The registered capital is the basic component of the company's equity. It represents the sum of capital in monetary terms deposited by the founding partners. It is therefore a fundamental source of company assets without which the company cannot be formed.
The registered capital is generally defined by the provisions of the Commercial Code, Sections 58 - 59b of Act No. 513/1991 Coll. as amended. Pursuant to the aforementioned provisions, the capital is compulsory in capital companies, that is to say, in all limited liability companies and joint stock companies. A CI may consist of cash deposits as well as cash worthwhile assets that a partner invests in the company. Such property must be valued by an expert opinion and the company must acquire title to the property after its establishment. If the company does not acquire the right, the company will return the property and the partner is obliged to pay the deposit in mone.
Pursuant to Section 108 of the Commercial Code, the value of the registered capital must be at least EUR 5,000. The capital may increase and decrease during the existence of a company, but it may never fall below the minimum level. The value of the shareholder's contribution must currently be at least EUR 750. Prior to filing a company registration, each deposit must be repaid at least 30%. The value of the cash deposits paid together with the value of the non-cash deposits must be at least 50% of the minimum capital. If the company is founded by only one founder, the registered capital must be paid in ful.
Act no. 513/1991 Coll. Commercial Code - as effective from 1 January 2016
Act no. 530/2003 Coll. on the Commercial Register and on amendments and supplements to certain acts - as effective from 1 January 2016