Limited Liability Company

The limited liability company is the legal form most frequently used both by Czech entrepreneurs and foreign investors. The Act on Business Corporations defines the limited liability company as an entity whose members are jointly and severally liable for its debts up to the amount of the unsettled obligation to provide investment contributions, in accordance with the state registered in the Commercial Register at the time the creditor calls on them to perform.

Throughout the entire existence of the company, the founding document of the limited liability company (i.e., the memorandum of association or the founder’s deed) has to contain determination of the members, determination of the types of the shares of each member (provided that the founding document allows creation of different types of share) and amount of investment contributions corresponding with the shares. Upon foundation of the company, the founding documents must also contain the founders’ obligation to provide investment contributions, including the deadline for its fulfilment.

Company bodies of a limited liability company:

  • General meeting, which is the highest body of the company. If a company has a sole member, no general meeting is held and this member exercises the powers of the general meeting.
  • One or more executive directors; if the founding document does not stipulate that the executive directors constitute a collective body, each executive director is the statutory body of the company. Each of the executive directors, if there are more than one, has the right to represent the company independently, unless the founding document stipulates otherwise.
  • Supervisory board, which is established if the founding document so requires.
    • CZERWENKA & PARTNER v.o.s.
      Minoritská 10, 602 00 Brno
      www.czerwpart.cz

      Ing. Mgr. Milan Chládek
      +420 542 422 811
      chladek@czerwpart.cz