Business is a broad term that covers any commercial activities such as manufacturing, buying or selling. All companies running a business are required to have one of the legal forms as set out in the Commercial Code:

Capital companies can take on the form of either a Limited Liability Company or a Joint-Stock Company, while personal companies exist as a General Partnership, Limited Partnership, or Silent Partnership. In addition, there are some other forms such as Sole Proprietor or Cooperatives.

Sole Proprietor is the simplest form of organisation. One person owns and runs their business. They can employ other people but only the proprietor is responsible for all the debts should the business be unsuccessful, that is they have unlimited liability. To start their business, they need to possess a valid trade licence or other permission but no capital is required by the law.

Limited Liability Company is an organisation of 1 to 50 people with a minimum registered capital of CZK 200,000 where each member is required to contribute CZK 20,000. It is a legal entity in which all rights and obligations are stated in the Memorandum of Association. The company has to be registered with the Commercial Register. The company bodies are as follows: shareholders´ meeting, the Supervisory Board, and Executives are the statutory body.

Joint-Stock Company can be established by an individual or a legal entity with a minimum capital of CZK 2 million. All rights and obligations are stated in the Memorandum and the Articles of Association. The company is required to be registered with the Commercial Register. The main bodies are: the General Meeting of shareholders, the Supervisory Board and the Board of Directors as the statutory body.

General Partnership (Unlimited Partnership) is a legal entity with unlimited liability. Two or more individuals or legal entities can set up the company. The company is required to be registered with the Commercial Register. Each partner is a statutory body of this company.

Limited partnership is a company consisting of at least one general partner with unlimited liability and one or more limited partners with limited liability. The minimum contribution of limited partners is CZK 5,000. The company is required to be registered with the Commercial Register.

Silent Partnership is established by written contract. It can be an individual or legal entity with limited liability.

Cooperatives are companies consisting of 5 individuals or 2 legal entities with a registered capital of at least CZK 5,000. It is a legal entity registered with the Commercial Register. Cooperatives are mostly established as production or consumers´ ones.