Czech Republic-dexin consulting

Czech Republic

Czech Republic is a developed country with a developed social market economy and is adjacent to Germany. Czech Republic is a welfare state with a European social model, universal medical insurance system and free university education. It ranks 14th in the World Bank Human Capital Index, ahead of United States, United Kingdom, and France, etc. It is the 11th safest and most peaceful country and ranks 32nd in terms of democratic governance, and its political and economic environment is very stable.

Industry

The economy of Czech Republic is a developed export-oriented social market economy based on service industry, manufacturing and innovation, which maintains a high-income welfare state and European social model. As a member of the European Union, Czech Republic participates in the European Single Market and therefore is a part of European economy which uses its own currency, Czech Koruna, instead of Euro. It was described by the Guardian as "one of the most prosperous economy entities in Europe". Industry sector accounts for 37.5% of economic aggregate, service industry accounts for 60% and agriculture accounts for 2.5%. The main industries are high-tech engineering, electronic and machinery manufacturing, steel production and transportation equipment (automobile, railway and aviation industries), chemical engineering, advanced materials and medicine production.
Law

As of January 1, 2014, Czech Republic has enacted new laws and regulations including the Company Law. The main provisions and regulations of the Company Law are contained in Law on Commercial Corporation and Cooperative (Commercial Corporation Law), the revised Act No. 90/2012 Coll., and Civil Law, No. 89/2012 Coll., the revised edition. According to laws of Czech Republic, general partnership enterprises, limited partnership enterprises, limited liability companies, stock companies, European companies and European economic interest groups are all regarded as commercial corporations. In addition, Czech Republic regards cooperatives as another legal form of company. All companies and cooperatives are registered in business register held by regional courts. Individual entrepreneur can be registered in commercial register. They can be also registered in the business register if they have trade license.
Tax revenue

orporate income tax (CIT) is appropriate for all profit all profits generated by companies, including branches of foreign companies. The share of profits in partnership enterprise of the corporate partners in general partnerships (i.e. unlimited partners) and corporate general partners in limited partnerships (i.e. unlimited partners) is subject to corporate income tax. Czech resident companies must pay corporate income tax based on income from all over the world. Non-resident companies must pay corporate income tax based on income derived from Czech Republic. The corporate income tax rate is 19% and applies to all business profits, including capital gains from the sale of shares (if there is no exemption where participating exemption system). Czech tax resident entities are subject to a special corporate income tax of 15% based on dividend income from non-resident entities (unless subject to exemption system). The income of certain investment funds is subject to a corporate income tax rate of 5%, and the corporate income tax rate for pension funds is 0%.
Advantages

Czech Republic lies in the middle of Europe and has an advantageous geographical location. It can enter the emerging eastern market as well as the mature western market. At the same time, it also has advanced infrastructure which is one of the best infrastructures in central and eastern Europe: roads directly connected to Germany and Poland Slovakia's roads, one of the densest railway networks in Europe which can be connected to most European cities and air lines directed to Asia and North America. One of the most attractive part of Czech Republic is proficient and well-educated workers whose costs are only a fraction of that of Western economies (for example, income of German workers is four times workers in Czech Republic). Czech Technical University in Prague is one of the largest and oldest technical universities. About 1/3 Czech students learn economics, finance and information technology.