Teritoriální projekt pobaltí

Czech Republic YOUR TRADE PARTNER 2010/2011 Estonia, Latvia, Lithuania 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 1

ECONOMICS AŽD Praha Rail Transportation Road Transportation Telecommunications Traditional Czech supplier of modern control and signalling systems Safely to your destination www.azd.cz 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

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 publikace Česká republika – Váš obchodní partner © Published by the PP Agency s.r.o. Myslíkova 25, 110 00 Praha 1, Czech Republic Phone: +420 221 406 622; e-mail: journal@ppagency.cz; www.ppagency.cz A company with the ISO 9001 certiﬁed quality management system for publishing services 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 3

FOREWORD Contents 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 Photo: CzechTourism, Ministry of Foreign Affairs archives; Cover photo: Škoda Auto and Škoda Electric archives, CzechTourism, PhotoCombo, www.sxc.hu 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 Prague, the Dancing House (it placed first in the Design category of a survey organised by the American Time magazine) The Most Important Websites 50 4 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

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 diversification – 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 activities 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 simplification, it does not seem to be accidental that the rapid growth of mutual trade is accompanied by a growing mutual flow of tourists. Our countries are close to each other both politically and geographically, as there are direct flights 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, production, and investment. Alexandr Langer Ambassador of the Czech Republic to the Republic of Estonia 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 5

FOREWORD 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 difficulties, moreover aggravated by the global financial 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 mutual trade has changed its course. A number of traditional exporters of Czech products to Latvia are faced with serious sales difficulties, 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 certain sense reflects 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 confident 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 advanced 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 confident that nothing will change about it in future. Tomáš Pštross Ambassador of the Czech Republic to the Republic of Latvia Photo: Ministry of Foreign Affairs archives 6 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

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 fight the downturn and to go back to the economic growth. The real milestone was definitely 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 economic 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 first 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 first 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 diplomatic 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 representatives 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 firms 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 participation in public tenders; l the study of distribution channels and the flow of commodities, passing on of information to Czech firms wishing to enter the Lithuanian market, in close cooperation with the local office 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 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 7

FOREWORD Czech Exporters 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 classification – NACE. 03.21 Marine aquaculture 27.90 Manufacture of other electrical equipment Josef Lonský - AQUA TROPIC 9 INGE Opava, spol. s r.o. 51 03.22 Freshwater aquaculture Elektro, výrobní družstvo v Bečově nad Teplou 26 Josef Lonský - AQUA TROPIC 9 28.21 Manufacture of ovens, furnaces, 10.92 Manufacture of prepared pet foods and furnace burners Josef Lonský - AQUA TROPIC 9 E-therm TZ s.r.o. 58 18.10 Printing and service activities related to printing 28.40 Manufacture of metal-forming machinery and machine Böttcher ČR , k.s. 12 tools 20.30 Manufacture of paints, varnishes and similar coatings, TOS VARNSDORF a.s. 47 printing ink and mastics 28.93 Manufacture of machinery for food, beverage, METRUM s.r.o. 15 and tobacco processing 20.42 Manufacture of perfumes and toilet preparations DESTILA, s.r.o. 49 GOLDEN LINE s.r.o. 39 J 4 s.r.o. 49 20.59 Manufacture of other chemical products n.e.c. 28.99 Manufacture of other special-purpose machinery n.e.c. GOLDEN LINE s.r.o. 39 E-therm TZ s.r.o. 58 22.10 Manufacture of rubber products J 4 s.r.o. 49 Böttcher ČR , k.s. 12 29.10 Manufacture of motor vehicles 22.21 Manufacture of plastic plates, sheets, tubes, and profiles SOR Libchavy spol. s r.o. 47 TERMOLUX, s.r.o. 29 30.20 Manufacture of railway locomotives and rolling stock 22.23 Manufacture of builders’ ware of plastic CZ LOKO, a.s. 55 TERMOLUX, s.r.o. 29 SaZ s.r.o. 54 22.29 Manufacture of other plastic products 30.99 Manufacture of other transport equipment n.e.c. OBZOR, výrobní družstvo Zlín 30 SaZ s.r.o. 54 23.42 Manufacture of ceramic sanitary fixtures 31.09 Manufacture of other furniture LE BON, spol. s r.o. 53 LE BON, spol. s r.o. 53 RIHO CZ, a.s. 52 RIHO CZ, a.s. 53 25.20 Manufacture of tanks, reservoirs, and containers of 33.17 Repair and maintenance of other transport equipment metal SaZ s.r.o. 54 DESTILA, s.r.o. 49 35.12 Transmission of electricity EURO TEPLO s.r.o. 33 KPB INTRA s.r.o. 56 HAAS + SOHN Rukov, s.r.o. 34 35.13 Distribution of electricity 25.29 Manufacture of other tanks, reservoirs, KPB INTRA s.r.o. 56 and containers of metal 46.14 Agents involved in the sale of machinery, industrial INTERO, Chmelan a spol., equipment, ships, and aircraft společnost s ručením omezeným 59 Jovbak s.r.o. 15 25.50 Forging, pressing, stamping, and roll-forming 46.45 Wholesale of perfume and cosmetics of metal; powder metallurgy GOLDEN LINE s.r.o. 39 OBZOR, výrobní družstvo Zlín 30 52.21 Service activities incidental to land transportation 25.99 Manufacture of other fabricated metal products n.e.c. AŽD Praha s.r.o. 2 EURO TEPLO s.r.o. 33 62.00 Computer programming, consultancy, and related 26.00 Manufacture of computer, electronic, activities and optical products Institut mikroelektronických aplikací s.r.o. 51 Institut mikroelektronických aplikací s.r.o. 51 64.11 Central banking 27.10 Manufacture of electric motors, generators, Česká exportní banka, a.s. 45 transformers, and electricity distribution and 64.99 Other financial service activities, except insurance and control apparatus pension funding n.e.c. AŽD Praha s.r.o. 2 Česká exportní banka, a.s. 45 27.12 Manufacture of electricity distribution 73.10 Advertising and control apparatus M.I.P. Advertising, a.s. 24 OBZOR, výrobní družstvo Zlín 30 74.90 Other professional, scientific, and technical activities n.e.c. Elektro, výrobní družstvo v Bečově nad Teplou 26 E-therm TZ s.r.o. 58 27.32 Manufacture of other electronic and electric 80.20 Security systems service activities wires and cables Institut mikroelektronických aplikací s.r.o. 51 KABELOVNA Děčín Podmokly, s.r.o. 57 86.10 Hospital activities 27.33 Manufacture of wiring devices Klinika plastické chirurgie EMOTIONS, s.r.o. 41 KABELOVNA Děčín Podmokly, s.r.o. 57 86.22 Specialist medical practice activities Elektro, výrobní družstvo v Bečově nad Teplou 26 Klinika plastické chirurgie EMOTIONS, s.r.o. 41 27.40 Manufacture of electric lighting equipment 96.02 Hairdressing and other beauty treatment INGE Opava, spol. s r.o. 51 Klinika plastické chirurgie EMOTIONS, s.r.o. 41 8 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

