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Company Formation Czech Republic

Company Formation Czech Republic

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Articles

How to Purchase Shares in a Czech Company

Updated on Tuesday 16th August 2016

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How-to-Purchase-Shares-in-a-Czech-Company.jpgThe process of purchasing shares in a Czech company refers to the transfer of ownership, a procedure which is available here for both local and foreign investors. Businessmen can purchase shares in Czech Republic, following a specific procedure, applicable under the local legislation. Our team of Czech company incorporation representatives can offer assistance to those who want to acquire shares in Czech Republic
 

Transfer of shares in a Czech company  

 
The selling process of the shares owned by a shareholder in a Czech company means a transfer of ownership, as well as a change in the statutory documents of the legal entity (by updating the shareholder’s situation). 
 
The parties involved in the transfer of shares have to sign a notarial deed in front of a public notary in Czech Republic. The document will contain the consent of the parties related to the purchase of shares
 
The documents signed between the parties will be further on submitted to the Commercial Register, whose representatives will approve the new structure of the company’s shares; our team of Czech company incorporation agents can offer more details on this matter. 

 

Taxation on the transfer of shares in Czech Republic 

 
The transfer of shares (selling/buying) is imposed with a tax, which can differ in accordance with the tax residency of the selling company. In the case of the European Union’s sellers (including Czech Republic) and those registered in Iceland and Norway, the tax on gains does not apply. In the situation in which these sellers are purchasing shares in a Czech subsidiary, the gains on the selling of shares is exempt from taxation. 
 
However, it is important to know that the exemption no longer applies if the respective companies are not subjected to corporate income tax
 
The ownership on shares can also be transferred to other shareholders, associated in the same company. The Corporations Act states that the transfer of ownership interest can be performed with the approval of the general meeting. 
 
Businessmen interested in receiving further details on the purchase of shares in Czech company can address to our team of company formation consultants in Czech Republic
 

Comments

  • Dana 2016-08-16

    Hello! I want to purchase shares in a company in Czech Republic. I'd want to proceed to this action no later than the end of the year.

    Hello, you may send us your request via e-mail at office@czech-lawyers.com and one of our specialists will answer you. 

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