2018 SURVIVAL KIT to South Moravia Information Brochure for foreign Investors and Expatriates Brno, Czech Republic, 2017 • prepared by Regional Development Agency of South Moravia • 16th issue Dear friends, potential investors and business partners, You hold in your hands a publication that has been published by the Regional Development Agency South Moravia for 16 years already and which, over the time, has become a useful means of assistance to foreign investors, an important vehicle of promotion of the South Moravian Region and an inspiration to other regions in the Czech Republic and abroad. Throughout its existence, the content of the publication has evolved, from the provision of necessary basic information for companies that wished to locate their production and development centres in South Moravia to the existing form where the publication is oriented more towards employees of foreign companies and opportunities for partnership with research and development institutions of the South Moravian Region. This is an area where we see great potential, particularly due to the long-term focus of the South Moravian Region on innovation, intensified by newly built science and research centres of both regional and European relevance. Given the high degree of specialisation of the publication, we work in the long term with a number of partners – professionals who guarantee that the individual texts and chapters provide reliable information and experience. The chapter covering practical information from the South Moravian Region was consulted with, and written on the basis of feedback from, individual companies active in various parts of the South Moravian Region, with the objective of identifying the experience of various firms with the services provided in South Moravia and sharing it with others. It should be noted in this respect that the Regional Development Agency South Moravia is not responsible for services as such; on the other hand, the Agency believes that recommendations from other foreign and domestic firms are in themselves a sufficient indicator of quality. In conclusion, I would like to add that we welcome all comments on the content and structure of this brochure, which is regularly updated. If you have any tips or ideas you would like to direct to us, we, and others who use this publication, will be very pleased to receive them. Vladimír Gašpar Director, Regional Development Agency of South Moravia SURVIVAL KIT to South Moravia – 2018 1 Regional Development Agency of South Moravia The purpose of the Regional Development Agency of South Moravia (RRAJM) is to support the regional development on the territory of the South Moravian region. RRAJM therefore provides services to public sector bodies (putting emphasis on entities in the South Moravian region) as well as to other parties needing consultations concerning regional development. Our services include • Subsidies and EU projects – consulting and application writing • Educational events on regional development, structural policy and project management • General grant advisory • Advisory in preparing entrepreneurial zones and properties, management of their portfolio • Services and writing strategic and programme regional development documents • Writing feasibility studies and cost-benefit analyses for prepared projects • Assistance to investors (locality selection, organisation of visits, help with establishing a company, after care) • Support of brownfield regeneration • Advisory in EU innovation activities Support for Investors • Providing information on local conditions for entrepreneurial activities, tailor-made situation analyses • Selecting of suitable localities respecting particular requirements • Mediating contacts to land/property owners, labour offices, universities and local institutions involved in research and development; negotiations with local and regional bodies and institutions • Organising and planning visits Since 2000, when we started offering assistance to foreign investors, we managed to place nearly 50 foreign companies. Our “clients”, who have successfully established themselves in South Moravia include Honeywell, IBM, Daido Metal, Daikin, Alps Electric or FEI Company. Regional Development Agency of South Moravia Královopolská 139, 612 00 Brno, Czech Republic, www.rrajm.cz Jan Hladík, phone: +420 541 219 282, +420 541 212 125, extension 120, e-mail: [email protected] Pavel Beránek, phone: +420 541 219 282, +420 541 212 125, extension 119, e-mail: [email protected] Jan Kuchyňka, phone: +420 541 219 282, +420 541 212 125, extension 118, e-mail: [email protected] 2 SURVIVAL KIT to South Moravia – 2018 3 4 I. South Moravia: Geography, Labour Force, Economy 6 I. 01 Introduction 6 I. 02 Universities 7 I. 03 Economic Branches 