Doing Business in the Czech Republic 2019 1919 – 2019 We are already 100 years on the market Development, production, sales and service of hydraulic and aeronautical systems and components hydraulic gear pumps • hydraulic gear motors • flow dividers • development, production, sales and service of aviation equipment Jihostroj is certified to the ISO 50001, ISO 14001, ISO 9001:2003, NADCAP, AS 9100, EASA 21 and EASA 145 standards. Jihostroj, a.s. | Budějovická 148, Velešín | CZECH REPUBLIC www.jihostroj.com Doing Business in the Czech Republic DOING BUSINESS IN THE CZECH REPUBLIC 2019 for foreign business partners compiled by PP Agency s.r.o. in cooperation with Ministry of Foreign Aff airs Ministry of Industry and Trade Ministry of Regional Development Czech Trade Promotion Agency/CzechTrade Czech Export Bank Export Guarantee and Insurance Corporation, a.s. Czech Tourist Authority – CzechTourism International Chamber of Commerce/ICC Confederation of Industry of the Czech Republic Czech National Bank Centre for Regional Development of the Czech Republic - Enterprise Europe Network Czech Centres Czech Chamber of Commerce Confederation of Employers’ and Entrepreneurs’ Associations of the Czech Republic Editorial Board: Vladimír Bärtl, Jiří Hansl, Marcela Havlová, Jaromír Kohlíček, Dagmar Kuchtová, Martin Lukáš, Karel Machotka, Marie Pavlů, Tomáš Seidl, Miroslav Somol, Jarmila Škvrnová, Martin Tlapa, Jan Wiesner Editor-in-Chief: Pavla Podskalská Editor: Jana Pike Graphic design: Graphic designer: Stanislava Podaná Prague Production: Stanislava Podaná Cover: Stanislava Podaná, pixabay.com Issued by: PP Agency s.r.o. Myslíkova 25, 110 00 Praha 1, Czech Republic www.ppagency.cz, e-mail: [email protected] Deadline: 28 November 2018 Copyright: PP Agency s.r.o. ISSN 1211-0949 It is not allowed to reproduce any part of the contents of this book without prior consent from the Editor. Photo: CzechTourism archives 2019 3 DOING BUSINESS IN THE CZECH REPUBLIC 2019 CONTENTS Foreword by Andrej Babiš, Prime Minister of the Government of the Czech Republic . .7 I. CZECH REPUBLIC ECONOMIC POLICY Useful Information . 11 Interest Rates on the Way Up. 12 Exporters Are Holding Their Ground Despite Growing Protectionism . 15 II. CZECH INDUSTRY Energy Industry– One of the Most Important Sectors in the CR. 21 Czech Engineering Has a Rich History . .25 Automotive Industry in the Czech Republic . .29 Chemicals, Pharmaceuticals, and Plastics – Products of the Most Advanced Czech Economic Sectors 30 Czech Medical and Sanitary Ware Conquers the World . .36 Successful Development of Rail Transport. 38 Top Quality and Exquisite Design of Bohemia Glass and Ceramics . 40 Competitiveness of Czech Food Industry . .44 Opportunities and Risks in Building Industry . 48 Defence Industry in the Czech Republic . 50 III. HOW TO DO BUSINESS IN THE CZECH REPUBLIC Forms of Business Activities in the Czech Republic . .54 Incorporating a Limited Liability Company . .55 Incorporating a joint-stock Company . .57 Steps for Acquiring a Czech Trade Licence. .58 Main Changes in Czech Legislation on Doing Business in the CR in 2019 . .60 Lease of Business Premises . .62 Investment incentives in 2019 . .63 Czech Act on Public Procurement Has Been Eff ective For 2 Years . .65 IV. FINANCE Banking Sector: Stability, Dynamism . 68 Tax Changes Aff ecting Businessmen . 71 Entrepreneurship of Foreign Entities & Its Taxation in the Czech Republic . .73 Employees – Taxation, Social Security, and Health Insurance . .74 V. REGIONS Prague Region . .78 Central Bohemia Region . 82 Plzeň Region. 86 South Bohemia Region . 90 Karlovy Vary Region . .94 Ústí nad Labem Region. 101 Liberec Region . .104 Hradec Králové Region . .108 Pardubice Region. 112 Vysočina Region. 116 South Moravia Region. .120 Zlín Region . .126 Olomouc Region. .129 Moravia-Silesia Region . .133 Photo: CzechTourism archives 4 2019 Doing Business in the Czech Republic Kroměříž – Flower Garden VI. USEFUL ADDRESSES AND INFORMATION Ministry of Foreign Aff airs . .140 Ministry of Industry and Trade . .140 Ministry of Regional Development . 141 Czech Trade Promotion Agency/CzechTrade. 141 Czech Export Bank. .142 Export Guarantee and Insurance Corporation, a.s. (EGAP). .142 Czech Tourism Authority – CzechTourism. .143 International Chamber of Commerce/ICC . .143 Confederation of Industry of the Czech Republic . .144 Czech National Bank . .144 Centre for Regional Development of the Czech Republic - Enterprise Europe Network . .145 Czech Centres . .145 Czech Chamber of Commerce . .146 Confederation of Employers’ and Entrepreneurs’ Assotiations of the Czech Republic. .146 Central and Other Key Bodies of the Czech Republic . 147 The Most Important Websites . .148 2019 5 Doing Business in the Czech Republic 2019 COMPILED BY PP AGENCY, S.R.O. IN COOPERATION WITH Ministry of Foreign Aff airs Ministry of Industry and Trade Ministry of Regional Development Czech Trade Promotion Agency/CzechTrade Czech Export Bank Export Guarantee and Insurance.