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GLOBAL INFO

Czech Republic

COUNTRY:

CZECH REPUBLIC

QUESTION:

ANSWER:

1.      What are the main company forms in your country?

Partnership (“v.o.s”); Limited Partnership (“k.s.”);

Limited Liability Company (“s.r.o.”); Private Company limited by shares (“a.s.”).

2.      Which is the most preferred company form by foreign investors?

Limited Liability Company (“s.r.o.”)

3.      What are the basic capital requirements of this company? (minimum amounts, types of capital, deadline of capital contribution)

The basic capital of the Limited Liability Company must be at least CZK 1.

The capital contribution can be paid in cash or in kind (e.g. transfer of business assets to the company).

Capital contribution must be paid up within 5 years; at least 30% of the basic capital must be paid before the company is established.

4.      What are the basic rules of shareholders liability for company debts in this company?

Shareholders of the s.r.o. must pay their contribution in cash or in kind to the company. If they have complied with this requirement, they will only be liable for the debts of the company in exceptional circumstances.

5.      What are the basic management requirements for this company? (only natural persons, or nationals can be managers etc.)

Natural persons as well as legal persons can be managers of the company.

A clean criminal record is essential.

There is no nationality requirement for managers.

6.      How long does the registration procedure of this company take?

The direct procedure (a notary registers the company in the Commercial Register) takes approx. 3-10 business days.

The normal procedure takes approx. 10-15 business days.

7.      What are the main costs of formation of this company in local currency?

Direct procedure: CZK 2700 court fee + 2x notary fee: CZK 6000 for a notary deed and CZK 2000 for a direct entry into the Commercial Register).

Normal procedure: CZK 6000 court fee + notary fee: CZK 6000 for a notary deed.

The notary fee could be higher if the registered capital of the company is to exceed CZK 200.000.

8.      What is the average attorney’s fee of the formation of this company in local currency?

CZK 8000 – 16000 depending on complexity.

9.      What are the basic publicity requirements of this company (filing of company changes, financial reports, etc.)

The company must file its financial report, which is a public document, with the tax authority and the Commercial Register on a yearly basis.

Company formation and every change must be published in the Commercial Register.

10.   What are the main auditor requirements?

Companies are required to appoint an auditor if two of the following conditions are met:

-        the annual turnover exceeds CZK 80 million;

-        total assets exceed CZK 40 million;

-        the average number of employees by the company exceeds 50 people.