Our Czech law firm is made up of professionals who can provide a wide range of services in the legal field, having an expanded experience in various law areas, namely: criminal business law, corporate law, labor relations, and public procurement law. They can also offer, through their affiliated specialists, additional management and accounting services for clients who decide to open a company in the Czech Republic. Our Czech attorneys can provide you with information and assistance, regardless of the size of your business.
How are litigation cases dealt with in Czech Republic?
The disputes in Czech Republic are dealt in two main ways: by settlement or in the court of law. Our Czech litigation lawyers can represent foreign entrepreneurs in commercial disputes, rental issues whether local or international, in agreement with the rules of the Commercial Law. Our team of advisors can support foreigners establish litigation strategies in compliance with the applicable legislation. We invite you to study a short presentation on the legal services offered by our law firm in Czech Republic:
Arbitration court in Czech Republic
Foreign investors who have set up a company in Czech Republic that is involved in a commercial dispute should know that this type of case can be addressed to the Arbitration court, which can offer resolutions for local or international commercial disputes. At the same, the Arbitration court offers its services to persons who have been involved in various types of consumer disputes; our team of Czech lawyers can represent you in rental disputes referring to the breach of the stipulations of the contract. The legislation under which theArbitration courtfunctions is provided by the Act no. 216/1994 Coll., which specifies that the court can resolve disputes addressed to it only in the case it has jurisdiction which is prescribed by the following:
the parties have concluded an arbitration agreement;
an international treaty.
How is arbitration made in Czech Republic?
Commercial disputes in the Czech Republic can be handled in the Arbitration Court and the authorities can deal with local disputes, consumer and international disputes. It is important to know that the International Rules or the Rules of Procedure for International Disputes are used in the Arbitration Court, depending on the case presented. Such disputes can be delicate, particularly if these involve commercial disagreements that cannot be handled otherwise. We invite you to talk to our lawyer in Czech Republic who can offer in-depth legal advice and support for such cases.
How is the Czech court system structured?
Besides the Constitutional Court of the Czech Republic, which is a separate entity, the general court system in this country is structured as follows:
86 district courts that that deal with first instance proceedings in criminal and civil matters.
The regional courts having jurisdictions over second instance proceedings in criminal and civil cases.
There are two High Courts in the Czech Republic with jurisdiction in criminal and civil cases (Prague and Olomouc).
The Supreme Court and the Supreme Administrative court are the most representative courts in the Czech Republic.
Legal advice and support in litigation cases can be offered by one of our experienced Czech lawyers.
Czech courts system
The Czech courts system is comprised of a 4 tier structure, organized in accordance with the powers attributed to the courts and judges representing them.
As such, the main courts in Czech Republic are structured as follows:
•the 4th tier is comprised of the most representative courts in the country, which are The Supreme Court and the Supreme Administrative Court. The Supreme Court is further sub-categorized in a criminal division, civil division and commercial division.
•the 3rd tier is represented by the High Court; there are two high courts in Czech Republic, one situated in Prague and the other one in Olomouc. The courts have jurisdiction in criminal and civil cases and in second instance proceedings;
•the 2nd tier refers to the regional courts, which are situated in eight main regions of the country; they have jurisdiction over second instance proceedings and in civil or criminal cases referring to first instance proceedings;
•the 1st tier is comprised of 86 district courts; a District Court in Czech Republic provides resolutions for first instance proceedings in civil and criminal matters.
The judicial system also contains the Constitutional Court of Czech Republic, but it is considered a separate entity than the general courts system applicable here; our lawyer in Czech Republic can provide you with more details on the attributions of the courts.
Legal advice for administrative litigation cases
Our litigation lawyers in the Czech Republic can handle administrative litigation cases of any kind, mentioning that these might be complex and might prolong. However, regardless of the complexity of the case you might deal with, our advisors can provide legal assistance and advice for construction permit appeals, tax appeals, real estate litigations involving construction companies in the Czech Republic. It is highly recommended to ask in time for legal advice and let a Czech lawyer take your case.
How is debt collection made in Czech Republic?
Companies or collaborators who cannot pay their debts can be subject todebt collection in the Czech Republicfor which our team of Czech lawyers can offer complete legal assistance. In other words, this is a legal method for recovering debts that starts with a notification letter in this sense, on behalf of the creditor. If there is no response in this step, the debtor and the creditor will solve the issue in the court of law. If you are interested in debt collection, please feel free to talk to our lawyer in Czech Republic.
How can foreigners set up a company, helped by our lawyer in Czech Republic?
