Teritoriální projekt pobaltí

1C z e c h R e p u b l i c – Yo u r Tr a d e Pa r t n e r

Czech Republic YOUR TRADE PARTNER

Estonia, Latvia, Lithuania2010/2011

E C O N O M I C S

2 C z e c h R e p u b l i c – Yo u r Tr a d e Pa r t n e r

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Traditional Czech supplier of modern control

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AŽD Praha


CZECH REPUBLIC - YOUR TRADE PARTNER

Compiled by PP Agency, s.r.o. in cooperation with

Ministry of Industry and Trade

Ministry of Foreign Affairs

Confederation of Industry of the Czech Republic

Czech Chamber of Commerce

Confederation of Employers’ and Entrepreneurs’ Associations of the Czech Republic

CzechTrade

CzechInvest

CzechTourism

Czech Centres

Centre for Regional Development of the Czech Republic

Export Guarantee and Insurance Corporation

Czech Export Bank

Deadline: 12 January 2010

® Teritoriální publikaceČeská republika – Váš obchodní partner

© Published by the PP Agency s.r.o.Myslíkova 25, 110 00 Praha 1, Czech RepublicPhone: +420 221 406 622; e-mail: [email protected]; www.ppagency.czA company with the ISO 9001 certifi ed quality management system for publishing services

F O R E W O R D


Contents

Prague, the Dancing House (it placed fi rst in the Design category of a survey organised by the American Time magazine)

Foreword by Mr Alexandr Langer, Ambassador of the Czech Republic to the Republic of Estonia 5

Foreword by Mr Tomáš Pštross, Ambassador of the Czech Republic to the Republic of Latvia 6

Foreword by Mr Radek Pech, Ambassador of the Czech Republic to the Republic of Lithuania 7

FOREWORD

Czech Exporters 8

Useful Information 10

ECONOMICS

Czech Economy in 2008 and 2009 13

Czech-Estonian Trade and Economic Relations 16

Czech-Latvian Trade and Economic Relations 18

Czech-Lithuanian Trade and Economic Relations 20

Smaller Projects, Advanced Technologies 22

Road Toll in the Czech Republic 25

Czech Republic – Member of the Schengen Area 25

BUSINESS IN THE CZECH REPUBLIC

Legal Framework for Doing Business in the CR 27

How to Set Up a Company 31

Why Invest in the Czech Republic? 34

Registration and Tax Liabilities 35

The Tax System 36

EU Citizens not Required to Obtain Work Permits 38

Come and Discover the CR 40

INSTITUTIONS

Confederation of Industry of the Czech Republic 42

Czech Chamber of Commerce 42

Export Guarantee and Insurance Corporation 43

Czech Centres 43

CzechInvest - the Investment and Business Development Agency 43

Centre for Regional Development of the CR 44

Czech Trade Promotion Agency/CzechTrade 44

Confederation of Employers’ and Entrepreneurs’ Associations of the Czech Republic 45

Czech Export Bank 46

Czech Tourist Authority – CzechTourism 46

CONTACTS

Useful Addresses in the Czech Republic 48

Useful Contacts in the Republic of Estonia 48

Useful Contacts in the Republic of Latvia 48

Useful Contacts in the Republic of Lithuania 48

The Most Important Websites 50 Phot

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The economies of the Czech Republic and the Republic of Estonia have much in common: because of their limited domestic markets both countries are export-oriented, both have undergone radical transformation and switched over to market economy principles, both moved quickly to the EU markets and until 2008 showed a rapid GDP growth. Czech goods and services are for sure not unknown in Estonia: ŠKODA AUTO, ČSA, Czech tramcars, beer, and other food products certainly need no introduction. Since the establishment of the Czech Republic in 1993, Czech-Estonian trade turnover increased 22 fold and in 2007 amounted to EUR 178.6 million. The depend-ence of both economies on exports and the decline in the absorption capacity of their largest foreign buyers of goods and services led to the decline in the performance of the economies of both countries. Currently we can see that the consequences of the world economic crisis are being successfully overcome and that the activities on both

the domestic and international markets are gradually regaining their previous strength. In the Czech Republic, we are impressed by the steadfastness shown by Estonia in its efforts to meet the Maastricht criteria so as to be able to enter the Eurozone at the beginning of 2011. Both economies are trying to take advantage of any positive effects the past crisis has brought. It seems that one such positive effect is the growth of the share of the knowledge economy in the countries’ economic systems (not all users of the popular Internet product Skype know that it has its roots in Estonia). Statistics clearly show a growing share of IT technologies in the total volume of investments made in 2009. Another effect is the lesson we learned about the need for diversifi cation – it is good to have customers on the EU market, but it would be a pity to abandon for them the positions gained with pain on third markets (we are following the activi-ties of Czech and Estonian businessmen, for example in Southeast Asia). This naturally brings to mind the idea of possible co-operation of Czech and Estonian companies on those markets, so far practically unaffected by the economic crisis. Czech-Estonian relations have deep roots. In this connection, let us mention, for example, the disciples of J. A. Comenius, who propa-gated his work in Tartu in the 17th century, or the Czech writer, literary scientist and critic Vladimír Macura, who initiated and was one of the founding members of the Baltic Union, an underground organisation at the time of the communist dictatorship associating friends of the Baltic nations and their countries occupied by the Soviet Union (predecessor of today’s Czech-Estonian Club), which operated in the former Czechoslovakia since the mid-1970s. Today, the Czech Republic and Estonia are close allies in a number of international organisations, such as the European Union and the North Atlantic Alliance. Our nations must communicate inten-sively with each other, and trade is one of the forms of communication, which, in addition, has the capability of accelerating communication at all other levels – political, cultural, tourist, etc. Without any attempt at simplifi cation, it does not seem to be accidental that the rapid growth of mutual trade is accompanied by a growing mutual fl ow of tourists. Our countries are close to each other both politically and geographically, as there are direct fl ights connecting Tallinn and Prague operated by ČSA. To link the Czech Republic and Estonia by road more comfort-ably, it will be necessary to solve certain problems, but this in no way denies the great potential that exists for the promotion of mutual economic links. Recently we have been witnessing the emancipation of the regions of our two countries. In the past six months alone, the South Bohemia and the South Moravia Regions presented themselves at the Embassy of the Czech Republic in Tallinn. Similar activities can also be observed on the Estonian side.As a representative of the Czech Republic in Estonia, I wish your publication Czech Republic – Your Trade Partner the best of success in the presentation of the Czech Republic and in fur-thering information about our countries’ mutual co-operation potential in business, produc-tion, and investment.

Alexandr Langer

Ambassador of the Czech Republic to the Republic of Estonia

F O R E W O R D


I welcome the opportunity of presenting in this, already traditional, way the sphere of Czech-Latvian trade and economic relations. As shown by the statistics, trade between the Czech Republic and the Republic of Latvia followed an upward trend until the end of 2008. In 2009, however, the Latvian economy experienced diffi culties, moreover aggravated by the global fi nancial crisis and economic recession. Today, Latvia is striving to combat the serious impact of the situation, so it is no wonder that the growth curve of our mutu-al trade has changed its course. A number of traditional exporters of Czech products to Latvia are faced with serious sales diffi culties, with the solvency of our customers and the purchasing power of the population, used to buying the well-established products of the Czech consumer industry, having declined substantially. The same applies to investment deliveries, as a result of which some of the planned joint technical projects had to be postponed. The total volume of our exports in 2009 is estimated to have dropped by more than one-fourth. In the opposite direction, i.e. in the category of Latvian exports to the Czech Republic, the situation is slightly better; imports, however, have always played a relatively small role in our mutual trade exchange.Despite these unfavourable circumstances, Czech products have an excellent record in Latvia and, in addition, their popularity in a cer-tain sense refl ects the Latvian affection for our nation. Although this publication concerns exclusively economic matters, it is proper to recall the tremendous popularity of our culture in Latvia. It would be a great pity to lose anything of that potential. As regards the economic situation, I am confi dent that our trade exchange will soon be back on the old track. In this respect, I am optimistic and know that it is just a matter of time. Until then I consider it correct to maintain the positions in this pleasant Baltic country and be prepared to resume dynamic activities on the Latvian market. Although small in terms of the country’s population, this market is relatively important from the point of view of Latvia as a country at the crossroads of the European transit routes, with an advan-ced infrastructure of its ports. It is a strongly competitive market, where the greatest players are Latvia’s neighbours and countries of the European North. So far, however, we have stood our ground in this competition, and I am confi dent that nothing will change about it in future.

Tomáš Pštross

Ambassador of the Czech Republic to the Republic of Latvia

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I am pleased to have the opportunity to address the readers of the publication “Czech Republic - Your Trade Partner” from Vilnius, the capital of Lithuania. Czech-Lithuanian relationship is historically very fruitful in both economic and all-round area. Following our commercial relations during almost last twenty years, we can see continual increase of mutual business turnover with an exception due to global economic crisis since the fourth quarter of the year 2008. But this is a strong challenge to fi ght the downturn and to go back to the economic growth. The real milestone was defi nitely the year 2004 – the accession to the EU opened up the possibility for a qualitatively higher level of our co-operation. Additionally, Lithuania became 2004 a member of NATO. As relations between our countries have no political or other problems, trade exchange and other forms of econ-omic co-operation are thus coming increasingly to the forefront of the common interests between Lithuanians and Czechs. Bilateral contacts

between the Czech Republic and the Republic of Lithuania are very intensive, stemming primarily from the traditionally friendly relations between the two countries. The fi rst written records of Czech -Lithuanian relations can be found in a document dating back to the year 1397, when a Lithuanian college was founded at Prague University. Jan Žižka took part in the Battle of Tannenberg (Žal-giris-Grűnwald) alongside with the Lithuanian Grand Duke Vytautas the Great in 1410. In the 19th century the Czech national movement gave impetus to the Lithuanian national uprising and the Czech letters of ž,č,š found their way to the Lithuanian alphabet. Czechoslovakia was one of the fi rst states which recognised the independent Lithuania on 5 January 1922. With the exception of the forcible break between 1939 and 1990, the Czech Republic and Lithuania have had very active diplo-matic relations. We will celebrate 19th anniversary of re-established diplomatic relations on the 9th September 2010. An important part of the work of the Czech Embassy in the Republic of Lithuania is economic diplomacy and the support of an export-oriented policy. In co-operation with represen-tatives of the Czech Trade Agency we are creating favourable conditions particularly for small and medium-sized businesses to assert themselves in the Lithuanian market. Lithuania has traditionally been the Czech Republic’s largest trade partner among the Baltic states. In 2008, the mutual trade kept the last year’s level, and it reached more than EUR 424 million. In 2009, it seems to be worse. The turnover has lowered about 36% during three quarters of this year. The Embassy of the Czech Republic, however, does not limit itself to just one-way commodity trading; with the help of lectures, the presentation of plans and the participation of Czech fi rms in trade fairs and exhibitions we are trying to support bilateral entrepreneurial activities. We are strengthening the cooperation with our government organisation Czech Trade Agency to support Czech-Lithuanian business activities. More and more Lithuanians visit our country as tourists and businessmen. We want to promote our country as a good place for a holiday, a good exhibition site and as one of the most important congress centres in Europe in contemporary crisis situation particularly.

In the year 2010, we shall focus on:l monitoring large investment projects, especially in energetic and transport systems and passing on information to Czech businessmen and entrepreneurs so as to enable them to prepare for parti-cipation in public tenders;

l the study of distribution channels and the fl ow of commodities, passing on of information to Czech fi rms wishing to enter the Lithuanian market, in close cooperation with the local offi ce of the Czech Trade Agency;

l effort of our countries in overcoming the present economic downturn.

As the representative of the Czech Republic in Lithuania, I hope for the greatest success in mutual relations, in business and enterprise.

Radek Pech

Ambassador of the Czech Republic to the Republic of Lithuania

F O R E W O R D


27.90 Manufacture of other electrical equipment

INGE Opava, spol. s r.o. 51 Elektro, výrobní družstvo v Bečově nad Teplou 2628.21 Manufacture of ovens, furnaces,

and furnace burners

E-therm TZ s.r.o. 5828.40 Manufacture of metal-forming machinery and machine

tools

TOS VARNSDORF a.s. 4728.93 Manufacture of machinery for food, beverage,

and tobacco processing

DESTILA, s.r.o. 49 J 4 s.r.o. 4928.99 Manufacture of other special-purpose machinery n.e.c.

E-therm TZ s.r.o. 58 J 4 s.r.o. 4929.10 Manufacture of motor vehicles

SOR Libchavy spol. s r.o. 4730.20 Manufacture of railway locomotives and rolling stock

CZ LOKO, a.s. 55 SaZ s.r.o. 5430.99 Manufacture of other transport equipment n.e.c.

SaZ s.r.o. 5431.09 Manufacture of other furniture

LE BON, spol. s r.o. 53 RIHO CZ, a.s. 5333.17 Repair and maintenance of other transport equipment

SaZ s.r.o. 5435.12 Transmission of electricity

KPB INTRA s.r.o. 5635.13 Distribution of electricity

KPB INTRA s.r.o. 5646.14 Agents involved in the sale of machinery, industrial

equipment, ships, and aircraft

Jovbak s.r.o. 1546.45 Wholesale of perfume and cosmetics

GOLDEN LINE s.r.o. 3952.21 Service activities incidental to land transportation

AŽD Praha s.r.o. 262.00 Computer programming, consultancy, and related

activities

Institut mikroelektronických aplikací s.r.o. 5164.11 Central banking

Česká exportní banka, a.s. 4564.99 Other fi nancial service activities, except insurance and

pension funding n.e.c.

Česká exportní banka, a.s. 4573.10 Advertising

M.I.P. Advertising, a.s. 2474.90 Other professional, scientifi c, and technical activities n.e.c.

E-therm TZ s.r.o. 5880.20 Security systems service activities

Institut mikroelektronických aplikací s.r.o. 5186.10 Hospital activities

Klinika plastické chirurgie EMOTIONS, s.r.o. 4186.22 Specialist medical practice activities

Klinika plastické chirurgie EMOTIONS, s.r.o. 4196.02 Hairdressing and other beauty treatment

Klinika plastické chirurgie EMOTIONS, s.r.o. 41

03.21 Marine aquaculture

Josef Lonský - AQUA TROPIC 903.22 Freshwater aquaculture

Josef Lonský - AQUA TROPIC 910.92 Manufacture of prepared pet foods

Josef Lonský - AQUA TROPIC 918.10 Printing and service activities related to printing

Böttcher ČR , k.s. 1220.30 Manufacture of paints, varnishes and similar coatings,

printing ink and mastics

METRUM s.r.o. 1520.42 Manufacture of perfumes and toilet preparations

GOLDEN LINE s.r.o. 3920.59 Manufacture of other chemical products n.e.c.

GOLDEN LINE s.r.o. 3922.10 Manufacture of rubber products

Böttcher ČR , k.s. 1222.21 Manufacture of plastic plates, sheets, tubes, and profi les

TERMOLUX, s.r.o. 2922.23 Manufacture of builders’ ware of plastic

TERMOLUX, s.r.o. 2922.29 Manufacture of other plastic products

OBZOR, výrobní družstvo Zlín 3023.42 Manufacture of ceramic sanitary fi xtures

LE BON, spol. s r.o. 53 RIHO CZ, a.s. 5225.20 Manufacture of tanks, reservoirs, and containers of

metal

DESTILA, s.r.o. 49 EURO TEPLO s.r.o. 33 HAAS + SOHN Rukov, s.r.o. 3425.29 Manufacture of other tanks, reservoirs,

and containers of metal

INTERO, Chmelan a spol., společnost s ručením omezeným 59

25.50 Forging, pressing, stamping, and roll-forming

of metal; powder metallurgy

OBZOR, výrobní družstvo Zlín 3025.99 Manufacture of other fabricated metal products n.e.c.

EURO TEPLO s.r.o. 3326.00 Manufacture of computer, electronic,

and optical products

Institut mikroelektronických aplikací s.r.o. 5127.10 Manufacture of electric motors, generators,

transformers, and electricity distribution and

control apparatus

AŽD Praha s.r.o. 227.12 Manufacture of electricity distribution

and control apparatus

OBZOR, výrobní družstvo Zlín 30 Elektro, výrobní družstvo v Bečově nad Teplou 2627.32 Manufacture of other electronic and electric

wires and cables

KABELOVNA Děčín Podmokly, s.r.o. 5727.33 Manufacture of wiring devices

KABELOVNA Děčín Podmokly, s.r.o. 57 Elektro, výrobní družstvo v Bečově nad Teplou 2627.40 Manufacture of electric lighting equipment

INGE Opava, spol. s r.o. 51

Czech companies presenting their products in this publication

wish to expand their exports and to have business partners in the Baltic states.

