What kind of business can be opened in the Czech Republic?
Currently, many people dream of starting their own business. It is not so easy to do this, not to mention those cases when you want to do business completely in a foreign country.
The Czech Republic provides entrepreneurs with great opportunities to develop their business. If you are going to start a company but don’t know where to start, we will help you understand this difficult task. In this article, you will learn the basics that will help you take the first steps in your chosen niche.
The main advantages of doing business in the Czech Republic include the following:
- “convenient” legislation for entrepreneurship,
- there is practically no corruption and crime,
- it is easy to organize your own business, register your property and get the necessary documents,
- low interest rate on bank loans,
- a loyal tax system, etc.
How to start a business in the Czech Republic: buy ready-made or start from scratch?
Before you start registering your company, first of all, you need to decide on the type of business. Will you buy a ready-made business or do you want to start from scratch? It is worth noting that the acquisition of an existing company is no less time-consuming than the opening of a completely new company. Despite the high speed of re-registration of documents, this case has its own pitfalls.
It can take about 7-10 days to buy a ready-made business. Often, such a company already has an authorized capital, a legal address and is registered with the tax committee. To purchase a company, you need to make changes to the following columns of the Trade Register::
- type of activity;
- data of co-owners.
Also in the Czech Republic, “shelf” companies are widely distributed. In this case, the company has a bank account, but it has never worked. When entering into a contract with its owner, you must also take care of reissuing a bank account in your own name.
If you are seriously thinking about how to start a business in the Czech Republic, then you probably looked for the necessary information on the global network. Currently, you can find many different manuals on the Internet that provide step-by-step instructions for opening a company in this state. But even in the materials prepared by experienced people, you will not be able to find all the nuances of this event. The fact is that these articles have a special feature – they are theoretical, but in practice everything can turn out quite differently.
What should entrepreneurs from post-Soviet countries prepare for? Which type of business will generate the most revenue? How do I implement my business idea? We will try to provide comprehensive answers to the above questions.
Is it profitable to do business in the Czech Republic?
If you plan to open a business in the Czech Republic, you can officially get not only a Schengen visa, but also a national visa and a residence permit. To achieve a long-term stay in the possession of this state, you can use various methods. You can only get a residence permit if you already have a national visa. Legalization in the European Union through your own business is possible only when your company has actually carried out any type of activity.
Your application will be rejected if the firm worked only on “papers”. You will have to submit documents confirming the receipt of income. Moreover, the amount of profit should not be less than the amount established by law. Documents must be submitted in advance. You should take care to apply for a residence permit 3-4 months before the current permit expires. If the current document expires, but you have already submitted a request for its extension, then you will not face the status of an illegal immigrant.
Types of business in the Czech Republic
Theoretically, you can open any type of business, if you do not delve into the issue of licensing. However, in this case, it is not necessary to choose the development of a particular sphere as the main reference point. There are some segments of the market in which there is simply no place for an entrepreneur who came from abroad.
Business ideas in the Czech Republic
Before I recommend the most profitable areas of activity, I would like to talk a little about such an industry as IT. This area is constantly undergoing changes, it is dynamic and highly demanded. However, you should not rush to create a company in this area. The fact is that, despite the high demand for information technology, it is necessary to take into account other aspects. The density of firms that offer IT services is quite high. In some cases, it is much more profitable to work with a solid Western organization than to try to develop your business from scratch. The most attractive and reliable option is the repair and maintenance of computer equipment.
Start a business in the Czech Republic in the field of tourism
If you want your business to become successful, then give preference to the tourism sector or other type of activity in the field of services. Of course, you can also engage in the production of goods. In this case, you need to take into account the size of your capital. It is not recommended to open a business that requires special permission or assistance from third-party organizations. At first, it is better to rely only on your own strength and capabilities. Do not expect instant success, because first you need to earn the trust of potential customers.
It’s no secret that millions of people from all over the world come to see the sights of the Czech Republic. Every tourist thinks about how to allocate their budget. You can offer them the organization of a trip to the Czech Republic. You can include the following aspects in the ticket price:
- leisure, etc.
Increased demand for services can be seen in such areas as catering, hotel business, souvenir sales, beauty industry, etc.
