Starting a company with Jake&James. How does it work?
Starting a company requires a lot of paperwork, but that's what we're here for. Are you thinking of using our LLC formation service and wondering how the whole process works and what to prepare for? Find out in this article.
What awaits you if you decide to start a company with us:
- Submitting the form. On the company formation page, submit an order or company modelling request. You choose a name, a registered office and leave us your contact details.
- Consultation. We will contact you and agree whether we will communicate remotely or meet in person at our Prague office. We will clarify the details of your company and then you will pay the invoice for our services.
- Power of attorney and declaration of the managing director. In order for us to incorporate the company on your behalf, we need a notarized power of attorney to represent you in dealings with the authorities and notary public. The managing directors will sign a declaration that they meet the legal conditions for holding office.
- And it's done! Documents, business registration, meetings with the notary - we take care of everything. Within 10 days at the latest, your new Ltd. is registered in the Commercial Register.
The brief summary is over and we will go on to look at each step in more detail.
1. FILLING IN THE ORDER FORM
With us you can order the establishment of an LLC simply online. We will guide you through what and how to fill in the form.
CHOICE OF COMPANY NAME
First, choose the name of the s.r.o. The company name or business name must meet the legal requirements - it must not be interchangeable with another company. There is no need to do a complicated search of the commercial register, because directly on our company formation page you will find a verifier in which you can find out at a click whether your chosen name is free or whether there are companies with a similar name.
A low degree of similarity is fine. You can't come up with a unique name and the verifier keeps showing "high" and "medium" similarity rates? Don't despair and move on to the next step. We'll help you with the name later.
ORDERING OR MODELLING?
You have solved the name and you can move on - you have two options: order the company or model it without any obligation. Do you have a clear idea of your company? Then choose order (click on the button I want to create online) and you can pay directly by card or bank transfer. If you are not sure and need to consult the company parameters before payment, ask for a non-binding modelling first.
In both cases, in the next step of the form, you select the abbreviation of the legal form, whether we should arrange a trade license for your company, or you can use the income tax registration service (you must register as a new company within 15 days of its establishment).
OWN OR VIRTUAL SEAT?
Next, it's the turn of the company's headquarters. This is where you will formally run the company from - you will mark the building with your name and ID number and you will receive mail at this address.
In the form, choose from two seat solutions:
- Own residence. Select this option if you have your own address. This is typically an office, workshop, shop or other owned or rented premises. You can also have a company headquarters at home. The owner of the property must agree in writing to the location of the company headquarters (we will be happy to prepare the consent document for you).
- Virtual residence. Don't have a suitable address and don't want to register your company's registered office in your permanent home? Use a virtual registered office and choose from our 8 addresses in Prague or Brno. The price includes a sign on the building and notification of incoming mail. You can then pick up your correspondence at our office on Revoluční Street in Prague. If you are far away, we will forward or scan your letters as part of the mail processing.
You can change your company's registered office at any time in the future. In addition, we only include the name of the municipality in the contract, so if the company moves within the city, there is no need to pay for a notarial deed of change. Unlike many of our competitors, we do not make the cost of company formation contingent on the use of a virtual office. The price is the same whether you use your own address or ours.
After selecting a location, just fill in your personal and billing information and you're done!
2. WE WILL DISCUSS THE DETAILS OF YOUR COMPANY
After you submit the form, we will contact you and agree whether we will negotiate remotely (we will send you the documents by e-mail) or in person (we will meet you in our Prague office at Revoluční 15). We will then discuss the details of your company.
MEMORANDUM OF INCORPORATION OR MEMORANDUM OF ASSOCIATION
The company is established by drawing up a document at a notary. When a limited liability company has one shareholder and one managing director, the document is called a deed of incorporation. If there are more partners, it is a memorandum of association. You can download and view the general model documents in advance.
When you set up your company, we will prepare a tailor-made document for you. It contains basic information about the company:
- business name (name of s.r.o.)
- shareholders and their shares
- Managing Director(s)
- share capital
- subject of business
Were you unsure of the name when you ordered? We will help you to modify it so that it will pass without any problems during registration in the Register of Companies. We will also discuss your questions and other points of the incorporation document so that you are clear on everything. You can already read the basic information about each of them on the following lines.
