The commercial legislation available in Czech Republic
offers numerous types of legal entities
which can be set up by foreign investors. Businessmen who want to open a company in Czech Republic should know that they can also incorporate a partnership
, which provides two main sub-categories: the general partnership
and the limited partnership
. There are several differences between the two legal entities
, on which our team of company formation agents in Czech Republic
may offer more details.
General partnership in Czech Republic
According to the applicable legislation in Czech Republic, a general partnership is a type of legal entity in which minimum two partners become associates. It is necessary that the associates in a general partnership to be natural persons.
Investors interested in the procedure of company formation in Czech Republic
under the form of a general partnership
should have a joint name for the respective business. At the same time, in terms of liability, it is necessary to know that the businessmen are equally liable for the company’s debts
, which is calculated taken into account their contribution to the company’s share capital
Limited partnership in Czech Republic
Another way to establish a partnership in Czech Republic
is through a limited partnership
. Investors who want to start the procedure of company registration in Czech Republic
under this legal entity
will need to respect different regulations than those available in the case of a general partnership
In a limited partnership, more partners can associate in the business, but one of them must have general liability for the company’s debts, including with his or her personal property.
The other partners are liable only to the extent to which they have contributed to the business’ capital. They are also obliged to provide information on their contributions by registering it with the Commercial Register in Czech Republic.