Czech Republic officially recognises the following types of business entities, you can find more details here. For more information about doing business in the Czech Republic, please visit Businessinfo.cz.

 

Limited Liability Company (s.r.o.)

SRO’s are the most common company type established in the Czech Republic. Like in many countries, partners in an SRO are liable for the company’s obligations only up to the capital they originally contributed to the company. In the Czech Republic, SROs are required to start with a minimum registered capital of CZK 1. In the Czech Republic, SRO can be created rapidly and inexpensively with a minimum of 1 stockholder and 1 director.

 

Joint Stock Company (a.s.)

A founding contract, including the company’s statutes, and an issue of shares establishes an AS. Shares can be freely traded without registration in the Czech Republic’s Commercial Register, which makes it attractive if you plan to make your company publicly traded. A Joint Stock Company must have a minimum capital stock of CZK 2 million. At least 30% of that amount must be paid at the time of incorporation.

 

General Commercial Partnership (v.o.s)

In a VOS, two parties trade under a joint name, and are equally obligated to and liable for the company, up to the amount of their individual contributions. Partners are liable with all of the property they hold, and the company is liable for all the property it holds.

 

Limited Partnership (k.s.)

A limited partnership is one of the types of business in the Czech Republic that general as well as limited partners. In a limited partnership, the general partners are fully responsible for the monetary debts and responsibilities associated with the firm. The general partner is in charge of running the business in such types of companies in the Czech Republic. Limited partners have restricted liability and as such, they are only responsible for the value of funds they have contributed to the partnership, as specified in the articles of association of the firm.

 

Cooperative (Družstvo)

 

A cooperative, often known as a “družstvo,” is a business that is held and operated by the individuals who consume its commodities and services. The cooperative’s main commercial objective is the societal or economical well-being of its participants, who are not individually accountable for the debts as well as liabilities of the enterprise. There isn’t any capital necessity for establishing a cooperative, however, it must possess adequate funds to operate. Such types of companies in the Czech Republic must consist of three individuals as a minimum before they may be founded.

 

Sole proprietorship

One of the easiest types of companies in the Czech Republic is referred to as a sole proprietorship. Such types of business in the Czech Republic are controlled and managed by a sole person and can be established quickly and easily. In this kind of company entity, a single person operates their own firm on a self-employed basis. There isn’t any legal distinction between the company’s financial resources and those of the proprietor in these types of Czech companies. As such, the firm proprietor is entirely and solely accountable for all financial debts and responsibilities of the firms.

 

Branch Office

A branch office isn’t technically a Czech business; just a representative of your foreign business in the Czech Republic. Branch offices have a pretty hefty set of restrictions, and must list all their planned activities on their Commercial Register application. The company must also appoint an office head who is either a Czech resident of a foreigner with a long-term Czech residency permit.

 

Representative Office

A representative office can be established in the Czech Republic by international corporations. A Representative office is only permitted to carry out market research or advertise the products and services of its holding organization. Such types of business in the Czech Republic are not permitted to go on trade or enter into agreements.