The consumer foodservice industry in the Czech Republic witnessed a strong growth in 2016. The increase of the GDP and lower unemployment lead the Czechs into spending more on leisure and food. These are strong arguments for foreign investors to set up a restaurant in Czech Republic. More details about the business legislation regulating the foodservice sector can be provided to you by our lawyers in the Czech Republic.
Things to consider when opening a restaurant in Czech Republic
The Czech Republic is renowned as a country of monuments and a major tourist destination. The famous Czech cuisine attracts large numbers of tourists every year, so setting up a restaurant in Czech Republic can be a very profitable decision. Here are some things to consider if you are interested in opening a restaurant in this country:
• You need special licenses and permits in order to run a business in the food sector. This is usually obtained from the municipality where you set up the restaurant and is necessary for selling of alcohol, tobacco and issues regarding food safety;
• Find a good location for your restaurant – you can either buy a property or rent one to meet the needs of your business;
• Hire employees – please note that the employment legislation in the Czech Republic stipulates special conditions for hiring non-EU citizens;
• Prepare the documents and sign contracts with the municipal services of water supply, gas, electricity;
• Buy technological and commercial equipment specially designed for restaurants;
• You have to regularly undergo hygiene inspections from the local authorities.
Detailed information about the legal aspects of setting up a restaurant can be offered to you by our law firm in Czech Republic.
Steps in starting a restaurant in Czech Republic
If you decided to invest in the foodservice industry and open a restaurant in Czech Republic, here is a list of the main steps to take:
• Choose the name of your restaurant and make sure it is unique – you can check this on the Ministry of Justice website;
• Notarize the articles of association and lease agreement – you must provide a valid proof that you have a suitable space to run a restaurant;
• Register with the Trade Licensing Office and obtain the business licenses for your restaurant;
• Register for tax purposes – you have 15 working days from company incorporation to register for VAT, withholding tax and payroll tax;
• Register your employees for health insurance and social security.
If you need legal assistance in preparing all the necessary documents for setting up a restaurant, don`t hesitate to contact our attorneys in Czech Republic.