4. LEGAL FORMS OF BUSINESS
IN THE CZECH REPUBLIC
LEGAL FORMS OF BUSINESS
• Sole proprietor
• Business companies
- Capital
- Limited liability company
- Joint stock company
- Personal
- General partnership
- Limited partnership
- Silent partnership
- Association
• Cooperatives
• Valid trade licence or other permission
• Unlimited liability
• No capital required
• 1-50 people can establish it
• Minimum registered capital CZK 200,000
– each member at least CZK 20,000
• Legal entity
• Registered with the Commercial Register
• Company bodies
– shareholders´meeting, supervisory board, executives body
• Memorandum of Associatioz
– rights and obligations of members
• Individuals or legal entity can set up the company
• Minimum registered capital of CZK 2 mil.
• Legal entity
• Memorandum and the Articles of Association
• Registered with the Commercial Register
• Bodies:
– general meeting of shareholders
– supervisory board
– board of directors as the statutory body
• Two or more individuals or legal entities
• Legal entity
• Partnership Agreement
– rights and obligations
• Registered with the Commercial Register
• Statutory body: each partner
LIMITED PARTNERSHIP
• At least one general partner and one or more limited
partners
• Minimum contribution of limited partner: CZK 5,000
• Legal entity
• Partnership agreement
• Registered with the Commmercial Register
• Statutory body – each general partner
SILENT PARTNERSHIP
• = investment for profit
• Established by written contract
• An individual or legal entity can set it up
• Limited liability
ASSOCIATION
• Two or more individuals or legal entities
• It is not a legal entity
• Profits and losses are shared equally
COOPERATIVES
• Five individuals or two legal entities
• Registered capital at least CZK 5,000
• Articles of Association
• Registered with the Commercial Register
• Legal entity