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Crypto license in Czech Republic

Support in the issuance of Czech crypto license with a guarantee of a turnkey contract.

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Currently, there is no specific crypto license in the Czech Republic. A company must follow general authorisation procedures and obtain a trading license from the Trade Licensing Register in order to carry out crypto-related activities.

The laws of the Czech Republic on cryptocurrency explain that crypto assets in the Czech Republic have the status of "goods" and are not means of payment. Their circulation is not separately regulated, but at the same time, it is not prohibited. If crypto-assets have the characteristics of financial instruments, such as bonds or shares, they may be subject to the relevant financial legislation. In addition, any transactions involving virtual currencies must be within the scope of anti-money laundering legislation.

In April 2015, the National Bank Miroslav Singer governor registered a summary "Security of Internet Payments and Cryptocurrency". Based on this document, EU laws apply to virtual currencies in the absence of restrictions from the laws of the Czech Republic. Investors who want to open a cryptocurrency company must comply with the rules developed by the Czech authorities and comply with the provisions of the European Union directive.

The CNB (Czech National Bank) is the main supervisor of the Czech financial market. It applies loyal regulation to local banks and allows offering cryptocurrency-related services as long as AML/KYC rules are followed.

Due to favorable legislation, the Czech Republic is attractive for cryptocurrency and IT activities. The Paralelni Polis Center operates in Prague and is engaged in the development of crypto technology. And in 2018 the Czech Republic opened a specialized blockchain alliance, Blockchain Connect / Czech Alliance, whose main task is developing and implementing technology in the country.

The support and funding of such structures indicate the government's interest in the progress of innovative financial technologies and the maintenance of stability at the state level.

Types of crypto licenses in the Czech Republic

According to the type of commercial activity of your company, licenses are divided into:

Classic (exchange between virtual currencies)

Required when exchanging cryptocurrency for a fee.

An exchange between cryptocurrencies to fiat money (exchanges, exchangers)

Allows a firm to exchange digital currency for FIAT or vice versa for a fee.

Traditional (intermediation in the exchange of cryptocurrency for fiat money and one cryptocurrency for another)

When providing the exchange services of items 1 and 2

Specialized (crypto business work)

Companies introducing wallets for storing cryptocurrency, creating encrypted client keys, as well as storing them.

Service packages for registration of Czech crypto license

Choose the best package of services for obtaining a crypto activity license in Czech Republic

  • Essential

    Registration of the Virtual Asset Service Provider under the minimum regulatory requirements

    € 1900

    Initial set up

    € 0 /month

    Maintenance per month

    • Full Turnkey Company Formation
        • Step 1
          Assistance in opening start-up account for the formation of the authorized capital of 1 CZK
        • Step 2
          Drafting Articles of Association and other supplementing documents in accordance with the Client's company corporate structure
        • Step 3
          Arrangement of the deal at the notary (notary fees included)
        • Step 4
          Processing and transfer of the documents to the commercial registry with the further entry within the registry (governmental fees included)
    • Registering as VASP within the Regulator

          Submission of application and registration within Financial Analytical Unit (FAU).

          Negotiation with the regulator and full support during the entire process until the registration is accomplished.

          State Duties are included.

      • Templated draft of AML/KYC Policy

            Transferring templated drafts of AML/KYC policies to the Client.

            Templated drafts of AML/KYC policies are adapted under the Lithuanian AML legislation based, but not found in accordance with Client's business model.

            Such a set of policies will be sufficient for further registration with the Lithuanian Supervisory Authority (FCIS / FNTT), but not enough for conducting business activities, incl. successful opening of accounts in payment institutions/Banks, involvement of a competent MLRO, etc.

