Advantages
10,000 limited liability companies existing in the Czech Republic today are clear evidence that this type of company is the most popular. What are the main advantages of limited-liability companies?
Personal safety
Whereas when trading, natural entities are liable with their property, the owners of a limited-liability company are liable only up to the level of their investment. For limited-liability companies there is no risk of an entrepreneur loosing, for example, their flat under personal ownership.
Low financial demands
Unlike other types of companies, a limited-liability company is less financially demanding. The capital stock is lower and costs during the foundation process are lower than in the case of a joint-stock European company.
Greater prestige than in the case of trading on a trade licence basis
Limited-liability companies have greater prestige than natural entities trading on the basis of a trade licence. For example, a natural entity trading on the basis of a trade licence in most cases cannot participate in tenders where the conditions are set so that the application can only be submitted by a limited-liability company.
