The Czech Republic is located in Eastern Europe and is bordered by Poland, Germany, Austria and Slovakia. Until 1993 the Czech Republic was unified with Slovakia however since separation the country has undergone major political, social and financial reforms. The Czech Republic is a democracy and a member of the EU, NATO, the OECD and the Council of Europe. The capital city is Prague.
The Czech Republic has made significant progress with regards to liberalization of the business environment; 85% of the country’s GDP is derived from private businesses and corporate taxation has been cut from 26% to the current rate of 20% resulting in a significant increase in foreign investment. The Czech Republic has also introduced a range of financial incentives to stimulate foreign investment including ten years corporate tax relief for new manufacturing investment, payment of 50% of costs for new technology and business investment and numerous substantial job creation and training grants.
In 2009 this period of stable and robust economic expansion halted as a result of the global downturn however the Czech Republic has weathered the turmoil relatively well with a GDP Growth of 1.7% in 2011.
Key benefits of the Czech Republic:
- Stable political environment with EU and NATO membership
- The Heritage Foundation ranked the Czech Republic 15th out of 43 countries in the region of Europe with regards to economic freedom. The Czech Republic ranks higher than the regional and global average.
- The Czech Republic is one of Europe’s most industrialized nations with a highly skilled workforce.
- Liberal, western business culture with English widely spoken
- Developed and stable banking system with most a number of international banks located in the Czech Republic
- Low corporate tax rate of 20%
There are numerous international banks operating in the Czech Republic however setting up a corporate bank account can be challenging. Eltoma can assist you in bank account opening using our local contacts and knowledge.
For additional information on company incorporation and bank account opening in the Czech Republic please contact us.
New licensing regulations for Trusts & Service Providers in Hong Kong
As per new regulations, all Hong Kong businesses providing Trustee Services, including Corporate Service Providers will not be able to operate without a valid trading license after March the 1st 2018. The new scheme is designed to better regulate individuals carrying out services within the financial sphere in Hong Kong and will be overseen and administered by the Hong Kong Companies Registry.
The terms of Hong Kong's new register of significant controllers and what it means for companies
As per new legislation, from March 1st 2018, every company incorporated in Hong Kong will be required to keep and maintain a register of all persons who have significant control of the company. The record must be updated as required and kept at the registered company address, even if there are no persons of significant control.
The pros & cons of European Passport-by-Investment schemes
In a bid to rebuild the dwindling economy in Cyprus shortly after the financial crisis four years ago, the government launched a passport-by-investment program to temp wealthy foreigners with citizenship in exchange for an investment of no less than €2 million into the Cyprus economy.
Using the Cyprus Non-Dom scheme for beneficial tax planning
In an attempt to improve and simplify the Cyprus tax system as well as to remain a highly compliant and attractive jurisdiction, the introduction of the non-domicile (shortened to Non-Dom) scheme aims to give Cyprus a competitive edge over other jurisdictions.
How are Cyprus banks handling the island's high rate of NPLs? Can more be done to combat them?
It is no secret that the Cyprus banking sector is struggling with the overwhelming level of Non-Performing Loans (NPLs), no matter the efforts exerted by the main banks in Cyprus by following conventional banking models to balance their profit/loss reports, NPLs remain to be the proverbial hole in the bucket.
Income tax exemptions for expats living in Cyprus: what are your options?
Situated in the Eastern Mediterranean, the Republic of Cyprus boasts a strategic geographical location at the hub of three continents; Europe, Asia and Africa and a pleasant sunny climate year round.
The UK Persons of Significant Control Register & its impact on companies
The requirement to maintain a register of people with significant influence or control, more commonly known as the PSC register was introduced to mandate all unlisted companies in the UK, including LLPs and dormant companies to maintain a register identifying those with significant control over a company.
Cyprus implements the Hague Convention, legally recognising Trusts as a type of Equitable Law
This year, the Republic of Cyprus ratified The Hague Conventions’ definition of the legislation applicable to trusts and furthering the regulations surrounding their recognition. Cyprus common law now recognises trusts as a unique legal institution under equity.