Simple joint stock company

On January 1, 2017, an amendment of the Commercial Code will become effective that introduces a new legal form of a business company – a simple joint stock company (jednoduchá spoločnosť na akcie), abbreviation “j. s. a.”. The aim of this new business form is to simplify and facilitate business for small and medium entrepreneurs and to support new start-ups. The simple joint stock company represents a hybrid form of a capital company transposing some elements of a limited liability company as well as of a joint stock company. The simple joint stock company may be established by one or more founders. The amount of the registered capital has to represent at least EUR 1. The registered capital shall be divided to a certain number of shares with a certain nominal value. Shares of the company may only have a book-entry form and may only be registered. The company shall be liable for the breach of its obligations by all its assets. A shareholder of the company is not liable for the obligations of the company.