A limited liability company is known in the Czech Republic as a "Spolecnost S Rucenim Omezenim" – commonly referred to as an "s.r.o".
Some key points of an s.r.o. include:
- Does not issue shares
- Basic capital is starting from 1 CZK up to 200,000 CZK
- Corporate governance is simpler than a joint-stock company
- A Board of Directors is not required
- The statutory body is made up of one or more Executive Directors
An s.r.o. established solely for the purpose of owning real estate is unique in the following aspects:
- It does not require a business license.
- As it will not be a trading company, the risk of accruing liabilities is minimized for the Executive.
- The registered address can become the property that is being purchased and hence there is no need to pay for a "registered address".
An s.r.o. established solely for the purpose of operating a business is unique in the following aspects:
- Requires the appropriate business licenses in order to trade.
- The business will also require a registered address. We can provide this if required for a minimal fee (10,000 CZK per year).