In accordance with the requirements set by the European regulations regarding digitalization, the main objective of which is to enable the establishment of capital companies online, changes will be or have been made to the Civil Code, the Business Corporations Act and the Act on Public Registers of Legal and Natural Persons and on the Registration of Trust Funds.
One change that has already taken place is the fact that it is now no longer necessary to obtain a trade license to form a business corporation (and thus to register it in the Commercial Register). With their formation now much faster, ideally a business corporation can be formed within one day (for more information, see our article Even Faster Company Formation in the Czech Republic - You Can Have a Company in a Day).
As of 1 July 2023, amendments to the Civil Code and the Business Corporations Act will also take effect, following the interconnection of the registers of the Member States in which persons not eligible for performing a function within business companies are registered.
A new register of excluded persons will be created and will be available as a non-public register strictly for courts and notaries. All persons who cannot perform functions in commercial corporations will be listed on the basis of a prohibition of activity or a criminal offence (which constitute an obstacle to the performance of functions), exclusion from the performance of functions of a member of statutory bodies by a court for violation of their duties in the performance of their functions, if their performance contributed to the bankruptcy of the business corporation, or persons who are insolvent and have been declared bankrupt.
Following the introduction of the register of excluded persons, the Business Corporations Act will not refer to integrity under the Business Act, but to this newly created register.
When establishing a company - the first members of the statutory body - will thus be relieved of another formal obligation, namely to provide an extract from the criminal record.
