Shelf Company in The Czech Republic

There are various forms to invest in The Czech Republic, but only two ways to establish a company. The first means to start the company from scratch, by providing all the required paperwork, notarize it and submit it to the relevant institutions. The second option implies purchasing a readymade or "of the shelf" company already registered in the Czech Republic. The biggest advantage of a shelf company is its immediate use.

Foreign investors who wish to buy shares of an already existing company must notify the Czech Trade Register and the takeover process may take as long as setting up a brand new company. However there are plenty of advantages, such as already established relationships with clients, a longer existence which provides trust etc. The process implies proof of existence of the buyer and the takeover company, meaning extract from the registration certificate, articles of association and the agreement of the buyer to purchase shares of the Czech Company.

The share transfer is completed before a notary and for the process the foreign investor must provide the new list of shareholders with their names and addresses, additional object of activity the name of the new director, and other relevant documents in case of any other changes.

The foreign investor needs to carry out a thorough documentation on the company acquired; ensuring no debts, claims or liabilities will be transferred after the shares of the Czech company are purchased. There is no regulation that prevents the buyer company from inheriting all the liabilities of the company from which the shares are bought.

Even though, in some cases the process of purchasing shares from a Czech company is a complex process, that requires many resources, the result may be profitable, even more so then setting up a brand new company. A shelf company however, has a clean record and no commercial transactions have ever been made. Entrepreneurs who wish to invest in The Czech Republic may do so by acquiring a shelf company suited for their business needs.

BridgeWest is able to offer VAT-registered Czech shelf companies headquartered in Czech major cities per the requirements of the clients.