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      • Individual

        Exhaustive set up of company infrastructure for the start of operational activity

        € 4500

        Initial set up

        € 150 /month

        Maintenance per month

        • Full Turnkey Company Formation
            • Step 1
              Assistance in opening start-up account for the formation of the authorized capital of 1 CZK
            • Step 2
              Drafting Articles of Association and other supplementing documents in accordance with the Client's company corporate structure
            • Step 3
              Arrangement of the deal at the notary (notary fees included)
            • Step 4
              Processing and transfer of the documents to the commercial registry with the further entry within the registry (governmental fees included)
        • Registering as VASP within the Regulator

              Submission of application and registration within Financial Analytical Unit (FAU).

              Negotiation with the regulator and full support during the entire process until the registration is accomplished.

              State Duties are included.

          • Templated draft of AML/KYC Policy

                Transferring templated drafts of AML/KYC policies to the Client.

                Templated drafts of AML/KYC policies are adapted under the Lithuanian AML legislation based, but not found in accordance with Client's business model.

                Such a set of policies will be sufficient for further registration with the Lithuanian Supervisory Authority (FCIS / FNTT), but not enough for conducting business activities, incl. successful opening of accounts in payment institutions/Banks, involvement of a competent MLRO, etc.

            • Address of Registration for one year

                  Company address for one year

                  Physical mail receipt, scan and forwarding to the preferred email address

                  Organization and administration service

              • Individual AML/KYC Policy
                  • Step 1
                    The Client will be presented with a list of 30-40 questions (to identify risk appetites, the geography of the customers, nature of the business, etc.)
                  • Step 2
                    Integration of the answers into the main set of the documents (adaption of customer due diligence measures, implementations of sanctions, collecting and storing data, principles of verification, etc.)

                  *Adaptation of AML/KYC policies under the Clients business model takes from 15 to 20 hours of lawyer’s work

                  allow assigning of proper MLRO with relevant experience and education with further convenient integration of MLRO into the company structure

                  increase company sustainability in the long run

                  increase the probability of opening an operating account within Bank/EMI

                  decrease multiple questions to the company during the course of operating activity arising by the Financial Analytical Unit (FAU)

              • Handling the communication with Financial Analytical Unit (FAU)

                    Gofaizen & Sherle regular assistance in answering queries; questionnaires and targeted requests from FAU and other regulatory bodies

                    Up to 1 hour per month

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              • Full

                Corporate account for business activity + Board member/AML Officer with local residence + entire maintenance

                € 6900

                Initial set up

                € 995 /month

                Maintenance per month

                • Full Turnkey Company Formation
                    • Step 1
                      Assistance in opening start-up account for the formation of the authorized capital of 1 CZK
                    • Step 2
                      Drafting Articles of Association and other supplementing documents in accordance with the Client's company corporate structure
                    • Step 3
                      Arrangement of the deal at the notary (notary fees included)
                    • Step 4
                      Processing and transfer of the documents to the commercial registry with the further entry within the registry (governmental fees included)
                • Registering as VASP within the Regulator

                      Submission of application and registration within Financial Analytical Unit (FAU).

                      Negotiation with the regulator and full support during the entire process until the registration is accomplished.

                      State Duties are included.

                  • Templated draft of AML/KYC Policy

                        Transferring templated drafts of AML/KYC policies to the Client.

                        Templated drafts of AML/KYC policies are adapted under the Lithuanian AML legislation based, but not found in accordance with Client's business model.

                        Such a set of policies will be sufficient for further registration with the Lithuanian Supervisory Authority (FCIS / FNTT), but not enough for conducting business activities, incl. successful opening of accounts in payment institutions/Banks, involvement of a competent MLRO, etc.

                    • Address of Registration for one year

                          Company address for one year

                          Physical mail receipt, scan and forwarding to the preferred email address

                          Organization and administration service

                      • Individual AML/KYC Policy
                          • Step 1
                            The Client will be presented with a list of 30-40 questions (to identify risk appetites, the geography of the customers, nature of the business, etc.)
                          • Step 2
                            Integration of the answers into the main set of the documents (adaption of customer due diligence measures, implementations of sanctions, collecting and storing data, principles of verification, etc.)

