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Czech Republic - DOING BUSINESS |
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Local business incentives
| Generally, there is no need to get an authorization before setting up a company, except in some sectors such as national defence, national security, nuclear energy, etc. In particular cases, companies have to contact the respective ministries. Investors shall contact CzechInvest, the agency of the Ministry of Industry and Trade of the Czech Republic, in order to get further information on investment matters.
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Legal forms of companies
| Form |
Number of partners/shareholders |
Minimum and/or maximum capital |
Liability |
Registration fee |
Release of financial documents |
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Private Limited Company.
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No minimum.
Maximum 5 .
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Minimum CZK 100,000.
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Partners' liability is limited to the amount contributed.
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Public Limited Company.
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No minimum, can be a sole proprietorship.
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Minimum CZK 1 million, at least 30% must be released before the constituting general meeting.
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Liability is limited to the amount contributed.
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The general partnership.
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No minimum
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No minimum capital.
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Liability is unlimited.
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The limited partnership.
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Two types of partners: active partners and sleeping partners.
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No minimum capital.
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Liability of active partners is unlimited. Liability of sleeping partners is limited to the amount contributed.
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Registration and licensing procedures
Registration procedure is regulated by the Trading Act the latest changes of which came into effect on January 1st 1996.
All documents must be drawn up in Czech, and translations and signatures must be certified by a notarized deed.
All companies must register with the local Trade office where the company is located. The competent Trade Register is the one where the company is located, the district Court or the regional Court. Branches of foreign companies must be registered and provide full details on the activities they intend to develop, under penalty of not being able to carry them out.
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Foreign exchange control
As for currency exchange regulations, free conversion of currencies, established by the Foreign Exchange Act in 1995, is carried out.
Besides, foreign investors are allowed to transfer profit and capital. These transfers and repatriation operations are subject to a compulsory declaration for statistical purposes with the Czech Central Bank.
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Regulations concerning equity investment
A majority holding interest in the capital of a Czech company is legal.
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FDI inflows in Czech Republic
| FDI inflows (millions US$) |
2000 |
2001 |
2002 |
World rank |
| Foreign Direct Investments (F.D.I.) |
8483
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2101
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4463
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28
/ 196 |
| Sources : UNCTAD Database FDI/TNC |
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Last modified in
December 2003
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