READY – MADE Companies11 000CZK
A ready-made company, or a pre-established company, is a company that is registered in the Commercial Register, has a name, registered office, managing director, identification number and the registered capital is fully paid up. However, the company does not carry out any business activities, it is established only to be sold to the final customer. Anyone who buys a pre-established company avoids the lengthy administrative process associated with setting-up a business.
The company can have a registered capital of only CZK 1, but this can cause problems. The registered capital of a limited liability company in the amount of CZK 1 does not mean that the establishment of this type of company will cost you CZK 1. The registered capital does not indicate the total price you will pay for the establishment of the company, but merely the funds that need to be deposited in a special bank account before the company can be registered in the Commercial or Public Register. The registered capital of the companies sold by us in the amount of CZK 50,000 is fully paid up.
Sole traders are liable for their professional debts with all their assets. However, in companies with the registered capital fully paid up, the shareholders are not liable for the company's debt.
The main reason it is necessary to deposit the registered capital when setting up a limited liability company is that after the company is established, it draws money from this amount of registered capital to cover all expenses incurred during the first months of its activity. Therefore, if you decide for low registered capital, the company can easily get into debt soon and enter insolvency proceedings.
A company with a higher registered capital, e.g. CZK 50,000 in the companies we offer, will seem more trustworthy in the eyes of business partners than a company with a low registered capital (e.g. CZK 1).
The higher registered capital will help you gain the trust of business partners but more than that, creditors, especially banks, will also trust you more. The higher registered capital proves that you are able to save money and, if necessary, repay a loan from this accumulated amount. Conversely, if you do not have enough money in your bank account and the company has a low registered capital, you reduce your creditworthiness from the point of view of the creditor. Creditors/banks may therefore refuse to grant you a loan.