Enterprise Forms by Law
The text contains important information about enterprise forms by laws in the Czech Republic. These include a branch, joint-stock company, limited liability company, partnership and others.
- Branch
- Joint-Stock Company
- Limited Liability Company
- Partnership (limited partnership and unlimited partnership)
- Other Types of Business Entities - cooperative, silent partnership, unincorporated association and sole proprietor (entrepreneur)
From the forms listed above, only a joint-stock company, a limited liability company, a limited partnership, an unlimited partnership and a cooperative are considered to be legal entities by Czech law.
There is no limit on the level of foreign participation in a Czech legal entity. Foreigners can establish both joint ventures and wholly owned subsidiaries in the Czech Republic.
All of the above legal entities as well as branches and foreign non-EU or non-EEA sole proprietors are required to be registered in the Commercial Register. Special approval is needed to carry on certain activities not governed by the general trade licensing regime. The affected industries include, among others, certain financial institutions (such as banks, securities dealers, insurance companies, investment funds, investment companies/mutual funds, and pension funds), telecommunications, utilities, pharmaceuticals, broadcasting, gambling, and employment mediation (recruitment, executive search, etc).