PARTNERS AND MANAGING DIRECTORS
A limited liability company must have at least one shareholder and a managing director. There may also be one person who performs both functions. What exactly do they mean?
- A partner is the owner or co-owner of the company. He/she does not act for the company and is not liable with his/her property, he/she has the right to a share in the profit. If there are more than one shareholder, they will determine in the articles of association what percentage share in the company belongs to whom.
- The managing director manages the company and is responsible for its operation. He is obliged to approach his position with the care of a good manager (i.e. loyally, with the necessary knowledge and diligence). Should he violate this condition, he must compensate the company for damages.
TIP: Are you planning to do business with other people and wondering how to set up shares and relationships in the company? Learn what to look out for when setting up an LLC with two or more people. .
In connection with the partners and managing directors and the incorporation document of an LLC, you will come across the abbreviation SOP. What is it? SOP stands for court fee and in practice it is used as follows:
- Establishment without SOP. As a rule, this version is sufficient for the establishment of any "simple company" (e.g. with one shareholder and an executive), whose articles of incorporation or memorandum of association contain only the elements required by law.
- Establishment with SOP. If there are modifications to the contract beyond the legal standards (for example, more complex terms or powers in a multi-partner company), court fees and notary costs must be paid.
Discuss in advance how it will be for you - in most cases the variant without SOP is sufficient.
To set up a company under the Money Laundering Act, we need a copy of the identity documents of the managing director and the shareholder and consent to make copies. You can watermark the scanned documents.
Based on copies of documents, we will prepare a power of attorney and an affidavit of the managing director. In it, each executive confirms that he or she has reached the age of 18, is of sound mind, is of good character and has no impediments that would prevent him or her from performing the function.
An obstacle is, for example, a ban on activity in the business field of the given company (or in a related field), the cancellation of a trade license, or a situation where another company, where he or she has been acting as a member of the body in the last 3 years, has entered into insolvency proceedings.
AMOUNT OF SHARE CAPITAL AND BANK ACCOUNT
The share capital represents the value of the shareholders' contributions to the new company. It is usually used to cover the costs of setting up the company and other start-up costs. You choose the amount at your own discretion; the minimum amount for a limited liability company is CZK 1 for each shareholder.
In the case of share capital above CZK 20,000, you must send the deposits to the company bank account. We can open it for you at Fio Bank (only if you are a citizen of the Czech Republic) or you can open the account yourself wherever it suits you. You will then transfer the money to the account and when it is credited, we will collect the confirmation of the deposit from the bank. We will then present this to the notary when registering the company in the commercial register.
If you set your share capital up to CZK 20,000, there is no need to open a company bank account before your LLC is established. We will submit a notary's declaration of cash repayment of the capital stock to register the company in the Commercial Register, which makes the entire incorporation easier and faster.
Do you know how high to choose the ZK? Read our detailed article on the share capital of an LLC.
TRADES FOR THE COMPANY AND THE SUBJECT OF BUSINESS
The company needs its own before it can be registered in the Commercial Register. With a trade licence, you prove that you can carry out your chosen business activity.
You can arrange the trade certificate yourself or we can do it for you. We will help you choose the type of trade and the subject of your business - you just have to describe what you will do.
What do you have to do to get a trade licence for a company?
In the case of a free trade you just choose from the list (this is a group of trades Production, trade and services not listed in Annexes 1 to 3 of the Trade Licensing Act). You write down how many trades you want, the only condition is the age of 18 and a clean criminal record.
The process is a bit more complicated for tied, craft and licensed trades. For details, see the article on the conditions of the trade. In short, it is good to know that:
- You must submit a document proving that you meet the legal requirements for the trade (e.g. professional competence - you have a degree in the field, retraining or experience).
- Another option is to appoint a responsible representative to fulfil the conditions for you.
- You can only obtain a concessioned trade by granting a concession (i.e. a permit issued by the state or municipality). Unlike craft and bonded trades, there is no legal entitlement to it.