Profitable business in the Czech Republic: ideas
To open a high-demand business that will allow you to work with them for a long time, you should turn your attention to such industries:
- real estate activity,
- taxi service,
- the medicine,
- shopping in a lively area,
- products for pets.
However, in this case, it should be understood that the demand for this service does not mean that the company will become quite profitable. In the Czech Republic, the market is constantly growing and developing, so if your profit was about 10 percent, then the business can be called profitable. The payback period will be quite long if you have invested a lot of start-up capital in the business.
How much does it cost to start a small business in the Czech Republic?
If you take into account only the minimum requirements for the authorized capital, then anyone can start a business, including students and unemployed people. However, it should be understood that if you have only one crown behind you, you are unlikely to find people who want to become your partners and regular customers. Czechs prefer to work with companies with a good reputation, so 1 crown will not cause them any special feelings about your business.
In order to open your own business in the Czech Republic, you will need to follow the following steps::
- rental properties,
- mandatory insurance,
- foundation fund,
- equipment for the company,
- marketing activities,
- purchasing products,
- insurance of the company in case of emergency situations.
How much does it cost to start a business in the Czech Republic? On average, it takes an entrepreneur about 5,000 euros to open a souvenir shop. Accordingly, larger projects require large capital investments. It is for this reason that it is impossible to say unequivocally that business in the Czech Republic will be simple and profitable.
How to start your own business in the Czech Republic – where to gain a foothold?
It is difficult to make a conclusion about whether you can seriously conduct your business in this country, since we have absolutely no idea about your capabilities and resources. If you are in doubt about your business idea, then use the help of professionals, they will help you make the necessary calculations, draw up a business plan, according to which you can find out the approximate profit and payback period of your business.
The best options include the following::
- shop with various gifts,
- guided tour services,
- small beauty salon,
- car sharing services,
Each of the above types of business has its own characteristics, so if you decide to open a company, then be sure to think about whether this is really the industry in which you would like to work.
How to open a business in the Czech Republic 2021-2022?
There are certain types of businesses in this country that are best left untouched. In this case, we are not saying that you will not succeed. Our point of view is subjective and due to certain reasons. Some types of entrepreneurship are considered unpromising, in particular, if you do not have enough money. The main reason why it is better not to open a business in these areas is the high level of competition, as well as consumer inertia. Czechs are very dedicated consumers by nature. If they have chosen a particular doctor or a particular store, they are unlikely to go to another place without a good reason. It won’t be easy to find regular customers. As long as you try to build up a reputation, your business will only bring losses.
Restaurant or cafe
There are many factors that can ruin your business from the very beginning. It is worth noting that not all of them are associated with financial difficulties. Of course, tourists visiting the Czech Republic are always not averse to tasting delicious and inexpensive dishes. But make no mistake about it, you’re not the only one who came up with this idea.
Opening a restaurant is a low-potential business. Often, all crowded places in the center are occupied, and in remote areas the flow of customers will be very small. If you do not know how to prepare national dishes of Czech cuisine, then it is unlikely that your establishment will be visited by a large number of customers.
To open your own hotel, you will need a fairly high initial investment. Starting a business from scratch in the Czech Republic is not only expensive, but also time-consuming. If you have the necessary amount of money and time, you can try to promote your hotel. The chances that your hotel will become widely known in the future and will be able to compete with the leading hotels are very small.
As you have already understood, the Czechs are very conservative. If a person made a successful purchase in your store, they will definitely come back to you again. Of course, they can buy such “trifles” as bread, cigarettes or water at any retail outlet, but they will definitely come to you for large purchases.
Renting an apartment
If you are looking for additional income in the Czech Republic, you can buy a house and rent it out by the hour or by the day. But you need to be able to distinguish earnings from business. Living in this European country is not so easy if you do not have a permanent income.
Is it profitable to buy and rent out real estate in the Czech Republic? First of all, you need to study this market segment, find out how much you can rent an apartment for. Please also note that you will have to pay for utilities. If you deduct all possible costs, your income will be less than 200 euros. It is quite difficult to call such a business profitable.
Business in the Czech Republic for Ukrainians – otkryvalki firms
A few years ago, companies that provided consultants and intermediaries were very popular. Such a business was very profitable. But now the situation has changed radically.
