Open a Joint Stock Company in Czech Republic
Open a Joint Stock Company in Czech RepublicUpdated on Monday 06th March 2017
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A joint stock company in Czech Republic is a suitable type of legal entity for the investors who are interested in having limited responsibility for the company’s debts. Its incorporation is based on a specific share capital divided into stocks and the manner in which it is registered and administered falls under the regulations of the Business Code. Our team of lawyers in Czech Republic can offer legal advice on the incorporation of a joint stock company, its share capital and many other relevant aspects.
Czech joint stock company
A joint stock company in Czech Republic is incorporated by establishing the statutory documents of the legal entity, which in this case is represented by the articles of association. The investors of a joint stock company (A.S.) have the quality of shareholders within the business, they are liable only in respect to their investment in the company and our team of attorneys in Czech Republic can provide in-depth information on the regulations related to the shareholders of an A.S.
The articles of association of a joint stock company in Czech Republic must specify regulations on the relations between the shareholders and the company’s directors.
In a Czech A.S., the legal requirements stipulate that it is necessary to establish a board of directors and a supervisory board, each incorporating different types of rights on the company’s management decisions.
It is also necessary to perform statutory audits, which are compulsory in the following situations:
• the balance sheet exceeds the amount of CZK 40 million;
• the company’s turnovers are above CZK 80 million;
• the company has more than 50 employees.
Company’s minimum share capital in Czech Republic
The joint stock company in Czech Republic must have a minimum share capital. The capital is established in accordance with the type of A.S. the investors prefer to register.
In Czech Republic, businessmen can start a private joint stock company or a public company.
The share capital for the first type of entity is established at CZK 2 million, while in the case of the latter business form, the investors will need to deposit CZK 20 million.
Please contact our law firm in Czech Republic for legal advice on the registration of a joint stock company.