Establish a Joint Venture in Czech Republic
Establish a Joint Venture in Czech RepublicUpdated on Tuesday 28th March 2017
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A joint venture in Czech Republic represents a type of association in which more investors bring together their assets in order to accomplish a specific business goal that can refer to the creation of an infrastructure project or a similar business purpose. Joint ventures in Czech Republic can be set up under several legal entities, which are liable for the debts incurred during the life span of the respective business. Our team of lawyers in Czech Republic can offer legal assistance on the procedures related to the incorporation of a joint venture.
Types of joint ventures in Czech Republic
Businessmen who want to open a company in Czech Republic as a joint venture may choose from two main types of structures:
• corporate joint ventures;
• contractual joint ventures.
A contractual joint venture (JV) is established through an agreement between the parties, which are not required to establish a legal entity to carry out their business activities. In Czech Republic, most of the JVs are set up as corporate JV, which will necessitate registering a new business form.
The corporate JV may be also set up through the acquisition of shares in a company that has already been incorporated in the Czech Republic. It is important to know that a corporate JV will need to respect the regulations applicable under the Czech corporate legislation, on which our team of attorneys in Czech Republic may provide an in-depth presentation.
Legal entities for Czech JVs
In the case of a corporate Czech joint venture, the businessmen will have the following options related to the legal entity of the business:
• limited liability company (which is the most common business form registered in Czech Republic);
• unlimited partnership;
• limited partnership;
• European company.
In order to register a Czech joint venture, it is necessary to have at least two associates. As a general rule, one of the business partners must be a Czech resident.
Businessmen can find further information on the registration requirements from our law firm in Czech Republic, that can also provide legal assistance during the incorporation procedures.