Czech Republic’s economy is one of the most developed and stable in Central and Eastern Europe and therefore, this country is an attractive place for foreign investors. As forming a company can sometimes be more of a complicated process, our Czechlawyers assist numerous foreign entrepreneurs and they can provide high quality, personalized services, for any kind of business establishment. If a foreign investor chooses to open a company in the Czech Republic, it is recommended to seek professional counsel from a Czech law firm. Our advisors have expertise in guiding investors through the required procedures and presenting the rules and laws of the country. The types of legal structures that can be registered with the help of our Czech lawyers are as follows:
the limited liability company under the rules and regulations of the Commercial Code;
joint-stock companies meant to serve the interest of large enterprises;
co-operatives, general partnerships and limited partnerships ( the structure can be easily changed);
European companies and European Economic Interest Grouping (EEIG) in compliance with the EU legislation.
Our Czech attorneys can give you details about each type of company and offer consultancy in every issue related to laws, workforce, costs etc., in the Czech Republic. Among the services we provide, there are: reserving a company name, opening the bank account for the company and submitting any required documents to the Czech agencies.
Tax compliance in the Czech Republic
Tax regulations and laws are quite important if you own a company in the Czech Republic or intend to work in this country and our lawyers in the Czech Republic offer advice on all taxation-related matters. If you need assistance with VAT registration or advice concerning payroll services, our lawyer in Czech Republic is highly experienced in such matters. Our business advisors and accountants can help in tax minimization, as well as with personal income tax issues. In order to avoid penalties, we can make sure that all your taxes are paid in due time. The annual corporate tax rate in this country is lower than in many other European countries and some financial incentives have also been introduced in order to make foreign investments grow, such as: corporate tax relief for ten years in new manufacturing businesses, many training grants etc. You can ask our Czech law firm for a personalized advice in accordance to your business field of interest.
How can I buy a property in the Czech Republic?
Individuals or companies from abroad can easily acquire a property in the Czech Republic if not state-owned, with the help of our Czech lawyers. Apartments, buildings, warehouses, hotels, or agricultural lands are among the properties a foreigner can purchase in this country. It is recommended to solicit legal advice in this matter, in order to have a clear idea about the main requirements for property purchase, plus information about the agreement arranged between the two parties. Also, a real estate due diligence is highly recommended before buying a property in the Czech Republic, in order for the future owner to know if litigations were connected to the chosen asset, if the taxes are paid and if the building was legally constructed.
Company due diligence
Investors from overseas have the possibility of purchasing a company in the Czech Republic in most of the important industries in this country. Legal support in this direction might involve a company due diligence in order to find out complete information about the status of the business. A company due diligence might reveal details about the payments in the firm, the accounting matters that need to respect the applicable legislation or any economic or technical issues that occurred during the time in which the business had activities. When performing a company due diligence in the Czech Republic, the client interested in making such an acquisition will be in complete communication with our advisors who can perform such services. We are at your disposal with assistance and legal advice at any time.
Relocating a company to the Czech Republic
Business persons might consider relocating their companies to the Czech Republic and benefit from a stable environment and a solid economy for thriving and generous profits. Professional support is needed at the time of company relocation because the entrepreneurs must learn about the business environment and the applicable legislation involving the foreign investments.
Relocating to the Czech Republic
There are a few conditions one should consider when relocating to the Czech Republic like obtaining a residence and a work permit, opening a bank account, and asking for real estate due diligence before purchasing a property in this country. You might be interested in business consulting for your future operations in the Czech Republic for which you can rely on our team of advisors who can offer complete legal support. Knowing the business climate before moving to the Czech Republic will help the investor decide on the business structure, activities and marketing plans before any actions.
Support in company liquidation in Czech Republic
Company liquidation or the company dissolution in Czech Republic is made under the internal rules and by respecting the Commercial Act in this country. There are several steps to observe in this procedure, and first of all, it is suggested to choose the legal form of liquidation: the voluntary or the enforced one. If your company needs to be closed, it is recommended to seek legal advice and get in touch with our lawyer in Czech Republic at any time.
Reasons for investing in the Czech Republic
This country is a popular destination for foreign investors for the last two decades and this is due to the fact that it is a profitable business destination. The Czech Republic, a member of the European Union, is constantly developing its free-market economy across many sectors, including activities of mergers and acquisitions. Its advantageous geographical position, its developed infrastructure, its quality of life, convenient labor costs, skilled workforce, the intensity of local competition and financial stability make the Czech Republic an ideal country to invest in, whether it is about setting up an independent company or creating a branch office for a legal entity overseas. Most foreign investments in the Czech Republic are made by these countries: USA, Austria, Germany, Japan, Korea, the Netherlands, Switzerland, and France. The main sectors they choose to invest in are manufacturing, real estate, communications, financial institutions, and transport.
Foreign entrepreneurs can open companies in Czech Republic in the same conditions as imposed for national entrepreneurs. Because the investment legislation is permissive, investors from abroad can properly place their operations in this country. Moreover, they can have 100% ownership in their companies and can benefit from a wide range of encouragements offered by the government especially related to the tax regime.
