How Can Indian Companies Operate in Europe and the Czech Republic?

For many Indian businesses, the first step in Europe is not a complex tax structure but simple, practical questions: How do we open a bank account? How do we move money from India to the Czech Republic? How do we make sure payments, salaries, and contracts are valid under European law? In this article you will find direct answers and see how ARROWS supports Indian investors with daily cross-border issues.

Business in Europe? Contact ARROWS law firm, based in Prague, Europen Union. M: office@arws.cz

How do Indian companies open a corporate bank account in the Czech Republic?

Banks in the Czech Republic require a clear set of documents: company incorporation documents, identification of directors and shareholders, and proof of business purpose. For Indian owners, the key challenge is compliance with AML (anti-money laundering) and KYC (know your customer) obligations.

The account opening process can take several weeks if the documentation is incomplete. It is also common that banks request a legal opinion confirming the legitimacy of the investment.

ARROWS regularly prepares complete KYC packages and represents clients before Czech banks, so that accounts are opened faster and without unnecessary rejections. For assistance, write to office@arws.cz.

How can money be transferred from India to Europe safely?

Indian law restricts certain outbound investments, while Czech and EU law monitors foreign transfers for tax and AML reasons. Companies must respect both jurisdictions.

• In India, transfers may require approval under the Foreign Exchange Management Act (FEMA).

• In the Czech Republic, the bank will demand clear evidence of the origin of funds.

• Improper transfers risk being frozen or delayed.

Our lawyers prepare legal documentation for fund transfers, liaise with banks on both sides, and provide opinions that confirm compliance. This prevents delays and protects the company’s reputation. Contact us at office@arws.cz if you plan a transfer.

What company forms are most practical for Indian investors?

Indian companies most often establish a limited liability company (s.r.o.). The minimum capital requirement is only CZK 1, but in practice, a higher capital increases credibility. A joint-stock company (a.s.) is suitable for larger projects or groups with multiple investors.

Incorrect choice of structure can lead to unnecessary tax burdens or inability to sign certain contracts. ARROWS provides full incorporation services, including registration, articles of association, and representation before the commercial register.

FAQ – Legal tips for incorporation

1. Can I start business with only one shareholder?
   Yes, a Czech s.r.o. can have a single shareholder. For legal setup, contact office@arws.cz.

2. Is it necessary to travel to Prague to establish a company?
   No, ARROWS can arrange incorporation through power of attorney. Write to us at office@arws.cz.

3. Can Indian directors reside outside the EU?
   Yes, but practical issues (banking, communication) may require a local representative. ARROWS provides nominee services. Contact office@arws.cz.

How are cross-border contracts and payments structured?

European partners usually expect bilingual contracts (Czech-English) to ensure enforceability in local courts. Payment terms must comply with EU directives on late payment, and transfer pricing rules apply if the Czech company is linked to its Indian parent.

Our lawyers draft and review contracts, ensuring they are enforceable in both Czech and Indian contexts. For support with contract preparation, write to office@arws.cz.

How does employment law apply to Indian staff in the Czech Republic?

Indian firms often bring key managers or engineers from India. This requires work permits and compliance with Czech labour law.

• EU regulations allow intra-company transfers, but strict deadlines apply.

• Employment contracts must follow Czech labour code.

• Social security and health insurance must be arranged locally.

Failure to comply can result in sanctions for illegal employment. ARROWS manages the entire immigration and employment process, including employee training and compliance checks.

What role does ARROWS International play?

For over a decade, ARROWS International has supported companies expanding across Europe. Indian clients benefit not only from Czech legal services but also from direct connections to partner law firms in Germany, Poland, Austria, and beyond.

Our lawyers handle litigation, contract negotiations, investment permits, and compliance projects across jurisdictions. We also connect clients with European investors and business partners, when opportunities align.

If you are an Indian company considering expansion into Europe, contact us at office@arws.cz for a tailored consultation.

FAQ – Most common legal questions from Indian companies

1. How long does it take to open a company in the Czech Republic?
   Normally 2–3 weeks. With ARROWS handling the process, it can be faster. Contact office@arws.cz.

2. What documents are required to open a bank account?
   Incorporation documents, ID of directors, shareholder structure, and a business plan. ARROWS prepares KYC packages. office@arws.cz.

3. Can profits be freely sent back to India?
   Yes, if structured under tax treaties. Incorrect transfers risk double taxation. ARROWS prepares tax opinions. Write to office@arws.cz.

4. What happens if the company does not follow AML rules?
   Banks may freeze accounts and regulators can impose fines. ARROWS drafts internal AML policies and represents clients. office@arws.cz.

5. Can ARROWS support in other areas?
   Yes. We also advise on M&A, real estate, IT, compliance, and disputes. Contact us at office@arws.cz.