Ltd. is an abbreviation for a limited liability company is a capital company which may be established by a minimum of one but a maximum of 50 shareholders. These shareholders are liable for the company’s liabilities only up to the amount of the unpaid share capital or up to their contribution. Pre-determined shareholders’ contributions are considering to be share capital. This type of company is characteristic of lower to medium capital business.
For this type of company to work, it must have the trade name of the company, that contains the named company Ltd. or just L.t.d. The trade name is the standard identification mark of it, and must also be part of the partnership agreement.
The second essential thing must have been included is the registered office of the company.
For a functioning limited liability company, it is necessary to identify the partners by stating the name and registered office of the legal entity or the name of the natural person’s residence.
The subject of business, ie the activity for which this company has been established, is also a very important factor.
From an economic point of view, a functioning L.t.d. it must state the amount of share capital (minimum EUR 5 000) and the amount of each shareholder’s contribution (minimum EUR 750) and the amount of deposits repaid at incorporation, including the method and timing of repayment of the deposit; in which the non – monetary contribution is included in the increase of the partner to whom it has committed itself. In the case of one shareholder, the share capital must be paid up in full on the date of incorporation, and in the case of several shareholders, at least 30% of the share capital must be paid up. Each partner can participate in the establishment of the company with only one deposit. The amount of the deposit may be determined differently for individual partners. However, the total value of the deposits must agree with the value of the share capital.
It is also necessary to state the names, residences and birth numbers of the first managers of the company and how they act on behalf of the company. In the case of a foreign natural person and not assigned a birth number, the date of birth is indicating.
If the first supervisory board is establishing, it is necessary to state the names, residences and birth numbers of its members.
It is also necessary to determine the deposit manager and the amount of the reserve fund, if the company creates it at its inception, and the amount up to which the company is obliged to replenish the reserve fund, as well as its method of replenishment.
If there are any advantages granted to persons involved in the formation of the company or in activities aimed at acquiring authorization to operate, they must be stated. As well as the estimated costs of the company related to the establishment and formation of the company.
By signing the partnership agreement, l.t.d. is established, but the company is established official by entry in the Commercial Register. At least 30% of each cash deposit must be repaid before submitting a proposal for registration of the company in the Commercial Register.
If the company has been established by one founder, it can be registered in the Commercial Register only when its registered capital had been paid in full.
The documents for registration of the company in the Commercial Register should submitted and signed by all managers of the company. This proposal must be submitted within 90 days from its establishment.