The local workforce in Czech Republic must be considered at the time of company formation because it is highly skilled and experienced in a multitude of sectors. The infrastructure, the transportation, the telecommunication networks which are highly developed in Czech Republic may represent the reason why you should start a business in the Czech Republic. The healthcare, the biotechnology, the engineering, the food industry and the manufacturing sectors are flourishing in Czech Republic and offer a multitude of business opportunities for foreigners.
Legal advice and local representation
We are able to offer counsel in legal matters and our specialists can also provide you with legal advice and representation in business and commercial disputes. Our attorneys in the Czech Republic can offer support in arbitration, conciliation and other legal issues. Furthermore, if you decide to carry on business with a neighboring country, contact our Czech lawyers who can help you in cross-border matters. In case you plan on moving to the Czech Republic, our attorneys can ensure assistance in obtaining a work permit or applying for residency. Our specialists in Family Law can help you with any family disputes, such as divorce and other civil law issues.
Frequently Asked Questions
Our Czech lawyers often receive varied frequently asked questions from foreign investors on how to set up their own business or about employment issues they might encounter in the country they want to move to. We have gathered below some questions and answered them, mentioning that we have a vast experience in numerous domains, including litigation, company liquidation, divorce and marriage matters.
1. What are the legal aspects for opening a company in the Czech Republic?
For some business activities conducted in the Czech Republic, a trade license or other special permits have to be issued depending on the type of business. Czech law generally states that a foreign citizen may operate a business under the same conditions as the Czechs. The most popular business entity established in the Czech Republic is the limited liability company and this can be done helped by our law firm in Czech Republic.
2. What are the phases of a business litigation case in the Czech Republic?
The majority of the local litigations are handled by regular courts of law. There are four areas of law in the Czech Republic, namely: civil, criminal, constitutional and administrative. In the preliminary proceedings, the court usually assists the parties in settling their litigation and then follows the first instance proceedings, the appellate ones, the proceedings that involve judicial review of decisions and finally enforcement proceedings.
3. What are the legal requirements for a foreign investor who wants to open a business entity in the Czech Republic?
The first step that must be completed when wanting to form a legal entity in the Czech Republic is to decide on a name for your company and reserve it with the Ministry of Justice agency, then you need to open a bank account, register for taxes with the Tax Office and also register with the Commercial Registry of the Regional Court.
4. Do I need a visa in order to enter the Czech Republic? If so, how do I acquire it?
As the Czech Republic is an European Union member state and also part of the Schengen Area, generally, EU foreign citizens, do not need a visa to visit this country, only an ID card for EU citizens or a valid passport. Thus, depending on the situation, residents of other countries outside EU have to check the visa terms at their country’s Czech embassy.
5. Are special permits or licenses required for my new company in the Czech Republic?
Depending on the company’s business activities, licenses or special permits can be necessary, but our Czech lawyers will ensure customized advice on how to open your company as soon as possible.
6. What are the employment requirements in the Czech Republic?
EU member states’ citizens benefit from the same employment rights as the Czechs do. Speaking and writing Czech are quite important, but not mandatory (depending on the job you want) and applications do not have to be submitted in the Czech Republic, as this can be done online. As a foreigner, you need to obtain an employment permit (if required by the Employment Act) and also a permit of residence, an Employee Card or a Blue one.
7. What do I have to do in order to obtain Czech citizenship?
For acquiring a citizenship in the Czech Republic, you need to hold a residency permit for a minimum of five years and to spend important part of that time in this country, then prove that you intend to give up your citizenship. This application must be submitted with the local office of the Ministry of Interior.
8. What are the marriage regulations in Czech Republic?
The Office of Vital Statistics in the Czech Republic registers the marriage of foreigners with Czech nationals. The birth certificate, information about the permanent residency and the legal status, plus the divorce certificate if it is the case are among the needed documents for getting married in the Czech Republic. The ceremonies are held in the Czech language, however, spouses can benefit from the services of an interpreter.
9. What is the divorce procedure in Czech Republic?
No-fault and at-fault divorces are two types of separation in the Czech Republic involving a series of legal steps. The child custody and alimony, plus the distribution of the assets are among the stages of a divorce in the Czech Republic. The amicable procedure is the no-fault divorce through which the spouses agree on all the marital aspects including the ones mentioned above. Our divorce lawyers in the Czech Republic are here to provide immediate legal advice for such cases.
10. What is the EORI number? Do I need such a number for my business?
EORI is the Economic Operators Registration and Identification or the unique number that it is needed for companies having operations in the trading sector since 2009, in the Czech Republic. This kind of number is recognized within the territory of each European country and it is allocated to companies with businesses in the import and export sector. Filling an application and providing the company’s documents are sufficient for obtaining an EORI number in the Czech Republic.
Starting a company in the Czech Republic can be difficult since it involves such complex procedures. The team from Czech-Lawyers.com is very qualified and benefits from extensive expertise in this area.