A limited liability company is an artificial legal entity. The very existence of the company is preceded by two phases, the phase of the formation of the company and the formation of the company. In order for a company to become a subject of law and thus acquire rights and obligations, the law lays down minimum requirements that every newly incorporated limited liability company must meet.
The character of the company is given at the very founding of the new company. The company is founded by writing a founding document, memorandum of association. The Act defines the essentials of this document, and any missing information means a refusal to register the company in the Commercial Register by the Registration Court. Already in the first phase of establishing a Limited Liability Company it is necessary to know the conditions under which LLC.
The following rules should be taken into account when establishing a limited liability company:
- A company may be founded by one founder, with a maximum of 50 partners.
- A company with one shareholder cannot be the sole founder or sole shareholder of another company
- A natural person may be the sole shareholder in a maximum of three companies
- If a company having one partner has been declared bankrupt, that person may establish another company at the earliest one year after the settlement of the obligations relating to the assets subject to the bankruptcy pursuant to the final court order.
- The Company is liable for any breach of its liabilities with all its assets.
- The shareholder is liable for the company's obligations up to the amount of his unpaid contribution entered in the Commercial Register.
- The business name of the company must include the designation „spoločnosť s ručením obmedzeným“, or the abbreviation „spol. s r. o.“ or „s. r. o.“.
- The value of the company's share capital must be at least EUR 5,000.
- The value of the shareholder's contribution must be at least EUR 750.
- The amount of the deposit may be determined differently for each member, but must be expressed as a positive integer..
- If a shareholder undertakes to make a non-monetary contribution to a company, the memorandum of association must specify the subject of the non-monetary contribution and the monetary amount in which the non-monetary contribution is credited to the shareholder to which it has committed.
- Prior to filing a company registration, each deposit must be repaid at least 30%.
- The total value of the paid-up cash deposits, together with the value of the transferred non-cash deposits, must be at least 50% of the minimum share capital (EUR 5 000) before applying for registration.
- If a company was founded by one founder, the company can only be registered in the Commercial Register if the registered capital is paid up in full.
- Establish s.r.o. only a person who does not have any tax arrears to the relevant tax authorities.
- The company must prove the right of use of the property, which is registered in the Commercial Register as the registered office of the company, or it can prove such property with the consent of the owner to the entry in the Commercial Register. If you do not have such a property, take advantage of our offer and rent a virtual office!