THE RELIABLE PRODUCER EVEN FOR YOUR COMPANY AQUA TROPIC LONSKY K PEROVNE 740, 102 00 PRAHA 10, CZECH REPUBLIC Tel.: 272 702 880, Fax: 272 702 947 http://www.lon.cz • e-mail: lon@lon.cz 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 9

FOREWORD Useful Information BASIC DATA struction and Development, the European Bank for Reconstruction Population 10 506 813 and Development, the OECD, as well as many other organisations. (31 December 2009) Area 78 864 sq.km UNESCO WORLD HERITAGE The capital city Praha (Prague) The UNESCO World Heritage List includes the following cities and System of government a republic sites: Prague, Český Krumlov, Kutná Hora, the Litomyšl Chateau, Language Czech Telč, the Lednice-Valtice area, Zelená Hora - St John of Nepomuk Highest peak Sněžka (Snow) Mountain Church, Holašovice, Kroměříž (chateau and gardens), the Holy (1602 m above sea level) Trinity Column in Olomouc, the Tugendhat Villa in Brno (designed Time zone Central European Time by architect Ludwig Mies van der Rohe), and St Procopius Basilica GMT + 1, summer time and the Jewish Cemetery in Třebíč. For more information, please see GMT + 2 www.unesco-czech.cz. Monetary unit 1 Czech crown (Kč/CZK) = 100 halers PROMINENT FIGURES Internet domain .cz The Czechs are described as a very cultural nation which has contributed to the world a large number of prominent ﬁgures. The The President of the Czech Republic is Václav most signiﬁcant rulers and heads of state include emperor Charles Klaus. IV and presidents T. G. Masaryk, Edvard Beneš, and Václav Havel. Names of world renown include Jan Amos Komenský (Comenius) MEMBERSHIP OF ORGANISATIONS “the Teacher of Nations“, scientists Jaroslav Heyrovský (Nobel Prize Photo: CzechTourism The Czech Republic is a member of the laureate for chemistry), Otto Wichterle, a Czech chemist who European Union, the United invented contact lenses, and Antonín Holý Nations, NATO, the WTO, the Other useful information on the (professor of honour in medicinal chemist- International Monetary Fund, the Czech Republic is at www.czech.cz ry), who discovered drugs against AIDS. International Bank for Recon- Famous people of culture include composers 10 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

The Capital of Prague - the dominant Prague Castle State Symbols of the Czech Republic Large State Coat of Arms State Flag Czech Republic, a.s., T-Mobile Czech Republic a.s., Vodafone Czech Republic a.s., and Bedřich Smetana, Leoš Janáček, Antonín Dvořák, and Bohuslav MobilKom, a.s. Martinů, writers Franz Kafka, Karel Čapek, Jaroslav Seifert (Nobel The most commonly used credit cards in the Prize laureate), Jaroslav Hašek, Bohumil Hrabal, and Milan Kunde- Czech Republic are: Eurocard/MasterCard, ra. Winners of the American Academy Award are ﬁlm directors Maestro, and Visa. Miloš Forman (born in former Czechoslovakia), Jiří Menzel, Jan Svěrák, and the singer Markéta Irglová. Painters to be named are THE BIGGEST CITIES František Kupka and Alfons Mucha. Athletes of world renown OF THE CZECH REPUBLIC include Emil Zátopek, Petr Čech, Jaromír Jágr, Dominik Hašek, city number of inhabitants Pavel Nedvěd, Jan Železný, Kateřina Neumannová, and many 1. Praha 1 180 100 others. Martina Navrátilová and Ivan Lendl are also of Czech origin. 2. Brno 366 000 The winners of gold medals at the 2008 Olympic Games in Beijing 3. Оstrava 310 000 were Kateřina Emmons, Barbora Špotáková, and David Kostelecký. 4. Plzeň 163 000 5. Оlomouc 100 000 PRACTICAL INFORMATION 6. Liberec 98 000 Country dialling code: +420. Details regarding phone numbers are 7. České Budějovice 95 000 available at the following website: www.zlatestranky.cz. 8. Ústí nad Labem 95 000 Licences to operate mobile phone networks in the Czech Republic 9. Hradec Králové 94 000 have been awarded to the following companies: Telefónica O2 10. Pardubice 88 000 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 11

ECONOMICS ■ Printing ● Roller coverings ● Printing chemicals ● Printing blankets Main supplier of rubber rollers for printing machines of the brands: 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, paper industry, tanning industry, plastic materials industry, furniture industry, 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: bottcher@bottcher.cz, www.bottcher.cz UAB "Bottcher Balticum", Radmes g. 3B, LT-82142, Radviliškis, Lithuania, Tel./Fax: +370 422 50 538, Mob.: +370 685 86 248 E-Mail: bottcher@bottcher.lt 12 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

Czech Economy in 2008 and 2009 In 2008, and particularly in 2009, the world crisis manifested itself in Production declined in practically all sectors of a general decline in economic activities, the growth of unemploy- industry; the decline was especially noted in ment, and an increasing budget deficit. food and beverage production, the manufacture of tobacco products, textiles, clothing and GROSS DOMESTIC PRODUCT basic metals, and in metallurgy and metal- Economic growth, measured by the GDP growth rate, already slowed working. The rapid decline in industrial down significantly in 2008 in comparison with previous years. Year- production continued in all quarters of 2009, on-year, GDP rose by 2.3%, with growth rates in the individual when output dropped by 13.4% year-on-year, quarters slowing down steadily. GDP growth in 2008 mirrored the of which, 14.6% was in the manufacturing good nett export results in the first three quarters; in the 4th quarter, industry. 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 FOREIGN TRADE 4.2%, in the 2nd by 4.7%, in the 3rd by 4.1% and in the 4th by 4.2%. The In 2009, for the first time in the history of the only item that mitigated the decline was final household and govern- independent Czech Republic, foreign trade*) ment spending. The influence of all other components was negative. saw a marked fall. While, in 2008, the foreign trade turnover was 0.2% up on the previous INDUSTRY year, in 2009 it was 16% down year-on-year. In 2008, industrial production was 1.9% below the 2007 level, mainly In 2009, exports were 13.9% lower in com- as a result of a rapid fall in the 4th quarter (by 86.4% year-on-year). parison with 2008 and imports were down by Macroeconomic indicators of the Czech Republic 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 Inflation (HICP) 3) %, average -0.1 2.6 1.6 2.1 3.0 6.3 0.6 Inflation 2) %. y/y 1.0 2.8 2.2 1.7 5.4 6.3 1.0 Year-on-year index of average nominal % 6.6 6.5 5.3 6.5 7.3 8.4 3.5 wages *) 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 Source: Czech Statistical Office, Czech National Bank (ČNB); General note: y/y shows year-on-year change in the indicator, n.a. = not available 1) 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 different 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 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 13

