Setting up a new business in the Czech republic

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Setting up a new businessin the Czech republic
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Content of this lecture

• Overview of types of business in CR
• Bureaucratic hurdles
• Comparison with Portugal and the UK

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Content of this lecture

• Overview of types of business in CR
• Bureaucratic hurdles
• Comparison with Portugal and the UK

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Types of business

• Limited liability company
• Branch of a foreign company
• Joint-stock company
• Partnerships

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Types of business

• Limited liability company
• Branch of a foreign company
• Joint-stock company
• Partnerships

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Limited liability companySpolecnost s rucením
omezeným (s.r.o.)

• A company owned by up to 50 shareholders
• No shares issued, but details entered in
  Commercial Register
• Liability of individual shareholders protected
  from debts of company
• Headed by at least one Executive
• Starting capital CZK 200,000 (approx. 8,000)
• Must be licensed to trade in a particular
  activity

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Types of business

• Limited liability company
• Branch of a foreign company
• Joint-stock company
• Partnerships

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Branch of a foreign companyOrganiyacní sloka
(o.s.)

• Not recognised as a separate company
• Headed by the Branch manager
• Must register in the commercial register

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Types of business

• Limited liability company
• Branch of a foreign company
• Joint-stock company
• Partnerships

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Joint-stock companyAkciová spolecnost (a.s.)

• Issues share certificates to its owners
• Headed by the Board of directors under
  supervision from the Supervisory body
• 1/3rd Supervisory board elected by workers (if
  more than 50)
• Start-up capital CZK 2 million (approx. 80,000)
  Must be licensed to trade

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Joint-stock companyAkciová spolecnost (a.s.)

• Issues share certificates to its owners
• Headed by the Board of directors under
  supervision from the Supervisory body
• 1/3rd Supervisory board elected by workers (if
  more than 50)
• Start-up capital CZK 2 million (approx. 80,000)
  or CZK 20 million (800,000)
• Must be licensed to trade

If shares offered publically
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Types of business

• Limited liability company
• Branch of a foreign company
• Joint-stock company
• Partnerships

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Partnerships

• In general
• A group of people working together under the same
  name.
• Three types
• General partnership (Verejná obchodní spolecnost)
• Limited partnership (Komanditní spolecnost)
• Silent partnership (Tiché spolecnostvi)

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Content of this lecture

• Overview of types of business in CR
• Bureaucratic hurdles
• Comparison with Portugal and the UK

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Bureaucracy

• Commercial code
• Stock exchange
• Trade licenses
• Commercial register

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Content of this lecture

• Overview of types of business in CR
• Bureaucratic hurdles
• Comparison with Portugal and the UK

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Thank you!

• Details are on my website
• http//www.richardinprague.eu