                          *Adaptation of AML/KYC policies under the Clients business model takes from 15 to 20 hours of lawyer’s work

                          allow assigning of proper MLRO with relevant experience and education with further convenient integration of MLRO into the company structure

                          increase company sustainability in the long run

                          increase the probability of opening an operating account within Bank/EMI

                          decrease multiple questions to the company during the course of operating activity arising by the Financial Analytical Unit (FAU)

                      • Handling the communication with Financial Analytical Unit (FAU)

                            Gofaizen & Sherle regular assistance in answering queries; questionnaires and targeted requests from FAU and other regulatory bodies

                            Up to 1 hour per month

                        • Apostilled and Translated corporate documents
                            • Step 1
                              Ordering a set of corporate documents from the commercial registry (electronic form) in the Czech language
                            • Step 2
                              Conducting sworn translation to the English language
                            • Step 3
                              Apostille
                            • Registry card
                            • Articles of Association

                            * Apostilled and translated corporate documents are necessary for further onboarding within Banks, liquidity providers and establishment of business relations with third parties

                        • Assistance in opening Business account for crypto operating activity
                            • Step 1
                              Analysis of the most suitable Banks/EMIs, comparison of the risk appetite of the Bank in relation to the risk appetite of the Client based on previously prepared AML policies
                            • Step 2
                              Collection of necessary documents from the Client side to initiate the process (flow of funds, source of wealth, description of the purpose of opening an account, key partners, company website, utility bill, etc.)
                            • Step 3
                              Initiation of the onboarding procedure simultaneously in 2-3 crypto friendly EMI's
                            • Step 4
                              Guiding the Client's company through the entire process of opening an account
                            • Step 5
                              Acquiring connection (if necessary)

                            Account characteristics:

                            1. Crypto friendly EMI registered in EEA/EU
                            2. B2B SWIFT
                            3. B2B SEPA
                            4. B2C SWIFT
                            5. B2C SEPA
                            6. Multicurrency account USD/EUR/GBP
                            7. Individual IBAN number
                            8. *One-time fee for onboarding within EMI varies between 500-2000 EUR (not included into the package) and have to be paid by the applicant separately
                            9. *Inbound fiat transaction fees (SEPA/SWIFT) varies between 0.1%-0.2%
                            10. *Outbound fiat transaction fees (SEPA/SWIFT) varies between 0.1%-0.2%
                            11. *Gofaizen & Sherle can guarantee successful result of account opening within one of the EMI's in case all recommendation are followed by the Client. However, it cannot be guaranteed success within specific EMI, since the final decision is always taken by the compliance department of EMI

                            Factors that increase the likelihood of opening an account:

                            1. Presence of a physical office in the country of incorporation upon presentation of a lease agreement or utility bill during the onboarding procedure
                            2. Well-written business plan/description of business processes and financial projections
                            3. Description of cash flows
                            4. Adapted AML / KYC / CTF procedural rules for the business model, which confirm that the applicant maintain risks
                            5. Well-established infrastructure, in accordance with the type of high-risk activity (availability of a competent AML officer, employment contracts confirming the actual participation of AML officer in the project, KYT / KYC provider performing transaction scoring, etc.)
                            6. Preferably the presence of a director, a resident of the country of registration of the company
                        • Local Money Laundering Reporting Officer
                            • Step 1
                              Search for a candidate for the MLRO position that meets regulatory requirements and the expectation of the project with subsequent approval by the Client of a candidate for the role
                            • Step 2
                              Integration and training based on the principles of the Client's operating activities
                            • Step 3
                              Providing and configuring access of MLRO to the electronic state environment for further reporting on suspicious and nonstandard transactions

                            Criteria for candidate:

