The joint stock company is one of the most prevalent types of businesses that are started in the Czech Republic, and they are started by both Czechs and people from other countries. You will discover a guide to registering a joint stock company at the commercial registry of the country in the following paragraphs of this text.
Central Europe is home to this nation, which shares its borders with Poland, Germany, Austria, and Slovakia. Prague is not only the largest city in the country but also the capital, and it is a popular tourist destination across Europe.
The registration of a joint stock company is one of the legal and affordable ways to obtain a residence permit.
Types of Joint-stock companies (JSC)
When deciding whether or not to establish a JSC, it is essential to keep in mind that you will be obliged to pick one of the following two options:
- Public
- Non-public
The minimum amount of share capital that the firm must have should be appropriate for the type of business that the investors have decided to form. The minimum required capital for a private company is 2 million Czech crowns (CZK), whereas the minimum required capital for a public corporation is 20 million Czech crowns (CZK).
Advantages of JSC
- The prestige of the company
- It is easier to increase the scale of the company
- Joint stock firms can run banks, funds, insurance agencies, etc
- JSC is the country’s most reliable corporate form
- Shareholders are not personally accountable for the company’s debts
Internal structure
Either a dualistic or monistic system may exist within the underlying structure. The administration of the dualistic system was structured so that it relied on both the management board and the supervisory board. The monistic system functions on an administrative board and a statutory manager, either of which may also perform the duties of an administrative board.
Features of JSC
- The lowest number of shareholders is 1 natural or legal person
- The highest number of shareholders is unlimited
- The minimum registered capital for the company is £80,000
- 30% of subscribed shares and premiums are contributed at the business’s start-up
- Statutes set the deadline for repaying the contribution as the company’s commercial registration application
- The shareowners are not liable for the company’s obligations
- The scope of joint ventures is founded for business and other purposes
- The founding document of the joint ventures is the Articles of Association
Formation of JSC
To create a JSC, there must be at least one founder listed on the Article of Association, and the notarial deed must be signed by the founder of the company before it can be submitted to a Czech notary (s). The cost of hiring a notary is capped at CZK 16,000 (about £580) but can go as high as that figure depending on how much capital is being recorded.
The information included in the Article of Association must contain basic details about the establishment such as the trade name, registered address, the amount of registered capital, details of business activities and operation, number of shares, and their nominal value, specification of shares, the company’s registered shares owners and bearer, amount of the registered capital, transferability of the shares, the total number of votes attached to the company and estimation of costs related to the establishment of the company.
The business name must be unique and not taken from another company in the commercial register, the founder should consider the name and check the website www.justice.cz.
