Is setting up a joint stock company (a.s.) from scratch the right move for me?
Benefits
- Set-up is cheaper than buying a ready-made joint stock company.
- The joint stock company is written directly in your name upon foundation (there is no change of name, registered office, etc.).
Disadvantages
- The whole process of setting up a joint stock company takes about a week, from first meeting to entry in the Commercial Register.
- You have to pay the registered capital yourself (the minimum amount is CZK 2,000,000).
- Setting up a joint stock company will take up more of your time – one meeting is required to buy a ready-made joint stock company, setting one up yourself will take longer.
What is the procedure involved in setting up a joint stock company from scratch?
Contact us and tell us how you want your joint stock company to look.
- You can find everything you need to think about before setting up a joint stock company here.
- Or you can use our non-binding online form.
We will contact you right away and agree on the details of setting up the joint stock company with you.
- You can even set up a company from the comfort of your own home (by e-mail and post). All you have to do in person is go to the bank and pay the registered capital of your company.
Preparation of documents and subsequent handover of the documents you have signed
- We will prepare the documents required for you to set up a joint stock company and send them to you by e-mail.
- You sign them (authenticated signatures required) and return them to us, either in person or by post.
- We will then arrange a notarial deed and set up a trade for you at the trade licence office.
- Your task in the meantime is to pay the registered capital into any bank in the Czech Republic.
Payment for setting up a joint stock company is made in cash when handing over documents.
- If the sale goes through “remotely", payment is made by bank transfer into our account.
We will deal with entry in the Commercial Register.
- As soon as your trade has been set up (within around 3 days) and you have paid the registered capital (it is up to you how quickly this happens), we will arrange for the joint stock company to be entered in the Commercial Register (within around 5 days).
- The joint stock company can also be entered in the Commercial Register immediately for a surcharge (see here – link).
Registering a company with the competent tax authority
- A new company must be registered for income tax within 30 days of its entry in the Commercial Register and we will do this for you based on power of attorney.
What to think about before setting up a joint stock company from scratch
The name of the joint stock company
- The name of your joint stock company may not resemble any other name already registered in the Commercial Register and must differ in at least two characters – you can check names here (link).
- Our notary will enter the joint stock company in the Commercial Register. You can therefore check with him/her in advance whether your name will be entered or not (evaluation is no longer a matter for court officials, as was previously the case).
The registered office of the joint stock company
- Each joint stock company must have a specific address entered in the Commercial Register as its registered office.
- You may have your own registered office, or we can provide you with one (our choice of registered offices – link).
The trade of the joint stock company
- You must consider the area of activity that your joint stock company will engage in.
- There is no need to prove any qualification in order to carry out an unqualified trade (What is an unqualified trade? – link here).
- A responsible representative who is able to prove his/her qualification (study certificate, experience in the field, etc.) must be in place in order to carry out a professional or permit-requiring trade.
The governing bodies of the joint stock company
- A natural person or a legal person may be a governing body.
- It might be one and the same person as a shareholder, although this is not a requirement.
- If you wish to have more than one governing body in the joint stock company, you will need to specify how they act (independently or collectively, with any restrictions).
- There are two structures of bodies to choose from for a joint stock company:
- a monistic structure – here there is a managing director and a member of the board (both functions may be held by one and the same person);
- a dualistic structure - here there is a member of the board of directors and a member of the supervisory board (one and the same person may not hold both functions – a minimum of two persons is required).
- We are able to provide you with a governing body (see nominee services – link here).
The shareholder in the joint stock company
- A natural person or a legal person (Czech or foreign) may be a shareholder.
- If you want more than one shareholder in the joint stock company, the stakes which they each own in the joint stock company must be determined.
Shares in the joint stock company
- A joint stock company may only issue registered shares (bearer shares no longer exist).
- You can choose the number of shares yourself.
The registered capital of the joint stock company
- The minimum size of the registered capital is set at CZK 2,000,000 by law.
- When you set up a joint stock company from scratch, you pay the registered capital yourself – you open an account at any bank in the Czech Republic in which to deposit the registered capital, pay the relevant amount into that account and the bank will issue you with confirmation that the funds in question are in the account. The bank releases the money after the joint stock company has been entered in the Commercial Register.