The companies are listed by sector classifi cation – NACE.

Czech Exporters


AQUATROPIC LONSKYK PEROVNE 740, 102 00 PRAHA 10, CZECH REPUBLIC

Tel.: 272 702 880, Fax: 272 702 947 http://www.lon.cz • e-mail: [email protected]

THE RELIABLEPRODUCER EVEN

FOR YOUR COMPANY


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BASIC DATAPopulation 10 506 813

(31 December 2009)Area 78 864 sq.kmThe capital city Praha (Prague)System of government a republicLanguage CzechHighest peak Sněžka (Snow) Mountain

(1602 m above sea level)Time zone Central European Time

GMT + 1, summer time GMT + 2

Monetary unit 1 Czech crown (Kč/CZK) = 100 halers

Internet domain .cz

The President of the Czech Republic is Václav Klaus.

MEMBERSHIP OF ORGANISATIONSThe Czech Republic is a member of the European Union, the United Nations, NATO, the WTO, the International Monetary Fund, the International Bank for Recon-

struction and Development, the European Bank for Reconstruction and Development, the OECD, as well as many other organisations.

UNESCO WORLD HERITAGEThe UNESCO World Heritage List includes the following cities and sites: Prague, Český Krumlov, Kutná Hora, the Litomyšl Chateau, Telč, the Lednice-Valtice area, Zelená Hora - St John of Nepomuk Church, Holašovice, Kroměříž (chateau and gardens), the Holy Trinity Column in Olomouc, the Tugendhat Villa in Brno (designed by architect Ludwig Mies van der Rohe), and St Procopius Basilica and the Jewish Cemetery in Třebíč. For more information, please see www.unesco-czech.cz.

PROMINENT FIGURESThe Czechs are described as a very cultural nation which has contributed to the world a large number of prominent fi gures. The most signifi cant rulers and heads of state include emperor Charles IV and presidents T. G. Masaryk, Edvard Beneš, and Václav Havel. Names of world renown include Jan Amos Komenský (Comenius) “the Teacher of Nations“, scientists Jaroslav Heyrovský (Nobel Prize laureate for chemistry), Otto Wichterle, a Czech chemist who

invented contact lenses, and Antonín Holý (professor of honour in medicinal chemist-ry), who discovered drugs against AIDS. Famous people of culture include composers

Other useful information on the

Czech Republic is at www.czech.cz

Useful Information

F O R E W O R D


Bedřich Smetana, Leoš Janáček, Antonín Dvořák, and Bohuslav Martinů, writers Franz Kafka, Karel Čapek, Jaroslav Seifert (Nobel Prize laureate), Jaroslav Hašek, Bohumil Hrabal, and Milan Kunde-ra. Winners of the American Academy Award are fi lm directors Miloš Forman (born in former Czechoslovakia), Jiří Menzel, Jan Svěrák, and the singer Markéta Irglová. Painters to be named are František Kupka and Alfons Mucha. Athletes of world renown include Emil Zátopek, Petr Čech, Jaromír Jágr, Dominik Hašek, Pavel Nedvěd, Jan Železný, Kateřina Neumannová, and many others. Martina Navrátilová and Ivan Lendl are also of Czech origin. The winners of gold medals at the 2008 Olympic Games in Beijing were Kateřina Emmons, Barbora Špotáková, and David Kostelecký.

PRACTICAL INFORMATIONCountry dialling code: +420. Details regarding phone numbers are available at the following website: www.zlatestranky.cz.Licences to operate mobile phone networks in the Czech Republic have been awarded to the following companies: Telefónica O2

Czech Republic, a.s., T-Mobile Czech Republic a.s., Vodafone Czech Republic a.s., and MobilKom, a.s.The most commonly used credit cards in the Czech Republic are: Eurocard/MasterCard, Maestro, and Visa.

THE BIGGEST CITIES OF THE CZECH REPUBLICcity number of inhabitants 1. Praha 1 180 100 2. Brno 366 000 3. Оstrava 310 000 4. Plzeň 163 000 5. Оlomouc 100 000 6. Liberec 98 000 7. České Budějovice 95 000 8. Ústí nad Labem 95 000 9. Hradec Králové 94 000 10. Pardubice 88 000

State Symbols of the Czech Republic

Large State

Coat of Arms State Flag

The Capital of Prague - the dominant Prague Castle

E C O N O M I C S


■ Printing● Roller coverings ● Printing chemicals ● Printing blankets

Main supplier of rubber rollers for printing machines of thebrands: HEIDELBERG, MAN-ROLAND, ADAST, KBA-PLANETA, KBA-GRAFITEC, WIFAG, GOSS, KOMORI,RYOBI

■ Sleeves

■ Escalator handrails

■ Rubber coverings for industrial rollers

■ Polyurethane application on the roller

■ Use of technical rollers: wrapping production, textile industry, steel industry, paperindustry, tanning industry, plastic materials industry, furnitureindustry, chemical industry, food industry, electrical engineering, glass industry, mechanical engineering

Böttcher ČR, k.s., Tovární 6, 682 01 Vyškov, Czech Republic, Phone: +420 517 326 521-5, Fax: +420 517 341 718 E-mail: [email protected], www.bottcher.cz

UAB "Bottcher Balticum", Radmes g. 3B, LT-82142, Radviliškis, Lithuania, Tel./Fax: +370 422 50 538, Mob.: +370 685 86 248E-Mail: [email protected]


In 2008, and particularly in 2009, the world crisis manifested itself in a general decline in economic activities, the growth of unemploy-ment, and an increasing budget defi cit.

GROSS DOMESTIC PRODUCTEconomic growth, measured by the GDP growth rate, already slowed down signifi cantly in 2008 in comparison with previous years. Year-on-year, GDP rose by 2.3%, with growth rates in the individual quarters slowing down steadily. GDP growth in 2008 mirrored the good nett export results in the fi rst three quarters; in the 4th quarter, just as in all four quarters of 2009, the effect was negative. In 2009, the volume of GDP dropped by 4.3% year-on-year: in the 1st quarter by 4.2%, in the 2nd by 4.7%, in the 3rd by 4.1% and in the 4th by 4.2%. The only item that mitigated the decline was fi nal household and govern-ment spending. The infl uence of all other components was negative.

INDUSTRYIn 2008, industrial production was 1.9% below the 2007 level, mainly as a result of a rapid fall in the 4th quarter (by 86.4% year-on-year).

Production declined in practically all sectors of industry; the decline was especially noted in food and beverage production, the manufac-ture of tobacco products, textiles, clothing and basic metals, and in metallurgy and metal-working. The rapid decline in industrial production continued in all quarters of 2009, when output dropped by 13.4% year-on-year, of which, 14.6% was in the manufacturing industry.

FOREIGN TRADEIn 2009, for the fi rst time in the history of the independent Czech Republic, foreign trade*) saw a marked fall. While, in 2008, the foreign trade turnover was 0.2% up on the previous year, in 2009 it was 16% down year-on-year. In 2009, exports were 13.9% lower in com-parison with 2008 and imports were down by

Czech Economyin 2008 and 2009

Source: Czech Statistical Offi ce, Czech National Bank (ČNB); General note: y/y shows year-on-year change in the indicator, n.a. = not available1) PPS- Purchasing Power Standard; 2) At the end of the period; 3) HICP = Harmonized Index of Consumer Prices; 4) Foreign trade data expressed in EUR are the sum of the diff erent monthly values in CZK calculated by the average monthly exchange rate announced by the Czech National Bank ; 5) 2009 data according to the statement of 26 February 2010; 6) Czech National Bank; 7) Preliminary data; *) of natural persons

2003 2004 2005 2006 2007 2008 7) 20097)

Gross Domestic Product (current prices) CZK, billion 2 577.1 2 814.8 2 983.8 3 222.4 3 535.5 3 689.0 3 627.2

Gross Domestic Product %, real, y/y 3.6 4.5 6.3 6.8 6.1 2.5 -4.3

Gross Domestic Product in PPS 1) PPS/inhab. 15 215.0 16 262.0 17 058.0 18 213.0 19 949.0 20 150.0 n.a

Overall productivity of labour %, y/y 4.7 4.1 5.4 4.8 4.6 2.4 -2.9

Industrial production %, y/y 5.5 9.6 6.7 8.2 10.5 -1.9 -13.4

Unemployment 2) % 10.3 10.3 9.7 7.7 6.0 6.0 9.2

Infl ation (HICP) 3) %, average -0.1 2.6 1.6 2.1 3.0 6.3 0.6

Infl ation 2) %. y/y 1.0 2.8 2.2 1.7 5.4 6.3 1.0

Year-on-year index of average nominal wages *) % 6.6 6.5 5.3 6.5 7.3 8.4 3.5

Year-on-year index of average real wages *) % 6.5 3.6 3.3 3.9 4.4 2.0 2.5

Exports 4), 5) EUR, mil. 43 053.0 54 075.0 62 961.0 75 699.0 89 396.0 99 247.0 80 711.0

Exports 4), 5) %, y/y 5.7 25.6 16.5 20.2 18.0 -25.5 -18.9

Imports 4), 5) EUR, mil. 45 236.0 54 914.0 61 647.0 74 305.0 86 238.0 96 533.0 74 950.0

Imports 4), 5) %, y/y 5.1 21.4 12.3 20.2 16.1 -27.2 -22.7

Balance of trade 4), 5) EUR, mil. -2 183.0 -839.0 1 314.0 1 394.0 3 159.0 2 714.0 5 762.0

Foreign exchange reserves of ČNB 2) EUR. billion 21.4 20,9 25.1 23.9 23.7 26.6 28.8

CZK/EUR 6) average 31.844 31.904 29.784 28.343 27.762 24.942 26.445

CZK/USD 6) average 28.227 25.701 23.947 22.609 20.308 17.035 19.057

Macroeconomic indicators of the Czech Republic

E C O N O M I C S


17.8%. The balance of trade (favourable ever since 2005) which, in 2008, amounted to CZK 67.2 billion (EUR 2.7 billion/USD 4.2 billion), in 2009 rose to CZK 152 billion (EUR 5.8 billion/USD 8.1 billion), the highest surplus in CR’s history. In 2009, exports covered imports by 107.8% as against 102.8% in 2008. Territorially, the favourable balance of trade with the EU states rose slightly year-on-year and the defi cit in trade with states outside the EU declined. In the commodity structure, the surplus in semi-fi nished product and indus-trial goods trading increased, while trade in machinery and transport equipment showed a decline.

PRICESIn 2008, the infl ation rate, measured by the consumer price index, amounted to 6.3%, the highest level for the past 10 years. This increase was mainly due to higher energy and housing prices, higher VAT rate, and an increase in food prices. In 2009, the average annual infl ation rate amounted to 1.0%, the second lowest infl ation rate since 1989. This slowdown was mainly due to the waning impact of indirect tax changes. Prices declined in particular in the food and non-alcoholic beverage sector, in the catering and accommo-

dation sector, in transport (especially as a result of lower fuel prices), postal services and telecommunications, and in the clothing and footwear sector.

WAGESAverage gross monthly nominal wages of employees (full-time equivalent) in 2008 amounted to CZK 22 691 (EUR 907), a 1.9% increase year-on-year in real terms. In 2009, wages grew at a slower rate, annual average gross monthly wages amounting to CZK 23 598, 3.0% more than in the previous year in real terms. In the 4th quarter, nominal wages grew by 5.2% year-on year, which in real terms equals 4.8%. This relatively high growth, however, was infl uenced by dismissals of low-wage employees and a lower sick leave rate.

Jana Bondyová

Czech Statistical Offi ce

www.czso.cz

*) All data in this section relate to fi gures applying on the deadline date, 26 February 2010;

for conversion into euros, the average monthly exchange rate announced by the Czech

National Bank has been used.

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OTHER INFORMATION:

www.autosap.cz – automotive industry

www.acri.cz – railway industry

www.alv-cr.cz – aircraft industry

www.hz.cz , www.svazslevaren.cz – heavy engineering

www.spis.cz , www.czechict.cz – software and IT

www.czechtourism.com, www.ahrcr.cz – tourism

www.csze.cz , www.aem.cz – power industry

www.schp.cz – chemical industry

USEFUL INFORMATION:

www.czso.cz – Czech Statistical Offi ce

www.cnb.cz – Czech National Bank

www.mfcr.cz – Ministry of Finance

E C O N O M I C S


E C O N O M I C S


Trade between the Czech Republic and Estonia has a long tradition. The political changes that took place in Central and East Europe at the end of the 1980s meant for both countries a new era of building political and commercial and economic relations for both countries. At the moment, bilateral busi-ness relations are infl uenced by the current economic crisis.As for the amount of trade exchange, Estonia is the Czech Republic’s smallest business partner from among the Baltic states.Between 1999 and 2007 the growth of exports to Estonia was stable and, with the exception of 2001, the same is true for the turnover. Due to the economic crisis, exports fell signifi cantly at the end of 2008, which resulted in a slight decrease in the year-on-year comparison with 2007. Exports continued to decline in 2009 and were by 39% lower than in 2008. In 2009, imports to the Czech Republic from Estonia declined by 27% and the turnover by 36%. Improvement of the adverse development of mutual trade is still at the level of desire (see Table 1).

GOODS STRUCTURECzech exports to Estonia in 2009 consisted main-ly of personal vehicles and other vehicles for passenger transportation (14% of total export), pipes and hoses from plastic materials (3 %), road motor vehicles (2.9%), automatic data processing machines (1.9%), heating and cooling appliances (1.8%) etc. The main exporters in-clude ŠKODA AUTO, Czech Airlines, Glaverbel Czech, Aircraft Industries, SOR Libchavy, Bralo CZ, Laufen CZ etc. (see Table 2).Czech imports from Estonia in 2009 con-sisted predominantly of fl at rolled iron and steel products (9.2% of total import), fl ooring (8.4%), wires, cable and insulated electri-cal conductors (6.2%), profi led wood (5.6%) and cut and cleft timber (5.2%) etc. Estonian goods are imported by companies such as ANIMALCO, Galvex, SKAN HOLZ Jirkov or Baltaxia (see Teble 3).

Table 1. Development of trade between the Czech Republic and Estonia (EUR million)

Source: Czech Statistical Offi ce, Ministry of Industry and Trade, *preliminary data

BOTH COUNTRIES AS EU MEMBERS Due to the fact that both countries have become parts of the single internal EU market conforming to EU legislation, there are at present no obstacles or limitations to bilateral business. The internal EU market is exempt from customs duty and control regimes. However, there is a reporting obligation in the INTRASTAT statistics system as well as measures resulting from applying national tax directives for VAT and the excise tax.

PERSPECTIVES OF BUSINESS RELATIONSThe Czech Republic is interested in the Estonian market. Czech goods were present on the local market in the pre-war period as well as in the past decades of mutual economic history and they have always been sought after.Czech companies take advantage of the fact that the Estonian market is one of the most open areas in Europe; there is an equal competing envi-

ronment for both local and foreign companies. Estonian businessmen prefer direct trade rela-tions. The absorption of the Estonian market is limited and at the moment of economic crisis the purchasing power of the population is unfortunately signifi cantly falling.

CZECH PRODUCTS IN ESTONIANoticeable Czech products in Estonia are Škoda cars (the number of Škoda Superbs

Czech-Estonian Tradeand Economic Relations

Table 2. The most important commodities of Czech exports in 2009* (Nomenclature Harmonised System 4)

Source: Ministry of Industry and Trade (March 2010), * preliminary data

Code CommodityShare in

%EUR

thousand

8703Motor cars and other motor vehicles principally designed for the transport of persons

13.57 11 451

3402Organic surface-active agents; washing and cleaning preparations

3.99 3 370

3917 Tubes, pipes, hoses, and fi ttings of plastics 3.04 2 569

8702Motor vehicles for the transport of ten or more persons, including the driver

2.86 2 412

8471Automatic data processing machines; units, readers etc.

1.90 1 603

8419Machinery for pocessing by change of temperature, non-electric water heaters

1.78 1 501

3923Articles for conveyance/package of goods, stoppers, lids, caps etc, of plastics

1.71 1 444

8308 Clasp/buckle/eye, etc. of base metal 1.62 1 367

8414 Air and vacuum pumps, compressors, fans etc. 1.56 1 316

8517Electrical apparatus for line telephony or line telegraphy, including line telephone

1.51 1 275

6910Ceramic sink,wash basin, bath, bidet, and similar sanitary fi xture

1.44 1 218

2309 Animal feed preparations, nes 1.43 1 204

Others 63.59 53 683

Total 100. 00 84 413

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2001 2002 2003 2004 2005 2006 2007 2008 2009*

Exports 32.4 39.3 49.3 68.3 76.4 116.3 146.4 137.6 84.4

Imports 14.9 17.9 27.2 24.0 20.8 26.6 32.3 38.6 28.2

Turnover 47.3 57.2 76.5 92.3 97.2 142.9 178.7 176.3 112.6

Balance 17.5 21.4 22.1 44.3 55.6 89.7 114.1 99.0 56.2


on Estonian roads has increased; motoring magazines evaluated the Roomster model as the best model on the Estonian market in 2007, and Škoda Yeti has become Car of the Year 2010). Czech beer is traditionally sold in Estonia (there are still possibilities for further expansion in this fi eld), the assortment of food products is getting wider (here, too, the potential of increase of trade exchange has not

been exhausted), Czech glass has a good repu-tation on the market.One of the signifi cant bilateral economic events of 2009 was the opening of a combined power station with 67 MW heat output and 23 MW electric output, the turbine supplier of which was Siemens Industrial Turboma-chinery s.r.o., Brno. In the fi eld of transport technology, Czech producers and suppliers of trams and related services watch the inten-tions of Tallinn’s municipal council, who want to start the project of building two new tram routes and to replace the tram fl eet in Tallinn. Czech sup pliers could participate in the project of a railway connection between the Baltic states and West Europe – Rail Baltica. There is a chance to succeed, particularly in the sphere of railway building. SOR Libchavy is a suc-cessful bus supplier to Estonia.A highly perspective fi eld of Estonian econ-omy is also the energy industry: technological innovations in energy production are ex-pected. New constructions will probably take place, such as power stations with combined production of electricity and heat, those using the biomass, and wind power stations. Improvement of the technology of burning bituminous shale and signifi cant reconstruc-tion of electric distribution networks can also be expected. Czech fi rms can offer cooperation in these areas.Signifi cant fi nancial resources from national as well as EU funds will also be invested into environmental enhancement. Czech companies can offer technologies for water treatment and waste liquidation. An example of successful business is Ecofl uid, which supplied waste-water treatment plants for six locations in 2009.Essential positive role in mutual Czech-Esto-nian relations has been played for six years by the direct Czech Airlines connection between Prague and Tallinn. The strong position of Czech Airlines on the Estonian market allows for the development of other services, espe-cially various forms of tourism in the whole of the Czech Republic. To increase tourism in both directions is in the interest of both our countries.Despite the fact that Estonia’s transparent tax system, stable exchange rate of local currency to Euro, a relatively high level of education, and good knowledge of languages make it a paradise for foreign investment, Czech companies have so far invested neither into Estonian industry nor its services. There are also no Czech-Estonian joint-ventures in Estonia.

Luboš Nový

Head of Commercial and Economic Department

Embassy of the Czech Republic in Estonia

www.mzv.cz/tallinn

Table 3. The most important commodities of Czech imports in 2009* (Nomenclature Harmonised System 4)


%EUR

thousand

7210Flat-rolled products of iron, steel over 600mm, plated or coated

9.17 2 587

5703Carpets and other textile fl oor covering tufted including fi nished

8.42 2 376

8544 Insulated wire/cables, optical fi bre cables 6.22 1 754

4409 Wood profi led,planed, sanded, fi nger jointed 5.64 1 590

4407Wood sawn/chipped, sliced/peeled etc. above 6mm

5.22 1 474

9404Mattress supports;mattresses,quilts,fi tted with springs, stuff ed etc.

4.35 1 226

0304Fish fi llets and other fi sh meat fresh, chilled or frozen

4.30 1 213

9406 Prefabricated buildings 4.20 1 185

4408Veneer sheets & sheets for plywood & wood sawn lengthwise, sliced/peeled up to 6 mm

3.77 1 063

1604Prepared/preserved fi sh; caviar and caviar substitutes from fi sh eggs

3.55 1 001

3214Mastics, painters fi llings & nonrefractory surfacing preparations for walls etc.

3.07 867

4016 Articles of vulcanised rubber (not hard rubber) 2.98 840

8708 Parts, components of tractors, trucks, cars etc. 2.49 704

Others 36.62 10 336

Total 100.00 28 216

Source: Ministry of Industry and Trade (March 2010), *preliminary data

E C O N O M I C S


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Table 2. The most important commodities of Czech exports in 2009* (Nomenclature Harmonised System 4)

Source: Ministry of Industry and Trade, *preliminary data


%EUR

thousand

8702 Public-transport type passenger motor vehicles 25.78 28 245

8703Motor cars and other motor vehicles principally designed for the transport of persons

6.20 6 789

4409 Wood profi led, planed, sanded, fi nger jointed 5.52 6 049

3402Organic surface-active agents; washing and cleaning preparations

4.12 4 510

3901 Polymers of ethylene, in primary forms 2.98 3 267

1512Saffl ower, sunfl ower/cotton-seed oil & fractions, not chem mod

2.62 2 866

8537 Switchboards, panels, control panels etc. 1.72 1 882

8517Electrical apparatus for line telephony or line telegraphy, including line telephone

1.64 1 792

8471Automatic data processing machines; units, readers etc.

1.59 1 739

Others 47.85 52 426

Total 100.00 109 565

Table 1. Trade exchange between the Czech Republic and Latvia (EUR thousand)

Source: Czech Statistical Offi ce, Ministry of Industry and Trade, *preliminary data

Exports Imports Turnover Balance

2005 113 513 15 157 128 670 98 356

2006 167 870 20 117 187 987 147 753

2007 201 737 26 094 227 831 175 643

2008 153 345 28 504 181 849 124 841

2009* 109 565 34 105 143 670 75 460

Trade and economic relations between the Czech Republic and Latvia have been showing a marked increase recently. As in other European relations, this increase is mainly due to the process of integration of the two countries into the European Union. We have witnessed a distinct revival, a feature usually accompanying integration processes. The entwinement of economic structures on the global and European scale, however, also has less favourable aspects, as could be seen at the end of the fi rst decade of this century, with the onset of the fi nancial and economic crisis.

DEVELOPMENT OF TRADE RELATIONSLogically, after years of growth, Czech-Latvian trade relations, too, could not escape a certain decline. While in the years 2003-2007 the volume of mutual trade grew by tens of per cent annually and in 2006 showed a nearly 40% growth year-on-year, in mid-2008 the trend reversed rapidly and started in the opposite direction. In 2008, mutual trade turnover dropped by 20.2%, with Czech exports falling by 24% in comparison with 2007, while Latvian exports to the Czech Republic were still growing, although at a slower rate, and showing a 9.2% growth.The economic crisis, and especially the drastic decline in imports into Latvia, also left an imprint on the development of mutual trade in 2009. According to preliminary fi gures avail-able before the deadline for this issue, Czech exports in 2009 dropped by 29.2% (in Euro-denominated prices), while Latvian sales to the CR rose by 9.4% year-on-year. In absolute values, in the fi rst ten months of 2009, Czech exports were worth EUR 109.5 million, while imports from Latvia amounted to EUR 34.1 million (see Table 1).The preliminary data for 2009 indicate that, from the point of view of Czech foreign trade

as a whole, this was the second year when both exports and imports declined, although the surplus on the Czech side of the balance sheet grew. Here, it should be noted that, from the point of view of the Latvian side, in the past two years the defi cit on the Czech side of the mutual balance of trade decreased substantially under the infl uence of the trends mentioned above. The Czech side, too, sees this fact, on the whole, as a positive signal, because a high imbalance in trade defi nitely is not our aim.

CZECH MEANS OF TRANSPORT IN LATVIADespite the crisis – every crisis must end one day, after all – it can be said that the two countries have a lot to offer each other, and their mutual trade continues to be based on a very wide range of products. A certain success of Czech exporters is to be seen literally at every step. Since September 2009, all of the 150 contracted modern Škoda 24 Tr Irisbus trolleybuses have been plying the streets of Riga, adding comfort to the city’s public transport. In addition, in spring 2010 low-platform tramcars, also bearing the Škoda trade mark, will appear in the Latvian capital, in fulfi lment of a contract signed by the two sides, and this is not the end of the modernisation of Riga’s public transport. As all good things come in threes, the large number of Škoda cars on Latvian roads is incontestable evidence of the fact that in the past four years this trade mark has been the most popular one on the local market, of which Škoda takes a share of more than 10%.

PARTICIPATION OF THE CR IN THE RECONSTRUCTION OF RIGA’S POWER PLANTIn May 2009, the fi rst power unit of Riga’s reconstructed heat and power generating plant, TEC-2, for which Škoda Power supplied its 150 MW turbo-set with accessories, was ceremonially put into

Czech-Latvian Tradeand Economic Relations


Table 3. The most important commodities of Czech imports in 2009* (Nomenclature Harmonised System 4)


%EUR

thousand

7214

Bars and rods of iron or non-alloy steel, not further worked than forged, hot-rolled, hot-drawn or hot-extruded, but including those twisted after rolling

9.77 3 331

8517Hot-rolled, hot-drawn or hot-extruded, but including those twisted after rolling

8.41 2 870

7306Tubes, pipes and hollow profi les (e.g.open seam or welded, riveted or similarly closed), of iron or steel

7.85 2 679

1604Prepared/preserved fi sh; caviar and caviar substitutes from fi sh eggs

6.03 2 056

7308Structures & parts of; plates, rods, angles etc. of iron

4.60 1 568

8473Parts of typewriters, computers etc., automatic data processing

3.72 1 268

7019Glass fi bres (incl. wool) and articles thereof (yarns, fabrics)

3.271 114

4418 Builders joinery & carpentry of wood 3.12 1 065

7207Semi-fi nished products of iron or non-alloy steel

3.10 1 059

2402Cigars, cheroots, cigarillos & cigarette of tobacco/tobacco substitutes

2.23 761

Others 47.90 16 334

Total 100.00 34 105

Source: Ministry of Industry and Trade of the CR, *preliminary data

oper ation. Owing to its reconstruction, this combined heat and power generating source has become the most modern facility of its kind in the entire Baltic region. From the examples mentioned here, the list of which could con-tinue, it can be seen that the leading items in Czech exports are commodities with a high amount of added value. COMMODITY STRUCTUREIn terms of percentage, machinery and transport equipment in 2009 accounted for 50.5% of Czech exports to Latvia; chemicals and related products represented 11.9%, miscellaneous manufactured articles, classifi ed chiefl y by material 10.8%, different industrial products (8.1%), raw material (8.0%). Other commodities, such as food, beverages and crude materials, had smaller shares (see Table 2). In the opposite direction, i.e. in Latvian exports to the CR, the dominant items in 2009 were bars and rods of iron (9.77%), electrical apparatuses for telephony (8.41 %), products of the woodworking industry and related sectors, iron and metal products (tubes, ingots, rods, profi les), food and tobacco products (see Table 3).The fact that, even in the diffi cult period of economic slowdown, interest in co-operation is not fading, is attested, among other things, by the strong participation of representatives of smaller and me-dium-sized companies in the seminar organised in Riga by the Investment and Development Agency of Latvia (LIAA) devoted to commercial and entrepreneurial opportunities in the Czech Repub-lic. Evidence of the unwaning interest of companies in both countries is the frequent enquiries and requests for contacts as to specifi c possibilities of involvement in different branches, handled by

offi cials of the Czech diplomatic mission and the CzechTrade offi ce in Riga. They concern different areas of business – from trade to manufacturing or subcontractor co-operation and services, including transport and tourism.

Marta Stolařová


Embassy of the Czech Republic in Latvia

www.mzv.cz/riga

E C O N O M I C S


Table 1. Trade exchange between the CRand Lithuania in 2005-2010 (EUR million)

Source: Czech Statistical Offi ce, Ministry of Industry and Trade of the CR, *preliminary data

Exports Imports Turnover Balance

2005 195.9 43.8 239.7 152.1

2006 251.1 76.1 327.2 175.0

2007 321.3 104.0 425.3 217.4

2008 330.1 94.1 424.4 235.9

2009* 196.0 75.9 271.9 120.1

January 2009* 15.6 5.9 21.5 9.7

January 2010* 24.0 4.6 28.6 19.5

Lithuania is the Czech Republic’s priority trading partner among the Baltic states. It is the largest in terms of area (65 300 sq. km) and population (approx. 3.4 million), an important indicator of the absorption capacity of its market. The trade turnover between the CR and Lithua-nia, even in the current period of crisis, is much higher than that with the other two Baltic states.Lithuania’s share of the Czech Republic’s trade turnover is small – about 0.2% in the past few years. Nevertheless, it must be added that since 1993 the balance of trade between these two countries has been showing a surplus in favour of the Czech Republic, as indicated in Table 1.In the 4th quarter of 2008 and in the whole of 2009, the economic crisis manifested itself in a decline in mutual trade. The 2008 trade turnover was es-sentially on the same level as in the previous year. The 2009 fi gures, as shown by trade statistics are already under the strong infl uence of the crisis. As a result of the unfavourable development of Lithuania’s domestic market, Czech exports to Lithuania are falling faster than imports from that country. There is no doubt, however, that after the crisis has been overcome, the mutual trade exchange will resume its upward trend, as you can see, hopefully, on turnover of January 2010 (the fi gures are infl uenced by the part payment for the Czech train set, though).The main items of Czech exports to Lithuania in 2009 remained practically unchanged: industrial boilers, plastic parts, electronics, automobiles, railway rolling stock, pharmaceutics, detergents, polyethylene, machinery and equipment for industry, prefabricated buildings, central heating boilers, radiators and water heaters, medicines, cut and polished glass, iron and steel structures and parts thereof, offi ce data processing ma-chines and equipment, reservoirs and tanks, lamps and lighting fi xtures, steel pipes, tubes and hollow profi les, etc. (see Table 2).The largest exporters to Lithuania in 2009 were the companies Škoda Auto, Škoda Transporta-

tion, Glaverbel Czech, Chemopetrol Litvínov, Laufen CZ, OKZ Hold-ing, Procter & Gamble, Barum Continental, Schwarzmüller Žebrák, Euromopos Olomouc, Jäkl, Zentiva, Aerosol and Škoda JS.An important contract for the delivery of safety systems for the Lithua-nian railways has been won by AŽD Praha. Main import items: plastics, inorganic acids and non-metal oxide com-pounds, furniture, artifi cial fertilisers, man-made fi bre fabrics, eggs, steel wire, paper and cardboard, cocks, valves, fi ttings, television sets, incl. videos, peat, household refrigerators and freezers (see Table 3).The largest importers of Lithuanian goods were the companies Chemo-petrol, Karlovarské minerální vody, Philip Morris, Europotraviny, Ikea Hanim, Jessgrove Central Europe, Retal Czech, Model Obaly, Alpla, Schäfer-Sudex and Chemin. Both the Czech Republic and Lithuania are part of the EU single internal market governed by EU legislation. There are no barriers or restrictions to mutual trade. Trade within the EU is subjected to no customs supervision or control. The only obligation is reg-istration in the INTRASTAT statistical system and duties ensuing from national tax regulations in the area of Value Added Tax and Excise Tax.

MUTUAL TRADE PROSPECTSAmong the 183 states rated by the World Bank according to their conditions for doing business, Lithuania occupies 26th position. In this respect, the conditions for the promotion of business and entre-preneurial relations are above average. Owing to the crisis, however, the current situation is not too favourable for trade promotion. Mutual trade exchange, both in exports and imports, has declined. Lithuania has suffered greater losses due to the crisis than the Czech Republic. In illustration: the total Lithuanian exports in the 2009 dropped by 27%, imports by 38%, industrial production by 14,6%, retail trade volume fell by almost 17%. Car sales were down by nearly 70% year-on-year. There is also a decline in wages, with pressures to raise productivity of labour - production prices in 2009 dropped by 19%. The beginning of 2010 is seen as a period, when economic decline reached its bottom and the economy resumed its upward trend. The demand for good quality, but cheap, goods is growing, and the time has therefore come for a new phase of co-operation with Lithuanian partners to be initiated. New opportunities are opening up for co-operation not only in trade, but also in the area of investment. In past years, construction grew signifi cantly and it also had the re-quired potential. The economic crisis, however, has caused a profound decline (48%), which also reduced export possibilities. Now, new op-portunities are opening up for Czech products and companies, because Lithuania is continuing the revitalisation of its building sector and, with EU assistance, is accelerating measures especially in the transport infrastructure and the power industry. For Czech companies, this pro-vides opportunities to supply building materials (not basic materials, but more sophisticated deliveries) and everything for the equipment of new buildings. In this respect, a well-designed marketing policy and long-term business plans are necessary.There are also great opportunities for investment supplies. Lithuanian companies are preparing for the resumption of economic growth and seeking new fi nancing possibilities. For example, Lithuania is faced with the necessity of the massive reconstruction of prefabricated dwell-ing houses and the reconstruction of public buildings and apartment houses. Property prices are low and in the fi rst half of 2010 will remain on the lowest level for the past 15 years.

