//
you're reading...
Czech law, Uncategorized

Media company in the Czech Republic – steps to follow to establish company (business)  in the Czech Republic

The following text responds to the frequent question of readers that would like to start business in the Czech Republic in various area of media law. The procedure is however applicable to all types of industry.

One can run a business as a natural person or set up a legal entity in one of prescribed legal form. The most common is limited liability company and joint-stock company. With the new civil code and especially with the new Act No. 90/2012 Coll. on commercial companies and cooperatives, the procedure is due to the reduced required costs – 1 CZK more simple. Also, if the foreign company do not want to set up Czech company, it may establish a branch office registered in the Czech.

What to do to establish Limited liability company (LLC in UK Ltd)?

Two main Acts:

Act No. 90/2012 Coll. on commercial companies and cooperatives (Zákon o obchodních korporacích) Spec. § 132 – 241

Act No. 455/1991 Coll., on The Trade Licensing (Živnostenský úřad)

And Act. No. 304/2013 Coll., on Public registers

There are two stages to complete the process – to found the company and to establish it – this is a formal requirement and comes with the date when the company is registered into the registrar.

  • To found the company one needs:
  1. Create company name (must be unique and not against public morals)
  2. Choose the seat of the company
  3. Get criminal record statement for Executive Director
  4. Honest statement of Executive Director not being in bankruptcy (insolvency) or in 3 previous years
  5. Confirmation of bank that the capital contribution was paid – according to the law 1 CZK is enough, recommended is however at least 1.000 CZK
  6. Notarize the Partnership Agreement (The social contract or Articles of Association) if there are more founders or Founding Charter in case of one founder – must be made by public notary. The Act states legal requirement what the Agreement/Charter has to contain:
    1. the name of the company,
    2. the subject of business or operations,
    3. determination of shareholders the name and residence,
    4. determine the types of shares each shareholder and the rights and obligations associated with them, allows the creation of the social contract of different types of shares
    5. the amount of the deposit or deposits per share or shares,
    6. the amount of capital and
    7. the number of directors and how they act in society
  7. Get the consent of the owner of the premises to have a seat there
  8. Obtain a trade license from Trade License office according to the seat

To establish company one needs:

  1.  Fill the application for entry in the Commercial Register (Regional Court according to the seat – in Prague Municipal Court)) available on justice.cz and send it or use the services of public notary. All above documents must be send together.
  2. After that there is a duty to register by Tax office, Social Security Administration and Insurance Office  if the company has employees

 

Costs:

5 – 10.000 CZK notarial record of Partnership Agreement/Founding Charter

1.000 CZK Trade License Fee

6.000 CZK Court fee for application to Business Register

1 CZK or more for capital contribution

Other costs and fees are minor – 200 CZK for verification of documents or signatures

 

Duration of the process: 3 weeks

 

Useful websites:

www.justice.cz (Czech ministry of justice)

http://www.praha1.cz/cps/odbory-a-oddeleni-odbor-zivnostensky.html (Trade office Prague 1)

http://www.czechpoint.cz/web/ (verification offices)

http://www.financnisprava.cz/ (Tax office)

For more information see Attorney website www.ondrejova.cz

 

 

Advertisements

About ondrejovae

Czech Attorney/Barrister located in Prague with specialization in media law and protection of personal rights

Discussion

No comments yet.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

Enter your email address to follow this blog and receive notifications of new posts by email.

Barrister

Dear readers and followers, I would like to make an announcement that I have opened my own legal office. The website of the office is www.ondrejova.cz

SHORT NEWS

Ferdinand Peroutka granddaughter has filed a defamation claim against the Czech state because of President Miloš Zeman’s public defamatory statements about Czech most famous journalist who was during the WWII held in concentration camp and in 1951 emigrated due to communistic regime.

Ringier AG and AXEL SPRINGER AG sold the main and the most successful publishing house in the Czech rep. (the tabloid newspaper BLESK, AHA, REFLEX) to CNC.

Rheinisch-Bergische Verlagsgesellschaft sold one of the main serious publishing house in the Czech rep.

Upcoming posts

The Czech Image rights

The case law in 2015

Upcoming Events

No upcoming events

%d bloggers like this: