There are two types of companies most used in the Czech Republic.
  » Limited Liability Company
  » Joint Stock Company

In addition to the two types of companies available there are several alternate business forms available:
  » Branch Office
  » General Partnership
  » Limited Partnership
  » Co-operative

» Limited Liability Company

The Limited Liability Company is the most common form of company in the Czech Republic. It offers simpler administration than a Joint Stock Company and one person can be both the sole owner and executive.

Registered Capital
Minimum CZK200 000. Must be fully paid if only one member, otherwise a minimum of 30% and CZK100 000 must be paid on registration.

Members
Minimum 1. Maximum 50. Minimum capital per member CZK20,000. Can be individuals or legal entities, either Czech or foreign.

Management
Company managed by one or more Executive (in Czech “Jednatel”). Must be a natural person and can be either a Czech citizen or foreign national.

Registered Office
A physical delivery address in the Czech Republic is required. PO Boxes are not allowed. Permission from the owner of the building is required.

Trade Licenses
Not required for holding assets such as real estate. All allowed business activities must be specified in the statutes of the company. A trade license is required for each business activity the company will be performing.

» Joint Stock Company

The Joint Stock Company is more suitable for larger businesses or where numerous shareholders are involved. There is no public record of ownership where there is more than one shareholder, and bearer shares can be issued which can simplify ownership changes and provide a layer of privacy. Creditors may feel more comfortable providing financing to a joint stock company due to the higher paid-up capital and stricter management controls.

Registered Capital
Minimum CZK2 000 000. A minimum of 30% must be paid on registration for monetary contributions and 100% of all non monetary contributions.

Shares
Shareholders can be Czech or foreign national individuals or legal entities. Shares can be either bearer shares or registered shares.

Management
Company managed by one or more Director if there is a single shareholder. If there is more than one shareholder then at the company requires at least 3 Directors. Directors must be a natural person and can be either a Czech citizen or a foreign national.

Supervisory Board
Minimum of 3 members to the supervisory board required. These cannot be the same as the directors. Members of the supervisory board must be natural persons and can either be a Czech citizen or a foreign national.

Registered Office
A physical delivery address in the Czech Republic is required. PO Boxes are not allowed. Permission from the owner of the building is required.

Trade Licenses
Not required for holding assets such as real estate. All allowed business activities must be specified in the statutes of the company. A trade license is required for each business activity the company will be performing.

» Branch Office

A branch office allows a foreign company to register to do business in the Czech Republic without creating a separate legal entity. The laws of the country where the company is incorporated continue to govern the internal dealings of the company. Similar to registering a company, the branch office must specify its intended business activities. The branch office must have a director appointed to head the branch. This person can be either a Czech person or a foreign national.

» General Partnership

In a general partnership more than one party (individuals or legal entities) trades together under a trading name. All parties are liable for all of the debts of the partnership.

» Limited Partnership

In a limited partnership one or more partners (individuals or legal entities) liability is limited to the amount of their paid and unpaid contributions. The amount of the contributions both paid and unpaid must be recorded in the Commercial Register. These partners are known as limited partners. One or more partners (individuals or legal entities) are known as general partners and are liable for the partnerships obligations with all their assets.

» Co-operative

A co-operative must have at least 5 members and the registered equity must be a minimum of CZK50,000. Members are generally not liable for the liabilities of the co-operative unless its statutes state otherwise. Each member regardless of the amount of capital contributed has one vote. Transfer of memberships is easy and does not require a notarial deed as with a limited liability company. Co-operatives are often used to administer residential property for its members.