There are five basic business entities:
– Limited Liability Company
– Joint Stock Company
– Limited Partnership Company
– Joint Stock Company
– Cooperative Association
Each has its own characteristics and different requirements regarding establishment and operation.
Limited liability company
The limited liability company, abbreviated s.r.o., is probably the most common business form. Its share capital consists primarily of contributions by its members. This form is also suitable for entrepreneurs who decide to set up their own business, since it can be established with only one founder. The maximum number of shareholders is 50. The minimum deposit is only SEK 1.
Joint Stock Company
A joint stock company, abbreviated as a.s., has more stringent conditions. The share capital must be at least CZK 2,000,000. This capital consists of shares of various values held by individual shareholders. The price of these shares is not fixed in any way, but must at least reach the price of the minimum capital. The advantage of this form is that the company is liable for breach of duty with all its assets, but the shareholders are not.
Limited Partnership
In this form of business, one partner (limited partner) is only liable up to the unpaid capital contribution and must contribute at least SEK 5,000, while the other partner (general partner) is liable with its entire assets. These general partners also have the right to manage the business. [Public Company
A public company may be formed by at least two persons, in which case they are jointly and severally liable for its debts with all its assets. Neither the partners\’ investment nor the share capital is a debt.
Cooperatives
A minimum of five natural persons or two legal entities is required to establish a cooperative. Share capital is contributed by the individual partners, the minimum amount being CZK 50,000. Members of a cooperative society are not liable for debts.