Czech-Lithuanian Tradeand Economic Relations


Table 2. The most important commodities of the Czech exports in 2009* (Nomenclature Harmonised System 4)

Code Commodity Share in %EUR

thousand

84Nuclear reactors, boilers, machinery and mechanical appliances; parts

12.50 24 492

39 Plastic and articles thereof 11.28 22 108

85Electrical machinery and equipment and parts thereof; sound recorders

9.11 17 853

87Vehicles other than railway or tramway rolling-stock and parts

6.47 12 683

30 Pharmaceutical products 6.18 12 113

86Railway or tramway locomotives, rolling-stock and parts thereof; railw.

6.11 11 980

73 Articles of iron or steel 5.23 10 243

34Soap, organic surface-active agents, washing preparations, lubricanting pr.

4.38 8 591

59Impregnated, coated, covered or laminated textile fabrics; textile art

3.70 7 244

44 Wood and articles of wood; wood charcoal 3.36 6 592

Total exports 100.00 195 977

Table 3. The most important commodities of the Czech imports in 2009* (Nomenclature Harmonised System 4)

Source: Ministry of Industry and Trade of the CR, *preliminary data


%EUR

thousand

39 Plastic and articles thereof 23.65 17 596

94 Furniture; bedding, mattresses, mattress supports, cushions and similar

15.39 11 681

54 Man-made fi laments 7.96 6 041

85 Electrical machinery and equipment and parts thereof; sound recorders

7.20 5 465

84 Nuclear reactors, boilers, machinery and mechanical appliances; parts

5.32 4 040

68 Articles of stone, plaster, cement, asbestos, mica or similar material

5.07 3 850

27 Mineral fuels, mineral oils and products of their distillation; bitumi

3.30 2 502

72 Iron and steel 3.26 2 476

04 Dairy produce; birds eggs; natural honey; edible products of animal

3.20 2 430

28 Inorganic chemicals; organic or inorganic compounds of precision metals

2.84 2 157

Total imports 100.00 75 918

The current development is opening possibilities for entering the Lithuanian environment, especially for fi nancially strong entities. The plan is to build natural gas storage reservoirs, gas pipelines, electricity lines to link Lithuania with Poland, etc. Building contracts are awarded exclusively on the basis of tendering. Gaining them without the sup-port of a local partner, however, is diffi cult. The Lithuanian railway and motorway system (Rail Baltica, Via Baltica) is undergoing modernisation, important infrastructure projects being largely fi nanced by the EU. In view of the tradition of Czech de-liveries, from locomotives to electronic railway safety systems, orders in this area could be found here, too. All contracts are awarded on the basis of competitive tendering. It is always necessary to fi nd a Lithua-nian strategic partner.Power industry: In connection with the liquidation of the Ignalina nucle-ar power station and the prepared construction of a new one in Visaginas, opportunities are also opening up for Czech companies in the area of the nuclear power industry. A tender is being prepared for a strategic inve-stor to build a new nuclear power station. Opportunities are therefore opening up for qualifi ed lobbying and the preparation of Czech compa-nies to participate in the tendering. Czech companies are already engaged in the disposal of nuclear waste in the Ignalina power station.Export possibilities also exist in the area of environmental protection. All waste materials in Lithuania are disposed of in dump sites, recy-

cling is still inadequate. There are no waste incin-eration plants, no plastic or tyre grinding mills or sorting plants. A good opportunity would be to offer comprehensive deliveries, including know-how and long-term fi nancing.Great opportunities exist in the area of consu-mer goods. Czech goods have a tradition on the Lithuanian market and are popular there. It is important for Czech companies to penetrate into chain stores, such as VP Market (www.vpmar-ket.lt), IKI (www.iki.lt), RIMI (www.rimi.lt), Norfa (www.norfa.lt) and wholesale companies, e.g. Senukai or Makro Sanitex (www.sanitex.lt). They would provide a good opportunity for Czech goods (confectionery, footwear, glassware, gadgetry and utensils, household boilers, hearth stoves, kitchenware, beer, Becherovka liqueur).Little chance exists for the export of dairy and meat products. Lithuanian domestic products are of high quality and much of the food indus-try’s capacity remains unused. This category only has a chance if prices are markedly lower than those of Lithuanian products. Certain possibilities exist for the export of confec-tionery, bio-products and special foodstuffs and food supplements. Despite keen competition, the same applies to alcoholic beverages. The main products in this category of exports are Czech beer (Pilsen, Budvar, Staropramen, Kozel) and Bech-erovka liqueur. Recently the share has been grow-ing of beers from local Czech breweries, which, in consequence of lower VAT, offer lower prices. In view of the general decline in production costs and the good supply of free and skilled labour, the possibility of direct investment in manufac-turing plants is still open.A representative of Czech-Lithuanian joint ventures is ARX, importer of Škoda cars. Czech affi liations with the right to do business on their own account are Zentiva and Walmark, which are rated as very successful, and Ravak, manu-facturer of bathroom equipment. An important position is held by ČSA, which operates daily fl ights between Prague and Vilnius and is one of the largest airline operators at Vilnius Airport.Lithuania can also become a starting point for expansion to the other Baltic states and even to the Russian market, as Russia is one of Lithua-nia’s most important partners both in trade and investment, and Lithuanian businessmen have good contacts with Russia.

Jan Semerák


Embassy of the Czech Republic in Lithuania

www.mzv.cz/vilnius

THE CZECHTRADE FOREIGN OFFICE IN VILNIUS WILL

PARTICIPACE IN THE FOLLOWING INTERNATIONAL

TRADE FAIR:

BALTTECHNIKA 2010 in Lithuania (innovation and hi-tech fair)

TransBaltica 2010 in Lithuania (the largest transport

and logistics fair in the Baltics)

E C O N O M I C S


With the help of CzechInvest Agency, 186 new investment projects are currently in progress in the Czech Republic, 84 of which are concerned with research and development, 67 with strategic services, and 35 with production.

SOFTWARE IN THE LEADStatistics have revealed that investors are choosing the Czech Republic for ever more demanding investments. Among other things, this is borne out by the fact that last year most new investment projects – nearly three in every ten – were prepared by software development engineers, which, of course, is an above-average income profession placing above-average requirements on qualifi cations. The second most popular sector, with 32 projects according to statistics, was engineering, and the third was electronics and electrical engi-neering, which attracted two dozen investors. In 2009, for example, the development of the Virtual Battlespace military simulator, used by NATO and the US army for training, returned to the Czech Republic. In its new development centre in Prague’s Dejvice District, the Czech company, Bohemia Interactive, is fi tting into it, for example, a realistic module of defence against improvised explosive devices. Both Vigour Gama and Brno’s Red Hat companies also announced their expansion plans last year.

GREATER EXPANSION, MORE RESEARCHIn addition, the Czech Republic can offer investors concerned with research and devel-opment or with strategic services, such as software development, support from EU funds, specifi cally from the Enterprise and Innovation Operational Programme. In 2009, support from EU funds was provided, for example, to Asseco, a company which decided to enlarge its centre in the Hradec Králové Region. An example of a smaller project is that of the Hrdlička spol. s r.o. software company in Česká Lípa. Investments in software were also made, for example, by Siemens, the German company, which enlarged its development staff in Zlín by taking on 15 new specialists. A very important investment project in 2009

was the launching by Olympus of a new plant in Přerov, where the Japanese concern develops and manufactures medical endoscopes.

This hypermodern, environmentally friendly building with equally modern equipment cost the investor some CZK 150 million (USD 8 million). The plant will offer job seekers in the region some 150 highly specialised working opportunities. Olympus in Přerov is an excellent example of an investor whom CzechInvest acquired for the Czech Republic, at fi rst with a relatively simpler project, but the achievements of its Czech affi liation prompted it to invest in much more demanding branches. Expansion projects of the already functioning companies into high added value areas fi gure increas-ingly in our statistics. Olympus started in Přerov in 2002, when it began repairing cameras in rented premises. Today the company’s total investments amount to CZK 500 million (approx. USD 26 million).

SUPPORT ALSO FOR CZECH COMPANIESIn the course of 2009, CzechInvest helped to mediate contracts for Czech companies with foreign buyers worth CZK 744.59 million (approx. USD 39 million). Seven contracts led to the creation of 35 new jobs and helped to maintain hundreds of others. The contracts involved engineering, the aircraft industry and consumer electronics. One of the largest contracts was signed by Agrostroj in Pelhřimov, which began manufacturing professional Japanese Chikusui Canycom lawn mowers. The Pelhřimov factory is planning to manufacture up to 1 000 of this type of small single-purpose tractors.

RESEARCH AND DEVELOPMENT IN THE AUTOMOBILE INDUSTRYUnlike software development, the number of new projects in the automobile industry, especially car manufacture, declined last year.

Most investments in the Czech Republic go into research and develop-

ment, or into strategic services. On the other hand, production, which

in the past ranked highest in the fl ow of investments, in 2009 only

attracted one in every fi ve new investors.

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2009: New investment projects according to type of business

Number of projects

Investments (CZK

millions)

Investments (USD

millions)Jobs

Jobs for university graduates

Production 35 12 825.83 667.49 3,305 60

Services 67 665.75 34.69 1,637 605

Research and development

84 3 397.3 173.68 829 385

Total 186 16 888.91 875.87 5,769 1,050

Investment projects mediated by CzechInvest, 1993-2009

Type of investment

Number JobsSize of

investment (USD millions)

Size of investment (CZK

millions)

Manufacturing 878 170 494 23 481 627 293

Shared services 225 28 688 959 23 792

Technology centres

254 7 158 646 14 196

Total 1 356 206 338 25 086 665 280

Smaller Projects,Advanced Technologies


In 2007, there were 26 new projects, and last year only eight. In addition, fi ve of them are concerned with research and develop-ment. An example of such an investment project is the enlargement of the development centre of the Japanese Denso company in Liberec. The centre, located in the vicinity of Mount Ještěd, manufactures – and develops – air-conditioning systems for motor cars. In 2009, it enlarged its staff with about ten people. Another important investment project, one of the largest in 2009, is the enlargement of facilities for the manufacture of gearboxes in the Škoda Auto works in Mladá Boleslav. The car factory will invest more than CZK 1.5 billion (USD 79 million) in the enlargement and will create up to 270 new jobs. In September 2009, after years of preparatory work, the Hyundai car factory was offi cially launched.

IMPACTS OF THE CRISISCzechInvest anticipates that the year 2010 will see a brief return to more extensive investment activities, taking advantage of the currently higher unemployment and keen competition in the supply of industrial zones and commercial properties. The Czech Republic’s excellent geographical position right in the centre of Europe offers investors perfect connections all over the continent, which signifi -cantly reduces logistics costs. The Czech Republic is one of the countries with the highest share of technical and natural science

Since 1993, the Czech Republic has attracted

a large number of important international

companies, which have invested billions of dollars

in this country and have created tens of thousands

of new jobs here. The Czech Republic hosts the

global centres of companies, such as DHL,

Accenture, Olympus, Honeywel, and IBM. The

support off ered to investors by the Czech Republic

also includes tax rebates, contributions for the

creation of new jobs, training and re-qualifi cation

subsidies and the off er of commercial properties in

industrial parks prepared by the public sector at

advantageous prices. Investors may obtain still

higher support in regions most seriously hit by

unemployment, such as special grants for the

creation of new jobs, the employment of people

supplied by the Labour Offi ce or the employment

of new graduates. Subsidies are also provided to

investors employing handicapped persons.

A separate chapter is support from EU sources. By

the year 2013, the Czech Republic will have drawn

EUR 3.6 billion for business promotion alone.

A number of these programmes are open not only

to small and medium-sized businesses, but also to

large companies.

DO YOU KNOW THAT

■ nearly every other project mediated by CzechInvest in 2009

is concerned with research and development?

■ three in every ten new investments went into software

development?

■ 186 new investment projects worth CZK 17 billion (approx.

USD 892 million) are being realised with the help of

CzechInvest Agency?

■ investors have reported the creation of nearly 6 000 new jobs?

graduates among university-trained specialists. In addition, the Czechs make themselves easily understood in foreign languages. According to CzechInvest’s recent survey carried out in 2009, nine out of every ten Czechs speak at least one foreign language.

Jiří Sochor

CzechInvest

e-mail: [email protected]

Note: USD 1 = CZK 19.057 (average annual exchange rate for

2009 determined by the Czech National Bank).

F O R E W O R D


www.mip.cz

Check in your dreams with us

attractive environment • prestigious presentation forms • international impact


Road Toll in the Czech RepublicSince 1 January 2007, the use of motorways and expressways in the Czech Republic has been levied with an electronic toll depending on the number of axles and the emissions class of engine (up to EURO 2 or EURO 3 and higher levels). Road motor vehicles and vehicle combinations with the permitted total weight equal to or are greater than 12 tonnes must be equipped with obligatory onboard billing units called premid, which can be obtained against a deposit at contact and distribution points, called premid points. Contact points are intended mainly for dealing with transport companies and the regime of deferred toll payment. For drivers, there is a network of distribution points along or right next to toll roads; they are located mainly at fi lling stations and border crossings. At contact and distribution points, so-called registration assistants are also avail-able. They are there to help with fi lling in the necessary registration form in international languages. The location of the nearest contact or distribution point can be found by telephoning the free customer line at local number 800 698 629 (800 MYTO CZ) or at the European (paid) phone number +420 272 698 629 (+420 272 MYTO CZ) or at www.premid.cz.

WHAT DOES THE CZECH REPUBLIC’S JOINING THE SCHENGEN MEAN IN PRACTICE?The Czech Republic’s joining the Schengen means the abolishing of border checks at borders with neighbouring states. Borders may be crossed at points beyond current border crossings and without any limitation on time. When passing through the border in a vehicle, it will no longer be necessary to pull up and present one’s travel documents. Travel without border checks will apply to all types of internal borders in the Schengen area, i.e. land borders, river, lake and air borders, which applies to fl ights to and from countries of the Schengen area. With the enlargement of the Schengen area to include the Czech Republic, the police will end its involvement at land border crossings. It will, nonetheless, continue to operate in the border regions. In cooperation with the police forces of neighbouring countries, the police of the Czech Republic will continue to safeguard public order and safety.

THE FUNDAMENTALS OF TRAVELLING WITHIN THE SCHENGENOur joining the Schengen does not alter the obligation to present, whenever necessary, a valid travel document. Therefore, it remains necessary to carry a valid personal identity card or passport when crossing the border.

Czech Republic – Member

On 21 December 2007, the Czech Republic and eight other EU

member states became full participants to the so-called

Schengen cooperation, thus joining the group of states that

conduct no checks at their common borders.

FREE TRAVEL THROUGH BORDERS The free movement of persons through the borders of the Schengen area is not uncondit-ional. Even after the abolishing of border controls it will remain necessary to observe rules ensuing from the legislation of the given state. The Schengen in no way alters local limitations given by road traffi c regulations, regulations for the protection of the environ-ment, landscape and private property. Similar-ly, provisions in each country differ on, for instance, speed limits, permissible blood alcohol levels for driving motor vehicles, time limits for notifying authorities of residence, and so on. When travelling throughout the Schengen area, we should therefore take heed of the following requirements, in particular: to identify oneself in the case of checks performed by responsible authorities, to respect limitati-ons on travel through national parks and national nature reserves, to observe local traffi c restrictions, to comply with rules for the transport of animals and items.

of the Schengen Area

Further information is available at:

www.euroskop.cz, www.mzv.cz, www.mvcr.cz

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hu

E C O N O M I C S


TERMINAL BLOCKS RSA RSA, RSA PE, multi-level terminal blocks,

fuse and special terminal blocks

TERMINAL BOARDS Branching terminal boards, fuse terminal stripes

GROUNDING ELEMENTSGrounding clamps, equipotential terminal boards

TERMINAL BOARDS

FOR LAMP POLES

��


BASIC REGULATION OF BUSINESS ACTIVITIESThe fi rst part of the Commercial Code (sections 1 to 55) comprises general provisions. The general provisions include the defi nition of business and business activities, the defi nition of businessmen, the basic regulation of business activities, etc. It also deals with the issue of foreign nationals doing business in the Czech Republic. In this respect, it should be noted that foreign nationals may do business on the territory of the Czech Republic under the same conditions and to the same extent as Czech nationals. In a similar way, foreign nation-als intending to do business may participate in founding a Czech le-gal entity, or they may become partners in an already existing Czech legal entity. The general provisions also set out basic rules concern-ing unfair competition and the company law. Issues concerning the companies register are also regulated in this part.

TYPES OF COMPANIESThe second part of the Commercial Code regulates legal aspects con-cerning companies and cooperatives. Czech law acknowledges several types of companies. In practice, the most common types are limited liability companies and joint stock companies. The reason why these two types of trading companies are so popular is that they are capital companies whose partners are not liable for the obligations of the company (provided they have invested their shares in the company’s authorised capital). The minimum amount of authorised capital of a new limited liability company must state is CZK 200 000 (approx. EUR 7 600). In the case of joint stock companies, the minimum amount is CZK 2 000 000 (approx. EUR 75 700). A trading company becomes established on the day of its incorporation. Before fi ling the petition Ph

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Legal Framework for

The basic legal regulations setting out the rules for doing

business is the Commercial Code1), which has four parts. for incorporation, the new trading company must have been founded in the form of a nota-rial deed, at least a part of its authorised capital must have been paid up and the company must have been issued a trade licence. In this context, it should be noted that the process of setting up and establishing trading companies has been greatly simplifi ed and shortened.

CONTRACTUAL RELATIONS BETWEEN BUSINESSMENThe third part of the Commercial Code deals with contractual trade relations, mainly con-tractual relations between businessmen. This part sets out, for example, general rules for making contracts and certain rules for legal acts. It also regulates the payment of damages in the case of the non-fulfi lment of legal obli-gations. In relatively great detail it regulates the main types of contracts, such as contract of purchase, contract for work, and contract of mandate. The Commercial Code is based on the principle of contractual freedom, mak-ing it possible for businessmen to set up also unnamed contracts (contracts not specifi ed by law). Certain legal issues, especially those in the area of liability law, are not covered in their complexity and therefore in some cases the Civil Code is applied as a general rule of civil law.

Doing Business in the CR


TRADE ACTAnother relevant legal regulation in the area of business is the Trade Act2). The Trade Act sets out the essential conditions for operating a business, i.e. for doing business. If a natural or a juristic person wishes to start a business, it will need a trade licence. The Act also defi nes areas of business that are not trades and come under specifi c regulations (e.g. certain activi-ties in the area of electronic communication). The Trade Act sets out conditions which must be met for a trade licence to be issued, and it also lists obstacles preventing the running of a business. In this connection it is interesting to note that a wide-ranging amendment to the Trade Act came into force in 2008, which pro-vided for a great simplifi cation of procedures in seeking the issue of a trade licence and in starting a business.

TRANSFORMATION OF TRADING COMPANIESAnother new regulation in the area of business is the Act on the Transformation of Trading Companies3) based on EU directives. Although the 2008 amendment does not make any ad-ditions to existing transformation possibilities (merger, division, transfer of assets to partner, and change of the legal form), it simplifi es the legislation and specifi es it. An important fea-ture is that it provides for the legal regulation of transformation with a foreign element.

ACT ON THE PROTECTION OF ECONOMIC COMPETITIONThe Protection of Economic Competition Act relates especially to larger businesses. The Act regulates national legislation for the protection of economic competition in connection with cartel agreements, abuse of dominant position, and the joining of rivals. The Protection of Econ-omic Competition Act is in agreement with European law and is based on it.

INSOLVENCY ACTInsolvency issues are regulated by the Act on Bankruptcy and Its Solutions (Insolvency Act)4). According to the Insolvency Act, the debtor falls bankrupt if he has more than one creditor and pecuniary liabilities that are overdue for more than 30 days, which he is unable to pay. The principal ways of solving bankruptcy is-sues or imminent bankruptcies of businessmen are the declaration of bankruptcy and reorgan-isation. Details can be found in the Act.

PUBLIC PROCUREMENTOf great importance for practical business activities is the Public Procurement Act5), which regulates procedures leading to contracts be-tween clients (usually bodies of state adminis-tration) and contractors (businessmen).

DATA BOXESA new provision that will concern the business sphere is the Act on Electronic Communication and Authorised Document Conversion, which became effective on 1 July 20096). The Act provides for the setting up of a data box system. The data boxes will make it possible to send documents in electronic form to state administration author-ities and receive them in that form. This communication method will replace conventional delivery in paper form. It should be noted that public authorities and juristic persons - i.e. all trading companies – will have data boxes set up automatically. This may cause certain diffi culties in sending documents by public authorities to unin-formed trading companies.In conclusion, it can be said that Czech legislation regulating busi-ness activities has undergone dynamic changes in recent years. In most cases, these changes are giving legislative support to the Czech business environment and provide for a more effi cient approach of public authorities to the requirements of businessmen.

Tomáš Nielsen

ROWAN LEGAL, advokátní kancelář s.r.o.


Note: 1 EUR = 26.445 CZK (average 2009 exchange rate, Czech National Bank)

1) Act No. 513/1991 Coll., Commercial Code, as amended.2) Act No. 455/1991 Coll., on Trades (Trade Act), as amended.3) Act No. 125/2008 Coll., on the Transformation of Trading Companies, as amended4) Act No. 182/2006 Coll., on Bankruptcy and Its Solutions (Insolvency Act), as amended.5) Act No. 137/2006 Coll., on Public Procurement, as amended.6) Act No. 300/2008 Coll., on Electronic Communication and Authorised Document Conver-

sion, as amended.

B U S I N E S S I N T H E C Z E C H R E P U B L I C

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ABOUT THE COMPANYTERMOLUX, s.r.o. is a Czech production and trade company,

which was founded in Valašské Meziříčí in June 1991.

The scope of the company‘s main activities is as follows:� Production and sale of plastic profiles� Production and sale of plastic windows and doors� Production and sale of plastic tubes, tube fittings, and related goods� Construction activities, installation of plastic windows

Up to the present day, the company is active in all these business branches.

In 1999 the company introduced a certifi ed quality system according to the ISO 9001 standard.

Among others, the company takes measures for minimising the environmental problems.

PVC PROFILE SYSTEMSAccording to the customer‘s wish, we can offer extruded profiles made of hardened PVC

with the possibility of co-extrusion or post-extrusion on CINCINNATI CMT 58 extruders.

Each profile is unique, being developed in cooperation with our clients and engineers.

If desired, we can offer you our mediation of manufacturing the extruding tool or the

utilisation of our existing tools.

TERMOLUX, s. r. o., Mostní 100/12, Valašské Meziříčí 757 01, Czech republic

Tel.: +420 571 612 623, Fax: +420 571 624 264, E-mail: [email protected]

WINDOWS AND DOORS7-chamber window system

Following the topical trends, we are now assembling 7-chamber

plastic windows from the KVINTERM 2+ profile system. These are

A class profiles, which are manufactured by the company itself from

high-quality and high-purity plastic materials. Thus we can guarantee

100% quality of our manufacture, which makes use of first-class com-

ponents, which is based on long-time experience of our experts, and

which is verified by certifications and regular audits prescribed by the

ISO 9001 system.

TUBING SYSTEMSIn the same manufacturing plant, polypropylene and polyethylene

tubes are extruded in common pressure series, designed for water dis-

tribution or for other purposes (pipe sleeves, side boards etc.).

All investments into new technologies, machines, and equipment are

effected among others to improve the environmental protection and

our employees‘ industrial safety.

www.termolux.cz


30 C z e c h R e p u b l i c – Yo u r Tr a d e Pa r t n e rwww.obzor.cz

OBZOR ZLÍN WAS FOUNDED IN 1965 AND DURING MORE THAN 40 YEARS OF ITS OPERATION IT HAS ESTABLISHED ITSELF AMONG

IMPORTANT EUROPEAN PRODUCERS OF QUALITY AND DE PENDABLE ELECTROTECHNICAL INSTRUMENTS – CAM SWITCHES AND

HOME SWITCHES AND OUTLETS. TODAY, THE COMPANY IS ALSO AN IMPORTANT PRODUCER AND SUPPLIER OF PLASTIC, METAL-

STAMPED, AND METAL-WORKED PARTS FOR THE EUROPEAN AUTOMOTIVE AND ELECTRICAL ENGINEERING INDUSTRIES.

Products:cam switches 10A – 150A �

house switches and outlets �

drug dispensers �

Services:� construction and production of injection

moulds and metal-stamping tools� injection moulding of plastic� metal-stamping� metal-working

TRADITIONAL CZECH PRODUCER OF ELECTROTECHNICAL INSTRUMENTS FOR INDUSTRIAL

AND RESIDENTIAL ELECTRICAL INSTALLATIONS

THE COMPANY IS ACCREDITED WITH ISO9001 AND ISO14001 CERTIFICATES.

OBZOR, výrobní družstvo Zlín, Na Slanici 378, 76413 Zlín, Czech Republic, Phone: + 420 577 195 111, Fax: + 420 577 195 138, E-mail: [email protected]


It is not the aim of this article to describe in detail the ways of setting up different types of companies in the Czech Republic. Its purpose is to give a general outline of procedures to be followed in setting up a company in this country.

GENERAL MEETINGThe establishment of a company is preceded by a general meeting, at which its founders sign the company’s foundation documents, whereby they set out the essentials concerning the future com-pany, such as its trade name, the place where it will be based, its core business, the amount of its authorised capital, the person or persons who will be its statutory bodies, etc. The establishment of a company always has the form of a notarial deed. The fee for drawing up the notarial deed upon the establishment of a compa-ny depends on the amount of the company’s authorised capital and the number of annexes attached to the notarial deed. Usually it ranges between CZK 5 000 and CZK 10 000 (EUR 192–383).

FURTHER STEPSIn the period between the foundation meeting, the fi rst general meeting of the company, and the fi ling of a petition for its

registration several more steps must be taken depending on the type of the company.

Step 1: The company’s activities(a) obtaining registration of the company’s

business, if the object of its activities is a trade requiring a trade licence

(b) obtaining another licence under special legislation, most frequently in the area of health care, for example for running a non-state health-care facility.

As a rule, a trade licence is required for the registration of all company forms in the Commercial Register; the registration fee is CZK 1 000 (EUR 38). To speed up the process, the company may be entered in the Commercial Register even without obtaining a trade licence if under the Trade Licence Act its activity is not considered a trade, such as renting apartments and non-residential space.Ph

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How to Set Up a Company



Step 2: Opening a bank accountOpening the company’s bank account and the deposition of the company’s author-ised capital, obtaining confi rma-tion from the bank that the stated amount of authorised capital has been deposited, provided the capital is formed by monetary contributions of partners. Monetary contribu-tions to the company’s authorised capital is the most typical and at the same time the quickest way. A company’s authorised capital may be created also by non-monetary contributions, but in that case an expert opinion is required, which may slow down the process of company establishment (having an expert opinion made takes about one or two calendar months, depending on the kind of property being valued).

PETITION FOR ENTRY IN THE COMMERCIAL REGISTERPetitions for entry in the Commercial Register must be made on an approved form and the signature of the person acting on behalf of the company must be offi cially authenticated. Petitions are fi led with a locally competent court in compliance with the address of the company’s registered offi ce. The petition for entry must be supported by documents proving the facts to be entered in the Com-mercial Register, e.g.:l registered offi ce – contract of lease or

consent of the property owner to the location of the company’s registered offi ce in his/her premises

l authorised capital – bank confi rmation of the deposition of authorised capital;

l confi rmation by the deposit administrator;l extract from the crime register according to

the foreigner’s citizenship and his/her permanent residence, usually from his/her mother country, and a certifi cate of no criminal records of persons fi guring as the company’s statutory body;

l subject of business – extract from the Trade Register or another licence or authorisation issued in accordance with special regula-tions – if the trades are covered by the Trade Register, there is no need to submit a written extract to the court, etc.

A fee of CZK 5 000 (approx. EUR 192) in stamps must be paid when fi ling the petition. The statutory term for making the entry is 5 working days from fi ling day. If the registra-tion court does not make the entry within

that term and does not call on the petitioner to complement his petition, it means that the company has been registered. In case the data are not accurate or suffi cient, the court will call on the peti-tioner to complement the missing data within 10 days;

if the petitioner fails to comply, the petition shall be dismissed. The entry is made solely on the basis of documents, without any proceedings being needed. Representation by lawyer is not required when fi ling a petition for entry in the company or the trade register, nevertheless, considering the formal requirements concerning certain documents submitted for entry, such represen-tation is recommended.

FORMS REQUIRED FOR ENTRYAll forms to be completed by petitioners wishing to have their company entered in the Commercial Register can be found on the websites of the Ministry of Justice at www.justice.cz. In the Obchodní rejstřík (Commercial Register) section on the left there is the sub-section Formuláře ke stažení (Downloadable forms). All forms, including annexe forms and instructions for their correct completion, are available there. The forms are designed so as to facilitate their interactive completion. A serious setback for foreign businessmen and entrepreneurs is that the forms are available only in Czech. It goes without saying that all documents being submit-ted to the court (Commercial Register), including annexes, must be in Czech, and foreign-language documents must be provided with an authenticated translation. In the case of certain foreign docu-ments (e.g. statement of no criminal record, extract from the Commercial Register) a special form for higher-level authentifi ca-tion of the document certifying the authenticity of the offi ce which issued the document, usually termed as apostille or superlegalis-ation, is required. It is usually issued by the Ministry of Foreign Affairs in the state of origin of the document or another body entrusted with this competence in the state concerned (arranged by embassies of foreign countries in the Czech Republic for a fee.)

PAY ATTENTION TO THE NAME OF THE COMPANYThe name of the company must not be mistakable with that of any existing company entered in the Commercial Register. The busi-nessman must therefore verify this fact, preferably on the Internet, on the website of the Commercial Register, www.justice.cz.

Ladislav Smejkal, Lawyer

White & Case, LLP

www.whitecase.com

([email protected])

Note: EUR 1 = 26.076 CZK (The CNB monthly average exchange rate, December 2009)

The Commercial Code recognises four statutory forms of companies

and does not admit any enlargement of this number of forms or the

creation of mixed forms. For personal trade companies the Commer-

cial Code regulates the statutory form of General Commercial

Partnership (v.o.s. in Czech) and Limited Partnership (k. s. in Czech). For

capital trading companies it admits the statutory form of Limited

Liability Company (s.r.o.) and Joint Stock Company (a.s.)

MORE INFORMATION AT:

www.mpo.cz – Ministry of Industry and Trade

www.justice.cz – database of the Commercial Register

www.mpo.cz/dokument55910.html – Trade Register forms

www.rzp.cz – Trades Register

www.businessinfo.cz/en – information websites on doing

business in the CR

http://portal.gov.cz/ – Public administration portal of the CR




Why have you chosen the Czech Republic in

particular for doing business?

One of our key customers is located in Czech Republic. We successfully sold and imple-mented a large project for them. Apart from that, Tieto corporation has around 1600 employees in Ostrava providing IT services to other Tieto units. Ostrava was chosen because of the availability of skilled workforce at reasonable cost.

Since you considered qualifi ed labour as one of the

motivations for choosing the Czech Republic in

particular for doing business, could you, speaking

from the experience you have made, express your

view on this?

Relatively high level and quality of skills and the number of inhabitants with a university degree were the main considerations.

As a businessman, how do you rate the business environment in the Czech

Republic in general?

Business environment is very good, it complies with the highest EU standards.

What would you recommend to an entrepreneur from your country who

plans to start a business on the Czech market?

Find your competitive niche in the Czech market. Most likely, if you are competitive in the EU market in general, you should be competitive also in the Czech market with the same products and services.

www.tieto.com/newtieto

Why Invest inthe Czech Republic?

What is your experience from doing business in

the Czech Republic? We put this question to Mr Maris Ozolins,

Chairman of the Board, TietoEnator SIA, Latvia


Each entity which has obtained permission or entitlement to do business has started independent gainful activity or draw income liable to tax in the Czech Republic, is obliged to fi le an application for registration with the fi nancial authority concerned within thirty days of that moment. (An entity doing business on the basis of a trade licence can submit the application also with the trade licensing offi ce.) With only a few exceptions, the local competence of the fi nancial authority is determined by the registered address of the entity liable to tax.

