It depends mainly on requirements of a minimum number of founders, minimum registered capital, financial liability of members, and internal structure of the corporation.
The most common form of entrepreneurship in the Czech Republic is the limited-liability company.
The fundamental legislation governing business corporations includes:
- Business Corporations Act (Act No. 90/2012 Coll., on Commercial Companies and Cooperatives) available only in Czech.
- Civil Code (Act No. 89/2012 Coll.) available only in Czech.
- Public Registers Act (Act No. 304/2013 Coll., on public registers of legal and natural persons) available in Czech.
|Type of corporation||Czech name, abbreviation||Minimum capital requirement||Minimum required number of founders||Financial liability||Corporate management and internal structure|
|Unlimited partnership||veřejná obchodní společnost “v.o.s.”, “veř. obch. spol.” or a name of a partner + “a spol.”||CZK 0||2||Unlimited liability||No obligatory management bodies; all partners are managers as a default rule.|
|Limited partnership||komanditní společnost “k.s.”, “kom. spol.”||CZK 0||2 (at least one unlimited/general partner and at least one limited/special partner)||General partners have unlimited liability for the partnership’s obligations; special partners have limited liability to the extent of their unpaid contribution||No obligatory management bodies; all general partners are managers as a default rule.|
|Limited-liability company||společnost s ručením omezeným “s.r.o.”, “spol. s r.o.”||CZK 1||1||Partners have limited liability to the extent of their unpaid contribution||General Meeting, statutory body – one or more Directors (Executives), supervisory board (optional), others according to the partnership agreement.|
|Joint-stock company||akciová společnost “a.s.”, “akc. spol.”||CZK 2 000 000 or EUR 80 000||1||Shareholders are not personally liable for the company’s obligations||Monistic system: General Meeting, statutory body – Statutory Manager, Administrative Board Dualistic system: General Meeting, statutory body – Board of Directors, Supervisory Board, others according to the statutes|
|Cooperative||družstvo||CZK 0||3||Members are not personally liable for the cooperative’s obligations||Members meeting, statutory body – Board of Directors, Auditing Committee, others according to the statutes (small cooperative – only Members Meeting and President)|