Legal Due Diligence in Prague. Company Review Before an Acquisition or Investment.
Legal Due Diligence of a Czech Company
- We review corporate documents and title to the shares: constitutional documents, the register, pledges and restrictions.
- We go through the company’s contracts: change of control provisions, obligations, guarantees.
- We check real estate, disputes, enforcement proceedings and insolvency.
- We prepare a report on the risks found and recommendations for the purchase agreement.
- Cost: the initial consultation is €200 per hour + VAT.
We help buyers and investors see the legal risks of a Czech company before signing: what exactly is being bought, who may transfer the shares and on what terms, and which liabilities pass with the company.
Attorney registered with the Czech Bar Association (ČAK).
Our Services
→ Corporate Review
- Constitutional documents and commercial register entries
- Title to the shares and the chain of acquisition
- Pledges, transfer restrictions and pre-emption rights
- Directors’ authority and general meeting resolutions
→ Contracts and Liabilities
- Contracts with key customers and suppliers
- Change of control provisions and restrictions on assignment
- Loans, guarantees and security
- Contracts with directors, shareholders and related parties
→ Assets, Disputes and Debts
- The company’s real estate: Land Registry extract, encumbrances
- Court and arbitration disputes, enforcement proceedings
- Search in the insolvency register (Insolvenční rejstřík)
- Rights to trademarks, domain names and software
→ Report and Transaction
- Risk report ranked by severity
- Recommendations on warranties, security and price in the purchase agreement
- Support in negotiations with the seller
- Tax and financial review together with your auditor or accountant
What We Will Need From You
- The name and company number (IČO) of the company you plan to buy, or a description of the deal structure
- The size of the shareholding and the terms already agreed with the seller
- The company documents the seller is willing to provide
- The date by which you want to sign
- Power of attorney with a certified signature, if you cannot attend in person
Frequently Asked Questions
What is legal due diligence?
It is a review of a company that a buyer or investor carries out before a transaction to understand the legal position of the business: title to shares and assets, contracts, disputes and liabilities. The lawyers prepare a report on the risks.
When do you need a legal review of a company?
Before buying a company or shares, before investing in a Czech business, in a merger and before granting a significant loan. The earlier the review, the more room there is to adjust the price and the terms of the agreement.
Which documents are reviewed?
Constitutional documents and commercial register entries, minutes of general meetings, contracts with customers, suppliers and banks, information on real estate, disputes and insolvency, and documents on rights to trademarks and software. The scope depends on the transaction and the size of the business.
How long does a review take?
It depends on the size of the company and how quickly the seller provides the documents. We agree the timetable before work starts.
Do you review the financial and tax position?
We carry out the legal part of the review ourselves. The financial and tax review is carried out by an auditor or accountant; we work with them and combine the findings in one report.
How much does a consultation cost?
The initial consultation costs €200 per hour plus VAT. We agree the cost of the review before work starts.
Contact us if you plan to buy a Czech company or shareholding and want to know the legal risks before you sign.
Legal Consultation Fee
€200 per hour + VAT