ECONOMICS USEFUL INFORMATION: www.czso.cz – Czech Statistical Office www.cnb.cz – Czech National Bank www.mfcr.cz – Ministry of Finance dation sector, in transport (especially as a result of lower fuel prices), postal services and telecommunications, and in the clothing and footwear sector. 17.8%. The balance of trade (favourable ever since 2005) which, in 2008, amounted to CZK WAGES 67.2 billion (EUR 2.7 billion/USD 4.2 billion), Average gross monthly nominal wages of employees (full-time in 2009 rose to CZK 152 billion (EUR 5.8 equivalent) in 2008 amounted to CZK 22 691 (EUR 907), a 1.9% billion/USD 8.1 billion), the highest surplus increase year-on-year in real terms. In 2009, wages grew at a in CR’s history. In 2009, exports covered slower rate, annual average gross monthly wages amounting to imports by 107.8% as against 102.8% in 2008. CZK 23 598, 3.0% more than in the previous year in real terms. In Territorially, the favourable balance of trade the 4th quarter, nominal wages grew by 5.2% year-on year, which with the EU states rose slightly year-on-year in real terms equals 4.8%. This relatively high growth, however, and the deficit in trade with states outside the was influenced by dismissals of low-wage employees and a lower EU declined. In the commodity structure, the sick leave rate. surplus in semi-finished product and industrial goods trading increased, while trade in Jana Bondyová machinery and transport equipment showed Czech Statistical Office a decline. www.czso.cz PRICES *) All data in this section relate to figures applying on the deadline date, 26 February 2010; In 2008, the inflation rate, measured by the for conversion into euros, the average monthly exchange rate announced by the Czech consumer price index, amounted to 6.3%, the National Bank has been used. highest level for the past 10 years. This increase was mainly due to higher energy and housing prices, higher VAT rate, and an OTHER INFORMATION: www.autosap.cz – automotive industry increase in food prices. In 2009, the average www.acri.cz – railway industry annual inflation rate amounted to 1.0%, the www.alv-cr.cz – aircraft industry second lowest inflation rate since 1989. This Photo: Škoda Auto www.hz.cz , www.svazslevaren.cz – heavy engineering slowdown was mainly due to the waning www.spis.cz , www.czechict.cz – software and IT impact of indirect tax changes. Prices declined www.czechtourism.com, www.ahrcr.cz – tourism in particular in the food and non-alcoholic www.csze.cz , www.aem.cz – power industry beverage sector, in the catering and accommo- www.schp.cz – chemical industry 14 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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ECONOMICS Czech-Estonian Trade and Economic Relations Trade between the Czech Republic and Table 2. The most important commodities of Czech exports Estonia has a long tradition. The political in 2009* (Nomenclature Harmonised System 4) changes that took place in Central and East Share in EUR Europe at the end of the 1980s meant for both Code Commodity % thousand countries a new era of building political and Motor cars and other motor vehicles principally commercial and economic relations for both 8703 13.57 11 451 designed for the transport of persons countries. At the moment, bilateral busi- Organic surface-active agents; washing and ness relations are influenced by the current 3402 3.99 3 370 cleaning preparations economic crisis. 3917 Tubes, pipes, hoses, and fittings of plastics 3.04 2 569 As for the amount of trade exchange, Estonia is Motor vehicles for the transport of ten or more the Czech Republic’s smallest business partner 8702 2.86 2 412 persons, including the driver from among the Baltic states. Automatic data processing machines; units, Between 1999 and 2007 the growth of exports 8471 1.90 1 603 readers etc. to Estonia was stable and, with the exception of Machinery for pocessing by change of 2001, the same is true for the turnover. Due to the 8419 1.78 1 501 temperature, non-electric water heaters economic crisis, exports fell significantly at the Articles for conveyance/package of goods, end of 2008, which resulted in a slight decrease in 3923 1.71 1 444 stoppers, lids, caps etc, of plastics the year-on-year comparison with 2007. Exports 8308 Clasp/buckle/eye, etc. of base metal 1.62 1 367 continued to decline in 2009 and were by 39% 8414 Air and vacuum pumps, compressors, fans etc. 1.56 1 316 lower than in 2008. In 2009, imports to the Czech Republic from Estonia declined by 27% and the Electrical apparatus for line telephony or line 8517 1.51 1 275 telegraphy, including line telephone turnover by 36%. Improvement of the adverse development of mutual trade is still at the level of Ceramic sink,wash basin, bath, bidet, and 6910 1.44 1 218 similar sanitary fixture desire (see Table 1). 2309 Animal feed preparations, nes 1.43 1 204 GOODS STRUCTURE Others 63.59 53 683 Czech exports to Estonia in 2009 consisted main- Total 100. 00 84 413 ly of personal vehicles and other vehicles for Source: Ministry of Industry and Trade (March 2010), * preliminary data passenger transportation (14% of total export), pipes and hoses from plastic materials (3 %), BOTH COUNTRIES AS EU MEMBERS road motor vehicles (2.9%), automatic data Due to the fact that both countries have become parts of the single processing machines (1.9%), heating and cooling internal EU market conforming to EU legislation, there are at present appliances (1.8%) etc. The main exporters in- no obstacles or limitations to bilateral business. The internal EU clude ŠKODA AUTO, Czech Airlines, Glaverbel market is exempt from customs duty and control regimes. However, Czech, Aircraft Industries, SOR Libchavy, Bralo there is a reporting obligation in the INTRASTAT statistics system as CZ, Laufen CZ etc. (see Table 2). well as measures resulting from applying national tax directives for Czech imports from Estonia in 2009 con- VAT and the excise tax. sisted predominantly of flat rolled iron and steel products (9.2% of total import), flooring PERSPECTIVES OF BUSINESS RELATIONS (8.4%), wires, cable and insulated electri- The Czech Republic is interested in the Estonian market. Czech cal conductors (6.2%), profiled wood (5.6%) goods were present on the local market in the pre-war period as well and cut and cleft timber (5.2%) etc. Estonian as in the past decades of mutual economic history and they have goods are imported by companies such as always been sought after. ANIMALCO, Galvex, SKAN HOLZ Jirkov or Czech companies take advantage of the fact that the Estonian market is Baltaxia (see Teble 3). one of the most open areas in Europe; there is an equal competing environment for both local and foreign companies. Table 1. Development of trade between the Czech Republic and Estonia Estonian businessmen prefer direct trade rela- (EUR million) tions. The absorption of the Estonian market is 2001 2002 2003 2004 2005 2006 2007 2008 2009* limited and at the moment of economic crisis the purchasing power of the population is Exports 32.4 39.3 49.3 68.3 76.4 116.3 146.4 137.6 84.4 unfortunately significantly falling. Photo: PhotoCombo 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 CZECH PRODUCTS IN ESTONIA Balance 17.5 21.4 22.1 44.3 55.6 89.7 114.1 99.0 56.2 Noticeable Czech products in Estonia are Source: Czech Statistical Office, Ministry of Industry and Trade, *preliminary data Škoda cars (the number of Škoda Superbs 16 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

