There are several ready-made (or shelf) businesses available in the Czech market. The following items should be taken into consideration if you are negotiating with a firm to buy one. Doing so will help you avoid purchasing a troubled business. It is preferable to bargain over a specific business with a specific name, address, and trade register number. Don’t let the “business” that you will hear upon signing the contract try to sell you something.
How to purchase an existing business in the Czech Republic
To purchase a shelf company in that state, either a corporate body or a natural person must produce their identification documents, such as their ID card or passport, as well as their registration certificate if they are a corporate entity. The transaction must then be signed by both parties for it to be finalized, a process that is performed by a notary office. After the transaction has been completed, the new owner of the firm can modify the articles of association and select a different name for the business.
Who has access to Czech shelf companies?
Any business owner in that country, whether local or foreign, who wishes to launch activities right away without having to wait for a company’s incorporation process can purchase a vintage company. By purchasing a ready-made corporation, an entrepreneur can start a business in the state without having to go through the formalities of registering a company. The procedures are simple, and one of our Czech attorneys can offer clients interested in purchasing historic businesses in the country comprehensive, in-depth legal guidance and help.
The Czech Republic shelf company characteristics
The fact that the firm can become operational a day after the purchase agreements were completed and the ownership change was recorded is one of the most important factors that might affect the decision to buy a ready-made business. However, you must ensure that a few conditions are met before purchasing a ready-made corporation in this nation, namely whether it includes:
- Registration in that country requires that the business be registered with all pertinent local agencies.
- The payment of the necessary share capital can range from EUR 1 to EUR 80,000 depending on the kind of legal entity used to establish the shelf company.
- The minimum capital contribution made by each shareholder and the articles of association for the firm.
- The certificate of incorporation, the value-added tax (VAT) number, and the bank account information.
A foreign investor can choose the Czech shelf company that best suits his or her area of interest from two basic types: joint stock companies and limited liability corporations. The Societas Europaea (SE), a more recent corporate structure available at the level of the European Union, as well as limited partnerships are both options for selling shelf enterprises in the Czech Republic. The process is straightforward if you want to alter the name of the legal entity; all that is required is filing for a company name change. It’s also crucial to be aware that the majority of shelf businesses offered for purchase in the state range in age from one to 3 months since they had been documented in the regional market.
Why purchase a Czech limited liability shelf company
Although there are various business structures for Czech shelf firms, as was previously said, the limited liability company may be the most attractive choice because investors will have little liability for any debts the company incurs. The most common kind of business chosen for registration is this type of legal entity. Additionally, the organization can be configured with just one director, from any country.