                            1. Bachelor's or Master’s degree in Finance; Law or Business
                            2. Involvement in the Client's project - up to 5 hours per month, with subsequent greater occupation (if necessary)
                            3. Local resident and Czech native speaker
                            4. Experience and/or regular trainings for the role of MLRO
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                      Fintech lawyers in Czech Republic
                      Mark Gofaizen

                      Mark Gofaizen

                      Senior Partner, Consultant

                      Fed Cid

                      Fed Cid

                      Associate, Consultant

                      Alternative solution
                      Ready-made company with virtual asset provider registration in the Czech Republic
                      9000€
                      Price
                      1-2 weeks
                      Duration
                      Order now

                      Sequence of results

                      Stage 1

                      Gathering documents from the client to start the process

                      Result
                      Process
                      gathering basic information from the client; providing a preliminary package of documents for further execution of the power of attorney (PoA); clarity of project scope and budgets.

                      • 1.Preliminary project analysis
                      • 2.KYC collection and business description
                      • 3.Preparation of power of attorney for client attestation
                      • 4.Collecting criminal record certificate

                      Stage 2

                      Registration of a limited liability company (s.r.o.) in the Czech Republic

                      clock2-3 weeks
                      Result
                      Process
                      The company is registered in the desired name; the registration card stating the activity "virtual currency exchange operator and virtual currency storage operator" is provided in Czech Republic.

                      • 1.Sworn translation of power of attorney and certificate of criminal records into Czech
                      • 2.Carrying out the notarial deed of company registration
                      • 3.Entry of company data into the commercial register

                      Stage 3

                      Pre-application work - 2 weeks (some steps are performed simultaneously with Stage 2)

                      clock2 weeks
                      Result
                      Process
                      All necessary project activities are completed; fully working license.

                      • 1.Development of AML/KYC policies tailored to the client company's cryptocurrency operations
                      • 2.Hiring and training an AML officer for the company and adapting their skills to the company's operations. Instructing the officer on regulatory reporting and registration
                      • 3.Filing and registration with the FAU, the financial analysis unit of the Czech Republic.

                      Stage 4

                      Opening a B2B and C2B corporate account

                      clock2-3 weeks
                      Result
                      Process
                      The company is fully operational; the corporate account is open and the organization meets the requirements of the tax authorities (accountant integrated) as well as the supervisory authority as a virtual asset service provider.

                      • 1.Complete set of notarized corporate documents (Register Card, AoA, MoA) for account opening
                      • 2.Preliminary negotiations with the payment institution and support of the client throughout the account opening process
                      Requirments
                      Advantages
                      Additional services
                      Registration as a legal entity, opening a physical office and sharing capital.
                      Documentation must be prepared by the requirements of the regulator as well as the acquiring bank where the account will be opened.
                      Provide jobs for official full-time employees and directors with experience and education in financial activities.
                      Develop a business plan, and a description of the software and hardware (with translation into Czech).
                      Draw up AML/KYC policies, risk control, and monitoring rules.
                      Submit a package of documents to the regulator.
                      Pay the state fee.
                      Owners and directors of the company must have an impeccable reputation and no criminal record.
                      At least two managers in the company.
                      Legal and transparent operations in the EU jurisdiction;
                      Attractive investment market;
                      No restrictions on working with banks in the Czech Republic;
                      Income tax - 5%;
                      No restrictions on residency status;
                      Favorable rates of service in the banking system;
                      Interference of state bodies in business is minimal
                      Insurance of deposits at the state level;
                      The stable and progressive economy of the country.
                      Financial and political stability.
                      Develop and apply internal rules for monitoring, and collecting information about all clients.
                      Identify all suspicious transactions with the transfer of information to state authorities.
                      To introduce records on financial transactions.
                      Train relevant employees.
                      Requirments
                      Opportunities
                      Additional services
                      Registration as a legal entity, opening a physical office and sharing capital.
                      Documentation must be prepared by the requirements of the regulator as well as the acquiring bank where the account will be opened.
                      Provide jobs for official full-time employees and directors with experience and education in financial activities.
                      Develop a business plan, and a description of the software and hardware (with translation into Czech).
                      Draw up AML/KYC policies, risk control, and monitoring rules.
                      Submit a package of documents to the regulator.
                      Pay the state fee.
                      Owners and directors of the company must have an impeccable reputation and no criminal record.
                      At least two managers in the company.
                      Legal and transparent operations in the EU jurisdiction;
                      Attractive investment market;
                      No restrictions on working with banks in the Czech Republic;
                      Income tax - 5%;
                      No restrictions on residency status;
                      Favorable rates of service in the banking system;
                      Interference of state bodies in business is minimal
                      Insurance of deposits at the state level;
                      The stable and progressive economy of the country.
                      Financial and political stability.
                      Develop and apply internal rules for monitoring, and collecting information about all clients.
                      Identify all suspicious transactions with the transfer of information to state authorities.
                      To introduce records on financial transactions.
                      Train relevant employees.
                      chess

