Online registration by notaries
The Act on Public Registers of Legal Persons and Individuals, effective since 1 January 2014, now makes it possible for notaries to enter data in public registers. However, in practice, they have been permitted to make such records only since May. The main objective of the change was to simplify and facilitate the process of entering data into public registers. This option was not available previously because no court fees were determined for such services and the IT solution has been insufficient. Data may only be entered into a public register based on a notarial deed by the notary executing it, even where several notarial deeds are required for the registration. Another condition is a notary’s statement indicating that the content of the legal act complies with the law and the act of foundation by the legal entity. The notary must be provided with all documents required under the law for entering a record in a public register or to be deposited in the collection of documents (such as documents required upon company registration – bank confirmation that the registered capital has been paid, and the building owner’s consent to the use of the registered office address). Court fees for registration made by notaries are lower than fees for applications filed with commercial courts. The fee for the first registration of a joint-stock company is CZK 8,000 (instead of CZK 12,000), the fee for the first registration of a limited liability company or an entity other than a joint-stock company or association is CZK 2,700 (instead of CZK 6,000), and changes or amendments to the record are charged at CZK 1,000 (instead of CZK 2,000). A notary’s fee for the service must be added to the fees, which is CZK 300, excluding VAT, and CZK 1,000, excluding VAT, where an additional notarial deed must be prepared (a deed certifying a deed). It is required, e.g., for first registrations when the documents outlined above must be provided (such as bank confirmation that the registered capital has been paid, or the building owner’s consent to the use of the registered office address). The notary will also charge additional fees for documents that are no longer required to be submitted to the court, such as extracts from the land register, criminal records, or the commercial register. If all conditions are met, the notaries will be able to provide businesses with comprehensive services, i.e. preparing a notarial deed, making an online registration and obtaining an extract from the commercial register. The notaries will also send documents electronically to the file with the commercial court and pay the court fees. Besides entering records in the commercial register, notaries will be able to make direct entries in the register of foundations, the register of benevolent societies or the register of associations of owners of residential dwellings. The above implies that businesses will still be required to submit documents required by the law, which means undergoing a paper chase (such as registering trade licences, opening a bank account), which will not make company incorporation any faster. If you are interested about ready-made companies or wish to learn more, please do not hesitate to contact us.