Will the Czech s.r.o. become more unsafe for creditors?

The minimum basic capital for a limited liability company is to be reduced to Kč 1, in line with similar moves in other European countries

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Guest Writer | 28.06.2011

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Countries have been reducing the amount of share capital needed to start a firm, and the Czech Republic is set to join the trend

The draft Act on Companies, as recently approved by the government, besides other drastic changes reduces the required basic capital of a Czech limited liability company (s.r.o.) from Kč 200,000 to Kč 1. Does this mean that the Czech s.r.o. will lose all credibility in the Czech Republic and the outside business world as protection of business partners is waived?

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