A Joint Stock Company is in practice used mainly in need of a separation of company owners - the shareholders and its management - the Board of Directors. Its popularity is due to a certain prestige in the business world and the possibility of obtaining funds from the wider public.
The process of establishing a Joint Stock Company is a quite complicated and time-consuming exercise. The establishment of a Joint-Stock Company in the Czech Republic takes on average from 1 to 3 months, depending on the number of necessary procedures and the type and complexity of the company.
If you use the services of our company, we are able to guarantee the registration of a new Joint-Stock Company in the Commercial Register within ten working days. When establishing a Joint-Stock Company you firstly need to understand at least the basic issues concerning the establishment and information that we will require from you for this purpose.
Information on the documentation required to establish a JSC
"... This is an explanation of the basic concepts and information that you need to provide in the order form .." If you have advanced knowledge on this matter, please skip this article..."
Company‘s name
Before deciding upon a name for your Joint-Stock company, you have to avoid registering a company‘s name that would be identical or interchangeable with a name which is already registered in the Commercial Register (you can check on www.justice.cz).
Registered office of the Joint-Stock Company
In the event that you choose your own address as a company‘s registered office, it is necessary to provide the consent of the property owner with the location of the office and an extract from the Land Registry not older than 3 months (these documents will be prepared by our company).
Of course there is a possibility to maintain your registered office at our address Primatorska 38, 180 00 Prague 8 for a fee from 149,- CZK per month.
Scope of business of the Joint-Stock Company
Permission to conduct business in the chosen field arises upon an announcement of the trade at the Trade Office. In the event of operating regulated / craft / licensed trades by a legal person a responsible representative is required by law.
No one can be appointed to the position of a responsible representative for acting on behalf of more than four entrepreneurs (as amended § 11 of Act 455/1991 Coll., Licensing).
- živnosti volné (free trades)
- živnosti řemeslné (skilled trades)
- živnosti vázané (restricted trades)
- živnosti koncesované (trades requiring concession)
The following documents are required from a responsible representative of a Joint Stock Company:
- Statement of a responsible representative pursuant to § 46 paragraph 2 letter g of Act 455/1991 Coll. on trade (officially certified signature)
- In case of a craft, regulated trade or a licensed trade it must be accompanied by appropriate documents proving the education and experience achieved in the field (original documents or certified copies)
Shareholders
A shareholder may be both a natural or legal person. If a shareholder is a natural person, we need to know:
- Name, surname, personal identification number (date of birth for foreigners), address of permanent residence
- Amount of shares
In the event that a partner is a Czech legal entity:
- Business name, ID, address, extract from the Commercial Register not older than 3 months
- Amount of shares
In the event that a partner is a foreign legal entity:
- An up to date extract from the Commercial Register or similar document issued by the competent authority in the country, where a company has been established. That document must clearly show who is entitled to act on behalf of the company and that the company exists. The document must also be translated into the Czech language by a legal translator (bearing an Apostille if required)
- Amount of shares
In the event that there is a sole shareholder, this always must be registered in the Commercial Register.
Shares
When establishing a Joint-Stock Company you can always select a type and form of shares. You can issue shares either registered or bearer‘s shares in a documentary or quoted form.
Statutory authority of the Joint-Stock Company - the Board of Directors
The Board of Directors of the JSC has at least 1 member. A member of the Board of Directors of the Joint-Stock Company may be any natural person. It is not required to reside in the CR, not even in case of non-EU citizens. New: Also a legal entity can be a statutory authority of the JSC.
Member of the Board of Directors of the Joint-Stock Company - citizen of the CR
- Name, surname, birth certificate number, residential address
- Extract from the Criminal record of the CR not older than 3 months
- Affidavit and signature specimen (officially certified signature)
Member of the Board of Directors of the Joint Stock Company - EU citizen
- Name, surname, birth certificate number, residential address
- Extract from the Criminal record of the country of origin not older than 3 months translated by the legal translator into the Czech language (with an Apostille if required)
- Affidavit and signature specimen (officially certified signature)
Member of the Board of Directors of the Joint-Stock Company - non-EU citizen
- Name, surname, birth certificate number, residential address
- Extract from the Criminal record both of the CR and country of origin, not older than 3 months, moreover an extract from the country of origin translated by a legal translator (with Apostille if required)
Supervisory Board of the Joint-Stock Company
The Joint-Stock Company is obliged to set up the supervisory board, which must have at least 1 member. A member of the supervisory board of the Joint-Stock Company may only be a natural person. It is not required to reside in the CR, even in the case of non-EU citizens.
Member of the Board of Directors of the Joint-Stock Company - citizen of the CR
- Name, surname, birth certificate number, residential address
- Extract from Criminal record of the CR not older than 3 months
- Affidavit and signature specimen (officially certified signature)
Member of the Supervisory Board of the Joint Stock Company - EU citizens
- Name, surname, birth certificate number, residential address
- Extract from the Criminal record of the country of origin not older than 3 months translated by the legal translator into Czech language (with an Apostille if required)
Member of the Supervisory Board of the Joint Stock Company - non-EU citizens
- Name, surname, birth certificate number, residential address
- Extract from the Criminal record both of the CR and country of origin, not older than 3 months, moreover an extract from the country of origin translated by a legal translator (with an Apostille if required)
- Affidavit and signature specimen (officially certified signature)
In the event that the Board of Directors or the Supervisory Board of the Joint-Stock Company shall elect from among themselves a Chairman or a Vice-chairman it is required to designate a particular member of the respective body and its future role.
Registration for VAT
The Company is not at the time of its sale registered as a payer of value added tax. At your request, we shall file for a voluntary registration for VAT.
Share capital
You can determine the amount of a share capital, the minimum amount of the basic capital of the Joint Stock Company is 2,000.000. CZK.
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