| S.R.O
company for Business Purposes
(different to SROs for
real estate)
Please bear in mind this below is an average
cost estimate taken from various sources offering this type of
service.
You real costs may vary from service provider to service provider
also depending on your exact needs.
Business s.r.o.
S.R.O = Limited Liability Company
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
- Minimum basic capital is 200,000 CZK (Euro 6.500)
- 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
Setting up costs: around CZK 60,000 (Euro
2.000)
Requires the appropriate business licenses
in order to trade.
As a business license is required, so too
is a "responsible person", ie. someone who speaks Czech
fluently with whom the authorities can communicate.
This type of representative can be found
if required for a reasonable fee - CZK 5,000 to 8,000 per month
(Euro 160 to 260 )
As this will be a trading company, liabilities
can be accrued easily and as such the Executive is placed at a
high-risk should the company go bankrupt.
Local Executives if required can be found,
but at a significant fee of around CZK 10,000 per month (Euro
330)
The business will require a registered
address.
This too can be found if required for a fee of about CZK 1,500
per month (Euro 50)
Potential maintenance fees: CZK 20,000
per month (Euro 660)
Many small investors, if not buying as private
entities, opt for a Real
Estate SRO.
Becoming informed costs next
to nothing
Being missinformed can be expensive |
