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Open a Restaurant in Czech Republic

Updated on Tuesday 18th September 2018

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Open-a-Restaurant-in-Czech-Republic.jpgCzech Republic represents an attractive business market for entrepreneurs involved in various commercial fields; investors who are interested in the catering industry can set up a restaurant here, but in order to do so, a set of procedures has to be completed, following the applicable Czech legislation
 
Furthermore, this type of commercial activity requires several permits and licenses which testify that the business respects the local standards in terms of consumer safety. Our Czech company formation specialists can provide assistance for the incorporation of a company and can offer more details on the business opportunities that may arise here. 
 
The following video offers a short presentation on the registration of a restaurant in Czech Republic:
 

 

Company registration in Czech Republic 

 
In order to incorporate a company in Czech Republic, both local and foreign investors must respect a procedure comprised of several compulsory steps. Our company formation consultants in Czech Republic can provide you with assistance throughout the following phases, which are compulsory for all commercial entities operating in this country:: 
 
  • propose a trading name, which can be registered at the Czech Ministry of Justice;
  • notarize the articles of association with the help of a public notary; the notary can certify the lease agreement based on which the restaurant will held its activities;
  • deposit the minimum required capital in a special bank account, which can be opened at a local bank; in order to open a corporate bank account in Czech Republic, the entrepreneur will have to provide the notarized articles of association;
  • obtain trading licenses from the Trade License Office, which will further notify the Ministry of Interior regarding the incorporation on the new company;
  • register at the Regional Commercial Court; according to the amendment  of the Law no. 304/2013, applicable since May 2015, notaries are allowed to register a limited liability company at the Commercial Registry of the Regional Commercial Court;
  • register at the Tax Office for value added tax and for social security and health insurance.

 

Which are the main safety requirements for Czech Restaurants? 

 
When owning a catering business in Czech Republic, the owners have the legal obligation to comply with a set of safety standards related to the food products processed within the unit. One of the main obligations of a company that operates as a restaurant is to have a food safety management system; it is also necessary to train the company’s staff and, in this sense, the employees can register for courses.  
 

Tips for opening a Czech restaurant 

 
Any local or foreign businessmen can easily start a restaurant in Czech Republic as the country has a very well developed culture in this sense. Prior to starting a restaurant here, the investors should take into consideration numerous aspects that should be concluded when setting up a business in Czech Republic, such as: 
 
  • find a suitable location for the restaurant and sign a lease agreement with the owner for the using the space;
  • prior to renting the location, it is advisable to perform due diligence procedures, to find out if the location has any hidden flaws that are not presented in the rental contract;
  • it might also be necessary to conduct minor repair activities or re-design the location in accordance with the concept of the restaurant;
  • sign contracts with the local authorities for the supply of water, gas, electricity, internet and other types of utilities that are needed in this case;
  • purchase the necessary equipment for the kitchen area and furniture (tables, chairs, etc.);
  • sign contracts with the local suppliers of food products, beverages, alcoholic drinks and with artists, if the restaurant will provide special musical events, for example;
  • focus on creating a menu compatible with the concept of the restaurant and advertise the new business
 
In order to avoid the above all the hassle related to the presented aspects, investors also have the possibility of investing in an already functioning unit or purchasing a restaurant that is available for sale, but this will depend on the investment plans that are set up for the expansion on the Czech market.  
 
Please keep in mind that in Czech Republic, if the restaurant owns a TV set where regular programs are presented to the company’s customers, the owners of the restaurant are required to pay royalties to collective administrators, as per Section 97 of the Copyright Act, due to the fact that it is considered that the TV shows (or radio shows) are displayed to a large audience and they are not used for personal matters, but rather for commercial ones
 
 

Restaurants in Czech Republic 

 
Foreign investors who want to establish a company in Czech Republic should know that the restaurant industry is developing here, as the consumers’ habits are changing, in the sense that they are more interested in serving a meal at a restaurant; also, the economy in Czech Republic shows positive results. 
 
The profile of the business owners who have a restaurant is represented by small entrepreneurs in a proportion of 99%, while 1% is accounting for large international food corporations. If you need further information on the restaurant industry in Czech Republic, please contact our Czech company formation agents, who can offer you assistance on any matter related with this industry. 
 

Meet us in Brno

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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Mihai Cuc, Partner of
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www.romanianlawoffice.com

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