Joint ventures in Czech Republic
can be set up by both local and foreign investors. The legislation established by the local authorities applies in the same manner for both kinds of investors, which refers to the types of joint ventures
which can be established here, the taxation system and many other regulations. Our team of company incorporation representatives in Czech Republic
can assist foreign businessmen with more details about creating a Czech joint venture
, as well as on the main advantages the investors can have.
Types of joint ventures available in Czech Republic
A joint venture in Czech Republic is established by at least two parties who decide to form a business alliance in which those involved will pool their assets, in order to reach a common business goal. In Czech Republic, the investors can set up contractual or corporate joint ventures.
A corporate joint venture
is registered following the regulations applicable for commercial companies
, as it is necessary to choose a legal entity
to represent the newly formed entity
. Thus, the investors can open a company in Czech Republic
or, as a second option, they can purchase shares
in an already incorporated (and active) business
At the same time, the investors may also sign a shareholders’ agreement, a document which will provide regulations on the rights and obligations of the parties entering a joint venture, who will become shareholders of the entity.
Joint ventures in Czech Republic – legal entities
Businessmen who are interested in Czech company formation may opt for one of the following legal entities when registering a joint venture:
• joint stock company;
• unlimited partnership;
• limited partnership;
• European company.
When choosing one of the above mentioned, the investors should take into account the main purpose for which the joint venture is incorporated, its economic prospects, the number of associates and many others.