There are quite a few countries in Europe that regulate the crypto industry and require organizations to obtain a special permit to operate. However, many people prefer the Czech crypto license. Today, we want to discuss this country’s advantages and why many firms like this jurisdiction.
The fastest procedure for receiving permission
Most European countries screen all applicants carefully, which often takes a long time. So, in the UK, it takes about 6 months, and in the Czech Republic, you can do it in just 2–3 weeks (you will need another 1–2 weeks to get the organization up and running).
You can quickly obtain a work permit only if the organization meets all the requirements of government agencies and the papers are drawn up correctly. If an officer notices problems, they may submit a formal request to correct the error, which can significantly delay the time to obtain a permit.
Opens the EU market
By receiving permission in this jurisdiction, people can work throughout the EU. It provides enormous opportunities for developing the business because many crypto enthusiasts live here.
No local office or employee requirements
Most European jurisdictions require applicants to have a local office of employees. According to the rules, such an organization must have an office where a security specialist with citizenship of the selected country will work and who will be responsible for cooperation with local regulatory authorities. It makes doing business from abroad quite tricky and involves additional costs for office maintenance.
There are no such requirements in Czechia. Here, you can conduct business entirely from abroad. It makes this very attractive for foreign investment.
No complex owner verification
Most European countries have stringent requirements for owners and people who occupy key positions. So, they ask for complete information about education, previous places of work, reviews, and much more. They want to ensure that people in leadership positions have impeccable reputations and are not involved in fraud or money laundering. At the same time, Czechia asks for papers confirming your identity and a certificate of good conduct.
Minimum requirements for authorized capital
Lithuania’s minimum authorized capital is $125 thousand, which is unsuitable for small companies and startups. Moreover, in the Czech Republic, the minimum amount of authorized money depends on the number of shareholders – 1 Czech crown per shareholder.
This country has a straightforward and logical tax system. All organizations must pay 19% of income. It is worth saying that tax conditions greatly depend on the organization’s activities, so you should contact a local accountant who specializes in similar issues.
It is also worth saying that storing and executing transactions using crypto is not subject to taxes. For comparison, when paying for goods and services using crypto in Poland, you must pay a VAT of 15%.
Disadvantages of this jurisdiction
Like any other jurisdiction, obtaining a permit here also has several disadvantages. Firstly, there are as many as 4 crypto permissions, each suitable for a different type of activity. However, several projects do not fall under any permit and, therefore, cannot be approved in this jurisdiction.
Secondly, there is quite complex legislation regulating this industry, which means it is challenging to understand all the features without the help of specialized specialists.
Thirdly, only some crypto enthusiasts live here, which means that working only in this jurisdiction will make it more difficult for you to find new clients. But this shortcoming is easily compensated for by the European market.
The main stages of receiving permission
To get permission here, you need to follow a few simple steps:
- Collection of papers;
- Registration of an organization in this jurisdiction;
- Getting permission;
- Open corporate accounts.
Another advantage of this jurisdiction is that you do not need to open a bank account. You can store your assets in EMI institutions. In addition, after starting the organization’s work, you must register with the tax service. You can now legally work in the EU. Going through this entire process alone is tough, so you should seek help from specialized lawyers.