Update on ‘Jednatel’ Requirements

Czech Point 101 July 22, 2014 @ 2:47PM

Included in the changes to the law instigated July 1st was the removal of the clauses which restricted who could serve as the ‘Jednatel’ of a Czech SRO. 


There used to be a § 30/3 (in the commercial register section) which said that “for a foreign person being registered as a statutory body of an SRO they must prove a residency permit in CZ“. In January 2005 it changed in the way that this obligation would not apply for EU citizens. Now § 30/3 is completely missing from the code. 


This is a huge change because in the past ‘Jednatel’ laws have required individuals who wished to setup an SRO to employ the services of a local Czech individual or someone with a long-term visa to act in their behalf. Unless they had a friend who could act in their behalf, and sometimes still even then, it added cost to the ongoing expenses of having an SRO. 


Why is this change not more widely known? 


Often, how new laws are interpreted takes time to determine. The law did not state it was possible or that it was not possible. Initial investigations at the Commercial Court also showed confusion on the officials’ part concerning the interpretation of the law. 


However, recent inquiries have confirmed that any individual can serve as a ‘Jednatel’ as long as they meet the basic requirements (§ 194/7 in the Business code), such as being over 18, in good mental health (this is the hardest for me to prove…) and not having a criminal record in their home country or Czech Republic. 


We are sure these changes will be of benefit to those who either currently employ a ‘Jednatel’ only because of not being able to fill this capacity themselves or those who are looking at setting up an SRO for their investments in the Czech Republic.

Updated/Aktualizováno: ,

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