"Consulting" project overview

Concise project summary Consulting

(Consulting and Representation Center, hereinafter referred to as "the center")

Project Objective

The objective of this project is to establish a platform aimed at offering support for both the initiation of new business ventures and the enhancement of existing ones within the Czech Republic and the EU. The center will assemble a team of experts to handle client inquiries and requests concerning business organization and development in the Czech Republic. Additionally, the team will identify and evaluate compelling business concepts, nurturing them into actionable projects for subsequent implementation.

The strategy involves engaging investors in project development and strategic planning, thereby integrating them into the team. This approach aims to foster mutual interest among team members and investors, encouraging them to invest their ideas, time, effort, and financial resources into the company's projects. Ultimately, this will lead to the establishment of a company with aligned interests between the team and investors.

The financial objective of the project is to recoup the initial investment, secure projected profits for shareholders, and establish a financial foundation for future growth.

Potential clients

Potential clients of the center encompass both corporate entities and individuals intending to establish a business presence (relocate their center of vital interests) in the Czech Republic and the EU. These clients may seek a business partner, managerial guidance, or one-time assistance within the Czech Republic and the EU.

Services offered to potential clients include:

      Business representation  

  1. Conducting an initial study of the EU market and the Czech Republic to explore opportunities for selling and/or purchasing the desired product or service.
  2. Arrangement and facilitation of negotiations between relevant stakeholders.
  3. Representation of the client’s interests within the Czech Republic and the EU.
  4. Holistic coordination of promotional activities for the client's products.

      Business organization

  1. Company registration/acquisition, preparation of legal documentation, and establishment of bank accounts.
  2. Arrangement of legal, tax, and accounting assistance.
  3. Establishment of financial and accounting systems for an enterprise (or group of enterprises), including financial statement consolidation.
  4. Coordination of company audits (or group of companies), including consolidated audits, conducted by certified auditors.
  5. Financial structuring of businesses and tax optimization services.
  6. Payment processing solutions for various needs.
  7. Engagement with financial statements and accounting documents to facilitate the company's readiness for borrowing.
  8. Collaboration with banks on behalf of clients, encompassing various credit products such as long-term and short-term loans, contract accounts, factoring, overdraft facilities, and handling of letters of credit. This also includes private matters like mortgages, operational and financial leases, and more.

     Logistical challenges

  1. Identifying and arranging partnerships with carriers across all modes of transportation.
  2. Implementation of managerial accounting for goods movement.
  3. Collaboration with insurance providers and freight forwarders.
  4. Coordination of warehouse logistics: including selection of warehouse space/site, procurement of warehouse equipment, and personnel recruitment.
  5. Management of customs affairs: handling customs clearance for import/export, receiving, transshipping, storing, and releasing goods from customs licensed warehouses.

     Financial management and oversight:

  1. Development and implementation of a management software program tailored for accounting, asset management, and overseeing fundamental production and financial processes within a specific enterprise (or group of enterprises).
  2. Establishment of information flow management within the enterprise following the "single information flow" principle, including the tracking of goods movement status within the information flow, time and status-regulated personnel access to information flow generation within the enterprise, and facilitating information and management communication between divisions/departments.
  3. Formulation of guidelines for commercial and financial procedures, and alignment of job descriptions.
  4. Structuring the management of enterprise assets, including online asset tracking and maintenance. Implementation of regular, systematic procedures for managing accounts receivable, facilitated by two-/three-level online reporting systems.
  5. Implementation of exchange rate difference management, encompassing both temporary and realized/commercial aspects. Facilitation of managerial adjustments for accounting currency.
  6. Software-based management of warehouse inventory, including real-time movement tracking, batch accounting, recording production numbers of goods, providing information support for warehouse personnel, automated generation of shipping documents, and facilitating two-way communication with the sales website, among other functionalities.
  7. Development and programming of decision-making tools for commercial transactions, allowing real-time control of product status, margin, profitability, accounts receivable, and calculation of reduced percentage (RP - financial potential of the transaction), among other parameters, immediately prior to execution.
  8. Identification of key management parameters for the enterprise and establishment of online control mechanisms for their monitoring.
  9. Establishing criteria for attaining set objectives and structuring enterprise reporting to align with these criteria.

