Everything You Need To Know About The Process Of Obtaining A Crypto License In The Czech Republic

The crypto world is developing at a tremendous speed, leading to the emergence of many large companies and small startups that operate in this industry. If you work in Europe and want to function legally, you should get a work permit, but which jurisdiction should you choose?

Today we want to tell you more about Czech Republic crypto license – the types of work permits, the requirements for applicants, how long it takes, and the main steps to go through. This information will be helpful to you.

Benefits of this jurisdiction

Unfortunately, many European countries have complex bureaucracies and set complex requirements for crypto organizations. The licensing process takes a long time, and small companies with little capital cannot obtain a work permit. At the same time, the Czech Republic is an excellent choice for both a large corporation and a small startup. Among the main advantages of this jurisdiction are the following:

• There are no complex requirements for the authorized capital (the size of this must be at least 1 kroon per 1 shareholder);
• No requirements for a local employee;
• No unnecessary bureaucracy;
• Fast work permit process.

There is no license in the form we are used to. Here you need to pass a simple check and register in the registry. It gives you the right to work legally in this country and throughout the EU.

If you decide to operate in the territory of this jurisdiction without a work permit, you must be prepared to be recognized as a fraudster; you will be forced to pay a large fine (more than 20 thousand euros) and close. In the future, obtaining a work permit in any other jurisdiction will be extremely difficult because reputation is crucial.

Work Permit Types

This jurisdiction has no single license for all types of crypto activities. Here you will be offered a choice of one of the licenses, which depends on the type of your activity:

• Classic. It gives the right to exchange crypto for a fee;
• Fiat. You can exchange crypto for fiat and vice versa, charging fees;
• Traditional. It is the most popular type, combining the previous 2; it allows you to conduct crypto and fiat exchange transactions.
• Specialized. It is used if companies offer exceptional crypto services, including crypto wallets.

If you are still determining which license type is right for you, you can seek help from Gofaizen Sherle lawyers. They will study the activities of your company and give their recommendations. They will also check how your organization meets the requirements of government regulators and help you complete all the documents.

How is the licensing process going?

First, you need to register your company in this jurisdiction. Most organizations prefer such a form of business as a Limited Liability Company. Registering a company takes about three weeks if all documents are in order. Your organization must meet the following requirements:

• Well-thought-out business plan;
• Has an office in that jurisdiction;
• Compliance with KYC/AML requirements;
• There is a detailed description of all software that you plan to use;
• Ensuring high-quality protection of clients’ data and their finances.

To open a company, you need to follow a few simple steps:

1. Check if your company name is unique;
2. Get a police clearance certificate;
3. Rent an office for at least 1 year;
4. Open a bank account and put the authorized capital here;
5. Submit an application for registration in the register of crypto organizations;
6. Pay the state fee;
7. Register your company with the tax office.

If you prepare all the documents in advance, obtaining a work permit takes approximately 2-3 months. The state fee here is tiny – only 6 thousand kroons (about 240 euros), which is very popular with small firms.

You can open an account with any bank operating in this jurisdiction’s territory. Not all banks are ready to open an account for a crypto organization, as they consider this business too risky. So, you need to prepare documents to prove that your organization can work stably.

Reporting Requirements

After you receive a work permit, you must submit a report on your activities to regulatory government agencies once a year. The report must contain complete information about the financial transactions company, the number of employees, and the services you provide.

You must also undergo an annual audit if you own a large company. It includes companies that meet two of the three criteria:

• The average number of employees over 50;
• Financial turnover exceeds 80 million kroons;
• Total assets exceed more than 40 million kroons.

We recommend getting a local accounting firm to ensure you file your tax return on time and pay all dues.

Additional:

• Why Is Cryptocurrency Growing In Popularity?
• How to Stay Away from Cryptocurrency Scams
• Your Ultimate Guide to Digital Wallet for Cryptocurrency