been exhausted), Czech glass has a good repu- tation on the market. One of the significant 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 field 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 fleet in Tallinn. Czech suppliers 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 successful bus supplier to Estonia. A highly perspective field of Estonian economy is also the energy industry: technological innovations in energy production are expected. 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. Table 3. The most important commodities of Czech imports in Improvement of the technology of burning 2009* (Nomenclature Harmonised System 4) bituminous shale and significant reconstruc- Share in EUR tion of electric distribution networks can also Code Commodity % thousand be expected. Czech firms can offer cooperation Flat-rolled products of iron, steel over 600mm, in these areas. 7210 9.17 2 587 plated or coated Significant financial resources from national Carpets and other textile floor covering tufted as well as EU funds will also be invested into 5703 8.42 2 376 including finished environmental enhancement. Czech companies 8544 Insulated wire/cables, optical fibre cables 6.22 1 754 can offer technologies for water treatment and 4409 Wood profiled,planed, sanded, finger jointed 5.64 1 590 waste liquidation. An example of successful business is Ecofluid, which supplied waste- Wood sawn/chipped, sliced/peeled etc. above 4407 5.22 1 474 water treatment plants for six locations in 2009. 6mm Essential positive role in mutual Czech-Esto- Mattress supports;mattresses,quilts,fitted with 9404 4.35 1 226 nian relations has been played for six years by springs, stuffed etc. the direct Czech Airlines connection between Fish fillets and other fish meat fresh, chilled or 0304 4.30 1 213 Prague and Tallinn. The strong position of frozen Czech Airlines on the Estonian market allows 9406 Prefabricated buildings 4.20 1 185 for the development of other services, espe- Veneer sheets & sheets for plywood & wood 4408 3.77 1 063 cially various forms of tourism in the whole sawn lengthwise, sliced/peeled up to 6 mm of the Czech Republic. To increase tourism in Prepared/preserved fish; caviar and caviar 1604 substitutes from fish eggs 3.55 1 001 both directions is in the interest of both our countries. Mastics, painters fillings & nonrefractory surfacing 3214 3.07 867 Despite the fact that Estonia’s transparent tax preparations for walls etc. system, stable exchange rate of local currency 4016 Articles of vulcanised rubber (not hard rubber) 2.98 840 to Euro, a relatively high level of education, 8708 Parts, components of tractors, trucks, cars etc. 2.49 704 and good knowledge of languages make it Others 36.62 10 336 a paradise for foreign investment, Czech Total 100.00 28 216 companies have so far invested neither into Source: Ministry of Industry and Trade (March 2010), *preliminary data Estonian industry nor its services. There are also no Czech-Estonian joint-ventures in on Estonian roads has increased; motoring magazines evaluated Estonia. 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 Luboš Nový is traditionally sold in Estonia (there are still possibilities for further Head of Commercial and Economic Department expansion in this field), the assortment of food products is getting Embassy of the Czech Republic in Estonia wider (here, too, the potential of increase of trade exchange has not www.mzv.cz/tallinn 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 17

ECONOMICS Czech-Latvian Trade and Economic Relations Trade and economic relations between the as a whole, this was the second year when both exports and imports Czech Republic and Latvia have been declined, although the surplus on the Czech side of the balance sheet showing a marked increase recently. As in grew. Here, it should be noted that, from the point of view of the other European relations, this increase is Latvian side, in the past two years the deficit on the Czech side of the mainly due to the process of integration of the mutual balance of trade decreased substantially under the influence two countries into the European Union. We of the trends mentioned above. The Czech side, too, sees this fact, on have witnessed a distinct revival, a feature the whole, as a positive signal, because a high imbalance in trade usually accompanying integration processes. definitely is not our aim. The entwinement of economic structures on the global and European scale, however, also CZECH MEANS OF TRANSPORT IN LATVIA has less favourable aspects, as could be seen Despite the crisis – every crisis must end one day, after all – it can at the end of the first decade of this century, be said that the two countries have a lot to offer each other, and with the onset of the financial and economic their mutual trade continues to be based on a very wide range of crisis. products. A certain success of Czech exporters is to be seen literally at every step. Since September 2009, all of the 150 contracted DEVELOPMENT OF TRADE RELATIONS modern Škoda 24 Tr Irisbus trolleybuses have been plying the Logically, after years of growth, Czech-Latvian streets of Riga, adding comfort to the city’s public transport. In trade relations, too, could not escape a certain addition, in spring 2010 low-platform tramcars, also bearing the decline. While in the years 2003-2007 the Škoda trade mark, will appear in the Latvian capital, in fulfilment volume of mutual trade grew by tens of per of a contract signed by the two sides, and this is not the end of the cent annually and in 2006 showed a nearly 40% modernisation of Riga’s public transport. As all good things come growth year-on-year, in mid-2008 the trend in threes, the large number of Škoda cars on Latvian roads is reversed rapidly and started in the opposite incontestable evidence of the fact that in the past four years this direction. In 2008, mutual trade turnover trade mark has been the most popular one on the local market, of dropped by 20.2%, with Czech exports falling which Škoda takes a share of more than 10%. by 24% in comparison with 2007, while Latvian exports to the Czech Republic were still PARTICIPATION OF THE CR IN growing, although at a slower rate, and THE RECONSTRUCTION OF RIGA’S POWER PLANT showing a 9.2% growth. In May 2009, the first power unit of Riga’s reconstructed heat and The economic crisis, and especially the drastic power generating plant, TEC-2, for which Škoda Power supplied decline in imports into Latvia, also left an its 150 MW turbo-set with accessories, was ceremonially put into imprint on the development of mutual trade in 2009. According to preliminary figures avail- Table 2. The most important commodities of Czech exports in able before the deadline for this issue, Czech 2009* (Nomenclature Harmonised System 4) exports in 2009 dropped by 29.2% (in Euro- Share in EUR denominated prices), while Latvian sales to the Code Commodity % thousand CR rose by 9.4% year-on-year. In absolute 8702 Public-transport type passenger motor vehicles 25.78 28 245 values, in the first ten months of 2009, Czech exports were worth EUR 109.5 million, while Motor cars and other motor vehicles principally 8703 6.20 6 789 designed for the transport of persons imports from Latvia amounted to EUR 34.1 million (see Table 1). 4409 Wood profiled, planed, sanded, finger jointed 5.52 6 049 The preliminary data for 2009 indicate that, Organic surface-active agents; washing and 3402 4.12 4 510 from the point of view of Czech foreign trade cleaning preparations 3901 Polymers of ethylene, in primary forms 2.98 3 267 Table 1. Trade exchange between the Czech Safflower, sunflower/cotton-seed oil & fractions, 1512 2.62 2 866 Republic and Latvia (EUR thousand) not chem mod 8537 Switchboards, panels, control panels etc. 1.72 1 882 Exports Imports Turnover Balance Electrical apparatus for line telephony or line 8517 1.64 1 792 Photo: Škoda Electic archives 2005 113 513 15 157 128 670 98 356 telegraphy, including line telephone 2006 167 870 20 117 187 987 147 753 Automatic data processing machines; units, 8471 1.59 1 739 2007 201 737 26 094 227 831 175 643 readers etc. 2008 153 345 28 504 181 849 124 841 Others 47.85 52 426 2009* 109 565 34 105 143 670 75 460 Total 100.00 109 565 Source: Czech Statistical Office, Ministry of Industry and Trade, *preliminary data Source: Ministry of Industry and Trade, *preliminary data 18 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

