Why do foreign companies need to open accounts in Czech banks and what is the procedure? How can DoMyTax be helpful in this task? This is what we will cover in this article.
- Does your company cooperate with companies from Europe?
- Do you need state guarantees to protect your funds held on the account?
- Do you want to conduct cost-effective international transactions?
Then, the account in the Czech bank is exactly what you are looking for!
Transparent history of banks, state guaranteed insurance of accounts up to 100 000 euros, an affordable system of use, the ability to multi-currency accounts, convenient English-language support service and Internet banking – these are the factors that play a key role!
The procedure for opening an account in a Czech bank for a non-resident firm in the Czech Republic consists of the following steps:
- Collection of documents;
- Translation of documents into the Czech language;
- Filling out contracts and bank questionnaires (after agreeing to open an account);
- Submission of documents to the bank;
- Signing the necessary documents in the bank.
It is important to mention that opening an account is not possible remotely, without your presence. All the preparation of documents for this procedure, will be done by our team, however, the director or the founder of the company will have to come personally for signing of the contract with the bank.
There is a possibility that bank may refuse opening of an account for a foreign company. It is essential to have clear financial objective stated so the bank sees the evidence that your non-resident firm is partnering with other companies from the EU, and mainly the Czech Republic. In another words, it is important to show that your firm has business partners in the country, or at least potential partners. Otherwise, the account will be denied. To check this banks require invoices, employment contracts with partners, etc.
The documents we need to start the preparatory work:
- Scanned company’s foundation documents which provide data of the existence of the company (Certificate of Incorporation, Certificate of Incorporation), the legal address of the company, the identification director, the way of acting on behalf of the company, the identification of partners.
If the application for opening an account is positively examined, it will be necessary to provide the originals of all documents you brought (or notarized copies of originals).
The base of our assistance in supporting the opening of an account in the Czech Republic consists of three operations: the translation of documents, informing you on any questions regarding the progress of the procedure and communication with the bank for you.
This service costs 3500 euros and includes, among other things, a translation of documentation into Czech. Normally, the volume of the documents required for translation does not exceed amount of 10 pages. In case we will face some difficulties with opening an account, which will require extra documents for translation, the cost might slightly rise.
We will send the necessary documents to the bank. The Bank takes a decision from 7 to 30 days. The documents we receive from you will be submitted for translation into Czech, which will take about 7 days.
With a positive decision (registration of your new account), we agree with you about a personal meeting at the bank.
The director of a non-resident firm (or another authorized representative of the company) normally will spend in Prague about 2-3 days in case he/she brings original documentation him/herself upon arrival. In case we receive the documents in advance, then the required period of his/her personal stay can be reduced to one day.
Trust our experience, and we will act solely in your interests!