                      Comprehensive and individual approach

                      Gofaizen & Sherle provides comprehensive services under one roof, allowing clients to plan and prioritize their chosen strategy in a very short time and with limited resources. We offer a wide range of services, including consulting, legal services, and company formation that focus on the optimal implementation of business strategies.

                      diamand

                      Versatile experience

                      You will receive legal and management consulting services at the highest level due to many years of experience with highly qualified specialists. Each client receives comprehensive assistance in business development and support. Every task is performed taking into account clients requests, specifics of the business, and legislation of a particular country.

                      reward

                      Long-term partnerships

                      Our company establishes trusting and long-term relationships with our customers. An indicator of Gofaizen & Sherle's high level of service is the cooperation with customers on an ongoing basis.

                      chess

                      Comprehensive and individual approach

                      Gofaizen & Sherle provides comprehensive services under one roof, allowing clients to plan and prioritize their chosen strategy in a very short time and with limited resources. We offer a wide range of services, including consulting, legal services, and company formation that focus on the optimal implementation of business strategies.

                      diamand

                      Versatile experience

                      You will receive legal and management consulting services at the highest level due to many years of experience with highly qualified specialists. Each client receives comprehensive assistance in business development and support. Every task is performed taking into account clients requests, specifics of the business, and legislation of a particular country.

                      reward

                      Long-term partnerships

                      Our company establishes trusting and long-term relationships with our customers. An indicator of Gofaizen & Sherle's high level of service is the cooperation with customers on an ongoing basis.

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                      TESTIMONIALS

