Types of Czech Companies

a) Czech Limited Liability Company (Spole?nost s ru?ením omezeným)

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. For a limited liability company to function it must have a minimum registered capital of 200.000 CZK (Czech Republic Koruna, currency of the Republic of Czech). It can be founded by at least one natural member, or legal entity, and a maximum of 50 members. The minimum capital per member has to reach 20.000 CZK.

b) Czech Joint Stock Company (Akciová spole?nost)

The Joint Stock Company is more suitable for larger businesses and a larger number of shareholders. This type of company  offers certain advantages regarding financing of a joint stock company due to the higher paid-up capital and stricter management controls. The minimum required capital is 2.000.000 CZK, and a minimum of 30% must be paid on registration for monetary contributions and 100% of non monetary contributions. The shareholders can be Czech, foreigners, natural or legal entities.

c) Czech General partnership (Partnerství generální)

In a general partnership, more than one party, individuals or legal entities, function under a trading name. All parties are liable for all of the debts of the partnership to the extent of their contribution or investment. The partnership functions on the basis of a previously signed agreement. The purpose is a business at a larger scale.

d) Czech Limited Partnership (Komanditní spole?nost)

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. The general partners can make management decisions and have the right to decide the future of the company. The limited partnership also functions on the basis of a signed agreement.