Czech Republic
The Czech Republic is a unitary parliamentary republic and developed country with an advanced, high-income social market economy. It is a welfare state with a European social model, universal health care and tuition-free university education. It ranks 12th in the UN inequality-adjusted human development and 24th in the World Bank Human Capital Index. It ranks as the 9th safest and most peaceful country and 31st in democratic governance. The Czech Republic is a member of NATO, the European Union, OECD, OSCE, and the Council of Europe.
The Czech Republic has a developed, high-income export-oriented social market economy based in services, manufacturing and innovation, that maintains a welfare state and the European social model. The Czech Republic participates in the European Single Market as a member of the European Union and is therefore a part of the economy of the European Union, but uses its own currency, the Czech koruna, instead of the euro. It has a per capita GDP rate that is 91% of the EU average and is a member of the OECD. Monetary policy is conducted by the Czech National Bank, whose independence is guaranteed by the Constitution. The Czech Republic ranks 12th in the UN inequality-adjusted human development and 24th in World Bank Human Capital Index. It was described by The Guardian as "one of Europe's most flourishing economies".
Prague is the fifth most visited city in Europe after London, Paris, Istanbul and Rome.
The Czech Republic ranks in the top 10 countries worldwide with the fastest average internet speed.
The Czech Republic is one of the most successful transition economies in terms of attracting foreign direct investment (FDI). The most important investors are the Netherlands, Germany, Luxembourg and Austria.
The banking sector is dominated by three banks: Ceska sporitelna, CSOB, and Komercni banks, which are owned by foreign bank financial groups. The Czech banking sector is comparable to most similar-sized Western European economies. Foreign and large domestic banks offer a diverse range of products and services, including investment banking, investment funds and advisory, brokerage, underwriting, insurance, pension funds, and leasing, among other services. The Czech National Bank supervises the banking sector.
The Czech tax system, newly created in 1993 and valid since then, includes direct taxes (income, property), indirect taxes (consumption) and other obligatory payments (health insurance and social security contributions).
Foreign investors wishing to establish a business presence in the Czech Republic have a variety of options. The main corporate legal framework is provided by the Civil Code and the Business Corporations Act, and the primary legal forms through which business may be conducted in the Czech Republic are:
• Limited-liability company
• Joint-stock company
• Limited partnership
• General partnership
• Branch
• Cooperative and
• Sole proprietorship
All of the above legal entities as well as branches and foreign non-EU or non-EEA sole proprietors are required to register in the Czech Commercial Register prior to commencing their business activity.
Establishing a company in the Czech Republic is neither financially demanding nor time-consuming. For example, a limited-liability company whose business is not subject to specific regulatory requirements can be established and can start operating within one month. In the case of a sole shareholder, the minimum mandatory registered capital is no more than CZK 1.
The most frequent types of business are limited-liability companies and joint-stock companies, which are briefly introduced below.
The Act to Regulate Trades allows a foreign natural person to undertake business in the territory of the Czech Republic under the same conditions as those that have to be met by a resident of the Czech Republic. Trade can be carried out by an entrepreneur – a natural person or through an authorised representative.
A foreign natural person, who is a citizen of a European Union (EU) country, the European Economic Area (EA) or Switzerland, is not required to submit a residence permit valid for the territory of the Czech Republic.
A residence permit (visa for business purposes) for the territory of the Czech Republic is required with other natural persons.
A foreign natural person has to make an entry in a commercial register the day they are authorised to carry out business in the territory of the Czech Republic. This does not apply to foreign persons from the EU or EEA.
The Czech Republic is a member of the World Intellectual Property Organization (WIPO), European Patent Organisation (EPO) and a contractual party of the Agreement on Trade Related Aspects of Intellectual Property Rights (TRIPS).
The system of legal protection of intellectual/industrial property in the Czech Republic is consistent with the principles of a market economy and is harmonised with EU law.
The Czech Republic is a unitary state, with a civil law system based on the continental type, rooted in Germanic legal culture. The basis of the legal system is the Constitution of the Czech Republic adopted in 1993. The Penal Code is effective from 2010. A new Civil code became effective in 2014. The court system includes district, county, and supreme courts and is divided into civil, criminal, and administrative branches. The Czech judiciary has a triumvirate of supreme courts. The Constitutional Court consists of 15 constitutional judges and oversees violations of the Constitution by either the legislature or by the government. The Supreme Court is formed of 67 judges and is the court of highest appeal for most legal cases heard in the Czech Republic. The Supreme Administrative Court decides on issues of procedural and administrative propriety. It also has jurisdiction over certain political matters, such as the formation and closure of political parties, jurisdictional boundaries between government entities, and the eligibility of persons to stand for public office. The Supreme Court and the Supreme Administrative Court are both based in Brno, as is the Supreme Public Prosecutor's Office.