                      • logo
                        quotes
                        Gofaizen & Sherle has successfully implemented all the tasks related to the settlement of legal part (company formation and VASP license application) of our exchange whitebit.com.
                        Vladimir Nosov
                        CEO
                        Whitebit
                      • logo
                        quotes
                        Payeer OÜ is grateful to Gofaizen & Sherle team for their professional personalized approach. We were presented with quick results and efficient replies. For us it was easy and pleasantly to work with the specialists of G&S and we hope for fruitful continuous cooperation.
                        Liubov S
                        CEO
                        Payeer OÜ
                      • logo
                        quotes
                        Working with Gofaizen & Sherle team was a real pleasure. Their high level of professionalism and expertise made our journey through the process of establishing and licensing of our company really easy and time efficient. G&S is a trusted partner for us in any topics related to FinTech business.
                        Edward Kost
                        CEO
                        VULTURE OÜ
                      • logo
                        quotes
                        We are very pleased with the proficiency, expertise and efficiency that the team of Gofaizen & Sherle showed while delivering our project. Their commitment and approach determine the high quality of services they provide. The competence of the legal advisors in the team of G&S made them a trusted long term partner for us.
                        Bar El
                        CEO
                        UAB GetCoins
                      • logo
                        quotes
                        Gofaizen & Sherle has proven itself as a reliable business partner and highly qualified legal advisor. Our cooperation with Gofaizen & Sherle on many projects has been professional and effective. Extensive expertise, meeting deadlines, being responsive and attentive to every issue distinguish the Gofaizen & Sherle team from other firms. We look forward to working with Gofaizen & Sherle again in the future.
                        Nikita Tepikin
                        Managing Partner
                        Legal Kornet
                      • logo
                        quotes
                        The Manimama OU team would like to thank Gofaizen & Sherle for their professionalism and the quality of the work. Gofaizen & Sherle team has provided us with clear and practical legal advice on various issues including creating of the VASPs in Baltic states and other legal advices. Gofaizen & Sherle's knowledge and expertise base are very deep and they understand the complexities and nuances of many really difficult cases. We strongly recommend their services
                        Ganna Voievodina
                        CEO
                        Manimama OÜ
                      • logo
                        quotes
                        At Pilsenga since the very beginning we counted with Gofaizen & Sherle to build our financial institution in 21 days, we started our operations in record time thanks to them, it’s been pleasant to work with them through the rush of building a Financial Institution in record time. They for real understand compliance and crypto businesses!
                        Victor Romero
                        CEO
                        UAB Pilsenga
                      • logo
                        quotes
                        Excellent service! The communication is fast and friendly, we are very satisfied with received comprehensive package of services such as legal consulting, full turnkey crypto company formation in Lithuania, assistance in bank account opening for ’’high risk” business, human resources acquisition etc. Highly recommended!
                        Roman Potemkin
                        Founder & CEO
                        TRASTRA
                      • logo
                        quotes
                        Gofaizen & Sherle are true professionals, everything related local incorporation, business management and financial licenses I know I can trust getting always 100% service, knowledge and value. Good prices and highly valuable service this what makes them as a solid partner.
                        Ben Richter
                        CEO
                        Ventures X
                      • logo
                        quotes
                        Great service and support, and very efficient communication with Maksim and the team. Our company has been successfully created with all the necessary licenses. Highly recommended.
                        Thomas Zelias
                        CEO
                        UAB TalentChain

                      Cryptolicensing in the Czech Republic

                      As a member of the EU, the Czech Republic complies with generally accepted rules against money laundering and sponsorship of terrorism. In 2018, the European Union adopted the AMLD5 rulebook and required all members of the Union to comply with the regulation of cryptocurrency exchanges and cryptocurrency wallet operators that operate in Europe.

                      However, the Czech Republic has implemented a stricter legal model than AMLD5. The Czech republic's crypto laws explained that under the new model, the Czech government controls every legal entity engaged in cryptocurrency activities. AML rules apply to everyone who provides cryptocurrency services, including buying, selling, storing, managing, and brokering. On this basis, Czech regulation of cryptocurrencies is more extensive than in other European countries. Companies that do not register crypto activities and do not obtain a crypto license in the Czech Republic will be subject to sanctions and fines.

                      According to AML/CFT regulations, virtual currencies are defined as digital units and do not fall into the category of fiat money. But despite this, it is accepted as payment for services or goods for persons who are not issuers of this unit. The FAU (Financial Analysis Unit) is one of the main regulatory bodies that oversee compliance with AML/CFT regulations. The CBN oversees compliance with other government financial regulations.

                      Any crypto company that engages in commercial activities in the Czech Republic falls under the regulation of Czech AML/CFT laws:

                      • Act No. 253/2008 Coll (Law against Money Laundering and Terrorist Financing)
                      • Decree No. 281/2008 Coll (Ordinance requiring companies to combat money laundering and sponsorship of terrorism)
                      • Act No. 40/2009 Coll (Criminal Code regulating financial criminal acts)
                      • Act No. 69/2006 Coll (Act on the Application of International Sanctions)

                      In addition, it is necessary to pay attention to the general legislation to understand the legal framework of the company's activities. The cryptocurrency laws of the Czech Republic require a crypto license in Czech republic from CBN

                      To start working you need a license, which can only be issued by the regulator - the National Bank. This license allows you to work with cryptocurrency, open client wallets, and provide storage services for non-fiat funds. To start a cryptocurrency business or ICO, you need SPI licenses, which allow you to conduct transactions with the exchange of non-fiat and fiat funds and open and maintain customer accounts.

