How to recognize a reliable SRO Company Formation FirmAn estimated 95% of new SRO company formations is without problem. However, there is a category of people / companies that are not so honest and since foreigners usually do not speak Czech and do not know the rules and regulations, they form an easy target.
Alexio.cz deals on daily basis with issues that foreigners run into, and most of them could have been avoided if only the customer would have been informed / warned beforehand.
As we provide company formation services as well we would like to inform you before you buy,
and if you already ran into an issue while forming your SRO company, feel free to contact us.
Financial Fraud when setting up an new SRO companyWhile the risk is even higher when buying an old SRO or ready-made s.r.o company,
it is a fact that a lot can go wrong even when forming a new SRO company.
Common frauds are:
- writing such founding documents that high costs are involved for the rent of the business seat and if the company wants to move away, high costs to change the sídlo (business address),
- not transferring the ownership completely or keeping the POAs valid, so the 'extra' owner can do what he wants - including fraudulous activities,
- Power Of Attorneys that allow to 'take out' the basic capital - with permission of the owner (he just doesn't realise it until it happens)
- Demanding payment of the basic capital to their account, and never founding the company,
- Charging enormous sums for Business Visas, translations or 'special documents' that do not exist or have no relevance,
- And finally: giving invoices without information of the consultancy company, or receipts without details (often for cash transfers) that cannot be put into the bookkeeping
Features of a reliable SRO Company Formation Firm
- A reasonable sum for founding a new SRO is between 25.000 and 40.000 CZK,
- This sum includes notary costs, Trade License Register and Commercial Court stamp fees,
- The provider does not ask for the basic capital, instead you yourself put it directly into the company account,
- Power of Attorneys are in Czech and English - readable by the customer, with his signature verified by the notary or embassy,
- Power of Attorneys are written directly for the persons based in Czech Republic (laywer, consultant) that are going to set up the SRO
- Power of Attorneys become invalid after the formation process has been completed,
- The Service Provider informs you of the progress and will give you the notářský zápis, výpis z živnostenského rejstříku, výpis z obchodního rejstříku (all the company foundation documents)
- A clear Pro-Forma Invoice for services beforehand, and afterwards an Invoice written directly on the owner's name / name of the company.
- A clear agreement what kind of Services are included in setting up the company by the Company Formation Service Provider.