Relocate your UK Company to Czech Republic after Brexit

Starting with 2021, the transitioning period following Brexit, that was settled between the European Union (EU) and the United Kingdom (UK), ended. This has important consequences on both natural persons and legal entities established in the UK, in their relation with the EU, and vice versa. 

 

Individuals arriving from the EU need a visa to enter the UK and British citizens need EU documents to enter the EU space. For businesses, the manner in which they trade has multiple tax effects and various trade procedures were introduced, given that the free movement of persons and goods is not applied anymore. 

 

In this context, numerous investors developing a business activity in the UK have taken into consideration relocating their business to another EU country, for the purpose of maintaining their previous benefits as EU businesses. One of the countries where one can relocate a UK business is the Czech Republic, a EU member state with a solid economy and attractive business opportunities. If you need assistance in this matter, our consultants in company formation in Czech Republic remain at your disposal. 

 

 

Just like the procedure that was applicable prior to Brexit, if an investor wants to move a business from a country to another, then he or she will need to close the business in the country where the company is registered and register it in the new jurisdiction that is of interest. So, in the case in which you want to relocate your UK company to Czech Republic after Brexit, then you will first have to close the operations in the UK and de-register from the British institutions. 

 

After this process is completed, one will easily be able to start the process of company registration in Czech Republic, by following the standard incorporation steps. The investor can choose any of the legal entities prescribed by the Czech law, such as the limited or general partnership, the joint stock company, the limited liability company, the subsidiary or the branch office. 

 

However, in order to follow the same business model the company had while operating in the UK, one can select the same legal entity (both the UK and the Czech Republic prescribe the same company types, and differences may appear in matters regarding the company’s capital, the minimum number or shareholders or the incorporation steps). 

 

Depending on the business activity that you will develop when you relocate your UK company to Czech Republic after Brexit, you may need to obtain a Trade License from the Trade Licensing Office. During the process of company registration in Czech Republic, one will need to open a corporate bank account, draft and sign the statutory documents of the company (which can vary depending on the selected company type), register with the Financial Administration for tax purposes and other mandatory steps.  

 

 

In most of the cases, investors prefer to open a company in Czech Republic as a limited liability company (LLC), an entity that is preferred for incorporation in most of the European countries, as it is designed for small and medium-sized companies and which has basic incorporation requirements that can be easily satisfied by most of the investors who want to set up their own business. For instance, the advantages of opening a company in Czech Republic as an LLC can be the following: 

 

• • the legal entity can be incorporated by a 1 investor and 1 director, who does not have to comply with residency requirements (which can be the case in other countries);
• • the company can have a maximum number of 50 shareholders;
• • the process of company incorporation in Czech Republic for this entity is of 1 week; 
• • the registered capital required for a Czech LLC is CZK 1; 
• • foreigners can apply for a business visa issued for a period of 2 years and they can also be entitled to permanent residency after living in this country for a period of 5 years. 

 

Please be aware that if you relocate your UK company to Czech Republic after Brexit you will have to obtain various business visas, which wouldn’t have been the case prior to this. You can receive professional advice on the types of permits and visas you will need from our team of consultants in company registration in Czech Republic.  

 

For further advice on how to relocate your UK company to Czech Republic after Brexit and for information on the documents you should prepare for this process, our specialists remain at your disposal. You can also receive tax consultancy services and assistance on any inquiry regarding the relocation of a business.