Czech joint-stock companies (a.s.)
A joint-stock company is the second most used capital company in the Czech and Slovak Republics. Concerning popularity it is only beaten by limited-liability companies and although a joint-stock company has higher incorporation costs, it has a series of benefits:
- • option of owner anonymity
- • simple change of owners
- • greater credibility
The capital stock of a joint-stock company is a minimum of CZK 2,000,000 CZK (for some types of companies it is higher), the foundation of a joint-stock company is financially more demanding. This is a main reason for the greater prestige of this type of business than in the case of a limited-liability company.
A ready-made joint-stock company is more advantageous
The greatest obstacle to establishing a joint-stock company is usually the financial requirements. Very few people have two million crowns available for immediate investment into a business. Ready-made have fully paid up capital stock. To start a business it is sufficient to purchase a non-trading joint-stock company.
The second advantage of purchasing a ready-made joint stock company is the speed of starting the business. Whereas the foundation of a company through your own resources may last several weeks, you can start trading with a ready-made joint-stock company within 24 hours from primary contact.
