What are the Steps after Formation of a Company?

1.To apply for your business licenses

After successful company formation, for legally operating your business you need to get the business licenses. Depends on the type of your business, you may need different business licenses. In the Czech Republic, the most common are trade licenses or concessions. Under the Czech Trade Licensing Act, trades are divided into Notifiable trades and Concession trades. Notifiable trades may be performed by an entity after notifying relevant Trade Licensing Authority of the trade. Subsequently, and Extract from the Trade Register is issued to evidence authorization to carry out the trade. More, Notifiable trades are divided into categories: Unregulated trades- require no specific skills, Crafts- particularly craftsmanship required through apprenticeship and Regulated trades- require special skills, experience or education different from crafts.

2.To visit the Tax Office

No later than 15 days from the company formation and registration, you have to submit an application at the Tax Office for the corporate income tax, payroll tax registration, and some other taxes. You can also apply for taxes through data boxes (Datové schránky). By using data boxes, it’s possible to send documents in electronic form to public authorities and also to receive them. As Limited Liability Company, when you set up your company, you will receive login data from Czech Post Office for the company data box. Through your data box, your documents will be delivered to the other public institutions, for example, Tax Office. The advantage of the date boxes is that you can have an overview of your delivered documents and you don’t need to pay for sending documents to the public institutions. So, what’s the Czech Republic corporate tax rate? The Corporate income tax is 15 %, VAT base rate is 21% and the reduced rate for typical types of goods (e.g. food) or services (e.g. building services-flats and houses) is 10%. There are some other taxes such as real estate tax, road tax, and excise taxes depends on the type of your business.

3.To find and hire right people for your company

Without hard working, skilled, educated and trustful people there is no successful business or company. Because of that, it’s really important to find right employees. In the Czech Republic, there are many job portals and recruitment agency where you can advertise and promote job positions which you need for your company. Some of them are jobs.cz, Indeed.cz, Profesia.cz, Expats.cz etc. Here is YeYe People, our recruitment agency, which is specialized in the finding a language speakers for its clients. The official way to promote needed job positions is at “Labour Office of the Czech Republic” through filling job announcements named “Hlašenky”. 30 days after job announcements are published, you can apply for an employment card for your foreign employees. So what are general conditions and procedure for hiring employees in the Czech Republic?  All employees have to have health insurance- it’s mandatory and no qualifying individual can be denied coverage by a public health insurance company. In the case of an employment relationship, the employer pays for the health insurance at the rate of 13.5% of the calculated base income (one third is paid by the employee and two thirds by the employer). More, an employer needs to do registration for social security and health insurance, within 8 days after the first employee is hired. Also, before signing the employment agreement the employers are obligated to command the future employee to undergo an initial medical examination. What about minimum wage per month and working hours? In 2018, the national minimum wage in the Czech Republic remained fixed at 477.8 € per month.

The weekly working time of an employee is:

• working single-shift is a maximum of 40 hours a week.
• working two-shifts is a maximum of 38.75 hours a week.
• working three-shifts or in a continuous service is a maximum of 37.5 hours a week.

4.To increase your sales

Finally, how to increase your sales? First, you need good customer relationship management (CRM) and you need to remember that it’s not just a software! More important it’s to build a quality relationship with your current customers. Your customers or clients can give your important feedback and information about your products and services. Because of that, it’s important to listen to them and try to do your best to make them satisfied. Later, your current customers will bring new customers according to the positive references. Also, you need some online tools. First, to develop your website according to your target market and to make quality and attractive content. Using social media channels and tools to communicate with your audience and promote your products or services is an effective and low-cost way to increase awareness of your brand and bring more clients to your company.