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READY-MADE COMPANY
(SHELF COMPANY)

NEW COMPANY
 
Advantages
Immediate signing and acting ability.		 Advantages
Slightly lower price. Client becomes the initial owner and director.
Disadvantages
Slightly higher price.		 Disadvantages
Long incorporation procedure, actual length depending mainly on the client. Signing ability only after the company registration.
Eligibility to use our registered office services
Yes.		 Eligibility to use our registered office services
Yes.
Foreign person may become a director
Yes, no visa / permit requirements apply.		 Foreign person may become a director
Yes, no visa / permit requirements apply.
Our guarantees
No history, no claims nor obligations.		 Our guarantees
Money-back guarantee, if the registration application is rejected.

DIFFERENCES SUMMARY

In order to understand the difference between a new and a ready-made company, it is important to note the following legal requirements applying to Czech corporate entities.
  1. The Czech company (limited liability or joint-stock company) is incorporated by the signature of the Memorandum of Association signed by all the incorporators in front of a notary public.
  2. Each company has to have a registered office and, while being registered, it must prove a legal title to this office (rental agreement or a consent of the owner of the premises). This registered office must NOT be a P.O.Box, nor a temporary address serving only for company registration purposes.
  3. Each company has to pay-up its share capital to a bank account opened in the Czech Republic - in case of a limited liability - it is CZK 200,000.00, i.e. EUR 6,700.00 approximately)
  4. In case that a Czech company intends to do active business (does NOT apply to companies used only for property holding purposes), it has to define and register its nature of business (business activity) and receive a trade license corresponding to such nature of business. Moreover, with respect to each trade licence, a trade representative must be appointed. He/she must be in a contractual relationship with the company.
  5. The director of a Czech company (i.e. the person acting and signing on its behalf) may be a foreigner, notwithstanding whether he/she has a residence permit or visa in the Czech Republic. For the purpose of his/her registration as a company director, such person has to present a "clean" police record not older than three months, from the Czech Republic as well as from the country of origin. The latter must be duly certified (by notary public/ apostille depending on the country) and translated into the Czech language by a certified translator.
  6. The company is registered only if the application form is accompanied (among other) by documents proving that the above conditions were met.

According to the new legislation, the registration of a new company at the Companies Register takes no longer than 5 days, under the condition that all the documentation is submitted to the Companies Register in the correct form and to the full extent. If any of the necessary documents are incorrect or missing, the registration application is rejected.

In practice, the preparation of the necessary documentation takes 4 - 8 weeks.

Therefore, the whole incorporation process of a new company might take 2 - 3 months, if the application is approved at the first attempt.

By acquiring a ready-made company, our clients take benefit of the fact that an appointment of a director in a Czech company, made by a general meeting of partners/shareholders of this company has an immediate effect. Therefore, our firm as an initial owner of the ready-made company is ready to appoint the new director without any delays and, at the same time, transfer the shares in the company to the new owner. As a result, our client owns the ready-made company, can act on its behalf immediately, and the registration of all effected changes in the ready-made company is done subsequently.

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