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Company Formation Czech Republic

Company Formation Czech Republic

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Shareholders of a Czech Company

Updated on Monday 14th November 2016

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Shareholders-of-a-Czech-Company.jpgThe shareholders are the persons who own shares in a Czech company. The number of shareholders a company must have, their rights, the types of shareholders and many others are prescribed in accordance with the business form of the respective company. A business entity in Czech Republic can have minority or majority shareholders, an aspect which refers to the number of shares owned in the company. The more shares the investors have, the more rights they receive related to the investment policies and decisions referring to the company. Our team of company formation representatives in Czech Republic can assist investors with more details on this matter. 

 

Shareholders of a Czech limited liability company 

 
Investors who are interested in Czech company formation can start their business operations under a limited liability company, which is the most common type of legal entity registered here. It is the most preferred type of company due to the fact that shareholders are protected under the local law, in the sense that they can become liable for the company’s debts only in respect to the amount of shares they own in the business. 
 
The statutory documents of the company prescribe the rights given to the shareholders. For example, a shareholder can sell or transfer his or her shares to another shareholder. At the same time, he or she is allowed to sell the respective shares to a third party, interesting in becoming an associate in the business. 
 
However, this decision must also be approved by the other shareholders, who will meet in a general meeting to discuss the issue. A limited liability company can have only one shareholder, but as a general rule, most of the investors interested in company formation in Czech Republic register a company with other business associates. Each shareholder should contribute to the company’s share capital with at least CZK 20,000. Our team of company formation agents in Czech Republic can offer more details on the minimum share capital
 

Shareholders of a Czech joint stock company 

 
In a Czech joint stock company, the shareholders are not liable for the company’s debts. It is important to know that the shares of a joint stock company have a specific nominal value. The share capital depends on whether the company was registered on a public offering of shares
 
Those who want to open a company in Czech Republic and participate in its share capital as minority shareholders can study the provisions of the Czech law related to this matter.  
 
Businessmen interested in finding further information on the Czech shareholders are invited to contact our team of specialists in company formation in Czech Republic
 

Comments

  • Michael 2016-11-14

    Czech Republic introduced in its national legislation the same provisions applicable within the European Union.

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