Advantages of company set-up in Czechia to save money on a car registration
Have you ever thought about your tax optimization? Maybe you think it is a complicated process and you might be more visible for financial office clerks. We don’t speak about the process of your income diversification among a number of companies in tax paradise countries. Some kind of optimization might be quite simple.
What about if you are the owner of a luxury car. And even if it is not the luxury one, it can be just a strong powerful engine car, not intended for frequent use. How much do you pay for car and accident insurance? And how much is the road tax? More and more countries increase fees to the shocking level. If you are not happy with wasting your money on expensive obligatory payments, we have a solution for you.
There are still countries with reasonable fee politics. If you open or buy a company in the Czech Republic, you can register your car as company property and you can use the advantages of mandatory car and accident insurance costs, which are much lower in comparison with West European countries.
Examples of insurance
Mercedes S400, 3000 ccm, 250kW
– Basic car insurance: from 230 EUR
– Accident insurance: from 2200 EUR
BMW M5 xDrive, 3000 ccm, 260kW
– Basic car insurance: from 235 EUR
– Accident insurance: from 1600 EUR
Lexus LS 500, 3400 ccm, 310kW
– Basic car insurance: from 235 EUR
– Accident insurance: from 1650 EUR
Is it safe?
Yes, the Czech Republic, in short-form Czechia, is a developed modern country with a stabilized law background and democratic governance. Based on the Human Development Index (HDI) it belongs to a group of countries like France, Italy or Spain (https://en.wikipedia.org/wiki/List_of_countries_by_Human_Development_Index). In Global peace index it is ranked as 11th safest and peaceful country in the world (https://en.wikipedia.org/wiki/Global_Peace_Index ). And the country is 14th in the World Bank Human Capital Index measuring economic success (https://en.wikipedia.org/wiki/Human_capital#World_Bank_Human_Capital_Index).
Our company Profi-kancelar s.r.o. is experienced in providing background for clients and companies. We have 13 years of history in legal work connected with opening new businesses, representing clients in front of authorities, providing registered business addresses and related paperwork.
Which kind of legal entity to choose?
There are more types of legal entities you can choose, however not all of them are suitable, because of complicated process of setting-up or expensive operation. We recommend not to start a new company, but to buy an existing limited liability company (in Czech called S.R.O. – spolecnost s rucenim omezenym) which is the most practical, quick and low cost way to do business.
Do you need to travel to Czechia?
In case of one shareholder and one director the process of company transfer to the new owner can be arranged even remotely without your personal presence in Czechia. You need only a criminal record extract from the country of your citizenship. We will prepare all necessary documents and you can sign them either at Czech Embassy or at the local notary office in your country.
All legal entities in Czechia use electronic communication to contact the Authorities, so even later you don’t have to visit the country. All necessary steps can be handled remotely.
How long does it take?
When signed documents reach our office, we will arrange changes in the Commercial register and within 2-3 weeks you will be visible as owner and director in the Commercial Register.
What are the costs?
Basic price of ready-made company, including structure change in Commercial Register, is 635 EUR (some small costs for document translation might be required). Annual costs for registered business address and obligatory filling out of simple annual tax report are in total about 250-300 EUR. If you don’t plan to open another business or hire employees, no other expenses are required. As you can see, there are still ways to save money, so don’t hesitate to contact us. We’ll be happy to provide more information.