Czech Republic: Types Of Company
Joint Stock Company
A Joint-Stock Company has registered share capital and is run by a Board of Directors and a Supervisory Board. Shareholders have no liability for the company’s debts. The entity must have Articles of Association and the appropriate trade licence. Details of the share capital must be recorded in the Commercial Register, which must also include:
- An extract from the criminal records of the home country of each director or member of the Supervisory Board.
- A certificate, showing the signatures of the directors.
- Confirmation of the contributions that have been made by each shareholder.
- Details of shareholders’ meetings to be held (meetings must be held at least annually).
The minimum registered share capital for a Joint-Stock Company is CZK2m, although this increases to CZK20m if share capital is via the offer of shares to the public. In addition, a reserve fund must be established – a minimum of 20% of the first year’s net profit. A minimum of 30% of the share capital must be paid up.