Table 3. The most important commodities of Czech imports in 2009* (Nomenclature Harmonised System 4) Share in EUR Code Commodity % thousand Bars and rods of iron or non-alloy steel, not further worked than forged, hot-rolled, hot- 7214 9.77 3 331 operation. Owing to its reconstruction, this drawn or hot-extruded, but including those twisted after rolling combined heat and power generating source has become the most modern facility of its kind Hot-rolled, hot-drawn or hot-extruded, but 8517 8.41 2 870 in the entire Baltic region. From the examples including those twisted after rolling mentioned here, the list of which could con- Tubes, pipes and hollow profiles (e.g.open seam tinue, it can be seen that the leading items in 7306 or welded, riveted or similarly closed), of iron or 7.85 2 679 steel Czech exports are commodities with a high amount of added value. Prepared/preserved fish; caviar and caviar 1604 6.03 2 056 substitutes from fish eggs COMMODITY STRUCTURE Structures & parts of; plates, rods, angles etc. of 7308 4.60 1 568 iron In terms of percentage, machinery and transport equipment in 2009 accounted for 50.5% of Czech Parts of typewriters, computers etc., automatic 8473 3.72 1 268 data processing exports to Latvia; chemicals and related products represented 11.9%, miscellaneous manufactured Glass fibres (incl. wool) and articles thereof 1 114 7019 3.27 (yarns, fabrics) articles, classified chiefly by material 10.8%, different industrial products (8.1%), raw material 4418 Builders joinery & carpentry of wood 3.12 1 065 (8.0%). Other commodities, such as food, Semi-finished products of iron or non-alloy 7207 3.10 1 059 beverages and crude materials, had smaller steel shares (see Table 2). In the opposite direction, i.e. Cigars, cheroots, cigarillos & cigarette of 2402 2.23 761 in Latvian exports to the CR, the dominant items tobacco/tobacco substitutes in 2009 were bars and rods of iron (9.77%), Others 47.90 16 334 electrical apparatuses for telephony (8.41 %), Total 100.00 34 105 products of the woodworking industry and Source: Ministry of Industry and Trade of the CR, *preliminary data related sectors, iron and metal products (tubes, ingots, rods, profiles), food and tobacco products (see Table 3). officials of the Czech diplomatic mission and The fact that, even in the difficult period of economic slowdown, the CzechTrade office in Riga. They concern interest in co-operation is not fading, is attested, among other things, different areas of business – from trade to by the strong participation of representatives of smaller and me- manufacturing or subcontractor co-operation dium-sized companies in the seminar organised in Riga by the and services, including transport and tourism. Investment and Development Agency of Latvia (LIAA) devoted to commercial and entrepreneurial opportunities in the Czech Repub- Marta Stolařová lic. Evidence of the unwaning interest of companies in both countries Head of Commercial and Economic Department is the frequent enquiries and requests for contacts as to specific Embassy of the Czech Republic in Latvia possibilities of involvement in different branches, handled by www.mzv.cz/riga 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 19

