In the Czech Republic, the joint-stock company is the second most common form of business corporations. A joint-stock company is a company whose registered capital is apportioned among a certain number of shares and is usually recommended for large businesses. One of the biggest advantages of the joint-stock company is its possibility of accumulating a wide number of shareholders so it can gather a high capital for great projects with no personal liability of shareholders for the company’s obligations and the possibility of listing the company on the stock exchange.
Sited at the crossroads of Europe, the Czech Republic is a country of rich cultural and historical heritage and also inspiring natural beauty. Its economic performance has ensured its successful entry into the European Union and established it as an important economic player in the increasingly globalized world. The prospects of having a business in the Czech Republic is high and the country is very much appealing as a location for a new business, the reasons are obvious, it is located in the center of Europe where it enjoys a solid economy with a rich and stable infrastructure as well as a brimming talent pool which provides easy access to labor. To state this in clear terms, the country affords you the opportunity of access to a large option of best hands with a relatively low average monthly salary for Czech employees, minimal living expenses and a low business tax rate.in addition to all these mouth-watering opportunities, the Czech government also offers significant tax breaks for companies who will strengthen strategic service outside the country’s urban center in Prague.
To set up a joint stock company in the Czech Republic, the requirements are not overly burdensome- a founding contract which is the article of association, which will include the company’s statutes and an issue of shares which establishes the Joint Stock Company. Your shares can be traded without registration in the Czech Republic’s Commercial Register, which is an attractive package if you plan to make your company publicly traded. It is given as a requirement in the Czech Republic for joint stock companies to have a minimum capital stock of CZK 2 million, and at least, 30% of that amount must be paid at the time of incorporation.
The characteristics of a joint stock company include a minimum number if stakeholder which can be one legal or natural person and can take an unlimited number of stakeholders, it has an unlimited number of contribution and its scope is for the business, although it can be set up for other purposes. Its internal structure system comprises both the monastic system and the dualistic system. The monistic system consists of a general meeting and a statutory body made up of a statutory manager and an administrative board. It is also made up of a dualistic system which is made up of a board of directors, supervisory board and others according to statutes.
Reading through this article, you should have found the hidden treasures embedded in setting up your joint stock company in the Czech Republic and I hope you exploit it.