                      A cryptologic license in the Czech Republic provides extensive opportunities for doing business in the country and other EU countries. This type of license confirms the transparency and reliability of the issuer. Due to the high level of attractiveness of the investment market and the stable economy, many companies are interested in doing business here.

                      According to the type of commercial activity of a crypto company, licenses are divided into:

                      • Classic (exchange between virtual currencies). Such licenses are required when exchanging cryptocurrency for a fee
                      • Fiat (exchanges, exchangers) allow a firm to exchange digital currency for FIAT or vice versa for a fee
                      • Traditional (intermediation in exchanging cryptocurrency for fiat money and one cryptocurrency for another)
                      • Specialized (cryptocurrency business activities). Companies introducing wallets for storing cryptocurrency, creating encrypted customer keys, as well as for storing them

                      If a company engaged in cryptocurrency activities does not have a Czech license, such a company risks being identified as "fraud", a fine of about €20,000, and being forced to cease operations.

                      Requirements for companies engaged in cryptocurrency activities in the Czech Republic

                      To obtain a crypto license in the Czech Republic, it is necessary to obtain a business registration in this country. One of the most popular business companies is LLC (Limited Liability Company) due to the low minimum capital requirements, the advantage of exemption from audit in the financial sector, and a small number of founders. If the company provides all the necessary documents, registration takes up to 3 weeks.

                      Crypto companies need to comply with generally accepted European regulatory standards, viz:

                      • Development and presentation of a realistic business plan, details of financial statements, and description of software and hardware (with translation into Czech)
                      • Registration as a legal entity and opening a physical office in the Czech Republic
                      • It is necessary to prepare documentation to the requirements of the regulator as well as the acquiring bank where the account will be opened
                      • Provide jobs for official full-time employees and directors with experience and education in financial activities
                      • Draw up AML/KYC policies, controls, and risk monitoring rules
                      • Hire an AML/KYC officer who is consistent with the company's operating model
                      • Develop a procedure for protecting personal data according to GDPR standards. Enable data exchange with the Czech government at the request of the regulator.
                      • Provide the regulator with a set of documents
                      • Pay the state fee
                      • Company owners and directors must have an impeccable reputation and no criminal record
                      • At least 2 managers in the company
                      • Develop and apply internal rules for monitoring, and collecting information about all customers and the security of their funds
                      • Identify all suspicious transactions with the transfer of information to state authorities
                      • Introduce records on financial transactions
                      • Train the relevant employees

                      In addition, pay attention to the main stages of LLC registration for cryptocurrency activity:

                      • You need to come up with and register a unique company name
                      • Obtain certificates in the absence of criminal records of all managing persons
                      • Open a legal address with a term of 1 year (minimum)
                      • Open a corporate account with a Czech bank
                      • Transfer the authorized minimum capital to CZK 1
                      • Obtain a trading license at the Czech Registry
                      • Prepare the memorandum of association and have it notarized
                      • Pay the state duty of 6000 CZK
                      • Register with the Registry of Tax Enterprises and FFA

                      Taxation of cryptocurrency companies in the Czech Republic

                      If you are planning to open a Czech cryptocurrency company, it is necessary to study cryptocurrency taxes in the Czech Republic. As in other European countries, taxation is regulated by the state tax authority. According to the generally accepted rules, the tax year must correspond to the calendar year, but the company may define the reporting year as the tax year.

