Asides from registering a new company in the Czech Republic, foreign investors have the possibility to buy a company that has already been legally incorporated, a much more simple procedure which also allows them to start their activity faster. Our team of specialists in company registration in Czech Republic can advise on the procedures that are involved in the purchase of a shelf company.
When choosing to open a company in the Czech Republic, foreign entrepreneurs engage in a process that can require the submission of various documents and that usually asks for the assistance of a company registration agent, whereas when buying aready-made company, the process is a lot easier to complete, but also requires professional advice.
What are the characteristics of a Czech shelf company?
A Czech shelf company (also known under the name of ready-made company) is a legal entity that already benefits from the process ofcompany incorporation in Czech Republic and which was created for the purpose of being sold. This type of entity has already been registered with the Commercial Register, but it is important to know that the business structure is not involved in any business activity.
The company also benefits from the initial minimum capital that is necessary under the local legislation (and which can depend based on the legal form under which the business was set up). Starting a business in the Czech Republicby purchasing a ready-made company can be the ideal solution in the case in which the investors want to start their business activities as soon as possible and also when they do not own the necessary capital for opening a company following the standard registration procedure.
How to buy a ready-made company in the Czech Republic
A shelf company in the Czech Republic can be bought by other companies or by natural persons and the procedure includes presenting the papers of the person purchasing the shelf company: ID card or passport and registration certificate of the company in case a corporate entity buys the shelf company.
Then a signature of both parties is needed so as to complete the transaction, a procedure which is handled through a notary office. When the sale has been made, the new company's ownerhas the right of changing details in the articles of association as well choosing another name for the company.
How can we assist investors in buying Czech shelf companies?
The main procedure that has to be concluded during the purchase of a ready-made business refers to the transfer of ownership. In this case, it is necessary to know that the investors are not required to be present in the country as the purchase can be conducted byour team of specialists in company formation in Czech Republic, who can handle matters such as the ones mentioned below:
•our representatives can complete the transaction, provided that the purchasers have granted them the power of attorney;
•the document has to be signed under the supervision of a public notary in the country in which the purchasers are residents;
•in the Czech Republic, powers of attorneys written in English are accepted, provided that all the parties understand this language;
•if the investors want to change the current business address of the shelf company, our representativescan easily assist in the procedure.
The following video offers a short presentation concerning the Czech shelf-company:
Aspects of a shelf company in the Czech Republic
One of the most relevant aspects that can determine the purchase of a ready made business is given by the fact that the company can become active in a day since the purchase documents were signed and the change of ownership was registered. However, when acquiring a ready-made company in this country, you need to check that a few requirements are being met, namely if it includes:
• registration in the Czech Republic – the company has to be registered with all the relevant local institutions;
• the required share capital paid-up – it can vary from EUR 1 to EUR 80,000, depending on the type of the legal entity under which the shelf company is registered;
• the incorporation certificate, the value added tax (VAT) number and the bank account details.
The main types of Czech shelf companies are the limited liability company and the joint stock company and a foreign investor can opt for the one that is most appropriate for his/her field of interest. In Czech Republic, shelf companies can also be sold under the newer business form that is available at the level of the European Union, namely the Societas Europaea (SE), but they are also available as limited partnerships.
In case you want to change the name of the legal entity, the procedure is simple, the only process needed being filing for a company name change. It is also important to know that most of the shelf companies available for sale in the Czech Republic have an age of one to three months since they have been registered on the local market.
Why purchase an old shelf company in the Czech Republic?
However, businessmen can also opt to purchase old shelf companies, which are available for sale in this country. One of the main reasons for purchasing an old shelf company (or aged company) is given by the fact that the business will benefit from an enhanced corporate image given by its longevity.
It is just as safe to purchase an aged shelf company as it is in the case of newly founded shelf companies as the aged company has the same characteristics as a new one (no previous business activities, no debts). The age of a company is important in the business environment as other investors will generally prefer to enter a business activity with a mature company, that has been on the market for several years, rather than with a new one that does not have the same level of credibility.
Why buy a limited liability shelf company in the Czech Republic?
Although other business forms are available for Czech shelf companies, as presented above, the limited liability company can be the most advantageous business structure due to the fact that the investors will benefit from limited liability for any debts the company will have. This legal entity is also the most popular type of company that is selected for company registration in the Czech Republic. Also, the structure can be set up with only one director, who can have any nationality.
Our consultants in company formationin the Czech Republiccan make sure that the entire procedure is completed as soon as possible. Appointing new directors is again a rather simple thing to do, as it only involves signing the paper confirming the removing of the previous directors and appointing the new ones. This can also be carried out by our specialists through a power of attorney granted to them by the company’s buyers.
Our team of company registration specialists provide a wide range of services for foreign investors who want to operate any business activities in the Czech Republic and so our clients can start their business with a shelf company in the shortest period of time. Therefore, you can feel free to seek counsel from our professional agents.
The team from CzechCompanyIncorporation.com is very qualified and benefits from extensive expertise in this area. I would definitely recommend them to any entrepreneur decided to start his own business here.
Mihai Cuc, Partner of Enescu&Cuc; Law Firm www.romanianlawoffice.com