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Registration of legal form of business

First of all, it is essential to choose a type of corporation that is suitable for the business plan or preferences of the founders.

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:

More information on Unlimited partnership, Limited partnership, Limited-liability company, Joint-stock company and Cooperative.

Type of corporationCzech name, abbreviationMinimum capital requirementMinimum required number of foundersFinancial liabilityCorporate management and internal structure
Unlimited partnershipveřejná obchodní společnost “v.o.s.”, “veř. obch. spol.” or a name of a partner + “a spol.”CZK 02Unlimited liabilityNo obligatory management bodies; all partners are managers as a default rule.
Limited partnershipkomanditní společnost “k.s.”, “kom. spol.”CZK 02 (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 contributionNo obligatory management bodies; all general partners are managers as a default rule.
Limited-liability companyspolečnost s ručením omezeným “s.r.o.”, “spol. s r.o.”CZK 11Partners have limited liability to the extent of their unpaid contributionGeneral Meeting, statutory body – one or more Directors (Executives), supervisory board (optional), others according to the partnership agreement.
Joint-stock companyakciová společnost “a.s.”, “akc. spol.”CZK 2 000 000 or EUR 80 0001Shareholders are not personally liable for the company’s obligationsMonistic 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
CooperativedružstvoCZK 03Members are not personally liable for the cooperative’s  obligationsMembers meeting, statutory body – Board of Directors, Auditing Committee, others according to the statutes (small cooperative – only Members Meeting and President)