TAX REGISTRATIONFor registration, the applicant is required to submit to the appropri-ate fi nancial authority all documents necessary for the pursuit of business activities (business licence, copy of entry in the Commercial Register, etc.) and a duly completed registration application.Tax registration, however, does not mean only corporate income tax registration. The company must consider what other taxes may apply to it and register for such taxes – e.g value added tax (obliga-tory if the CZK one million/EUR approx. 38 300) turnover limit has been exceeded during the term of 12 consecutive calendar months, or it may register voluntarily, if its turnover has not exceeded that limit), property tax, if the entity owns property, road tax, if the entity uses a motor vehicle for business purposes, income tax as payer of tax on income derived from dependent activity and emoluments, in case the company has employees, for income tax as payer of tax levied on income liable to a special tax rate, if the company pays e.g. interest, dividends or licence fees, for income tax as payer securing a tax, for excise duty or natural gas tax, solid fuel tax, and electricity tax.If the company fails to fulfi l its registration duty and the tax administrator ascertains that fact, he will make the registration himself as his offi cial obliga-tion. In that case, however, the company is liable to a fi ne (to a value not exceeding CZK 2 million/EUR 7.7 thousand).

REGISTRATION OF EMPLOYEESIf the company has employees, it is required to register those employees with the social security administration and health insurance companies, or deregister them. In both cases the term for registra-tion/deregistration is 8 days. The company itself, as employer, must register with the social security administration and the health insurance companies concerned.

DUTY TO REPORTThe company must also bear in mind that its obligations do not end with registration. If any facts stated in the registration certifi cate have changed in the course of the company’s business activities, the

company is required to report those changes within 15 days (in the case of social and health insurance, the term is usually 8 days) of the day on which those changes occurred. The changes concern, for example, the establishment or closing of the company’s permanent place of business, change of trade name, change of registered address, change of chief executives and members of statutory bodies.

CHANGE OF LOCAL COMPETENCE OF FINANCIAL AUTHORITYA very important change is that of local competence (i.e. change of registered address), on the basis of which the company comes under the competence of another fi nancial authority. In that case, the company is required to report that change to the relevant competent fi nancial authority, which will enter in the registration certifi cate the expiry date of its validity and after that will be carrying out only urgent acts. Before the expiry of the validity of the registration certifi cate the company is required to submit the registration certifi cate to the fi nancial authority at the place of its new registered address, which will issue it with a new registration certifi cate.

After the establishment of a company, an important

thing to do is fulfilling the company’s liabilities under

Czech tax legislation.

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Registrationand Tax Liabilities



ORDINARY TAX AND ACCOUNTING DUTIESThere is no need to say that companies must comply with the country’s accounting and tax legislation and follow its changes in pursuing their business activities. The basic obligations of every company are especially keeping account books and prepar-ing a fi nancial statement, possibly its verifi ca-tion by an auditor, and making corporate income tax returns and other tax returns each year within the set time limits. On the basis of appropriate certifi cates, the returns may be made electronically. The introduction of data boxes further expands the possibilities of electronic income tax returns.The appropriate fi nancial authority can check the correctness of the stated tax base and the calculated amount of tax payable or the stated tax loss, carry out an investigation on site, even during the tax period, and make records of its fi ndings, both as regards taxes and the fulfi lment of obligations in the administration of accounts.

TERMINATION OF BUSINESS ACTIVITIESIn case the company is considering closing down and the termination of its legal existence, it is required to apply for a written consent from the appropriate fi nancial authority to having its name expunged from the Commer-cial Register. The consent must be attached to its application for expunction from the Com-mercial Register. If the appropriate fi nancial authority fi nds that the company has ceased carrying out its activities or drawing taxable income, it will take measures necessary for an accelerated determination of the tax base and the collection of its back taxes before they have fallen due.

Aleš Zídek and Kateřina Schrollová

White & Case, LLP, Lawyer’s Offi ce


[email protected]

Note: EUR 1 = 26.076 CZK (average monthly exchange rate

fi xed by CNB, December 2009)

DIRECT TAXESPersonal income tax is regulated by Act No. 586/1992 Coll. on income tax. Its payers are all natural persons having their residence on the territory of the Czech Republic, or persons living there. The tax period is the calendar year. The tax base is the sum of all incomes, which the law divides into several categories: income from employment, income from business, income from rent, capital income, and other income. As from 2008, the employment income tax base is the gross wage plus social and health insurance premi-ums paid by the employer (supergross wage). From certain kinds of income, payers may deduct expenses “incurred to earn or maintain income”, either in their actual amount or as a percentage of their income fi xed by law. As from 2008, it is not possible to deduct from the tax base social and health insurance premiums paid. A loss may be brought over to the next fi ve years and deducted from the income of future periods. Income from the sale of certain kinds of assets is exempted from tax if a period of time fi xed by the law has passed between their acquisition and sale (e.g. 6 months in the case of securities, or 5 years in the case of apartments). As from 2008, the linear 15-per-cent tax system applies. Tax returns must be fi led by 31 March of the following year, or by 30 June, if the tax return is prepared by a tax adviser. The taxpayer must pay instalments depending on the amount of the tax. Employees are not required to fi le tax returns, as this obligation falls on the employer. The Act provides for a number of tax reliefs. For example, taxpayers may deduct from their tax base donations for charity purposes, interest paid on mortgage and amounts paid under the pension saving and life insurance systems. Corporate income tax is also regulated by Act No. 586/1992 Coll. on income tax. Its payers are all types of juristic persons depending on the address of their registered offi ces or the place from where their activities are directed. The tax period is the calendar year, or another twelve-month period, which must be in accordance with the fi nancial year. The tax base is the difference between incomes and expenditures relating to the tax period concerned. The incomes and expenditures are ascertained from accounting documents according to Czech national accounting standards. Only tax-allowable ex-penses, i.e. those incurred so as to earn or maintain their income, may be deducted from the income. The depreciation of assets is made individually. Tangible assets are divided into 6 depreciation classes, with depreciation periods of 3–50 years. Losses may be brought over for 5 years into future periods and deducted from the income of those periods. Tax returns must be fi led within 3 months of the end of the tax period, or within 6 months, if the tax return is prepared by a tax adviser, or if the fi nancial statement is to be verifi ed by an auditor, which is the case of most juristic persons. The taxpayer is obliged to pay instalments according to the amount of the tax. As from 2010, the tax rate is 19%. The act also provides for a number of tax reliefs, primarily the tax holiday for a period of up to fi ve years. For example, tax payers may deduct 100% of their expenditures on scientifi c and research projects from their tax base under the science and research support programme.Property tax is paid on land and buildings. The level of the tax is relatively low. In 2010, the rates on most real estates were raised to double the 2009 level. Road tax is only levied on vehicles used or

The Tax System

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USEFUL REFERENCES:


cds.mfcr.cz – Czech Tax Administration

www.mpsv.cz – Ministry of Labour and Social Aff airs

www.mzcr.cz – Ministry of Health

www.cssz.cz – Czech Social Security Administration

www.vzp.cz – General Health Insurance Company

www.cmu.cz – Centre for Interstate Payments

www.mfcr.cz/cps/rde/xchg/mfcr/xsl/dc2_tiskopisy.

html – Tax forms available for downloading

www.cmu.cz/important-contacts/169 – A list of

Czech health insurance companies

The main characteristics of the Czech tax system

are similar to those of other EU and OECD states.


intended to be used for business purposes. Vehicles used exclusively for personal use are not liable to tax. The tax rates are fi rmly fi xed annual amounts. Other taxes are, for example, the inheritance tax and the gift tax, and a number of administration and local charges and rates.

INDIRECT TAXESValue added tax (VAT) is regulated by Act No. 235/2004 Coll. VAT registration liability applies to persons with a turnover exceeding CZK 1 000 000/approx. EUR 38 349 a year. Persons with a lower turnover may register voluntarily. As from 2008, the Act makes it possible for a group of persons tied by capital to register as one VAT payer. Persons carrying out tax-allowable activities (e.g. fi nancial services) are not required to register. For persons with a turnover of

up to CZK 10 million (approx. EUR 400 962) the tax period is the calendar quarter, for persons with a higher turnover it is one month. The tax return is to be fi led on the 25th day after the end of the tax period. A VAT-registered person is liable to apply VAT to all its taxable activities and to issue a document to that effect, i.e. the invoice or a sales document. Imports of goods from states outside the EU are liable to VAT. Transactions between EU states are subjected to harmonised rules, which also include the obligation to make summary reports. The tax base is the value of all taxable fulfi lments taken together. There are two VAT rates. As from 2010, the basic rate is 20% and it applies to most goods and services; the reduced rate applying to food, medicaments, houses and apartments up to a certain size, books, newspapers and magazines, accommo-dation services, etc. is fi xed at 10%. Certain transactions are VAT exempted, such as transfers of land other than building sites and the renting of land and buildings. Excise duty, too, is harmonised with the EU directives concerned. Excisable goods include, for example, mineral oils, alcohol, beer, wine, and tobacco products. The duty is determined by fi xed rates (with the exception of ciga-rettes, where the duty is a combination of the fi xed rate and a percentage amount of the fi nal retail price). The tax period is the calendar month. The duty falls due at the moment the goods are released into free circulation, i.e. when the goods have left the consignment warehouse. The duty falls due on the 40th day after the end of the tax period concerned. Excise duty on cigarettes is paid in the form of tobacco labels. The duty is due within 60 days of the purchase of the labels. Energy taxes, introduced in 2008, are fully harmonised with the EU directive concerned. Energy taxes apply to electricity, solid fuels (coal and coke), and natural gas. Excise duty on cigarettes, mineral oils, spirits and beer are slightly raised as from 2010. Property transfer tax is levied at a rate of 3%.

Martin Jareš

Ministry of Finance

www.mfcr.cz

Note: EUR 1 = CZK 26.076 (average monthly exchange rate

fi xed by CNB, December 2009)

USEFUL REFERENCES:


http://cds.mfcr.cz – Czech Tax Administration

www.oecd.org/ctp/taxdatabase – Tax Database

www.oecd.org/ctp/taxingwages – Taxing Wages



Regardless of citizenship, the dependants of a citizen of the EU/EEA or Switzerland are understood to be the spouse, partner with whom the EU citizen has a registered partner-ship, their children, given they are under 21 years of age or they are dependant, parents if the person in question is a citizen under the age of 21 subsisted by and sharing a common household with the parent, and unprovided for direct relatives in the ascending or descending line or such a relative of the spouse of an EU citizen. For the purposes of employment in the Czech Republic, citizens of the EU/EEA,

Switzerland, or their depend-ants do not need a work permit. Dependants who are not citizens of the EU/EEA or Switzerland are, however, obliged to present

to the relevant Labour Offi ce a document confi rming they are the dependant of a citizen of the EU/EEA or Switzerland.

OBLIGATION OF EMPLOYERS TO INFORM An employer who employs citizens of the EU/EEA or Switzerland or their dependants, or the legal entity or physical person to whom these persons are posted by a foreign employer, are obliged to inform in writing the respective Labour Offi ce (according to the place of employment) at the latest on the fi rst day these persons take up their duties. Upon termination of employment, the employer, legal entity or physical person is obliged to inform the relevant Labour Offi ce of this fact at the latest within 10 calendar days of the termination of employment or of the posting. The forms for submit-

ting this information are published on the website http://portal.mpsv.cz/sz/zahr_zam/tiskopisy. If the citizen of another member state of the EU/EEA or Switzerland loses their job in the Czech Republic, they have the option to register as a jobseeker at their local Labour Offi ce, situated in every district town. The list of Labour Offi ces and contacts is available at this website http://portal.mpsv.cz/sz/local .

EURES PUBLIC EMPLOYMENT SERVICESFollowing the accession of the Czech Republic to the European Union, the employment offi ces became a part of the EURES network, the principle mission of which it is to facilitate international mobility of the work force. EURES (EURopean Employment Services) offers public employment services in all 27 member states of the EU, plus Norway, Island, and Liechtenstein. Switzerland has also agreed to participate in the EURES network. EURES services are provided to citizens and employers by means of a database available at this address http://portal.mpsv.cz/eures, or at www.eures.cz and by means of information and consult-ing services offered by EURES consultants and EURES contact persons at Labour Offi ce in the Czech Republic.

Further information on current procedures for employing foreign nationals available at: http://portal.mpsv.cz/sz/zahr_zam

Petra Boušková

Ministry of Employment and Social Aff airs


www.mpsv.cz

EU Citizens not Requiredto Obtain Work Permits

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Citizens of European Union member states and their dependants are not

regarded as foreigners and enjoy the same legal standing as citizens of the

Czech Republic, in the sense of the Employment Act. The same legal standing

as citizens of the Czech Republic also extends to citizens of the European

Economic Area (EEA) and Switzerland and their dependants.


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The capital of Prague is one of the most beautiful capitals in the world with the unforgettable atmosphere of a city with thousands of years of history. A great many museums, galleries, and sights can be found, not only in Prague, but also in other regions of the Czech Republic. The map of the Czech Republic is literally covered with historical towns, castles, chateaux, churches, and monasteries. A part of the unusual cultural heritage are 12 UNESCO sites – nowhere else in the world are they situated so close together. The beauty of the Czech countryside will also captivate you. Its diversity makes this an ideal venue for an active cycling or swimming holiday. More than 70 golf courses lure visitors and numerous ski resorts are ready for the winter holidays. The Czech spa industry is world famous and has a tradition of several centuries. You can enjoy the pleasant environ-ment of a spa town, not only for the curative treatments, but also for the relaxation. During any of your visits to the Czech Republic you may discover the taste of Czech cuisine, famous Czech beer, and excellent Moravian wine.

CZECH SPASSeveral centuries of history, over 30 spa venues throughout the country, hundreds of curative springs and rich deposits of peloids – all these

contribute to making the Czech Republic one of the international Spa Superpowers. Like all Superpowers, this country also has several

primacies on its account. Nowhere else in the world can you fi nd such a concentration of curative springs as in the West Bohemian spa triangle, which consists of the three famous spa towns: Karlovy Vary, Mariánské Lázně, and Františkovy Lázně. The collection of famous Czech unique locations would not be complete without Jáchymov and Jeseník. In 1906, experts in Jáchymov continued with the scientifi c discoveries made by Marie Curie and started, as the world fi rst, to use the curative effects of radon-rich waters. Jeseník became famous thanks to Vincenz Priessnitz, who founded the fi rst hydrotherapeutic institute here in 1822.

THE CZECH REPUBLIC – THE GOLF REPUBLIC!The Czech Republic has been making a good name for itself in Europe as a perspective golf destination. Golf has deep roots in the Czech Republic; as early as 1904, the fi rst 9-hole course in Karlovy Vary was opened, after huge demand by the local spa clientele. In the Czech Republic, there are 124 clubs and 74 golf courses, of which two are 36-hole courses, three are 27-hole courses, twenty-four are 18-hole courses and forty-fi ve are 9-hole courses. Standard organisations which teach golf, such as the Professional Golf Association of the Czech Republic (PGAC) (www.pgac.cz), are also present in this country. Most golf courses offer the possibility of booking golf lessons under the guidance of a professional. Czech golf courses also provide the opportunity to participate in several-day-long basic golf playing courses. Other organisations which provide useful information related to golf are the Czech Golf Federation (www.cgf.cz), the Czech Golf Travel Association (www.cgta.cz), and the web portal www.golf.cz.

Processed using information from the CzechTourism site: www.czechtourism.com.

Mariánské Lázně – the Colonnade

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Tour

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Come and Discover the CRCome and discover the Czech Republic, a country

where you can spend an active holiday, relax in

a spa, or conduct your business negotiations.


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The EMOTIONS Plastic Surgery Clinic is a well-established healthcare centre where our clients are offered state of the art surgical procedures and interventions in the area of plastic surgery under the mana-gement of skilled plastic surgeon MUDr Josef Němeček.

The Clinic is exceptional not only due to its location in the center of the famous Karlovy Vary spa resort, but also for its open approach to patiens.We are able to satisfy our clients’ varying requirements ranging from less demanding to the most exacting.

www.emotionsclinic.cz

The EMOTIONS Plastic Surgery Clinic, Bělehradská 14, 360 01 Karlovy Vary

Phone: +420 353 999 390, Fax: +420 353 999 392, GSM: +420 606 870 681

I N S T I T U T I O N S


CZECH CHAMBER OF COMMERCE

The Czech Chamber of Commerce represents businessmen and entrepre-

neurs in the Czech Republic and is an integral part of its economic life. It

protects the interests of its members – small, medium-sized, and large

enterprises associated in the regional network of chambers and in

tradesmen’s associations. It is a platform for more than 13 000 companies

in the Czech Republic, which account for 60% of the country’s GDP. The

member companies employ two-thirds of the Czech Republic’s working

population. In regions, the Czech Chamber of Commerce is represented

by 14 Regional and District Chambers of Commerce based in 62 cities and

municipalities. The professional section of the Chamber comprises about

80 trade associations.

