Ways of taking over a business
The most typical options are acquisition of a business share in a limited liability company, acquisition of stock or other participation securities in a joint stock company and/or actual take over of a specific part of business of a company without acquiring an interest in it, by a contract for transfer of a business without changing the corporate structure.
Foreign nationals may also own shares in the Czech legal entities having the same rights and obligations as Czech nationals.
There are several types of takeover for business owners wishing to own part of another limited liability company, joint-stock company or acquiring an interest in it by means of a business transfer contract.
- Transferring a business share in a limited liability company. This is the most common way of acquiring a share in a company. The current partner transfers his/her business share to another partner and/or a person outside of the company by means of a contract on the transfer of a business share.
- Acquiring participation in a joint stock This is based on a contract on the transfer of stockor other participatory securities. Unlike a business share – where the partner is always entered into the Commercial Register – the company here can remain anonymous.
- Transformation of a company. Business transformations are complex operations from both a legal and an organizational standpoint. For this reason, experienced professionals must be called upon. The legal aspects of business transformations are set out in Act on the transformation of companies and Changes to the structure of a company will often require an amendment to the company’s deed of establishment. These amendments can be performed only by a notary.