DOCUMENTS RELATING TO THE SEAT
When setting up a trade, we must prove to the trade office that you have a legal right to use the premises.
- Have you chosen your own residence? We will need consent to locate the registered office at the address with the certified signatures of all the owners of the property (even if the property is owned by a managing director or partner). We will be happy to prepare the document for your signature for 200 CZK excluding VAT.
- Will you use one of our virtual seats? Then you don't have to worry about anything, we will prepare the documents for you.
We are a partner for your business. In addition to setting up your company, we are also happy to take care of your company's bookkeeping, tax consulting or trademark registration. Do you find any of our services useful? Just let us know and we will arrange further cooperation.
3. CERTIFIED SIGNATURES OF DOCUMENTS
We have agreed on all the parameters of the company and all that is needed to set up the company are the officially certified and signed documents:
- power of attorney, on the basis of which we can act on your behalf with the authorities and notary;
- a declaration by the managing director(s) that they meet the legal conditions for the performance of this function (if there is more than one managing director, the document shall be signed and the signature verified by all of them);
- consent to the location of the registered office if you have chosen your own address.
TIP: Are you a permanent resident outside the EU? Then you will also need an officially translated criminal record extract that is no older than 3 months. Sometimes an apostille (verification that the document is genuine) is also required. Read the article about foreigners doing business in the Czech Republic - you will learn all the specifics related to the establishment of a Czech s.r.o. by a foreigner.
We have to submit originals to the authorities, so you can hand over the certified documents remotely or in person - read how to do it:
We will prepare the documents and send them to you by e-mail (the power of attorney and declaration are included in the price of the service, the consent to locate the registered office at your own address costs 200 CZK excluding VAT). You will print them, go to CzechPOINT, provide a certified signature and deliver them back to us:
- in paper form by post to Revoluční 763/15, 110 00 Prague 1;
- in electronic form as a file that has undergone electronic conversion (i.e. CzechPOINT service, unfortunately a regular scan is not sufficient).
From abroad, send us certified original documents by post.
HANDOVER IN PERSON
Will you stop by and see us? Then we'll sort everything out on the spot - we'll verify your signatures right in our office. The managing director(s) or property owner(s) can come with you, or you can deliver or bring us their affidavit or consent to the location of the registered office with a certified signature later. We will incorporate the company as soon as we have the complete documents.
4. AND THEN IT'S UP TO US
Based on the power of attorney, we will handle everything - we will draw up the incorporation document, visit the notary and arrange selected trade licenses. In case of a registered capital exceeding CZK 20,000, we will open a bank account where you will deposit the capital stock. Finally, we register the company in the Commercial Register, the company gets an ID number and is officially established.
In the meantime, you can calmly plan your first business steps.
CASE STUDY: SETTING UP AN IT COMPANY
To give you a better idea of the cooperation, we will show you a model example.
Milan Šedý is a self-employed software developer, but as he has more and more orders and wants to hire employees, he decided to start a company for this activity. He works remotely or from a shared office and does not have a suitable registered office address - so he chose one of our virtual ones.
He sent an inquiry, we called and agreed on the details:
- Document: founding charter without SOP
- Share capital: 20 000 CZK
- Partner and managing director: Milan Šedý, 100% share
- Headquarters: virtual from Jake&James (Varšavská 715/36, Prague 2)
- Trade and subject of activity: free trade no. 56 (provision of software, consulting in the field of information technology, data processing, hosting and related activities and web portals)
He paid 9 461 CZK incl. VAT for the establishment of the company and the processing of trade licenses and CZK 3,993 incl. VAT for a virtual seat for 1 year. He emailed us a scan of his ID card and mailed us a declaration of the managing director and power of attorney with a certified signature. As he has chosen a share capital of up to CZK 20,000, there is no need to open a bank account.
7 days after the consultation the company is registered in the Commercial Register and Milan can start his business!
DO YOU WANT TO DO BUSINESS TOO?
Save yourself time and nerves and leave the administration in the hands of experts. We are here for you - we know how to walk the walk and speak the language of the authorities. Order your LLC formation online and start your business without any worries.