Today you can form a company via mobile phone and start doing business the very next day
Is it really possible today to form a company quickly and at minimal cost? Or even online? Politicians promised changes, implemented some, but in the end, specialized companies had to bring this to life.
"I remember when my partners and I started a company 18 years ago," our client Jana Frýdová confided in us. "It was a process that took many weeks, and in our country months. First one of the partners made a typo in his name, then everything came back from the Commercial Court because of the name of the company, which was rejected due to interchangeability with another company. Everything took a long time and every mistake was expensive."
"Then I started another company, about ten years ago. The process was a bit easier, but establishing the company still cost quite a bit of money, registered capital was needed, you had to look for an available notary who didn't give you much advice or who pushed you to make changes to the memorandum of association that didn't suit you."
Today everything is different. Without exaggeration, today a company can be established with only a mobile phone and in a few days, your business can be fully launched. To establish a company with one owner and a minimum registered capital of CZK 1, including the express incorporation of a limited liability company, today you will pay less than CZK 6,000. Starting a business is therefore much easier and it is definitely not worthwhile to continue doing business on a trade licence. A limited liability company is a much more advantageous form of business.
WHAT DO YOU NEED TO FORM A COMPANY?
Incorporating a company online is easy and you don't even need some deeper understanding of the Business Corporations Act, which specifies the conditions for setting up a business. You also don't have to go anywhere. After filling in a basic online questionnaire, a good company specializing in online company incorporation will usually send you all the documents for signing and then arrange everything through its own notary. It will obtain a prepared memorandum of association, advise you on the choice of trade, if necessary, and usually also offer you a virtual company seat. Therefore, you do not have to rent any office space or do business at home. You also have the option of choosing a seat in a larger city, where financial inspections are less likely, and at the same time, as a business based in a larger city, you will look more serious. A virtual seat also reduces business costs, especially start-up costs, until you need offices or premises.
SOME SPECIALIZED FIRMS ALSO OFFER ADDITIONAL ASSISTANCE WITH STARTING A BUSINESS
For example, VAT registration can be problematic. The tax authorities are far from quick in responding to new companies' requests for VAT registration. The process usually drags on for months and you are constantly asked for more and more "evidence" that you really need VAT registration. However, a knowledgeable company can handle these matters for you without unnecessary delays in your business. It can also help, for example, with the registration of a vehicle that you will use in business, or the arrangement of a craft and licensed trade.
DOING BUSINESS QUICKLY AND EASILY HAS FINALLY BECOME A REALITY
For a long time, there was just empty talk from politicians that it is possible to start a business in the Czech Republic easily and without hassle. In the end, it was necessary for companies to step in to help people get started, including those who don't know what is needed to start a business. "From my personal experience I can recommend Jake&James," Frýdová says. " I have been in business for over 18 years, and even though I already know a lot about business, the bureaucracy associated with it always infuriates me. Thanks to Jake&James I founded my fourth company. This time truly without worries – online and express, as it should be in the 21st century."