Termination of authorisation as of the date of the effects of a merger or division

If a company or cooperative that had active trade authorisations has been dissolved by merger or division or, if relevant, by transfer of assets to a member, such dissolution is notified to the trade licensing office, inter alia, from the commercial register. In such a case, the trade licensing office will wait for a statutory period of 15 days from the date of the legal effects of the merger or division to see if any of the potential continuing persons notifies their intention to continue the trade(s) of the dissolved company or cooperative.

If the period of 15 days specified by law expires to no effect, the trade licensing office will register a date of termination identical to the date of the legal effects of the merger or division for each of the active trades of the dissolved or divided entity. Within 30 days from the date of registration in the trade licensing register, it will notify the fact that the trade authorisation has terminated to other administrative authorities specified in Section 48 or Section 55 of the Trade Licensing Act:

• The tax authority that has local competence and carries out income tax administration
• The Czech Statistical Office
• The Social Security Administration that has local competence according to the entrepreneur’s registered office, in the case of a foreign person according to the location of a branch plant
• The court that maintains the register