Opening an Affiliate Branch in the Czech Republic

An affiliate branch is a legal entity that allows foreign companies to do business in the Czech Republic, sparing them the need to incorporate a new company. An affiliate branch cannot act as party in legal relations; the foreign parent company always assumes this role. To open an affiliate branch, no registered capital is needed. The affiliate branch’s name is the same as that of its parent company with the addition of “affiliate branch”.

For foreign companies, setting up an affiliate branch is a far more efficient and flexible solution than incorporating a regular Czech company. A director runs the affiliate branch on behalf of the parent company on Czech territory. An affiliate branch is subject to the same requirements as any other statutory body.  

An affiliate branch is subject to accounting regulations of the country of its activity, i.e. it also pays income tax under these regulations. Untaxed profits can be partially transferred abroad, since the affiliate branch’s profit can be split between the parent company and the affiliate branch based on division of the total profits.

Opening an affiliate branch with us includes:

• Processing trade licence certificates
• Preparing all documents
• Dealing with the Trade Licence Office and the Register Court
• All administrative and legal fees (notary, Trade Licence Office, Trade Register)
• Setting up an affiliate branch in the Czech Republic takes up to 2 weeks.

Price List Affiliate Branch