Report on relations in the Czech Republic

We would like to remind you the annual legal obligation to prepare a Report on Relations in the Czech Republic under the Business Corporations Act. The obligation to prepare the report is set by law for all companies (controlled entities) that are controlled by another entity or form a part of a group of companies.

The Report on Relations (inter alia):

• describes the structure of relations between the controlled entity, the controlling entity and other entities controlled by the same controlling entity;
• lists contracts concluded within the business group;
• describes significant transactions that took place between the controlled entity, the controlling entity and other companies within the group;
• assesses advantages and disadvantages that arise from the relationships among group companies, as well as risks they pose to the controlled entity;
• evaluates damage, if any, incurred by the controlled entity and the method of its compensation.

Deadline for the Report on Relations in the Czech Republic

The Report on Relations shall be prepared by the statutory body of the controlled entity no later than three months after the end of the financial period and shall be reviewed by the company’s supervisory body (if appointed). The statutory body shall file the Report on Relations with the Collection of Deeds kept by the applicable Registry Court within the period for filing the Financial Statements compiled for the financial period covered by the Report on Relations. If the Financial Statements of the business corporation are audited, the Report on Relations shall be part of the Annual Report.

As a reminder, if your company’s financial year ended on 31 December 2024, the Report on Relations shall be prepared by 31 March 2025 and filed with the Collection of Deeds by 31 December 2025.

Penalties for non-compliance

If the obligation to prepare and file the Report on Relations is breached, the company may face a disciplinary fine of up to CZK 100,000.

If you are interested in our advisory services in the Czech Republic, we will gladly prepare the Report on Relations for you so that it complies with all requirements set out by law, and file it with the Collection of Deeds of the applicable Registry Court.

Lenka Brummerová

Corporate Services Manager | Accace Czech Republic

Book a meeting with Lenka