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- Prepare a Business Plan: Clearly define the goals of the exchange point, its target audience, products and services, and marketing strategy in a comprehensive business plan.
- Register the Company: Register the company as either a limited liability company or a joint-stock company.
- Obtain a Currency Exchange License: Acquire a license for currency exchange, i.e., providing currency services, from the Czech National Bank.
- Find a Location: Secure suitable premises.
- Purchase Equipment: Procure necessary equipment, including a card catalog of banknotes and coins in Czech and foreign currencies, a list of currency rates displayed prominently, and a point of funds issuance.
- Hire Staff: Assemble a team.
Once all the necessary steps are completed, the exchange point can commence operations.
Legal Aspects of Opening an Exchange Point in the Czech Republic
Any individual aiming to open a currency exchange point must meet specific conditions. The minimum required professional qualification is a secondary education completed with a maturity exam.
The trade licensing law also requires approval from the Czech National Bank for establishing an exchange point. This financial institution must endorse the operating conditions of such a point, including exchange equipment, a catalog of banknotes and coins, a visible list of currency rates, and a funds issuance point.
If inspections reveal no shortcomings, the applicant must submit an application for a currency exchange license. The Trade Licensing Office makes a decision on granting the business permit within 60 days.
Only a small number of exchange points are allowed to sell repurchased foreign currency to customers. To engage in this activity, an exchange bureau must apply to the CNB for a currency license to sell foreign currency after one year of operation.
Specifically, the CNB analyzes the turnover achieved over the past 12 months, expected to exceed 10 million euros. Provided that the audit reveals no defects in the exchange bureau’s records or other obligations, the CNB will grant the corresponding currency exchange license.
