What exactly is a ‘Jednatel’?
The Jednatel is your company executive (CEO) in the Czech Republic. They are responsible for all the basic functions of your business such as proper accounting, tax reporting, contracts and banking. Who your Jednatel will be is by far the most important consideration you will have when forming your SRO.
Up until January 2005 a Jednatel needed to have a long-term visa here in the Czech Republic; however, things have changed. These changes make it safer and cheaper for members of the EU to invest in the Czech Republic.
Based on the newest ammendment of January 1, 2005 (§30/3 of Commercial Code), an EU citizen can be a Jednatel without proving they have long-term residency in the Czech Republic.
This has been a big obstacle for those setting up SROs in the past because of the costs in getting a Czech Jednatel and also the risks. Why risks? The Jednatel has signing authority for the company and, to start with, sole access to the company bank account. Having a greedy and dishonest Jednatel could easily bankrupt a company.
Note: A subsequent change in the SRO law made it possible for anyone to serve as a ‘jednatel’ without a residency permit being required.
Looking to setup an SRO or make a change to an existing one? Contact us at info@czechpoint101.com for a free consultation and estimate or see our services page.
Updated/Aktualizováno: May 18, 2015,
