A Czech joint-stock company is a company with share capital divided into shares. Consider this form if you expect to bring in investors, issue different classes of shares or establish more complex arrangements for management and oversight.
Share capital, shares and management
- Share capital. The statutory minimum is CZK 2,000,000. If the company keeps its accounts and states its share capital in euros, the minimum is EUR 80,000. Share capital represents contributions to the company. Formation fees and related costs are separate.
- Shares. Decide on the number, classes and form of the shares, the rights attached to them and any restrictions on their transfer. If there are multiple investors, agree in advance on voting rights and the decisions that require their consent.
- Governing bodies. A two-tier company has a board of directors and a supervisory board. In a one-tier company, the administrative board is the statutory body. Choose the first members of these bodies and determine how they will act on behalf of the company.
How to form an a.s. in Czechia
- Prepare the company name, Czech registered office, business activities, founders’ details and decisions on shares and governance. Provide evidence of your right to use the registered office.
- Prepare the articles of association with the notary as a notarial deed. On formation, the articles identify the contribution administrator and the first members of the elected governing bodies, among other details.
- Before filing, arrange payment of the amounts required by law. For cash contributions, this includes any issue premium and, in aggregate, at least 30% of the nominal or accounting value of the subscribed shares. Arrange any non-cash contributions and the required valuations.
- The company comes into existence on entry in the Commercial Register. Obtain the appropriate authorisation before starting a regulated activity.
What to arrange after registration
Check the Commercial Register and beneficial ownership register, set up share records appropriate to the form of the shares, and prepare the accounting and Czech data box. An a.s. must also publish prescribed information on its website. If an investor may join later, use the articles of association to define the rights of each class of shares and how major decisions will be approved.
What to tell us when requesting assistance
State the number of founders, expected capital and currency, types of contributions, business activity and planned governance structure. If you are still deciding on a legal form, compare formation of an s.r.o. and, for a cross-border group, the requirements for a European Company (SE).