Businessmen interested in operating on the Czech market
are allowed to change the type of the legal entity
under which they carry their operations, if this procedure is necessary or recommended at a certain moment. The legislation prescribes the framework for the procedure, which is generally applicable when the current type of legal entity
no longer fulfils the development plans of the investor.
Changing a sole proprietorship in Czech Republic
The sole proprietorship
, the simplest form of doing business in Czech Republic
, is a type of entity recommended for natural persons who want to start a small company
on their own. A sole trader
is set up by a self-employed person who is not required to submit the company’s accounts at the local authorities, as it is the case of other types of legal entities
The investor has unlimited liability
for the company’s debts
and there is no distinction between the founder and the business. The sole proprietorship
can be changed in any other business form, and in order to do so, the investor will have to close down the current entity
and re-register under a new type of company
. The registration procedure
is performed at the Commercial Court
; our team of Czech company formation agents
can offer assistance on the set of documents necessary in this situation.
Changing a limited liability company in Czech Republic
offers numerous business forms
for those who want to invest here. One of the ways to operate on the local market is through a limited liability company (LLC)
, the most common type of company
set up here.
A LLC can be changed in a corporation, a procedure which is performed through the transfer of shares from the current company to the future one. The procedure is performed under the rules of the Act No. 89/2012 Coll.