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Company Formation Czech Republic



Czech Legislation Related to Foreign Investments

Updated on Monday 11th December 2017

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Czech-Legislation-Related-to-Foreign-Investments.jpgCzech Republic represents one of the most competitive countries in Europe in terms of foreign direct investments (FDI). Foreign investors interested in setting up a company in Czech Republic should know that the state has been a popular location for FDI since 1990s as it has a workforce with a high level of qualifications and an infrastructure which meets the demands of the business community. Several industries are of interest for foreign investors as the Czech Republic became, according to the Global Competitiveness Report 2014/2015, the second economy in terms of attracting FDI amongst the 10 newest EU’s member states countries. If you need further information on the FDI business framework in Czech Republic, our Czech company formation specialists can offer you assistance on the matter. 

Legislation on FDI in the Czech Republic

The FDI in Czech Republic is regulated under the Corporations Act, which was amended with new provisions under the rules and regulations of the new Civil Code, effective from 1st of January 2014. 
The activity of foreign companies in Czech Republic is regulated by the Czech Ministry of Industry and Trade, which provides the legal requirements and licenses necessary for foreign businesses with operations on the Czech territory
According to a law on criminal responsibility of legal entities (local and foreign), enforced from 1st of January 2012, companies are legally responsible for the behavior of the company’s management, personnel and other entities which falls under its control.
Foreign companies in Czech Republic have the same legal statute as the local companies, as stated by the Organization for Economic Cooperation and Development (OECD) directives, implemented by the local legislation.  

FDI environment in Czech Republic 

Foreign investors are welcomed in Czech Republic, as the economic environment available here offers attractive prospects for businesses. The Czech government estimated that the economy will grow by 2.5% in 2016 and the unemployment rate will remain under 2%.
The Czech government offers incentives for foreign capital, such as tax exemptions available for 10 years, subsidies for creating jobs, training  of the employees or legal support for purchasing land. 
Foreign companies usually set their businesses in the field of manufacturing, finance, real estate, communication and internet technology.
If you need further information on the legislation related to FDI, please contact our Czech company formation agents


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