After the foundation of your company, you are required to keep accounting records. The accounting records, together with prepared financial statements and a corporate tax return, must be filed with the financial office by the 31st of March.
For companies that require an audit – a registered tax advisor – the deadline of filing is automatically extended to the 30th of June. Don't forget to file the additional audit papers with the court.
Part-time finance and administration director
A registered finance advisor can visit your office on a regular basis until you appoint your own full-time administrative person. The services that are provided usually include control of bank accounts, preparation of information reports, advising on financial controls of cash, bank, sales and purchases, and general advice on how to minimise your company's costs.
Social and Health Insurance
Before you start employing people in your company, you should register with the social and health insurance offices.
Paying social insurance contributions is obligatory for everyone who works in the Czech Republic. Foreigners who have a permanent residency are obliged to register with the health insurance.
For more information on health and social insurance, visit the Czech Portal of the Public Administration .
Taxation
Individuals with a Czech residency who spend at least 183 days of the year in the Czech Republic have to pay taxes on their world-wide income. If they are present for less than 183 days, they pay the taxes of the Czech source income only.
Corporate taxation is required after entering into the Commercial Register. Registration for VAT tax is usually voluntary; however exceptions exist. For example, you will be required to pay if your company exceeds CZK 1 million over one year.
If you use a car for business purposes, you have to pay the road tax. Taxes can only be paid in Czech crowns (CZK).