The number of migrants to the Czech Republic has noticeably decreased, because employers have tightened the requirements for potential candidates. You should also take into account the fierce competition in the market. In order to get more customers, entrepreneurs are forced to reduce the cost of services, which negatively affects the attractiveness of this business.
Can I buy a ready-made business in the Czech Republic?
At first, such an idea may seem financially unattractive and completely unprofitable, but you should not make hasty decisions. The fact is that registering a new company with the authorized bodies is not as easy as it may seem. A novice entrepreneur will not only have to worry about obtaining permission to carry out their chosen activity, but also in the future constantly fight with competitors for each consumer. If you buy an existing company, these issues will not affect you.
What you should pay attention to when signing the contract:
- carefully review the documentation and accounting reports,
- check your current debts, and the seller will try to hide them,
- learn from independent sources about the company’s reputation,
- find out why the owner decided to sell their business,
- look for other offers,
- whether the company will require additional costs.
In the global network, you can also search for business reviews in the Czech Republic, get acquainted with various situations and difficulties that other people in this country had to face when they started taking their first steps in entrepreneurship.
Franchise as a type of business
This type of business activity can hardly be called a business, because when you buy a franchise, you do not get a ready-made company, but only the right to work under someone else’s trademark.
The main advantages of this approach include the following::
- no need to build any business chains,
- getting access to the marketing and information database,
- it does not require significant investments for promotion,
- there is no strong competition in the domestic market in the same locality.
If you are going to build a business on a franchise, you should understand that this business has its own characteristics. You must follow strict regulations and will be restricted in your freedom of decision-making. You can also buy products only from a certain list of suppliers. When you buy a franchise, you sign a no-competition agreement. Starting a business will require a large financial investment. You can terminate the contract with the brand owner at any time.
There are approximately 200 popular franchises in the Czech Republic, but very few of them are local. The most promising brands are public catering establishments. This kind of business pays off pretty quickly. After a year and a half, you will be able to return your financial investments.
How should I start a business?
If you describe in detail the registration of a company, opening a bank account and other similar nuances, then our article will greatly increase in volume. We will try to give you the most necessary advice.
First of all, you need to go through the following steps::
- company registration,
- legalizing your own stay in the Czech Republic,
- opening an account with a banking institution,
- rent a room and set up an office.
To start legally engaging in business activities, you must pass the licensing stage. The application must be submitted to the Department of Commerce, as well as pay about 35 euros for this procedure. Your application will be reviewed within 5-6 business days.
Only those migrants who meet the following requirements can be eligible for approval::
- the candidate must be of legal age,
- legally capable,
- there must be no criminal record and no debts to the tax committee of the given country,
- have the appropriate qualifications in the chosen field.
If you are planning to open a travel agency, but we do not have the necessary education or experience in this field, then you must complete specialized courses before applying.
You should also submit documents about your education, as well as confirm your existing qualifications. The applicant must have at least one year of experience.
However, there are also some industries that do not require a permit to work in. These areas include trade, agriculture, clothing manufacturing, textiles, and photography services. To register a company, you will need to confirm your physical and mental capacity, provide a passport, and a certificate of non-criminal record. It is advisable to have experience in this area at least in your own country.
After reviewing the documents, the entrepreneur is issued a special registration form. It must be filled out very carefully, since this information is necessary for entering a new company in the Commercial Register. The final decision on this issue will be made by the court within one working week. For this procedure, you will have to pay about two hundred euros. Think of a suitable “name” for your company in advance. The name should not be repeated in the database of the Ministry of Justice.
The Czech Republic has its own tax system, which is based on the principles of a market economy. Taxes can be classified into the following groups::
- income tax,
- on revenue,
- on the environment,
- for real estate,
Regardless of what type of activity a novice entrepreneur chooses, he must understand that, first of all, he must get a good reputation among the local population. This is not easy to do, because Czechs value high-quality services and goods, and their attitude to the consumer does not go unnoticed.
If you start a business wisely, you can turn your dream into reality. Of course, there may be difficulties at first, but you can always use the services of experienced and competent specialists. We hope that after reading this article, you will get a complete picture of how to start a business in the Czech Republic.
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