Compulsory deposit of financial statements in the Collection of Instruments
Since 1 January 2014, the legislation governing public registers imposes the duty to file certain documents in the Collection of Instruments. Penalties may arise for non-compliance with this legal requirement.
Who is required to deposit documents and how?
The Collection of Instruments is available on the website of the Ministry of Justice. The obligation to deposit documents applies to persons, companies or non-profit organisations registered in a public register, i.e. the Commercial Register. In addition to the duty to deposit constitutional documents drawn up at the time of the foundation of the company, accounting entities are also obliged to publish their financial statements in the prescribed manner within 12 months of the balance sheet date (as specified in Section 21a of Act No. 563/1991 Coll.).
So how do I deposit the required documents in the Collection of Instruments? You may do so in print or electronic form. If you opt for electronic form, you have to use the Portable Document Format (pdf). Detailed requirements on the form of electronic documents are specified on the website of the Ministry of Justice.
What are the penalties for failure to deposit documents in the Collection of Instruments?
And what would be the possible penalties for not depositing the financial statements and other necessary documents in the Collection of Instruments? First of all, documents must be deposited without undue delay. If certain information is registered in the Commercial Register but the corresponding documentary basis is not deposited in the Collection of Instruments, the registry court will invite the entrepreneur to submit the relevant document. The court may impose a fine of up to CZK 100,000 to enforce compliance with this duty. If the duty is breached repeatedly, the court may initiate proceedings to dissolve the registered legal person with liquidation. Under certain circumstances, you might even face criminal penalties.
If you need help with this or would prefer us to handle these legal obligations for you, please do not hesitate and contact us.