The structure of limited liability companies with low registered capital
The structure of limited liability companies with low registered capital

Author(s): Kateřina Mičudová
Subject(s): Business Economy / Management, Civil Law, Commercial Law
Published by: Masarykova univerzita nakladatelství
Keywords: code on capital corporation; law capital; limited liability company; registered capital;
Summary/Abstract: The extensive recodification of private law in the Czech Republic, which was actively taking place primarily from 2002 to 2012, was completed on January 1, 2014, when Act No. 89/2012 Coll., the Civil Code, and subsequent Act No. 90/2012 Coll., on Commercial Companies and Cooperatives (Business Corporations Act), came into effect. Since that date, besides other things, the amount of minimum registered capital necessary for setting up limited liability companies has changed. At present, the minimum member´s contribution is CZK 1. The paper aims to analyse the structure of limited liability companies with registered capital less than CZK 200,000. The first chapters will clarify the reasons that had led to the reduction of the minimum amount of registered capital, and also the advantages and disadvantages that this reduction has brought about. The next chapters will examine the distribution of companies with low registered capital by individual regions and industrial sectors in the Czech Republic. The paper will also answer the question of whether there is a relation between the amount of registered capital and the territorial, or more precisely sectoral structure of limited liability companies. A separate chapter will deal with the analysis of companies with registered capital from CZK 1 to CZK 1,000.

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