The Czech Commercial Code
has been modified in 2012 and it became effective from 1st of January 2014. The Czech Parliament
also modified the Civil Code
and the Commercial Companies and Cooperatives Act
. Foreign investors interested in opening a company in Czech Republic
should know the stipulations applicable to businesses set up here. Our Czech lawyers
can provide you with a detailed presentation of the Commercial Code provisions
Reserve fund and power of attorney in the Czech Commercial Code
The new legislation has changed the way in which a lawyer can act on behalf of a client; as such, a lawyer who needs a special form to represent his or her client, such as the notarial form applicable in the case of amendments to the Articles of Association, will have to receive the power of attorney through a notarial form. The notarial form will have to be issued only by a Czech notary.
Changes to the Czech limited liability companies
The new Commercial Code
brought significant changes to the statute of the limited liability companies
. The Czech Corporations Act
is now stating that the minimum capital of a limited liability company (LLC)
set up in Czech Republic
is of CZK 1, compared to the stipulations of the previous legislation, which required a minimum capital of CZK 200.000.
The new Corporations Act states a new provision for the ownership interest of the company, in the sense that a company will be permitted having more than one type of ownership interest.
The new legislation provides new regulations for the general meeting of a company. According to this, at a general meeting, all the proposed decisions to be discussed by the management will have to be listed. If they are not listed and they may appear in the general meeting discussions, they will be taken into consideration only if all the shareholders agree upon to present this topic; it is mandatory that all the shareholders to be present at the general meeting.
Decisions taken outside the general meeting are allowed under the provisions of the Memorandum of Articles as long as they are provided in a written form.
If you need further information on the new Czech Commercial Code
, please contact our Czech law firm
for assistance in this matter.