Foreign 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.