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Company Formation Czech Republic

Company Formation Czech Republic

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Articles

Open a Joint Stock Company in Czech Republic

Updated on Tuesday 03rd January 2017

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Open-a-Joint-Stock-Company-in-Czech-Republic.jpgForeign investors can enter the Czech market by opening a company under one of the legal entities prescribed by the local legislation. One of the business forms which can be incorporated here refers to the joint stock company, regulated by the provisions of the Business Code. Businessmen interested in company formation in Czech Republic should know that a joint stock company is characterized by a capital comprised of the allocation of a prescribed number of stocks. One of the main positive aspects of a joint stock company refers to the fact that its shareholders are not held responsible for the company’s liabilities. Our team of company formation agents in Czech Republic can provide an in-depth presentation on the incorporation requirements available in this case. 
 

Characteristics of a Czech joint stock company 

 
As mentioned above, the shareholders are not liable for the company’s debts. However, they can become liable, only in the extent of the amount they have invested in the company.
 
Those interested in company registration in Czech Republic under the form of a joint stock company will need to establish a board of directors and a supervisory board. A board of directors must have at least three members, who must provide resolutions for any other matters that do not fall under the responsibility of the supervisory board
 
When opening a joint stock company, the investors will also have to draw the statutory documents of the legal entity, which are represented in this case by the articles of association. Such documents will be signed in front of a public notary in Czech Republic. Our team of company formation consultants in Czech Republic can provide assistance when drawing the company’s statutory documents

 

Types of joint stock companies in Czech Republic 

 
When opening a company in Czech Republic under this legal entity, the investors will have to choose from two main categories: 
 
public joint stock company;
non-public joint stock company
 
The minimum share capital for this business form will be set up in accordance with the type of company chosen by the investors. A non-public company will require a capital of CZK 2 million, while in the case of a public company, the minimum share capital is established at CZK 20 million. 
 
Please contact our team of company formation representatives in Czech Republic for more information related to the registration of a joint stock company
 

Comments

  • Eric 2017-01-03

    I'd be interested in finding out more information in a future article on the public joint stock company. Thank you!

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