8 I. 04 Labour force 11 I. 05 Unemployment 12 I. 06 Wages 14 II. Legal Regulation of Business Activities, Establishment of Business Entities 19 II. 01 Establishment of a Partnership or Corporation – Key Steps 19 II. 02 Limited Liability Company 23 II. 03 Joint Stock Company 23 II. 04 Establishment of an Enterprise of a Foreign Person or of a Czech Branch of the Enterprise of a Foreign Person 24 III. Accounting and Auditing 25 III. 01 Czech Accounting Legislation 25 III. 02 Changes in Czech Accounting Legislation for Entrepreneurs 25 III. 03 Basic Accounting Principles 27 III. 04 Statutory Financial Statements and Annual Reports 27 III. 05 Consolidation 28 III. 06 Auditing 29 IV. Tax System in the Czech Republic 30 IV. 01 Taxation of Corporations – Corporate Income Tax 30 IV. 02 Taxation of Individuals – Personal Income Tax 33 IV. 03 Value-added Tax 35 V. Employment and Labour Regulations 41 V. 01 Employment Contract, Commencement and Termination of Employment 41 V. 02 Working Hours 43 V. 03 Collective Redundancy 44 V. 04 Salary and Salary Grades 45 V. 05 Public Holidays, School Year 45 V. 06 Social Security and Health Insurance 46 V. 07 Some Other Important Provisions 47 VI. Visa and Integration after Arrival 49 VI. 01 Visa 49 VI. 02 List of States Whose Citizens Are Required to Have Visa 54 VI. 03 Visapoint 55 VI. 04 Integration after Arrival 55 VII. Co-operation with South Moravian Institutions 59 VII. 01 CEITEC – Central European Institute of Technology 59 VII. 02 ICRC – International Clinical Research Centre of St. Anne’s University Hospital in Brno 60 VII. 03 Faculty of Mechanical Engineering of the Brno University of Technology 63 VII. 04 AdMaS – Advanced Materials, Structures and Technologies 64 VII. 05 Centre SIX – Sensor, Information and Communication Systems 66 VII. 06 NETME Centre – New Technologies for Mechanical Engineering 67 VII. 07 CVVOZE – Centre for Research and Utilisation of Renewable Energy 68 VII. 08 CMV – Materials Research Centre 69 VII. 09 TTO MU – Technology Transfer Office of Masaryk University 70 VII. 10 JIC – South Moravian Innovation Centre 72 VII. 11 JCMM – South Moravian Centre for International Mobility 75 VII. 12 ISOB – International School of Brno 76 VII. 13 BEC – Brno Expat Centre 77 VIII. Practical Information: Working and Living in South Moravia 78 VIII. 01 Practical Information 78 VIII. 02 Traveling Around the Country and Abroad 81 VIII. 03 Leisure 85 VIII. 04 Social Infrastructure 92 SURVIVAL KIT to South Moravia – 2018 5 I. South Moravia: Geography, Labour Force, Economy I. 01. Introduction The South Moravian Region (Jihomoravský kraj) spreads over an area of 7,188 sq km, located in the southeast of the Czech Republic and is the country’s fourth largest region. The region consists of the following seven districts: Blansko, Brno-city (Brno-město), Brno-district (Brno-okres), Břeclav, Hodonín, Vyškov and Znojmo. The neighbouring Czech regions are Zlin Region (Zlínský kraj) to the east and Olomouc Region (Olomoucký kraj) to the northeast, Pardubice Region (Pardubický kraj) to the north and the Vysocina Region (Kraj Vysočina) and the South Bohemian Region (Jihočeský kraj) to the west. South Moravia has also two international borders – with Austria to the south and with Slovakia to the southeast. For the purposes of European regional policy the South Moravian Region and the Vysočina Region together form the so-called cohesion region NUTS II Southeast. Geography The geographical conditions of the region are fairly diverse and can be divided into three principal types of landscapes. The northern part is characterized by hilly terrains –eastern slopes of Czech-Moravian Highlands (Českomoravská vrchovina), Moravian Karst (Moravský kras) and Drahany Highlands (Drahanská vrchovina). This part of the region has a large proportion of forested areas and very scenic countryside suitable for hiking and cycling and in the Moravian Karst also for caving and rock-climbing. On the contrary, most of the southern part of South Moravia belongs to the Dyje-Svratka Valley (Dyjsko-svratecký úval) which is characterized by mildly undulating landscapes often covered with vineyards or flat but very fertile agricultural landscapes with the warmest climate in the Czech Republic. The lowest point of South Moravia can be found here – the confluence of Dyje and Morava rivers – 150 m above sea level is also the southernmost part of the region. The City of Brno is located right in the place where these two types of landscape meet and thus enjoys a combination of both a scenic and forested hinterland to the west and north, as well as a pleasant, mild climate and the proximity of wine and fruit producing areas to the south and east. Finally, the White Carpathians (Bílé Kapraty) located in the south-eastern