Find out what your registration obligations are as the founder of a foreign branch.
In practice, we often encounter shortcomings in the compliance of Czech companies with the obligation to disclose information about their foreign branches. This obligation has been in force since early 2023, when the EU Directive on digitalisation was transposed through an amendment to the Act on Public Registers of Legal and Natural Persons and the Register of Trusts.
The amendment originally envisaged the automatic entry of information into the Czech Commercial Register from foreign registers, particularly the BRIS system within the European Union. However, since this functionality has not yet been activated, the obligation to register information about its branches rests with the founder, i.e. the Czech company.
If a company fails to comply with its obligation to register information about its subsidiaries following a prior court request, it may be subject to a fine of up to CZK 100,000, which can be imposed repeatedly. In extreme cases of repeated non-compliance, the company may be dissolved with liquidation by court order. Therefore, we strongly recommend registering your foreign branches in the Czech Commercial Register.
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We will be happy to assist you with the registration. For more information, please get in touch with your contact person in our office or Jiří Absolon.
This document is only a general statement and is not intended as legal advice on a specific matter.
