Company types in the Czech Republic

Company types in the Czech Republic
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The most common forms of business in the Czech Republic are Limited Liability Company and Joint Stock Company.

General company types in the Czech Republic

Other alternative business forms are general partnership and branch office.

  • Limited Liability Company. Such company can be formed of one to fifty members. One person can be both the sole owner and executive. The Limited Liability Company does not have a board of directors. Each of the contributors has the right to make decisions independently. The minimum registered capital is CZK 200,000. In case of a sole owner, it must be fully paid. A minimum of 30% must be paid on registration. Each member must contribute at least CZK 20,000.
  • Joint Stock Company. Shareholders of a joint stock company are only liable up to the amount of their investment. The company is not bound to a particular founder, so the shares may be sold easily. Joint stock companies must have both a board of directors and a supervisory board. The board of directors is the company’s statutory body. It must have at least 3 members. Your joint stock company may also require statutory audits. They are mandatory if your balance sheet exceeds CZK 40 million, the net turnover exceeds CZK 80 million, or the number of employees exceeds 50. The minimum registered capital is CZK 2 million for a non-public company and CZK 20 million for a public company. A minimum of 30% must be paid on registration for monetary contributions.
  • General Commercial Partnership. It is a business form in which all partners are liable with all their property. The management has to be formed by at least two persons. The advantage of a general partnership is that you do not need the initial investment.
  • Branch office. It is not a Czech legal entity but a commercial representation of its foreign parent. It is an entity legally dependent on its head office. Its establishment and the entry into the Commercial Register are regulated by the Czech laws.

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