Limited liability company
This term refers to the law of the country selected below.
Czech Republic
What is meant by the term ‘limited liability company’?
A limited liability company, or s.r.o. for short, is a capital company. It is a legal entity with its own legal personality, whose shareholders make an initial capital contribution.
The minimum share capital is 1 CZK; there is no upper limit. The company is only established upon entry in the Commercial Register.
A limited liability company is liable for its obligations with its own assets. Shareholders are liable for the company’s debts only up to the amount of their unpaid capital contributions, which means that the company’s assets are separate from those of the shareholders (‘the principle of separation’).
The company’s governing bodies are one or more managing directors (the statutory body) and the general meeting. The company may also establish a supervisory board.
