Investors who are currently seeking business opportunities in
Czech Republic can set up their operations through a
special purpose vehicle (SPV) company, which is usually incorporated as a
subsidiary of a foreign company. The main characteristic of a
SPV company in Czech Republic is that it can secure its assets to an extent that it will provide
financial protection even in the situation in which the
parent company experiences
financial issues, such as bankruptcy. The
registration procedure does not subscribe to the
general incorporation measures applicable to
commercial companies and thus, it is advisable to receive assistance from
our team of specialists in company formation in Czech Republic.
SPV legislation in Czech Republic
The
SPV companies in Czech Republic are regulated by a set of rules of law. Amongst them, we mention the
Concession Act, which provides a legal framework for the usage of
SPV companies. The Act prescribes the way in which such
legal entities can be used for
public-private contracts. In this sense, we mention that the
SPVs are
successful instruments in Czech Republic for establishing projects carried by both private and public entities. Investors can find out more details on this matter from
our team of company formation representatives in Czech Republic.
The funding of a private-public contract will begin with the investment phase, in which the project can raise capital from public funds and those received from the European Union (as the country is a member state of the Community), which are then sent to the public entity which controls the respective project. Further on, the private SPV will receive the authorization to start the operational phase, which refers to the implementation of the project.
Registering the Czech SPV company
However, when
registering a SPV in Czech Republic, the investors will need to start the
incorporation procedure by following the regulations established for
commercial companies.
The
SPV will be registered under one of the
legal entities available in Czech Republic but, as a general rule, most of the investors prefer to register a
limited liability company.
Investors who want to
open a company in Czech Republic will have to draw the articles of association and establish the shareholder’s structure, to appoint the
directors of the company, as well as the
company’s secretary.