Registration of SOLE PROPRIETOR

Registration of SOLE PROPRIETOR in the Czech Republic. Can I start working as an individual entrepreneur without the Unified Registration Form? However, the whole process is much more complicated, because in this case you need to register separately with the relevant authorities and the insurance company. You must register with the tax inspectorate no later than 15 days from the date of the start of individual entrepreneurial activity, or when the first remuneration is received for this activity. You must register with a health insurance company and social insurance no later than within 8 days.

Pay attention to the risks that working as a SOLE PROPRIETOR brings

In the case of doing business as an SOLE PROPRIETOR, there is a nuance that every novice entrepreneur should be aware of. You are personally responsible for losses and liabilities arising from the conduct of your business, which may also affect your family’s private property. Therefore, it is always a good idea to first consider all the risks and take measures to minimize them. Or, plan a scenario that you, as a SOLE PROPRIETOR, will stick to during the worst of times. In some industries, the risk is low. But in others – especially where big money is involved – a mistake, negligence, or missed payment of one of the fees can have serious consequences. Thus, it is ideal to write down important dates in your calendar from time to time that the SOLE PROPRIETOR cannot miss, including the deadline for filing a tax return for the previous year.

NOTE: When doing business in the form of an LLC (limited liability company), you can transfer the risk directly to the company, and be liable only in the amount of unpaid share capital. If something were to happen, creditors or those who were harmed cannot claim damages directly from you or other founders, and your personal property in this case is not endangered by the business.

Registering an SOLE PROPRIETOR in the Czech Republic: in order not to miss paying taxes and filing a report, you can always contact us. A highly professional, competent, skillful accountant is a reliable basis for a favorable and successful development of each business.