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Investor Presentaiton

Types of business entities The Act on Business Corporations recognises the following types of business entities: • • limited liability companies joint-stock companies general partnerships limited partnerships co-operatives including European Cooperative Societies • Societas Europaea (SE, European Companies) • European Economic Interest Groupings (EEIG). Foreign legal persons may also establish a branch in the Czech Republic. A branch is not considered a legal entity, but must nevertheless be registered in the Commercial Register. The Act on Business Corporations regulates the status and activities of commercial companies and cooperatives. A Czech legal person is an entity that has its registered office in the Czech Republic. Foreign persons are defined as persons (individuals or legal entities) domiciled abroad or having their registered office outside the Czech Republic. A foreign person's authorisation to carry out business in the Czech Republic takes effect on the date it is recorded in the Commercial Register. This does not apply to citizens of the member states of the EU, the EEA or Switzerland, their family members who have Czech residence permits, citizens of other states with long-term residence in the EU and their family members with long-term residence permits. A foreign person may participate in the establishment of a Czech legal entity or become a partner or member of an existing Czech legal entity. A foreign person may also be the sole founder of a Czech legal entity, provided that Czech law permits the respective type of a company to have a sole founder or sole shareholder. The main characteristics of the various legal entities are described below. 11 41
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