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Liaison Office in the Czech Republic

Updated on Wednesday 31st March 2021

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A liaison office (representative office) is a structure that allows a foreign legal entity to establish its presence in a country where it has not obtained yet the license of operating and conducting some marketing activities. A representative office has a limited purpose and it cannot carry any direct business activities. Our Czech specialists in company incorporation can handle the process of opening liaison offices in the Czech Republic. Support for registration of other types of companies is also provided by our agents.
 

Aspects of a liaison office in the Czech Republic

 
A Czech liaison office is not a legal entity, incurring obligations on behalf of the foreign company. It has to list its business operations on the application for registration with the Commercial Register and it must appoint a director entitled to act on  behalf of the parent-company overseas in what concerns the representative officeEstablishing representative offices in the Czech Republic is governed by the rules of the Civil Code, the Trade Licensing Act, partly by the Act on business corporations etc.
 
The following video offers a short presentation on the Czech liaison office
 

 
In case you wish to open a liaison office in the Czech Republic, you can be provided with assistance throughout the procedures from our Czech experts in company formation.
 

Allowed activities of a Czech liaison office

 
A Czech liaison office's activities are limited, as this it is a structure dependent on the parent company:
 
  • • it can represent the parent legal structure;
  • • it can promote exporting and importing to/from the Czech Republic;
  • • it can act as a channel between the Czech companies and the parent-company overseas;
  • a representative office is also allowed to promote technical and/or financial collaboration between the parent company and the representative office.
Therefore, the basic goal of a structure as such should be to advertise, to conduct market research, to supply information etc. Our team of company registration agents can offer you complete details on how to set up a liaison office or other business forms in the Czech Republic.
 

How to register a liaison office in the Czech Republic

 
A liaison office usually follows the same registration steps as the other types of companies (for example the LLC). A registration application has to be submitted, bearing the list of activities that will be conducted on the country's territory, as well as the reasons for setting up the representative office. One must observe the following aspects for registration of a liaison office in Czech Republic:
 
  • The Czech Trade Register asks for the Articles of Association of the parent company.
  • Details of the type of business and activities must be offered.
  • Information about the representative of the liaison office in Czech Republic is required.
  • Details about the name and address of the liaison office in Czech Republic are solicited at the time of registration.
 
Our Czech company formation agents can assist foreigners to register a liaison office in Czech Republic by handling the formalities implicated in the process.
 

A liaison office to connect with Czech customers

 
Foreign entrepreneurs can consider the benefits of a liaison office in Czech Republic instead of forming a new company. The connection with potential clients is possible through a liaison office registered in the country. An accurate and doable marketing and promotion plan should be created before a liaison office is established in Czech Republic. This is one of the most important strategies of a business plan linked to a liaison office in Czech Republic. It is quite recommended to be prepared from this point of view and to present the business opportunities to future clients in Czech Republic. If you consider that a liaison office is the type of entity that suits most of your needs, please feel free to get in touch with our Czech company formation agents.
 

FAQ about liaison office 

 
1. What is a liaison office?
A liaison office is the same thing as a representative office, and it can be registered by a business owner interested in activities in Czech Republic.
 
2. Who can register liaison offices in Czech Republic?
Any international entity can have a business presence in Czech Republic through a liaison office. The key target is to implement several marketing operations.
 
3. What is the purpose of a liaison office?
A liaison office can only present and implement marketing and promotion activities. There are no direct business operations implicated, and therefore no financial transactions.
 
4. Can a liaison office sign contracts?
No, a liaison office in Czech Republic cannot agree and sign business contracts. This is a legal entity that can only have marketing and promotion operations and not even a single business operation.
 
5. Is a liaison office hard to register in Czech Republic?
No, there are no complex formalities for registering a liaison office in Czech Republic. Such an entity must have a representative and a business address at the time of incorporation. One of our Czech company formation agents can tell you more on this topic.
 
6. Can I promote import and export activities through a Czech liaison office?
Yes, promoting trading activities through a liaison office in Czech Republic is permitted. Advertising and marketing activities are accepted for this kind of business entity.
 
7. Must the parent company file any documents in order to open a liaison office?
Yes, a copy of the Articles of Association of the parent company is required for the registration of a liaison office. One of our company formation specialists in Czech Republic can manage the process and deal with the relevant registration authorities in the country.
 
8. Where can I register a liaison office in Czech Republic?
A representative office can be registered in any city in Czech Republic as long as it is a business advantage for you. You can choose Prague, the capital, for liaison office incorporation.
 
9. Can a liaison office change the business structure at a certain point?
Yes, if you consider you need to change the business plans, you can consider having a new entity in Czech Republic and start other types of operations. This means that a liaison office will no longer activate, but instead, you can have your own company that can have varied operations, including financial ones.
 
10. How can a Czech agent help me with a liaison office?
Our Czech company formation agents can help foreigners register a representative office by managing all the formalities involved.
 
We present you some interesting facts and figures about the economy and business in Czech Republic that might help you make a decision about starting a company here and enjoy the benefits:
 
  1. In terms of total FDIs, Czech Republic registered around USD 170,6 billion in 2019.
  2. According to the 2020 Doing Business report, Czech Republic ranked 41st out of 190 economies in the world.
  3. The Netherlands, Austria, Luxembourg, and Germany are the key investors in Czech Republic.
 
As our specialists in company formation have an extensive activity in these matters, you can contact us for more information on how to form a liaison office in the Czech Republic.
 

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Call us at +420 721 565 868 to set up an appointment with our specialists in company formation in Brno. Alternatively you can incorporate your company without traveling to Czech Republic.

As an CorpexLab client, you will benefit from the joint expertize of local experts and international consultants. Together we will be able to offer you the specialized help you require for your business start-up in Czech Republic.

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www.romanianlawoffice.com

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