The s.r.o., also known as limited liability company, is the legal form which is most used by our customers.
It is actually a simple structure, fast in its setting-up and streamlined in its management.
In order to set-up an s.r.o., it is not necessary to be resident in Czech Republic, nor to be a citizen in order to be its administrator or one of its shareholders.
The Notarial Act in public form is required, for the certificate of incorporation, just where the founding partner is a single person; in all other cases, the registered company’s contract is sufficient.
Starting from 1.1.2014 a minimum share capital of just 1 Czech Koruna is requested (equal to 5 euro cents or a little less), even if it’s not advisable to set-up an s.r.o. with such a small capital.
The court in fact, during the certification and registration phase of the company in the registrar of companies may refuse its registration. (We suggest our customers to provide their companies with a minimum capital of 1,000 Czech Korunas). The founding partner can hold 100% of the shares of the s.r.o. company and be at the same time its administrator.
Always according to the law the administrator should have never be convicted (nor in the Czech Republic nor elsewhere) for financial crimes of, such as simple or fraudulent bankruptcy, fraud and embezzlement. For this reason during registration phase at the court and during the application for licenses for his/her business, he/she must show the certificate from the judicial record of the last country of residence of the administrator or of the of the Country of Citizenship of the administrator.
We again have to warn you about the fact that the founding partner cannot be the sole shareholder on more than three s.r.o. at the same time.
The s.r.o. does not require the role of auditor unless its turnover exceeds 80 million of Czech Korunas per annum or its assets exceeds 100 million of Czech Korunas.
The shares of an s.r.o may be hold by a foreign person in whole or in part.