ECONOMICS Czech-Lithuanian Trade and Economic Relations Lithuania is the Czech Republic’s priority tion, Glaverbel Czech, Chemopetrol Litvínov, Laufen CZ, OKZ Hold- trading partner among the Baltic states. It is ing, Procter & Gamble, Barum Continental, Schwarzmüller Žebrák, the largest in terms of area (65 300 sq. km) and Euromopos Olomouc, Jäkl, Zentiva, Aerosol and Škoda JS. population (approx. 3.4 million), an important An important contract for the delivery of safety systems for the Lithua- indicator of the absorption capacity of its market. nian railways has been won by AŽD Praha. The trade turnover between the CR and Lithua- Main import items: plastics, inorganic acids and non-metal oxide com- nia, even in the current period of crisis, is much pounds, furniture, artificial fertilisers, man-made fibre fabrics, eggs, steel higher than that with the other two Baltic states. wire, paper and cardboard, cocks, valves, fittings, television sets, incl. Lithuania’s share of the Czech Republic’s trade videos, peat, household refrigerators and freezers (see Table 3). turnover is small – about 0.2% in the past few The largest importers of Lithuanian goods were the companies Chemo- years. Nevertheless, it must be added that since petrol, Karlovarské minerální vody, Philip Morris, Europotraviny, Ikea 1993 the balance of trade between these two Hanim, Jessgrove Central Europe, Retal Czech, Model Obaly, Alpla, countries has been showing a surplus in favour Schäfer-Sudex and Chemin. Both the Czech Republic and Lithuania are of the Czech Republic, as indicated in Table 1. part of the EU single internal market governed by EU legislation. There In the 4th quarter of 2008 and in the whole of 2009, are no barriers or restrictions to mutual trade. Trade within the EU is the economic crisis manifested itself in a decline subjected to no customs supervision or control. The only obligation is reg- in mutual trade. The 2008 trade turnover was es- istration in the INTRASTAT statistical system and duties ensuing from sentially on the same level as in the previous year. national tax regulations in the area of Value Added Tax and Excise Tax. The 2009 figures, as shown by trade statistics are already under the strong influence of the crisis. MUTUAL TRADE PROSPECTS As a result of the unfavourable development of Among the 183 states rated by the World Bank according to their Lithuania’s domestic market, Czech exports to conditions for doing business, Lithuania occupies 26th position. In Lithuania are falling faster than imports from that this respect, the conditions for the promotion of business and entre- country. There is no doubt, however, that after preneurial relations are above average. Owing to the crisis, however, the crisis has been overcome, the mutual trade the current situation is not too favourable for trade promotion. Mutual exchange will resume its upward trend, as you trade exchange, both in exports and imports, has declined. Lithuania can see, hopefully, on turnover of January 2010 has suffered greater losses due to the crisis than the Czech Republic. In (the figures are influenced by the part payment illustration: the total Lithuanian exports in the 2009 dropped by 27%, for the Czech train set, though). imports by 38%, industrial production by 14,6%, retail trade volume The main items of Czech exports to Lithuania in fell by almost 17%. Car sales were down by nearly 70% year-on-year. 2009 remained practically unchanged: industrial There is also a decline in wages, with pressures to raise productivity of boilers, plastic parts, electronics, automobiles, labour - production prices in 2009 dropped by 19%. The beginning of railway rolling stock, pharmaceutics, detergents, 2010 is seen as a period, when economic decline reached its bottom and polyethylene, machinery and equipment for the economy resumed its upward trend. The demand for good quality, industry, prefabricated buildings, central heating but cheap, goods is growing, and the time has therefore come for a new boilers, radiators and water heaters, medicines, phase of co-operation with Lithuanian partners to be initiated. New cut and polished glass, iron and steel structures opportunities are opening up for co-operation not only in trade, but and parts thereof, office data processing ma- also in the area of investment. chines and equipment, reservoirs and tanks, In past years, construction grew significantly and it also had the re- lamps and lighting fixtures, steel pipes, tubes quired potential. The economic crisis, however, has caused a profound and hollow profiles, etc. (see Table 2). decline (48%), which also reduced export possibilities. Now, new op- The largest exporters to Lithuania in 2009 were portunities are opening up for Czech products and companies, because the companies Škoda Auto, Škoda Transporta- Lithuania is continuing the revitalisation of its building sector and, with EU assistance, is accelerating measures especially in the transport Table 1. Trade exchange between the CR infrastructure and the power industry. For Czech companies, this pro- and Lithuania in 2005-2010 (EUR million) vides opportunities to supply building materials (not basic materials, Exports Imports Turnover Balance but more sophisticated deliveries) and everything for the equipment of 2005 195.9 43.8 239.7 152.1 new buildings. In this respect, a well-designed marketing policy and 2006 251.1 76.1 327.2 175.0 long-term business plans are necessary. 2007 321.3 104.0 425.3 217.4 There are also great opportunities for investment supplies. Lithuanian companies are preparing for the resumption of economic growth and 2008 330.1 94.1 424.4 235.9 seeking new financing possibilities. For example, Lithuania is faced 2009* 196.0 75.9 271.9 120.1 with the necessity of the massive reconstruction of prefabricated dwell- January 2009* 15.6 5.9 21.5 9.7 ing houses and the reconstruction of public buildings and apartment January 2010* 24.0 4.6 28.6 19.5 houses. Property prices are low and in the first half of 2010 will remain Source: Czech Statistical Office, Ministry of Industry and Trade of the CR, *preliminary data on the lowest level for the past 15 years. 20 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

Table 2. The most important commodities of the Czech exports in 2009* (Nomenclature Harmonised System 4) EUR Code Commodity Share in % cling is still inadequate. There are no waste incin- thousand Nuclear reactors, boilers, machinery and eration plants, no plastic or tyre grinding mills or 84 12.50 24 492 sorting plants. A good opportunity would be to mechanical appliances; parts 39 Plastic and articles thereof 11.28 22 108 offer comprehensive deliveries, including know- Electrical machinery and equipment and parts how and long-term financing. 85 9.11 17 853 thereof; sound recorders Great opportunities exist in the area of consu- Vehicles other than railway or tramway rolling- mer goods. Czech goods have a tradition on the 87 6.47 12 683 stock and parts Lithuanian market and are popular there. It is 30 Pharmaceutical products 6.18 12 113 important for Czech companies to penetrate into Railway or tramway locomotives, rolling-stock and 86 6.11 11 980 chain stores, such as VP Market (www.vpmar- parts thereof; railw. 73 Articles of iron or steel 5.23 10 243 ket.lt), IKI (www.iki.lt), RIMI (www.rimi.lt), Soap, organic surface-active agents, washing Norfa (www.norfa.lt) and wholesale companies, 34 4.38 8 591 preparations, lubricanting pr. e.g. Senukai or Makro Sanitex (www.sanitex. 59 Impregnated, coated, covered or laminated textile 3.70 7 244 lt). They would provide a good opportunity for fabrics; textile art Czech goods (confectionery, footwear, glassware, 44 Wood and articles of wood; wood charcoal 3.36 6 592 gadgetry and utensils, household boilers, hearth Total exports 100.00 195 977 stoves, kitchenware, beer, Becherovka liqueur). Table 3. The most important commodities of the Czech imports in 2009* Little chance exists for the export of dairy and (Nomenclature Harmonised System 4) meat products. Lithuanian domestic products are of high quality and much of the food indus- Share in EUR Code Commodity try’s capacity remains unused. This category % thousand 39 Plastic and articles thereof 23.65 17 596 only has a chance if prices are markedly lower Furniture; bedding, mattresses, mattress than those of Lithuanian products. 94 15.39 11 681 Certain possibilities exist for the export of confec- supports, cushions and similar 54 Man-made filaments 7.96 6 041 tionery, bio-products and special foodstuffs and Electrical machinery and equipment and parts food supplements. Despite keen competition, the 85 7.20 5 465 thereof; sound recorders same applies to alcoholic beverages. The main Nuclear reactors, boilers, machinery and products in this category of exports are Czech beer 84 5.32 4 040 mechanical appliances; parts (Pilsen, Budvar, Staropramen, Kozel) and Bech- Articles of stone, plaster, cement, asbestos, mica 68 5.07 3 850 erovka liqueur. Recently the share has been grow- or similar material Mineral fuels, mineral oils and products of their ing of beers from local Czech breweries, which, in 27 3.30 2 502 distillation; bitumi consequence of lower VAT, offer lower prices. 72 Iron and steel 3.26 2 476 In view of the general decline in production costs 04 Dairy produce; birds eggs; natural honey; edible 3.20 2 430 and the good supply of free and skilled labour, products of animal the possibility of direct investment in manufac- Inorganic chemicals; organic or inorganic turing plants is still open. 28 2.84 2 157 compounds of precision metals A representative of Czech-Lithuanian joint Total imports 100.00 75 918 ventures is ARX, importer of Škoda cars. Czech Source: Ministry of Industry and Trade of the CR, *preliminary data affiliations with the right to do business on their The current development is opening possibilities for entering the own account are Zentiva and Walmark, which Lithuanian environment, especially for financially strong entities. The are rated as very successful, and Ravak, manu- plan is to build natural gas storage reservoirs, gas pipelines, electricity facturer of bathroom equipment. An important lines to link Lithuania with Poland, etc. Building contracts are awarded position is held by ČSA, which operates daily exclusively on the basis of tendering. Gaining them without the sup- flights between Prague and Vilnius and is one of port of a local partner, however, is difficult. the largest airline operators at Vilnius Airport. The Lithuanian railway and motorway system (Rail Baltica, Via Lithuania can also become a starting point for Baltica) is undergoing modernisation, important infrastructure projects expansion to the other Baltic states and even to being largely financed by the EU. In view of the tradition of Czech de- the Russian market, as Russia is one of Lithua- liveries, from locomotives to electronic railway safety systems, orders nia’s most important partners both in trade and in this area could be found here, too. All contracts are awarded on the investment, and Lithuanian businessmen have basis of competitive tendering. It is always necessary to find a Lithua- good contacts with Russia. nian strategic partner. Jan Semerák Power industry: In connection with the liquidation of the Ignalina nucle- Head of Commercial and Economic Department ar power station and the prepared construction of a new one in Visaginas, Embassy of the Czech Republic in Lithuania opportunities are also opening up for Czech companies in the area of the www.mzv.cz/vilnius nuclear power industry. A tender is being prepared for a strategic investor to build a new nuclear power station. Opportunities are therefore THE CZECHTRADE FOREIGN OFFICE IN VILNIUS WILL opening up for qualified lobbying and the preparation of Czech compa- PARTICIPACE IN THE FOLLOWING INTERNATIONAL nies to participate in the tendering. Czech companies are already engaged TRADE FAIR: in the disposal of nuclear waste in the Ignalina power station. BALTTECHNIKA 2010 in Lithuania (innovation and hi-tech fair) TransBaltica 2010 in Lithuania (the largest transport Export possibilities also exist in the area of environmental protection. and logistics fair in the Baltics) All waste materials in Lithuania are disposed of in dump sites, recy- 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 21