Our law firm VLO provides legal services for corporate and private clients in Czech Republik. These services include mergers and acquisitions, business and debt restructuring, tax and tax disputes, corporate disputes, investments, bankruptcy, litigation and arbitration.
If you have questions, please us right now.
E-mail: vlolawfirm@gmail.com
The Czech Republic has a developed, high-income export-oriented social market economy based in services, manufacturing and innovation, that maintains a welfare state and the European social model. The Czech Republic participates in the European Single Market as a member of the European Union and is therefore a part of the economy of the European Union, but uses its own currency, the Czech koruna, instead of the euro. It has a per capita GDP rate that is 91% of the EU average and is a member of the OECD. Monetary policy is conducted by the Czech National Bank, whose independence is guaranteed by the Constitution. The Czech Republic ranks 12th in the UN inequality-adjusted human development and 24th in World Bank Human Capital Index. It was described by The Guardian as "one of Europe's most flourishing economies".
Prague is the fifth most visited city in Europe after London, Paris, Istanbul and Rome.
The Czech Republic ranks in the top 10 countries worldwide with the fastest average internet speed.
The Czech Republic is one of the most successful transition economies in terms of attracting foreign direct investment (FDI). The most important investors are the Netherlands, Germany, Luxembourg and Austria.
The banking sector is dominated by three banks: Ceska sporitelna, CSOB, and Komercni banks, which are owned by foreign bank financial groups. The Czech banking sector is comparable to most similar-sized Western European economies. Foreign and large domestic banks offer a diverse range of products and services, including investment banking, investment funds and advisory, brokerage, underwriting, insurance, pension funds, and leasing, among other services. The Czech National Bank supervises the banking sector.
The Czech tax system, newly created in 1993 and valid since then, includes direct taxes (income, property), indirect taxes (consumption) and other obligatory payments (health insurance and social security contributions).
Foreign investors wishing to establish a business presence in the Czech Republic have a variety of options. The main corporate legal framework is provided by the Civil Code and the Business Corporations Act, and the primary legal forms through which business may be conducted in the Czech Republic are:
• Limited-liability company
• Joint-stock company
• Limited partnership
• General partnership
• Branch
• Cooperative and
• Sole proprietorship
All of the above legal entities as well as branches and foreign non-EU or non-EEA sole proprietors are required to register in the Czech Commercial Register prior to commencing their business activity.
Establishing a company in the Czech Republic is neither financially demanding nor time-consuming. For example, a limited-liability company whose business is not subject to specific regulatory requirements can be established and can start operating within one month. In the case of a sole shareholder, the minimum mandatory registered capital is no more than CZK 1.
The most frequent types of business are limited-liability companies and joint-stock companies, which are briefly introduced below.
The Act to Regulate Trades allows a foreign natural person to undertake business in the territory of the Czech Republic under the same conditions as those that have to be met by a resident of the Czech Republic. Trade can be carried out by an entrepreneur – a natural person or through an authorised representative.
A foreign natural person, who is a citizen of a European Union (EU) country, the European Economic Area (EA) or Switzerland, is not required to submit a residence permit valid for the territory of the Czech Republic.
A residence permit (visa for business purposes) for the territory of the Czech Republic is required with other natural persons.
A foreign natural person has to make an entry in a commercial register the day they are authorised to carry out business in the territory of the Czech Republic. This does not apply to foreign persons from the EU or EEA.
The Czech Republic is a member of the World Intellectual Property Organization (WIPO), European Patent Organisation (EPO) and a contractual party of the Agreement on Trade Related Aspects of Intellectual Property Rights (TRIPS).
The system of legal protection of intellectual/industrial property in the Czech Republic is consistent with the principles of a market economy and is harmonised with EU law.
The Czech Republic is a unitary state, with a civil law system based on the continental type, rooted in Germanic legal culture. The basis of the legal system is the Constitution of the Czech Republic adopted in 1993. The Penal Code is effective from 2010. A new Civil code became effective in 2014. The court system includes district, county, and supreme courts and is divided into civil, criminal, and administrative branches. The Czech judiciary has a triumvirate of supreme courts. The Constitutional Court consists of 15 constitutional judges and oversees violations of the Constitution by either the legislature or by the government. The Supreme Court is formed of 67 judges and is the court of highest appeal for most legal cases heard in the Czech Republic. The Supreme Administrative Court decides on issues of procedural and administrative propriety. It also has jurisdiction over certain political matters, such as the formation and closure of political parties, jurisdictional boundaries between government entities, and the eligibility of persons to stand for public office. The Supreme Court and the Supreme Administrative Court are both based in Brno, as is the Supreme Public Prosecutor's Office.
Our law firm VLO provides legal services for corporate and private clients in Czech Republik. These services include mergers and acquisitions, business and debt restructuring, tax and tax disputes, corporate disputes, investments, bankruptcy, litigation and arbitration.
If you have questions, please us right now.
E-mail: vlolawfirm@gmail.com