The Czech Chamber of Commerce is a full member of the Eurocham-

bres Association of European Chambers of Commerce and provides

the following standard services for its members and non-members: it

l organises business missions to other countries, missions accompanying

government representatives and missions of small and medium-sized

business entities to various meetings of businessmen abroad;

l organises visiting missions by entrepreneurs on the occasion of the

Czech Republic’s offi cial participation in trade fairs and exhibitions in

other countries;

l receives delegations of foreign businessmen and organises seminars

and meetings with Czech companies for them;

l promotes co-operation with partner Chambers of Commerce and other

business institutions in other countries and co-operates with them in

organising international events;

l organises seminars, workshops, business forums and similar events with

a branch or regional focus;

l publishes enquiries and off ers by companies from all over the world

and, vice versa, publishes enquiries and off ers by Czech companies in

other countries, while taking advantage of its access to international

databases for seeking out contacts for Czech companies;

l participates in the international programmes of the European Commis-

sion, thereby supporting specifi c trade opportunities of Czech compa-

nies at multilateral contact events abroad – programmes Asia Invest

(Southeast Asia), Invest in Med (Mediterranean), Central Asia Invest

(Central Asian countries, AL-Invest (Latin America), etc.;

l is the compulsory site for comments by Czech legislative bodies and

State administration authorities, thereby infl uencing the entrepreneurial

environment in the Czech Republic;

l is the registered seat of the Czech National Body for the Facilitation of

International Trade Procedures (FITPO), thereby making the methods

used in international trade, including electronic data exchange, more

effi cient;

l verifi es customs documents, issues ATA carnets and various certifi cates

for foreign partners of Czech companies.

Hospodářská komora České republiky

Freyova 27, 190 00 Praha 9

Phone: +420 266 721 300

Fax: +420 266 721 692

e-mail: offi [email protected]

l More information at www.komora.cz l

CONFEDERATION OF INDUSTRY OF THE CZECH REPUBLIC

Representing those who create value

The Confederation is a voluntary non-political

organisation that brings together employers and

entrepreneurs in the Czech Republic. It is the

largest association of employers and represents

a predominant sector of Czech industry and

transport. Its mission is to participate in shaping

the Czech Government’s economic and social

policy, in order to create optimum conditions for

business development in the country and to assert

the common interests of its members.

The Confederation’s membership base comprises

30 branch and professional confederations and

associations and 114 individual members.

Altogether the Confederation of Industry has

1 534 members.

As a representative of employers and entrepre-

neurs, the Confederation represents and promotes

the common interests of its members with the

goal of creating an environment that is conducive

to enterprise and employment, while respecting

ethical business principles that will lead to long-

term, sustainable prosperity for Czech society.

The Confederation promotes, co-ordinates, and

protects the interests of its members in the

Council of Economic and Social Agreement, which

is a platform for negotiations between the

Government, employees, and trade unions on

essential political, economic, and social issues.

Organisationally it ensures the establishment of

trade and economic relations between Czech and

foreign entities by means of trade missions,

conferences, bilateral and multilateral negotia-

tions, and through the participation of its

members in trade fairs, exhibitions, and profes-

sional seminars.

Co-operation with Foreign Partners and

International Organisations

On the basis of co-operation agreements, the

Confederation establishes bilateral relations with

partner confederations of industry, Chambers of

Commerce, and other economic institutions abroad.

The Confederation is a member of the important

international organisations of employers and

businessmen – BUSINESSEUROPE, IOE and BIAC.

Svaz průmyslu a dopravy České republiky

Freyova 948/11, 190 05 Praha 9

Phone: +420 225 279 111


l More information at www.spcr.cz l


CZECHINVEST – THE INVESTMENT AND BUSINESS DEVELOPMENT AGENCY

Vision of CzechInvest Agency:

“Czech Republic – one of the most competitive

EU states”

CzechInvest - the National Investment and

Business Development Agency - is a state-run

contributory organisation subordinated to the

Ministry of Industry and Trade of the Czech

Republic. Its aim is to raise the competitiveness

of the Czech economy by giving support to

small and medium-sized enterprises, the

business infrastructure, and innovation. It

attracts foreign investors to invest in the

manufacturing industry, strategic services, and

technological centres and supports Czech

enterprises in their efforts to expand.

As part of the programme to simplify communi-

cation between the state, businessmen, and the

European Union, CzechInvest acts as an

umbrella organisation for all sources of support

to business and enterprise in the manufacturing

industry flowing both from EU funds and the

state budget.

CzechInvest gives publicity to the Czech

Republic in other countries as a locality attrac-

tive for investors and is the only organisation

entitled to file investment incentive applications

to relevant bodies. It also supports Czech

companies interested in becoming included in

the supply chains of supranational companies.

With its services and promotion programmes,

CzechInvest helps domestic firms and Czech and

foreign investors in their expansion and the

development of the business environment in

general.

All services are free of charge.

CzechInvest

Štěpánská 15, 120 00 Praha 2

Phone: +420 296 342 500

Fax: +420 296 342 502


l More information at www.czechinvest.org l

CZECH CENTRES

Our mission is to foster international co-operation, partnership, and dia-

logue between the general public and the professional sphere. We focus

on co-creating an attractive image of the Czech Republic as a modern

and dynamic country in the areas of culture and tourism while support-

ing external economic relations. Currently there are 24 Czech Centres in

21 countries on three continents. Czech Centres is an independent organ-

isation funded by the Ministry of Foreign Aff airs of the Czech Republic.

In every area of our activities, Czech Centres present the best of Czech

traditions while promoting the contemporary trends which emphasise

the creative potential of the Czech Republic.

In the area of external economic relations, Czech Centres off er services,

such as organisation of presentations and meetings of Czech organis-

ations with foreign partners. We are a liaison for information and enquiry

services. Czech Centre – Czech House Moscow off ers an extensive range

of services - the Moscow Business Centre provides accommodation

(rooms, apartments, offi ces, garage parking) as well as catering services.

For additional information and specifi c services, please enquire directly

at your local Czech Centre.

Česká centra

Václavské nám. 816/49, 110 00 Praha 1

Phone: +420 234 668 211, Fax: +420 234 668 215


l More information at www.czechcentres.cz l

EXPORT GUARANTEE AND INSURANCE CORPORATION (EGAP)

The purpose of EGAP is to provide protection to exporters and banks fi -

nancing exports against non-payment by foreign buyers in consequence

of uninsurable commercial and territorial (political) risks. EGAP complies

with all WTO, OECD, and European Union rules and provisions applicable

to export credit insurance with state aid. Its services are comparable to

those of other export credit agencies in the world. In addition to export

credit insurance, EGAP also provides insurance of pre-export fi nancing,

insurance of investments in foreign countries and loans for their fi nanc-

ing, as well as insurance against manufacturing risks and insurance of

bonds issued by banks on behalf of Czech exporters for export contracts.

EGAP has been providing its services since 1992 - to all exporters of Czech

goods and services irrespective of their size, legal form, and the volume

of insured export.

Exportní garanční a pojišťovací společnost, a.s.

Vodičkova 34/701, 111 21 Praha 1, Phone: +420 222 841 111

Fax: +420 222 844 001, e-mail: [email protected]

l More information at www.egap.cz l



CENTRE FOR REGIONAL DEVELOPMENT CR – ENTERPRISE EUROPE NETWORK

The Centre for Regional Development CR (CRR CR) is the implementing

agency for European programmes operating under the auspices of the

Ministry for Regional Development of the Czech Republic.

CRR CR hosts one of the centres of the Enterprise Europe Network (EEN),

a member of Europe’s largest network (with more than 500 partners) set

up and run by the European Commission with the purpose of promot-

ing business. Its consortium based in the Czech Republic is composed

of eleven partners from seven cities – Prague, Brno, Plzeň, Ostrava, Most,

Liberec, and Pardubice. The mission of the network is to help especially

small and medium-sized enterprises (SME) on entering the EU internal

market and doing business there. Its offi cials provide comprehensive

consulting services to businessmen with the aim of broadening the

international cooperation of companies, raising the innovative potential

of enterprises in the EU and helping SMEs to become integrated more

widely in EU framework programmes.

To foreign clients, CRR CR – EEN Prague off ers:

information about the Czech Republic, about the business environ-

ment in the CR, Czech legislation, about how to fi nd Czech partners for

co-operation, information about starting a business in the CR, sources of

fi nancing from Structural Funds, and other information.

Centrum pro regionální rozvoj ČR – Enterprise Europe Network

Vinohradská 46, 120 00 Praha 2, Phone: +420 221 580 201

Fax: +420 221 580 284, e-mail: [email protected]

l More information at www.crr.cz , www.een.cz l

Žďár nad Sázavou – St John of Nepomuk Church at Zelená Hora

CZECH TRADE PROMOTION AGENCY/CZECHTRADE

The CzechTrade promotion agency is a contribu-

tory organisation of the Czech Republic’s Ministry

of Industry and Trade. It provides professional

information, assistance, and consultation services

to assist Czech exporters in penetrating foreign

markets and succeeding there. The agency’s

mission is, through its professional services, to

contribute to the growth of the exports of Czech

companies and, as another priority, to build up an

excellent name for Czech exports.

CzechTrade operates more than thirty offi ces

abroad which provide up-to-date information

from the territories, survey trade opportunities

and take advantage of the name of a government

agency to establish suitable contacts.

In foreign countries, CzechTrade assists compa-

nies which are searching for suppliers or business

partners in the Czech Republic.

Your Czech Supplier is an exclusive service that

facilitates the establishment of direct contacts

with suppliers in the Czech Republic. Detailed

information and on-line registration form are

available on the website: www.czechtradeoffi ces.

com/supplier.

If a foreign fi rm wishes to meet representa-

tives of Czech fi rms in person, we will organise

negotiations in the building of the CzechTrade

agency in Prague or, according to agreement, on

the premises of the selected Czech fi rms. Czech

suppliers are well-known and successful in many

industrial sectors and services.

In the case of a foreign fi rm wishing to off er its

products to Czech companies, it can do so through

the Sell Leads service – www.czechtradeoffi ces.

com/SellLeads.

CzechTrade Promotion Agency/CzechTrade

Dittrichova 21, 128 01 Praha 28

Phone: +420 224 907 820


CzechTrade Riga

Elizabetes 13, 1010 Riga, Latvia

Phone: +371 67508371, Fax: +371 67508370

e-mail: [email protected], www.czechtrade.lv

CzechTrade Vilnius

Verkiu g. 5, 08218 Vilnius, Lithuania

Phone: +370 52758891, Fax: +370 52759101


www.czechtrade.lt

l More information at www.czechtradeoffi ces.com l

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CONFEDERATION OF EMPLOYERS’ AND ENTREPRENEURS’ ASSOCIATIONS OF THE CZECH REPUBLIC

The Confederation of Employers’ and Entrepreneurs’ Associations of

the Czech Republic (KZPS) is an open, independent and special-

interest association established in accordance with Act No. 83/90

Coll. on Association of Citizens. It groups seven important organis-

ations of employers in the areas of construction, textile industry,

small and medium-sized businesses, cooperatives, agriculture,

mining and oil industry, wood-working industry, education,

healthcare, culture, and social services. Representing a total of 23

000 member entities with over 678 000 employees, it supports the

promotion of its members‘ specific interests in legislation and other

areas.

The Confederation formulates entrepreneurs‘ and employers‘

interests shared by its members and advances them in cooperation

with relevant State bodies, other employer organisations and trade

unions, in particular through various forms of consultations with the

Czech government.

Membership in the Confederation is voluntary. Members of the

Confederation are only employers‘ associations and federations, not

individual enterprises.

KZPS CR Members:

Association of Textile-Clothing-Leather Industry (ATOK), Cooper-

ative Association of the Czech Republic – through the Union of

Czech Production Cooperatives, Association of Entrepreneurs of the

Czech Republic, Association of Building Entrepreneurs, Union of

Employers‘ Associations, Employers‘ Association of Mining and Oil

Industries, Agricultural Association of the Czech Republic.

Konfederace zaměstnavatelských a podnikatelských svazů ČR

Václavské náměstí 21, 110 00 Praha

Phone: +420 222 324 985

Fax: +420 224 109 374


l More at www.kzps.cz l



CZECH TOURIST AUTHORITY – CZECHTOURISM

The Czech Republic has been gradually strengthening its position of an

established European tourist destination. Membership in the European

Union and activities of the CzechTourism agency and its foreign

branches in Europe and overseas have all signifi cantly contributed to

achieve this goal. The organisation with the original name the Czech

Tourist Authority (Česká centrála cestovního ruchu, ČCCR) has existed

with the purpose of promoting the country as an attractive tourist

destination on foreign and domestic markets since 1993.

With regard to long-term studies in the area of the tourist trade,

CzechTourism has been focusing the majority of its activities on

countries that represent the main source markets of incoming tourism

into the CR. The fi rst among these are the neighbouring countries

(Germany, Austria, Slovakia, Poland), followed by other European

countries with high numbers of tourists going abroad (Belgium, France,

Italy, the Netherlands, the United Kingdom, Russia, and Spain). The most

important overseas countries are Japan, Canada, and the USA.

CzechTourism also introduces current and mid-term strategic presenta-

tions of the Czech Republic abroad. A new strategy for the Promotion of

the Czech Republic came into eff ect in the beginning of 2004, which was

oriented at the promotion of the so-called national products. Five

locations were chosen (Prague, Karlovy Vary, Český Krumlov, the

sandstone rock towns, and Olomouc) with a selection of optional trips

through their surroundings, and two time products (Christmas, Easter).

The agency switched from territorial and time topics to more generally

defi ned products in 2007. They are Historical Treasures (castles, cha-

teaux, technical and religious monuments), Czech Healthcare Spas,

Active Holidays (golf, cycling, adrenalin sports, but also fi shing or foot

tourism), Congress, Corporate, and Incentive Tourism, and Experience

Vacation (gastronomy, music, festivals). CzechTourism focuses on the

promotion of golf tourism for the Active Holidays. It was a great success

to receive the Undiscovered Golf Destination of the Year 2007 title at the

International Golf Travel Market fair in Spain (November 2006) awarded

to the Czech Republic by the International Association of Golf Tour

Operators (IAGTO). The growth of the golf tourism is also evidenced by

the new slogan: Czech Republic – The Golf Republic.

The Czech Republic is currently represented by 25 CzechTourism

branches abroad.

The CzechTourism agency also has a number of other activities. It

organises TOURFILM, the oldest fi lm festival of tourism-themed fi lms and

multimedia in the world (www.tourfi lm.cz). Today, the festival is a part of

a larger event called the Karlovy Vary Week (Karlovarský týden). The

agency participates in the common promotion of the Visegrad Four

(Czech Republic, Slovakia, Hungary, Poland) on overseas markets

(www.european-quartet.com). It also promotes a number of events in

the individual regions of the Czech Republic.

Czech Tourist Authority – CzechTourism

Vinohradská 46, P.O.BOX 32, 120 41 Praha 2

Phone: +420 221 580 111

Fax: +420 224 247 516


l More information in 19 world languages at...

www.czechtourism.com l

CZECH EXPORT BANK

Czech Export Bank (CEB) provides all fi nancial

services to Czech enterprises and their foreign

partners involved in the export of Czech products

and services. CEB provides both sides of the trade

relationship with favourable conditions in terms

of extended maturities and attractive price. This is

done under internationally adopted rules govern-

ing state support of exports. The bank has broad

experience in fi nancing of large transactions of

Czech exporters, but also of export contracts for

lesser amounts or partial deliveries. On the one

hand, this benefi ts the bank’s clients and on the

other hand, it indirectly creates higher employ-

ment and improved conditions for business

development. Foreign buyers and partners of

Czech fi rms use most CEB products under these

favourable conditions of fi nancing, thus making

Czech goods and services more lucrative not only

in terms of their price and quality.

The bank’s focus on off ering a comprehensive

range of products for the fi nancing of exports

has proven invaluable in recent years. Exporters

appreciate this fi nancial support as a useful form

of securing export-related fi nancial needs. Besides

standard fi nancing of exports of goods, CEB sees

its new role in off ering fi nancing of big turn-key

projects, construction works and infrastructure,

and especially investments abroad. A number of

project and structured fi nancing models allow

the realisation of projects at a new scale. Another

of the bank’s goals is to off er Czech companies

advantageous fi nancing of their plans to launch

production abroad or to invest in establishment or

extension of production companies abroad.

