Economic law
Business activity definition
Gainful manufacturing, construction, trade, service (and extraction of minerals) activity
Organized
Constantly
And also professional activity
Entrepreneurs:
Natural person
Entity without corporate status (an unincorporated entity with legal capacity)
Legal entity
Cooperative
Running business in their own name
Sole trader
Natural person
Takes all responsibility for liabilities
Is liable with all his assets (no limits)
Sole trader
Advantages
Easy to set up („one window scheme” procedure)
No legal and financial barriers (no permits and licences, no initial capital, no fees)
Single-entry bookkeeping (simplified method of accounting)
Flexibility and easy to manage
Sole trader gains all profits (without taxes)
Lower social insurance contributions (not lower than 30% of minimum remuneration for work)
Disadvantages
Unlimited liability for business debts (including his or her private property)
No legal distinction between the owner and the business (sole trader = natural person)
Not enougt power on the market (credits, presitge…)
Registering as a sole trader
Idea for a business
One window scheme
Additional duties
Civil law partnership
Relatively small-scale business activity conducted by at least two entities
Partners
Business name
Civil law partnership is not a separate legal entity. Only its partners are such entities
However, civil law partnership is subject to VAT and excise tax as if it were a separate entity
There is no initial capital
Civil law partnership
Civil law partnership agreement should specify, as a minimum (art. 860 CC): common economic purpose, for which the partnership is established indication of each partner’s actions serving the intended purpose
Property (or its absence - entirety)
Contribution (art. 861 CC)
Distrbution of profits – included in civil law partnership agreement vs absence in… (art. 867 CC)
Participating in losses and profits (art. 867
Gainful manufacturing, construction, trade, service (and extraction of minerals) activity
Organized
Constantly
And also professional activity
Entrepreneurs:
Natural person
Entity without corporate status (an unincorporated entity with legal capacity)
Legal entity
Cooperative
Running business in their own name
Sole trader
Natural person
Takes all responsibility for liabilities
Is liable with all his assets (no limits)
Sole trader
Advantages
Easy to set up („one window scheme” procedure)
No legal and financial barriers (no permits and licences, no initial capital, no fees)
Single-entry bookkeeping (simplified method of accounting)
Flexibility and easy to manage
Sole trader gains all profits (without taxes)
Lower social insurance contributions (not lower than 30% of minimum remuneration for work)
Disadvantages
Unlimited liability for business debts (including his or her private property)
No legal distinction between the owner and the business (sole trader = natural person)
Not enougt power on the market (credits, presitge…)
Registering as a sole trader
Idea for a business
One window scheme
Additional duties
Civil law partnership
Relatively small-scale business activity conducted by at least two entities
Partners
Business name
Civil law partnership is not a separate legal entity. Only its partners are such entities
However, civil law partnership is subject to VAT and excise tax as if it were a separate entity
There is no initial capital
Civil law partnership
Civil law partnership agreement should specify, as a minimum (art. 860 CC): common economic purpose, for which the partnership is established indication of each partner’s actions serving the intended purpose
Property (or its absence - entirety)
Contribution (art. 861 CC)
Distrbution of profits – included in civil law partnership agreement vs absence in… (art. 867 CC)
Participating in losses and profits (art. 867