Tradelicense.cz / Tax, Social and Health Charges
Very important: there are different requirements for
EU Citizens and 3rd-Country Nationals !
For EU Citizens:
Tax, Social- and Health Charges registration.
After getting the tradelicense we will register you at the tax office, social office and health insurance.
Also you should get an EU Residence Permit, since you are doing business here.
For 3rd-Country National with D-Visa / Temporary Residence Permit:
Tax and Social Charges registration.
After getting the tradelicense we will register you at the tax office and social office. No need to register at the Commercial Court or for the monthly health insurance payments. It is enough to have the basic emergency insurance of +/- 5.000/year (we can get it for you).
For 3rd-Country National with Permanent Residence Permit:
Tax,Social- and Health Charges registration.
After getting the tradelicense we will register you at the tax office, social office and for the monthly health insurance payments. No need to register at the Commercial Court.
For 3rd-Country National with or without D-Visa:
Commercial Court, Tax and Social Charges registration.
After you have received the Business Visa, we will register you at the Commercial Court, continue the registration at the tradelicense register, and then register at the tax office and social office. No need to register for the monthly health insurance payments. It is enough to have the basic emergency insurance of +/- 5.000/year (we can get it for you).
Do not try to register yourself
The registration at Commercial Court / Tax / Social / Health is actually more complicated than the Trade License registration itself.
It involves more steps, more documents and visiting several offices. In the past we offered people to save costs and do these registrations themselves but we don't anymore.
Inevitably mistakes are made, it is not faster and if we need to correct the registrations it is also not cheaper. Please leave it to us if you want to start your business without problems.
Opening a bank account
We recommend opening an account at a czech bank, for your business, especially when you are going to be VAT-registered. This does not have to be a special (expensive) business account.
Monthly Social- / Health Charges:
The height of the charges de pends on your income, but the minimum (for 2010) is:
- social charges 1601 CZK / month * (2009: 1590 CZK)
- health charges 1731 CZK / month ** (2009: 1720 CZK)
* If you have proof that you are paying social charges as self-employed in your home country (for example American citizens) you do not need to pay the social charges in Czech Republic, but you still must register at the social office, and get a special excemption.
Income Tax:
At the end of the year, 15% income tax needs to be paid over 60% (2010) * of the total business revenue.
See next page for more information.
Common Question: So how much is subtracted in my case?
An often-heard question is how much all these charges are going to cost on monthly / yearly basis. For this purpose we have made an Excel Živnostenský List cost calculation sheet, which you can download here (opens the next page)