Bank accounts in Czech Republic

The Czech Republic is a jurisdiction that has proven itself to be reliable and stable. As a result, over the last ten years, people in business worldwide have chosen the Czech Republic to start and do business, including conducting transactions through Czech banks. This choice is entirely justified, given the following advantages of the local banking system.

Advantages of opening a Czech bank account

Opening a bank account in the Czech Republic is potentially advantageous due:

• stable banking system;
• low lending rates;
• ease of operation, including foreign currency;
• having an account in a Czech bank adds prestige to the company.

Other benefits may also be available depending on the bank and type of business. Prifinance lawyers will be happy to advise you in more detail on the issue and select the suitable bank options for your business case.

Procedure for opening Czech foreign bank account

If you plan to open a bank account in the Czech Republic, special attention should be paid to confirming the reality and legality of doing business. Among other things, you will need to pay attention to confirmation of residence/accounts in the country, availability of an office, hiring employees, and other issues of doing business.

Legal entities open an account with a bank after providing documents confirming the registration status of such a legal entity, its location, details of managers, shareholders, and beneficiaries, as well as other documents under the internal policy of the selected bank. In addition, the legal entity must also provide data on the types of activities and confirm the legitimacy of the origin of funds.

Individuals submit their domestic and foreign passports and other documents as required by the bank's internal policy. In the case of a natural person, it will also be necessary to confirm the legitimacy of the origin of funds and provide information about the activities of such a natural person.

Documents submitted for review must be properly executed, with an apostille or consular legalization stamped. Though there are exceptions, documents must be submitted in person - some banks also open accounts remotely.

The final decision on opening a bank account is at the bank's discretion. Banks are interested in opening accounts for non-residents, so you should not fear an unreasonable refusal. Nevertheless, many factors increase the likelihood of opening an account in the Czech Republic:

• Proof of economic ties with the Czech Republic (e.g., business partners or clients);
• Clear and understandable business model, including business goals and a list of activities;
• Presence of residents of the Czech Republic in the business (founder, director);
• The existence of a permanent office in the Czech Republic, full-time employees, a permanent company website through which activities are carried out;
• The existence of a license to carry out regulated activities.

Each business case should be considered individually, considering the peculiarities and requirements of a particular Czech bank. Prifinance lawyers will be happy to advise you more on the matter.

How Prifinance lawyers can help

If you plan to open a Czech foreign bank account. Prifinance lawyers will be happy to accompany you on the possible nuances of the procedure, including:

• searching and selecting the most appropriate options for opening a bank account;
• collecting and preparing the required information and documents following the policy of the selected bank;
• negotiating with bank officials as well as representatives of local authorities;
• provision legal support to resolve any issues that may arise in conducting transactions after opening an account with a foreign bank in the Czech Republic.

Provide input for individualized suggestions and advice on your issue.