[BUYING AND SELLING REAL ESTATE IN CZECH REPUBLIC]
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way of conclusion of a Memorandum of Association or via a Foundation Deed in the case of a sole shareholder. It has to be notarized. b. Setting up an s.r.o. is uncomplicated and can be accomplished easily. Registration is done either directly by notaries or via the courts. c. Under Czech law, it is not mandatory to set up a supervisory board as one of the bodies of an s.r.o.
such a case, the total costs of the formation of an s.r.o. are a little lower. d) Minimum Registered
Capital a. The
minimum
registered capital required for an s.r.o. is 1 CZK. It is, however, recommended to set up a company with higher registered capital, which will serve to cover the company’s initial expenses and to avoid having to declare bankruptcy due to lack of funds early on. It is thus recommended to set up a company with registered capital in the amount of at least CZK 100,000 (€3,700). b. At least 30% of each shareholder’s monetary contribution to the registered capital must be paid to a special bank account before the company's registration in the Commercial Register. If the company’s registered capital is lower than CZK 20.000, contributions to the registered capital are not
c) Costs of Formation The estimated total notarial costs for the formation of a standard s.r.o. usually amount to approximately CZK 6,800 CZK (€250) (In the case of registered capital – CZK 100,000 (€3,700)) plus court costs, about approximately CZK 6,000 CZK (€220) and fees for legal counsel regarding the drawing up of the Foundation Deed or of the Memorandum of Association. Notarial costs are calculated based on the amount of the company's registered capital. The registration of an established company in the Commercial Register can be performed directly by a notary following the procurement of a certificated notarial deed. In
ILN Real Estate Group – Buying and Selling Real Estate Series
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