Czech Republic: Types Of Company
Limited Liability Company
As with a Joint-Stock Company, a Limited Liability Company exists as a separate entity from its shareholders, who in turn have no liability for the company’s debts. An Executive is responsible for the management of the company, and the company may also have a Supervisory Board. Details of shareholders’ contributions must be recorded in the Commercial Register. The law requires that there must be a minimum of 50 shareholders. The Commercial Register must also show details of the Supervisory Board (where relevant) and the amount of registered capital per shareholder. A Limited Liability Company must operate with the initials “s.r.o.” or “spol. s.r.o”. A minimum of CZK200,000 in registered capital is required, with a minimum of CZK20,000 per shareholder.
As with a Joint-Stock Company, an extract from criminal records of the home country of each person serving on the executive must be supplied. A trade licence must be obtained from the Trade Licence Office and the Memorandum of Association must be made available.