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Is Your Branch Registered? And Can We See It?

Is Your Branch Registered? And Can We See It?

Czech Republic
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Last year's "digital amendment" introduced many changes to Czech corporate law. But one change that is often overlooked is the amendment to the Czech Public Registry Act.

For example, a crucial adjustment has been made to Section 48 (2), which now requires branch offices (including those located abroad) to be registered directly in the Czech Commercial Register together with the entry for the respective company. This amendment will make corporate structures more traceable and responds to the European directive on digitisation.

One significant element of this amendment is the automatic registration of changes within the establishment of a new branch or its modification, eliminating the need to submit additional separate applications. At the same time, there was to be an automatic registration of already existing branch offices. Information for automatic registration was obtained both from the Commercial Register and, in the case of foreign branches or companies, from the European Business Registers Interconnection System (BRIS). For businesses with branches in theEU, the BRIS system is a key element for automated information exchange betweenregisters. However, it should be noted that this system only contains information about capital companies, i.e. joint-stock companies and limited liability companies. Other types of companies (limited and general partnerships) and cooperatives cannot rely on automatic updates.

The obligation to update foreign branches also applies to branches outside the EU. Despite the mid-July 2023 deadline, we have observed that the automatic transfer of information may not have occurred correctly in all cases.

We recommend that all entities registered in the Commercial Register who may have branch offices in the Czech Republic or abroad carefully review their records and ensure they are updated.

By Lukas Tomanek, Junior Lawyer, JSK, PONTES

Czech Republic Knowledge Partner

PRK Partners, one of the leading Central European law firms, has been helping clients achieve their business objectives almost 30 years. Our team of lawyers, based in our Prague, Ostrava, and Bratislava offices, has a unique knowledge of Czech and Slovak law and of the business environment. Our lawyers studied at top law schools in the United States, United Kingdom, Switzerland and elsewhere. They also have experience working for leading international and domestic law firms in a number of jurisdictions. We speak your language, too. Our legal team is fluent in more than 15 languages, including all the key languages of the region.

PRK Partners has one of the most experienced legal teams on the market. We are consistently rated as one of the leading law firms in the region. We have received many significant honours and awards for our work. We represent the interests of international clients operating in the Czech Republic in an efficient way, combining local knowledge with an understanding of their global requirements in a business-friendly approach. We are one of the largest law firms in the Czech Republic and Slovakia. Our specialised teams of lawyers and tax advisors advise major global corporations as well as local companies. We provide comprehensive legal advice drawing on our profound knowledge of local law and markets.

Our legal advice delivers tangible results – as proven by our strong track record. We are the only Czech member firm of Lex Mundi, the world's leading network of independent law firms. As one of the leading law firms in the region, we have received many national and international awards, in some cases several years in a row. Honours include the Chambers Europe Award for Excellence, The Lawyer and Czech and Slovak Law Firm of the Year. Thanks to our close cooperation with leading international law firms and strong local players, we can serve clients in multiple jurisdictions around the globe. Our strong network means that we can meet your needs, wherever you do business.

PRK Partners has been repeatedly voted among the most socially responsible firms in the category of small and mid-sized firms and was awarded the bronze certificate at the annual TOP Responsible Firm of the Year Awards.

Our work is not only “business”: we have participated on a longstanding basis in a wide variety of pro bono projects and supported our partners from the non-profit sector (Kaplicky Centre Endowment Fund, Tereza Maxová Foundation, Czech Donors Forum, etc.).

Firm's website: www.prkpartners.com

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