THE TASK
The challenge
The client was a prop trading company founded by a team from Turkey. The product was already developed and operational: paid trading challenges, funded accounts, and profit distribution under a profit-sharing model. The company attracted traders from around the world, but collected revenue through an offshore structure and a fragmented set of payment solutions.
The business had reached an infrastructure barrier rather than a product problem. Payment providers and acquiring institutions increasingly rejected the offshore company or imposed rolling reserves and higher chargeback risk requirements. Opening a stable settlement account for accepting challenge fees from international traders was difficult: banks saw the combination of an offshore structure, trading activity, and links to Turkey, and rejected applications at the compliance stage. The Turkish lira and foreign exchange restrictions added further uncertainty to settlements with traders and contractors.
At the same time, trust among traders was declining. For a prop trading firm, the reputation of the jurisdiction is part of the product. A trader paying a challenge fee expects to see a clear European structure behind the business rather than an anonymous offshore company.
The client did not simply need another company. It needed a recognised EU structure, access to banking and payment services, and compliant accounting.
Key Requirements
- register a prop trading company in the Czech Republic (s.r.o.) with the correct scope of business activities for the challenge and funded model
- open a corporate bank account and an EMI account for accepting challenge payments from traders worldwide
- obtain a recognised EU structure to replace the offshore company and increase trust among traders and payment providers
- deliver the entire project on a turnkey basis: company registration, accounts, trader agreements, and accounting, with one responsible partner
- complete the entire setup remotely, without the founders travelling from Turkey to the Czech Republic
Our Approach to Structuring a Prop Trading Business in the Czech Republic
One of the main challenges for prop trading companies is opening a bank or payment account. Without one, they cannot accept challenge fees or make payments to traders. Applications are often rejected because the registered business activities do not match the actual model, or the corporate structure does not meet bank and payment provider compliance expectations.
AMS addresses this from the registration stage by structuring the company and its activities clearly, transparently, and in a way that banks, payment institutions, regulators, and counterparties can understand.
Business Model Review and Structuring
At the start of the project, we analysed the client’s business model, including trading challenges, funded accounts, profit sharing, and payment acceptance, with cryptocurrency also available as a payment method. We verified that the company would trade using its own capital and that its activities would not fall within regulated investment services under MiFID II or under the supervision of the Czech National Bank, Česká národní banka, or ČNB.
Based on this analysis, we determined the optimal s.r.o. structure, selected the appropriate business activities under the Czech general trade licence, known as volná živnost, defined the roles of the shareholder and managing director, and prepared a project roadmap with clear deadlines and responsibilities.
Remote Company Registration in the Czech Republic
We registered the Czech s.r.o. within seven business days from receipt of the required documents. The entire process was completed remotely under a power of attorney, without requiring the founders to travel from Turkey.
We arranged a registered, or virtual, business address in the Czech Republic and registered a broad scope of business activities covering challenge services, educational services, and related business operations. This gave the company sufficient flexibility for future development.
The company was then registered for tax purposes and received a Czech tax identification number, DIČ. We also handled VAT registration to support the company’s work with international counterparties.
Bank Account and EMI Account
We prepared the account opening in parallel with the registration, assembling the compliance package in advance — corporate structure, business model, source of funds, and chargeback policy. As soon as the company entered the Commercial Register, we submitted the applications, avoiding delays at the verification stage.
The company opened a corporate bank account for operating expenses and taxes, as well as an EMI account for accepting challenge fees from traders worldwide.
Trader Agreements and Accounting Support
We prepared the full set of internal documents in English and Czech: the challenge participation agreement, funded account agreement, general trading terms, educational services agreement, and policies covering GDPR, funds flow, and content rights. The English documents were intended for international traders, while the Czech versions were adapted to local requirements.
After launch, AMS continued to support the company with Czech bookkeeping, annual financial statements, corporate tax returns, VAT reporting, and legislative monitoring.
RESULT
Prop Trading Company in the Czech Republic with Bank and EMI Accounts
Within one project, the client received a registered Czech s.r.o., a corporate bank account, an EMI account, trader agreements in two languages, and ongoing accounting support. Challenge payment acceptance was no longer disrupted by bank rejections. The European structure successfully passed compliance checks in cases where the former offshore company had previously been declined.
AMS continues to manage the company’s accounting, taxation, and corporate changes.
CLIENT FEEDBACK:
Before AMS, we kept running into the same problems. Because our company was based offshore, banks kept refusing to open an account, payment providers delayed transactions, and traders had to wait.
AMS set up a new company for us in the Czech Republic, helped us open the accounts, and prepared all the documents within one project. Everything was handled remotely. Once we launched, trader payments started coming through without the previous delays, and that was a huge relief.