Česká exportní banka, a.s.

Vodičkova 34, 111 21 Praha 1

Phone: +420 222 843 216

Fax: +420 224 226 162


l More information at www.ceb.cz l


C O N T A C T S


USEFUL ADDRESSES IN THE CZECH REPUBLICEmbassy of the Republic of Estonia

Na Kampě 1118 00 Praha 1Phone: +420 257 011 180Fax: +420 257 011 181e-mail: [email protected]

Embassy of the Republic of Latvia

Hradešínská 3P.O.Box 54101 00 Praha 10Phone: +420 255 700 881Fax: +420 255 700 880e-mail: [email protected]

Embassy of the Republic

of Lithuania

Pod Klikovkou 1916/2150 00 Praha 5Phone: +420 257 210 122, 257 210 123Fax: +420 257 210 124e-mail: [email protected]://cz.mfa.lt

Consulate of the Republic

of Lithuania

Hlinky 40/102603 00 Brno-PisárkyPhone: +420 543 244 145Fax: +420 543 244 146e-mail: [email protected]

CENTRAL AND OTHER KEY BODIES OF THE CZECH REPUBLICOffi ce of the Government

of the Czech Republic

Úřad vlády ČR

www.vlada.cz

MINISTRIESMinistry of Agriculture

Ministerstvo zemědělství

www.eagri.cz

Ministry of Culture

Ministerstvo kultury

www.mkcr.cz

Ministry of Defence

Ministerstvo obrany

www.army.cz

Ministry of Education, Youth, and Sport

Ministerstvo školství, mládeže

a tělovýchovy

www.msmt.cz

Ministry of the Environment

Ministerstvo životního prostředí

www.mzp.cz

Ministry of Finance

Ministerstvo fi nancí

www.mfcr.cz

Ministry of Foreign Aff airs

Ministerstvo zahraničních věcí

www.mzv.cz

Ministry of Health

Ministerstvo zdravotnictví

www.mzcr.cz


Ministerstvo průmyslu a obchodu

www.mpo.cz

Ministry of the Interior

Ministerstvo vnitra

www.mvcr.cz

Ministry of Justice

Ministerstvo spravedlnosti

www.justice.cz

Ministry of Labour and Social Aff airs

Ministerstvo práce a sociálních věcí

www.mpsv.cz

Ministry for Regional Development

Ministerstvo pro místní rozvoj

www.mmr.cz

Ministry of Transport

Ministerstvo dopravy

www.mdcr.cz

OTHER INSTITUTIONSCzech National Bank

Česká národní banka

www.cnb.cz

Czech Statistical Offi ce

Český statistický úřad

www.czso.cz

Academy of Sciences


Akademie věd ČR

www.cas.cz

Useful AddressesUSEFUL CONTACTS IN THE REPUBLIC OF ESTONIAEmbassy of the Czech Republic

Lahe 4101 50 TallinnPhone: +372 6274400Fax: +372 6314716e-mail: [email protected]/tallinn

Honorary Consulate


Vana Keila 52, 756 06 SavePhone: +372 507219

USEFUL CONTACTS IN THE REPUBLIC OF LATVIAEmbassy of the Czech Republic

Elizabetes iela 29a1010 Riga Phone: +371 67217814Fax: +371 67217821e-mail: [email protected], [email protected]/riga

CzechTrade Riga

Elizabetes 131010 RigaPhone: +371 67508 371Fax: +371 67508 370e-mail: [email protected]

USEFUL CONTACTS IN THE REPUBLIC OF LITHUANIAEmbassy of the Czech Republic

Birutes g. 1608117 VilniusPhone: +3705 2661 040Fax: +3705 2661 066e-mail: [email protected]

[email protected]/vilnius

CzechTrade Vilnius

Verkiu g. 508218 VilniusPhone: +3705 275 8891Fax: +3705 275 9101e-mail: [email protected]


C O N T A C T S


The Most Important WebsitesGeneral information on the Czech Republic www.czech.cz Offi cial site for the CR

BusinessInfo www.businessinfo.czOffi cial site for professionals searching for information, assistance, or business contacts in the CR

Doing Business in the Czech Republic www.doingbusiness.czGeneral Information about business climate, structure, and development on the Czech economy

Portal of the Public Administration http://portal.gov.czThe electronic gateway for the public to administration and government services

Company Contact Information

Business Registerwww.justice.cz/ xqw/xervlet/insl/index

Public directory

Hoppenstedt Bonnier www.hoppbonn.cz The most important companies in the CR and the SR

Inform.cz www.inform.cz Czech Company Catalogue

Kompass www.kompass.cz Czech Company Catalogue

Albertina Data www.albertina.cz Czech Company Monitor

European Databank www.cicr.cz Financial and credit information

European Databank www.edb.cz Information operator

Czech exporting companieshttp://exporters.czechtrade.cz/en

Czech Exporters Directory

Zlaté stránky www.zlatestranky.cz Telephone and companies directory

ARESwww.info.mfcr.cz/ares/ares.html

Access to Registers of Economic Subjects

LegislationIuridika http://iuridica.eunet.cz Legal services in the Czech Republic

Portal of Czech judiciary www.justice.cz Course of legal proceedings

FinanceCzech National Bank www.cnb.cz Monetary, fi nancial, and macroeconomic data

Prague Stock Exchange www.pse.cz Prague Stock Exchange data

RM-System www.rmsystem.cz RMS Securities Market

Czech Insurance Association www.cap.cz Directory of insurance companies operating in the CR

Prague Securities Centre www.scp.cz Securities Centre Prague

Patria Group - Patria Finance www.patria.cz Investment portal

Register of excise duty payers www.cs.mfcr.cz/spd_internet

Directory of taxpayers registered under individual tax identifi cation numbers

Chamber of Tax Advisers www.kdpcr.cz Database of tax advisers

StatisticsCzech Statistical Offi ce www.czso.cz Offi cial statistical data and information covering various subjects

Fairs and ExhibitionsBVV – Brněnské veletrhy a výstavy www.bvv.cz List of exhibitions in Brno and relevant information

Association of Fair and Exhibition Organisers of the CR

www.czechfairs.czExhibition centre companies organising trade fairs in the CR and abroad

MiscellaneousThe Industrial Property Offi ce www.upv.cz Norms, Patents, and Standards

The Grant Agency of the Czech Republic www.gacr.czAwards grants to the best projects of basic research in all branches of science

The Register of Advertising Agencies www.registrra.cz/rraExpert assistance in choosing and working with advertising and communication agencies in the CR

Česká pošta (the Czech Post) www.cpost.cz Incl. postcodes of municipalities and its districts (PSC), philately etc.

Residence of Foreigners in the CR www.domavcr.cz Advice for living in the CR

Association for Foreign Investment www.afi .cz Support for entry of foreign investors

Cadastre of Real Estate www.cuzk.cz Information system, contains data on real estate in the CR

Road toll in the CR www.premid.cz Information on toll and charges

Portal of the Regional Information Service www.risy.cz Information website on the regions

The Czech Association of Hotels and Restaurants

www.ahrcr.cz Directory of hotels in the CR


C O N T A C T S

52 C z e c h R e p u b l i c – Yo u r Tr a d e Pa r t n e r138 | Interiér

Baths and shower baths

Comfort and quality for your bathroom

� Slip-safe� Thermal features� Insulating features� Sound suppressing� Easy maintenance� Solid

RIHO CZ,a.s.Suchý 37680 01 BoskoviceCzech Republic

www.riho.cz

Your excellent choice for many years


bathroomfurniture

LE BON has been manufacturing bathroom furniture for more than 13 years. Currently, we export our prod-ucts to Switzerland, Sweden, and Slovakia.We make furniture suitable to fit both Laufen, Keramag, Kolo, and Villeroy Boch wash-basins and cabinets for non-brand ceramic pieces at very good prices.A substantial part of our product range includes mir-rors, lighting fixtures, mirror cabinets, and different types of complementary cabinets.For our products we use the best components: full ex-tension drawers, soft closing for the smooth closing of doors, integrated illumination…Our furniture is fully moisture resistant, with several layers of polyurethane lacquer covering both white and coloured furniture surfaces.

LE BON furniture is distinguished for its modern de-sign: the series have their front surfaces made, for ex-ample, from laminate glued to plywood, from faultlessly worked massive wood, or from tropical veneer.

LE BON bathroom furniture is extremely variable: several types of cabinets (with doors, drawers) are sup-plied for one type of wash-basins in a variety of shades.Our product range is being continuously enlarged – LE BON reacts quickly to changing customer needs. We handle customer orders promptly and in top quality.We speak English.

Detailed information and EUR public prices are available at www.lebon.cz.

LE BON will make furniture to your order.

If you wish to trade in LE BON bathroom furniture, kindly contact: Ms Klára Nováková, e-mail: [email protected], phone: +420 603 810 583

LE BON spol. s r.o., Zábrdovická 16, 615 00 Brno, Czech Republic

www.lebon.cz

C O N T A C T S


SaZ s.r.o. is a Czech manufacturer of Special Road and Railway Machinery, Road/Rail Machines, Flash Butt Welding Technology, Railway Track Layers and other machin-ery for track maintenance, Rail Trailers and Carriers, Lifting Platforms, Body Super-structures, Access Ramps etc. Our products can help you in rail welding, catenary maintenance and renewals, railway track renewals and construction, cleaning of railway track as well as vegetation control and other activities. We have been a tra-ditional Czech manufacturer since 1954. We are always ready to offer tailor-made solution meeting your special needs and to put your …Trucks on Tracks ...

Czech manufacturer of Special Railway Machinery

SaZ s.r.o., Koupelní 3908/6, 695 01 Hodonín, Czech RepublicPhone: +420 518 328 621, Fax: +420 518 328 622, E-mail: [email protected] www.saz.cz

www.road-rail.eu


C O N T A C T S


• Manufacture and sale of currentand voltage transformers

• Current transformers for voltages rangingfrom 1 to 40.5 kV - indoor and outdoor design

• Voltage transformers for voltages rangingfrom 1 to 40.5 kV - indoor and outdoor design

• Special transformers, manufacture of epoxide

components

SLO LatviaMaleju street 1A

Riga LV 1004, Lotyšsko

Tel: +371 6711 4444

Fax: +371 6711 4040

www.slo.lv

KPB INTRA s.r.o.Ždánská 477, 685 01 Bučovice

Czech Republic

Phone: +420 517 380 388

Fax: +420 517 381 433

E-mail: [email protected]

www.kpbintra.cz

297x210.indd 2 19.1.2010 9:56:22


297x210.indd 2 19.1.2010 9:56:22

TRADITIONAL CZECH MANUFACTURER OF CABLES:

www.kabelovna.cz

� FIBRE OPTIC CABLES � TELECOMMUNICATION CABLES � SIGNALLING CABLES � INSTALLING CABLES � DATA CABLES � POWER CABLES

KABELOVNA Děčín-Podmokly, s.r.o.Ústecká 33, 405 33 Děčín, Czech Republic

C O N T A C T S


E-therm TZ s. r. o. is a young, dynamically developing Czech company. The core of its business lies in the field of industrial furnaces and thermal plants. During four years of its market pres-ence, the company has established a group of satisfied regular customers and earned recognition from professionals in the area of engineering and metallurgical production.

The base of the company‘s team of workers are specialists with rich experience acquired while working at ŠKODA KLATOVY s. r. o. the biggest and most important furnace producer in the Czech Republic for almost 50 years that finished its operations in 2005.

By combining the professional knowledge of designers and con-structors with the many years of experience possessed by service technicians, commercial and project managers, we have suc-ceeded in building a company, in a short period of time, with a considerable potential, high level of technical equipment, and an exclusive orientation towards the needs of customers.

The company‘s market presence is built not only by reliable de-liveries of standard furnaces but also by the development of new, highly effective and special-purpose technologies. Which is why the main customers of E-therm TZ s. r. o. are producers of power generating equipment, shaping machines, special big forgings, big shafts and rotors, crankshafts, mining equipment and trans-port equipment.

A number of special plants have been developed and realised for these demanding customers, such as a line for the heat treat-ment of corrosion-proof pipes for submarine cables, a line for the production of coated transformer sheet metal, a furnace for the heat stabilisation and heat testing of turbine rotors, or wall furnaces for testing of sheet glass heat resistance or testing of construction units for the building industries.

As a supplier of equipment that consumes large amounts of en-ergy, E-therm TZ s. r. o. offers this equipment with the highest ef-ficiency, and thus the lowest operational costs. Great operator‘s supervision comfort, programmability, and process automation are considered a matter of fact, as they themselves have a signif-icant impact on energy consumption. On top of that, maximum utilisation of waste heat from exhaust gases is considered in gas furnaces which, besides fuel savings, leads to the lowering of emissions of glass-house gases, thus significantly affecting efforts to improve the natural environment.

Owing to the possibility of the free movement of goods between the countries of the EU, conditions for service and assembly ac-tivities related to deliveries of industrial furnaces have improved significantly. For this reason, E-therm TZ s. r. o. delivers this equip-ment not only in the Czech Republic but to other EU countries as well, in turnkey fashion. However, deliveries and projects bearing the E-THERM logo are also shipped to Asia or CIS countries.

E-therm TZ s.r.o., Jateční 661, 33901 Klatovy, Czech Republicphone: +420 378 603 251, fax: +420 378 603 270email: [email protected]

� HEATING FURNACES FOR FORGE SHOPS AND ROLL-ING MILLS

� ANNEALING FURNACES FOR FORGE SHOPS, FOUN-DRIES AND ROLLING MILLS

� CONTINUOUS HEAT TREATMENT FURNACES FOR AN-NEALING AND PICKLING LINES

� REFINING LINES AND LINES FOR HEAT TREATMENT IN PROTECTIVE ATMOSPHERES

� DRYING FURNACES FOR VARIOUS TECHNOLOGICAL PROCESSES

� TESTING WALL FURNACES FOR REASERCH AND QUAL-ITY CONTROL INSTITUTES AND FOR PRODUCERS OF BUILDING COMPONENTS, BUILDING MATERIALS AND SHEET GLASS

� COMBUSTION CHAMBERS AND HEAT SOURCES FOR DRY-KILN PURPOSES IN THE CERAMIC AND GLASS INDUSTRIES

� BELL ANNEALING FURNACES – SHEET METAL AND WIRES

� EQUIPMENT FOR HEAT STABILISATION AND TESTING OF RADIAL RUN-OUT OF TURBINE ROTORS, ANOTHER ROTORS AND SHAFTS

WIDE OFFERING OF INDUSTRIAL FURNACESCUSTOMISED TECHNICAL SOLUTIONS


Manufacture and delivery of devices for food and pharmaceutical production:

stainless tanks of various capacities and types, including stirrers custom pressure tanks (calculations, certificates) and their service autoclaves and sterilisers minibreweries pumps of all types (impeller, displacement, proportioning) plate exchangers for various applications (heaters, coolers, pasteurisers) custom stainless products, service platforms for tanks and machinery

Intero Chmelan & spol., s.r.o. Žamberk provides technical and project preparation, manufacture, delivery,

and assembly of technological devices, production lines, and stainless tubing, including related electrical

installation and MaR (monitoring and regulation), for customers from the field of dairy works, breweries,

and other fields of the food processing and pharmaceutical industries.

We like to offer our customers quality and affordable complex services while respecting their specific requirements.Components used for individual projects comply with strict functional and hygienic regulations for use in the food processing industry. We use tested devices from renowned suppliers.

Deliveries of purification plants of various outputs and makesDesigns, reconstructions, and modernisations of technological tubingProjects and deliveries of electrical installations, controls, operations, and automations of technological devices and processes, monitoring and data storing

Projects, deliveries, and assemblies of production lines for dairy farming:

milk reception milk and cream storage pasteurisation of milk, cream, and specialities production of fermented products production of cheese bottling of dairy products

Intero Chmelan & spol.

Contact:Jan Dostál [email protected] for communication in Russian Petr Voborník [email protected] for communication in English

www.intero.cz / www.globalservis.cz



PARTNERS


Ministry of Foreign Affairs

Confederation of Industry of the Czech Republic

Czech Chamber of Commerce

Confederation of Employers’ and Entrepreneurs’ Associations of the Czech Republic

CzechTrade

CzechInvest

CzechTourism

Czech Centres

Centre for Regional Development of the Czech Republic

Export Guarantee and Insurance Corporation

Czech Export Bank A company with the ISO 9001 certifi ed quality

management system for publishing services

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