This is one of a series of Global Business Guides designed for businesses wishing to expand into another country/territory. This Global Business Guide was produced in January 2016. The materials contained in this document provide a snapshot at that time and were based on the law enforceable and information available at that time.
The Czech Republic has been extremely successful at attracting foreign direct investment (FDI) in recent years. Over 173,000 Czech firms across all sectors are now supported by foreign capital. According to the Czech National Bank, a total amount of EUR77.8 billion worth of FDI has been recorded since 1993.
The Czech Republic ranked 36th in the World Bank's 2016 Doing Business rankings, falling three places from 33rd in 2015. The country's strengths lay in the Trading Across Borders category where it ranked first in the world in both the 2015 and 2016 rankings. Conversely, the rankings identified the country's weaknesses in Dealing with Construction Permits and Paying Taxes, where it ranked 127th and 122nd, respectively.
Key facts about starting a business in the Czech Republic:
While establishing a business and investing in the Czech Republic is a transparent and straightforward process, it is important to understand the nuances of any local regime. The manner in which people conduct business in the Czech Republic may differ from the home countries of investors. Furthermore, variations on these distinctions may exist in different regions of the Czech Republic and the industry in which a company operates.
Czech is the official language of The Czech Republic. However, much of the population is multilingual and therefore business may also be conducted in English or German.
Business is hierarchical and status is important. Business attire is typically conservative; nevertheless, this will vary according to industry and smaller companies may have a more casual dress code.
Punctuality is critical in the Czech Republic. A handshake is the typical greeting for a new introduction and business cards will be exchanged after initial introductions.
Those looking to establish a business in the Czech Republic will often look to countries across Europe as alternative options. While membership of the EU ensures parity in many aspects of the legal,tax and audit regimes, the Czech Republic can be differentiated on the following factors:
Despite the many benefits of investing in the Czech Republic, foreign investors should remain aware of potential challenges. Despite efforts to diversify, the country is highly dependent on exports to EU member countries, making it vulnerable to economic swings in the EU. The country also suffers from a slow pace of judicial and regulatory reforms.
This guide has been developed to provide businesses with an overview of the Czech Republic, its legal regime, start-up and market entry considerations, tax and customs requirements and a general summary of the factors that may affect the decision to do business in the Czech Republic. However, the information contained in this document is generic in nature and you should not act or rely on it without obtaining specific professional advice.
Please note that the Global Business Guides may only be available in English.
|1||Register of Economic Entities|
|3||The Office for Personal Data Protection|
|4||Ministry of Foreign Affairs|
|5||Industrial Property Office|
|7||Ministry of Labour and Social Affairs|
|2||Doing Business Rankings|
|4||Foreign language statistics|
Download Global Business Guide - Czech Republic (1.04MB, PDF)
This document is issued by HSBC Bank plc, Czech Republic Branch (the Bank). This guide is a joint project with Grant Thornton. It is not intended as an offer or solicitation for business to anyone in any jurisdiction. It is not intended for distribution to anyone located in or resident in jurisdictions which restrict the distribution of this document. It shall not be copied, reproduced, transmitted or further distributed by any recipient. The information contained in this document is of a general nature only. It is not meant to be comprehensive and does not constitute financial, legal, tax or other professional advice. You should not act upon the information contained in this document without obtaining specific professional advice. Whilst every care has been taken in preparing this document, the Bank and Grant Thornton makes no guarantee, representation or warranty (express or implied) as to its accuracy or completeness, and under no circumstances will the Bank or Grant Thornton be liable for any loss caused by reliance on any opinion or statement made in this document. Except as specifically indicated, the expressions of opinion are those of the Bank and are subject to change without notice. The materials contained in this document were assembled in January 2016 and were based on the law enforceable and information available at that time.
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