    Previously developed questions:

  1. Facilitation of cross-border trade utilizing postal delivery services:
  • Coordination and negotiations with European postal operators.
  • Arranging and overseeing negotiations with marketplace operators
  • Web service programming,
  • Management of fulfillment and/or dropshipping operations, including Cash on Delivery (COD) services.
  • Integration of three systems (marketplace, mail accounting program, and enterprise program) with the web service for seamless coordination.
  • Discussions with the bank regarding the organization of Cash on Delivery (COD) services
  • Collaboration with customs authorities for oral declarations and monitoring declaration closure
  • Automated closure of receivables generated from postal deliveries utilizing the Cash on Delivery (COD) report.

    Miscellaneous questions:

  1. Implementation of comprehensive IT support:
  • office equipment management: including selection, procurement, and configuration.
  • internal network setup, software installation, and internal communication systems.
  • video surveillance system implementation, among other solutions.
  1. Facilitation of additional tasks upon client request.

Employees. Partners

The team will be formed from experienced professionals with experience in their respective fields. A serious advantage of this team is joint participation in a commercial project, the consolidated annual turnover of which exceeded 500 million USD.

Specialized services such as audit, accounting, IT services, legal assistance, etc., will be furnished through service agreements (outsourcing) with companies boasting extensive experience and a successful track record in the Czech services market. These contracts can be directly secured with clients, while we will handle communication aspects with specialized companies, including participating in negotiations on behalf of our partner/client, gathering and processing information, offering comprehensive contract support, facilitating feedback, and more.

Tax advantages in the Czech business environment include

From a tax perspective, the Czech Republic presents an exceptionally enticing environment for arranging the movement and transshipment of goods.

The VAT Law permits the offsetting of input VAT obligations on imported goods against the entitlement to a VAT refund from the state budget within the same tax period. For importers, this translates to non-payment of VAT on imports. Consequently, goods are considered to be in free circulation, with VAT obligations only arising upon their sale. As a result, the warehouse operates under the "customs licensed warehouse" mode. When goods are sold outside the Czech Republic to a VAT-registered entity or outside the EU with a customs declaration, the sale is executed with a 0% VAT rate.

We possess expertise in delivering goods from Dubai and Hong Kong, with transshipment in Prague and subsequent delivery to the Baltic states. The purpose of transshipment in Prague is to circumvent VAT payment on imports and the subsequent refund demands from the budget. Consequently, VAT is not paid upon importation into the Czech Republic, and the goods are subsequently dispatched to another EU country to the VAT payer with a 0% VAT rate.

If required, we can facilitate VAT registration and administration in other EU countries, enabling us to supply goods to prospective buyers in compliance with the internal VAT administration regulations of the respective country. For instance, if potential buyers are situated in Germany, our company will import goods into the Czech Republic and store them in a warehouse. At the client's instruction, we will then transfer the goods to the jurisdiction of a German financial authority and sell them to a German buyer on behalf of a German VAT payer. This option frequently proves pivotal for clients when determining their purchase decisions.

For the supply of certain goods within the Czech Republic, the rule of transferring the obligation to pay VAT from the seller to the buyer (režim přenesení daňové povinností) is applicable. This enables residents of the Czech Republic who are VAT payers, both buyers and sellers, to market goods within the Czech Republic with a 0% VAT rate.

Deliveries of goods throughout Europe within a distance of 600 – 800 km are typically conducted by road transport, owing to its speed and convenience. Within this radius with Prague as the central point, major cities such as Berlin, Vienna, Budapest, Dresden, Munich, Nuremberg, etc., are easily accessible.

Financial side of the project

Expenses:

Financial backing for the project will comprise both initial investments and recurring expenses.

The initial investment will primarily cover office essentials such as furniture and equipment.

Ongoing expenses will encompass personnel costs for company specialists (salaries, social and medical insurance), as well as payments for specialized services (audit, accounting, IT services, legal, etc.) as per established service agreements.

It's worth noting that the quantitative and professional makeup of the team will adjust according to the optimal requirements for addressing assigned tasks. Payment for specialized company services is based on an hourly rate, reflecting the actual extent of services rendered.

Revenue:

Payment for the center's services will be made on the basis of contracts for the provision of consulting services to clients. The invoicing base is hourly or piecework.

The formation of an hourly rate and piecework payment will be based on the complexity and volume of the tasks assigned.