                      Taxation for a crypto company may vary based on the services provided, but not from the standard regimes of other businesses, provided that the European Union government does not enact special legislation. Example: The CJEU (Court of Justice of the EU) has ruled that when paying value-added tax, cryptocurrency (such as BTC) is treated as traditional, and therefore the exchange services provided are exempt from VAT

                      Moreover, in 2007, the Czech government introduced an additional obligation for banks: cryptocurrency exchanges and other providers of virtual financial services are required to identify customers. This was aimed at the transparency of cryptocurrency and creating conditions where the use of cryptocurrency by anonymous taxpayers would be difficult for tax evasion.

                      Cryptocurrency transactions are generally not subject to VAT but can be passed on to cryptocurrency buyers if the government wants to collect tax on the transaction. This happens very rarely, mostly the buyer is exempt from paying this tax.

                      That said, crypto companies that provide different types of services and products need to get registered as VAT payers.

                      Czech companies must pay the following tax rates:

                      • Corporate Income Taxes (CIT) - 19%
                      • Taxes on profits (BT) - 19%
                      • Capital Gains Taxes (WCL) - 0% to 19%
                      • Value Added Tax (VAT) - the basic rate of 21%
                      • Social Security (SVP) - 24.8%
                      • Health insurance (SA) - 9%

                      In addition, if the company has officially employed employees, it is necessary to pay social insurance, and health insurance, and make contributions to the pension fund

                      Companies that are Czech residents are taxed based on their profits, while non-resident companies are taxed only on profits that have been earned in the Czech Republic. However, if the main office of the company will be located in the Czech Republic, this company gets the status of a resident taxpayer

                      Remember that evading any state-mandated crypto tax payments in the Czech Republic entails liability

                      Obligations for crypto companies in the Czech Republic

                      All companies that provide cryptocurrency services and have a crypto license in the Czech Republic must comply with AML/KYC policies, follow customer identification procedures, cooperate with the Czech government and report suspicious transactions to the regulator. In addition, procedures must be developed to identify and assess the risks of money laundering and sponsorship of terrorism that may be associated with cryptocurrency transactions

                      These requirements apply to any company, regardless of the type of service provided, and are subject to Czech Ministry of Finance regulations to prevent tax evasion and sponsorship of terrorism

                      In addition to the basic rules, crypto companies must comply with several strict reporting rules, following International Financial Reporting Standards (IFRS)

                      The annual statements must include a balance sheet, statement of income and expenses, statement of financial flows, and any changes in equity. Financial statements are filed with the tax return

                      A financial audit is a requirement for companies that:

                      • have a turnover above 3,000,000 EUR;euros
                      • have assets over 1,500,000 EUR;euros
                      • More than 50 employees.

                      FAQ about crypto license in the Czech Republic

                      Is cryptocurrency activity legal in the Czech Republic?

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                      Cryptocurrency activities are legal in the Czech Republic. According to a summary of the National Bank's "Security of Internet Payments and Cryptocurrencies", virtual currencies are subject to EU laws in the absence of restrictions by the laws of the Czech Republic. Investors who want to start a cryptocurrency company must comply with the rules developed by the Czech authorities, as well as the provisions of the European Union directive.

                      Do you need a license to trade cryptocurrency in the Czech Republic?

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                      If you work with cryptocurrency as your asset - you do not need a license. However, for any entrepreneurial activity and commercial use of crypto-assets, you need to get a crypto license in the Czech Republic.

                      Who can carry out crypto activities in the Czech Republic?

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                      Any person who meets all the requirements of the Czech legislation can set up a crypto company. It is not necessary to be a resident of the state.

                      Do I have to pay tax on cryptocurrency in the Czech Republic?

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                      Companies that are Czech residents are taxed based on their profits. Non-resident companies are taxed only on profits that were earned in the Czech Republic. However, if the main office of the company will be located in the Czech Republic, this company gets the status of a resident taxpayer. Income tax in the Czech Republic (BT) - 19%

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