ECONOMICS Smaller Projects, Advanced Technologies Most investments in the Czech Republic go into research and development, or into strategic services. On the other hand, production, which was the launching by Olympus of in the past ranked highest in the flow of investments, in 2009 only a new plant in Přerov, where the attracted one in every five new investors. Japanese concern develops and manufactures medical endoscopes. With the help of CzechInvest Agency, 186 new This hypermodern, environmentally friendly building with equally investment projects are currently in progress in modern equipment cost the investor some CZK 150 million (USD 8 the Czech Republic, 84 of which are concerned million). The plant will offer job seekers in the region some 150 with research and development, 67 with highly specialised working opportunities. Olympus in Přerov is an strategic services, and 35 with production. excellent example of an investor whom CzechInvest acquired for the Czech Republic, at first with a relatively simpler project, but the SOFTWARE IN THE LEAD achievements of its Czech affiliation prompted it to invest in much Statistics have revealed that investors are more demanding branches. Expansion projects of the already choosing the Czech Republic for ever more functioning companies into high added value areas figure increas- demanding investments. Among other things, ingly in our statistics. Olympus started in Přerov in 2002, when it this is borne out by the fact that last year most began repairing cameras in rented premises. Today the company’s new investment projects – nearly three in every total investments amount to CZK 500 million (approx. USD 26 ten – were prepared by software development million). engineers, which, of course, is an above- average income profession placing above- SUPPORT ALSO FOR CZECH COMPANIES average requirements on qualifications. The In the course of 2009, CzechInvest helped to mediate contracts for second most popular sector, with 32 projects Czech companies with foreign buyers worth CZK 744.59 million according to statistics, was engineering, and (approx. USD 39 million). Seven contracts led to the creation of 35 the third was electronics and electrical engi- new jobs and helped to maintain hundreds of others. The contracts neering, which attracted two dozen investors. involved engineering, the aircraft industry and consumer electronics. In 2009, for example, the development of the One of the largest contracts was signed by Agrostroj in Pelhřimov, Virtual Battlespace military simulator, used by which began manufacturing professional Japanese Chikusui NATO and the US army for training, returned Canycom lawn mowers. The Pelhřimov factory is planning to to the Czech Republic. In its new development manufacture up to 1 000 of this type of small single-purpose tractors. centre in Prague’s Dejvice District, the Czech company, Bohemia Interactive, is fitting into it, RESEARCH AND DEVELOPMENT for example, a realistic module of defence IN THE AUTOMOBILE INDUSTRY against improvised explosive devices. Both Unlike software development, the number of new projects in the Vigour Gama and Brno’s Red Hat companies automobile industry, especially car manufacture, declined last year. also announced their expansion plans last year. 2009: New investment projects according to type of business GREATER EXPANSION, Investments Investments Jobs for MORE RESEARCH Number of (CZK (USD Jobs university projects millions) millions) In addition, the Czech Republic can offer graduates investors concerned with research and devel- Production 35 12 825.83 667.49 3,305 60 opment or with strategic services, such as Services 67 665.75 34.69 1,637 605 software development, support from EU funds, Research and specifically from the Enterprise and Innovation 84 3 397.3 173.68 829 385 development Operational Programme. In 2009, support from Total 186 16 888.91 875.87 5,769 1,050 EU funds was provided, for example, to Asseco, a company which decided to enlarge Investment projects mediated by CzechInvest, 1993-2009 its centre in the Hradec Králové Region. An Size of Size of Type of example of a smaller project is that of the Number Jobs investment investment (CZK investment (USD millions) millions) Hrdlička spol. s r.o. software company in Česká Lípa. Investments in software were also Manufacturing 878 170 494 23 481 627 293 Photo: PhotoCombo made, for example, by Siemens, the German Shared services 225 28 688 959 23 792 company, which enlarged its development staff Technology 254 7 158 646 14 196 centres in Zlín by taking on 15 new specialists. A very important investment project in 2009 Total 1 356 206 338 25 086 665 280 22 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

