assignment and appointing of a new director of the company, it is already possible to carry out economic activities.
2. Companies have fully paid authorized capital of 200 000 korunas.
3. Companies do not carry out in economic activities.
4. Companies are already recorded in the Commercial Court.
5. Companies have passed tax registration.

The sale of the company provides the following services:
1. Preparation of necessary documentation.
2. Share transfer in the authorized capital.
3. Organization of the General meeting of the Company for:
– Change of the Company’s name (if the customer desires);
– Change of the legal address of the Company (if the customer desires);
– Appointment of a new director of the Company (nominal service is possible);
4. Receiving of license and concessions.
5. Preparation of necessary translations made by court translators.
6. Submission of the application in the Commercial Court about changes in the company.
7. Notice of state authorities about the made changes.

The second method is to register the company “from the ground up” with your name. This procedure may take up to a month, which is not always convenient. There are also variants for an accelerated registration (conditions are discussed individually). To get to start the works it is necessary:
1. Specify the data of the founder / founders and directors. It is necessary from the future director a non-conviction certificate under the permanent place of residence (not older than 3 months) of and copy of birth certificate certified by a notary.
2. Determine the name of the company. The name shall be unique and differs at least by 3 characters from the names of already registered companies. The checking of the names is possible on-line.
3. Filling the application form, that lists all the data of the future company.
4. Preparation of necessary powers of attorney.
5. Holding of founders’ meeting.
6. Receiving of licenses. For s.r.o. you can receive a license (for 80 activities), as a rule, within 1 week after the notarial registration.
7. Entering of money in the authorized capital of the company.
8. Preparation and filing of registration documents in a court.

Registration of the company by foreign persons is the first step to purchase the property in the Czech Republic. Based on this, you and your family receive a residence permit and an opportunity to buy apartments, houses, villas, shops and hotels. After purchasing of the property, it can rent itself, as an physical person, in this case all the conditions of legitimate business and residence in the Czech Republic will almost fulfilled (the company will actually work according to the Czech legislation). It should be noted that all the expenses for the estate maintenance can be attributed to the costs of the company. Property market in Prague is now on an unprecedented rise. Sale volumes for foreign buyers in this area suggest not only the credibility of the Czech real estate market, but also the unprecedented economic stability. Investments in real estate are both safe and profitable. Prague’s popularity is growing not only because of reasonable prices and the charming atmosphere of this city, but also in connection with fine developed infrastructure and prosperity of social life. Prague has always played an important role in the history and cultural life of Europe and is considered one of the most beautiful capitals of the world.