Advantages

European image

For foreign business partners, a company with a well known European corporate identity will certainly be a more credible partner. A legal form with the suffix SE can bring companies in various business areas European goodwill and the seal of greater knowledge and reliability.

Lower personnel requirements

European companies are often compared with domestic joint-stock companies. The most frequently used term is “European joint-stock company”. The principal difference is personnel requirements. Whereas a Czech joint-stock company must have a minimum of six persons within its management, for a European company two persons are sufficient which leads to significant operating and personnel savings.

Option to relocate (the registered) office into another EU state.

The registered office of a European company (SE) can be moved abroad without cancellation with liquidation, i.e. with the continuation of the legal character. After the move, the company will be governed by the law of the state where the newly registered office is located. During its existence, the European company (SE) may freely select a country within the EU which is the most beneficial business wise. The most frequent reasons for this can be:

• Use of treaties for investment protection concluded by the Czech Republic The relocation of the registered office of the European company (SE) abroad brings stronger position during negotiations with the Czech state. A European company can be supported by treaties for investment protection concluded by the Czech Republic.
• Selection of the most suitable tax system within EU SE (societas europaea) according to the choice of the registered office, for example, lower income taxes in Cyprus (10%), or a suitable holding regime in the Netherlands. By relocating the company it is also possible to optimize the taxation of prepared transactions, for example, sale of ownership interests or trading of receivables.
• Finding an ideal legal system The legal systems of older EU member states are significantly more stable than the Czech system. They bring a greater degree of certainty for entrepreneurs and stronger legal enforcement.

Flexibility of the management and administration structure (corporate governance)

Founders of a European company (SE) can select between a dualistic or monistic management model, i.e. a European company (SE) may have as the only body, an administrative board headed by the general manager or similarly as a Czech company, a common management body (Board of Directors) and supervisory board. The number of members of the supervisory board may by arbitrary.