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 In 2007, there were 26 new projects, and last year only eight. In of new jobs here. The Czech Republic hosts the addition, five of them are concerned with research and develop- global centres of companies, such as DHL, ment. An example of such an investment project is the enlargement Accenture, Olympus, Honeywel, and IBM. The of the development centre of the Japanese Denso company in support offered to investors by the Czech Republic Liberec. The centre, located in the vicinity of Mount Ještěd, also includes tax rebates, contributions for the manufactures – and develops – air-conditioning systems for motor creation of new jobs, training and re-qualification cars. In 2009, it enlarged its staff with about ten people. Another subsidies and the offer of commercial properties in important investment project, one of the largest in 2009, is the industrial parks prepared by the public sector at enlargement of facilities for the manufacture of gearboxes in the advantageous prices. Investors may obtain still Škoda Auto works in Mladá Boleslav. The car factory will invest higher support in regions most seriously hit by unemployment, such as special grants for the more than CZK 1.5 billion (USD 79 million) in the enlargement and creation of new jobs, the employment of people will create up to 270 new jobs. In September 2009, after years of supplied by the Labour Office or the employment preparatory work, the Hyundai car factory was officially launched. of new graduates. Subsidies are also provided to investors employing handicapped persons. IMPACTS OF THE CRISIS A separate chapter is support from EU sources. By CzechInvest anticipates that the year 2010 will see a brief return to the year 2013, the Czech Republic will have drawn more extensive investment activities, taking advantage of the EUR 3.6 billion for business promotion alone. currently higher unemployment and keen competition in the supply A number of these programmes are open not only of industrial zones and commercial properties. The Czech Republic’s to small and medium-sized businesses, but also to excellent geographical position right in the centre of Europe offers large companies. investors perfect connections all over the continent, which significantly reduces logistics costs. The Czech Republic is one of the graduates among university-trained specialists. countries with the highest share of technical and natural science In addition, the Czechs make themselves easily understood in foreign languages. According to CzechInvest’s recent survey carried out in 2009, DO YOU KNOW THAT nine out of every ten Czechs speak at least one ■ nearly every other project mediated by CzechInvest in 2009 foreign language. is concerned with research and development? ■ three in every ten new investments went into software development? Jiří Sochor ■ 186 new investment projects worth CZK 17 billion (approx. CzechInvest USD 892 million) are being realised with the help of e-mail: jiri.sochor@czechinvest.org CzechInvest Agency? ■ investors have reported the creation of nearly 6 000 new jobs? Note: USD 1 = CZK 19.057 (average annual exchange rate for 2009 determined by the Czech National Bank). 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 23

FOREWORD attractive environment • prestigious presentation forms • international impact Check in your dreams with us www.mip.cz 24 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

Road Toll in the Czech Republic Since 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 filling stations and border crossings. At contact and distribution points, so-called registration assistants are also available. They are there to help with filling 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. Czech Republic – Member of the Schengen Area On 21 December 2007, the Czech Republic and eight other EU member states became full participants to the so-called FREE TRAVEL THROUGH BORDERS Schengen cooperation, thus joining the group of states that The free movement of persons through the conduct no checks at their common borders. borders of the Schengen area is not uncondit- ional. Even after the abolishing of border WHAT DOES THE CZECH REPUBLIC’S JOINING controls it will remain necessary to observe THE SCHENGEN MEAN IN PRACTICE? rules ensuing from the legislation of the given The Czech Republic’s joining the Schengen means the abolishing of state. The Schengen in no way alters local border checks at borders with neighbouring states. Borders may be limitations given by road traffic regulations, crossed at points beyond current border crossings and without any regulations for the protection of the environ- limitation on time. When passing through the border in a vehicle, it ment, landscape and private property. Similar- will no longer be necessary to pull up and present one’s travel ly, provisions in each country differ on, for documents. Travel without border checks will apply to all types of instance, speed limits, permissible blood internal borders in the Schengen area, i.e. land borders, river, lake alcohol levels for driving motor vehicles, time and air borders, which applies to flights to and from countries of the limits for notifying authorities of residence, and Schengen area. With the enlargement of the Schengen area to include so on. When travelling throughout the the Czech Republic, the police will end its involvement at land Schengen area, we should therefore take heed border crossings. It will, nonetheless, continue to operate in the of the following requirements, in particular: to border regions. In cooperation with the police forces of neighbouring identify oneself in the case of checks performed countries, the police of the Czech Republic will continue to by responsible authorities, to respect limitati- safeguard public order and safety. ons on travel through national parks and national nature reserves, to observe local traffic THE FUNDAMENTALS OF TRAVELLING restrictions, to comply with rules for the WITHIN THE SCHENGEN transport of animals and items. Photo: www.sxc.hu Our joining the Schengen does not alter the obligation to present, whenever necessary, a valid travel document. Therefore, it remains Further information is available at: necessary to carry a valid personal identity card or passport when www.euroskop.cz, www.mzv.cz, www.mvcr.cz crossing the border. 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 25

ECONOMICS T@<MN TERMINAL BLOCKS RSA RSA, RSA PE, multi-level terminal blocks, fuse and special terminal blocks TERMINAL BOARDS Branching terminal boards, fuse terminal stripes GROUNDING ELEMENTS Grounding clamps, equipotential terminal boards TERMINAL BOARDS FOR LAMP POLES 26 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

Legal Framework for Doing Business in the CR 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- BASIC REGULATION OF BUSINESS ACTIVITIES rial deed, at least a part of its authorised capital The first part of the Commercial Code (sections 1 to 55) comprises must have been paid up and the company must general provisions. The general provisions include the definition of have been issued a trade licence. In this context, business and business activities, the definition of businessmen, the it should be noted that the process of setting up basic regulation of business activities, etc. It also deals with the issue and establishing trading companies has been of foreign nationals doing business in the Czech Republic. In this greatly simplified and shortened. respect, it should be noted that foreign nationals may do business on the territory of the Czech Republic under the same conditions and to CONTRACTUAL RELATIONS the same extent as Czech nationals. In a similar way, foreign nation- BETWEEN BUSINESSMEN als intending to do business may participate in founding a Czech le- The third part of the Commercial Code deals gal entity, or they may become partners in an already existing Czech with contractual trade relations, mainly con- legal entity. The general provisions also set out basic rules concern- tractual relations between businessmen. This ing unfair competition and the company law. Issues concerning the part sets out, for example, general rules for companies register are also regulated in this part. making contracts and certain rules for legal acts. It also regulates the payment of damages TYPES OF COMPANIES in the case of the non-fulfilment of legal obli- The second part of the Commercial Code regulates legal aspects con- gations. In relatively great detail it regulates cerning companies and cooperatives. Czech law acknowledges several the main types of contracts, such as contract types of companies. In practice, the most common types are limited of purchase, contract for work, and contract of liability companies and joint stock companies. The reason why these mandate. The Commercial Code is based on two types of trading companies are so popular is that they are capital the principle of contractual freedom, mak- companies whose partners are not liable for the obligations of the ing it possible for businessmen to set up also company (provided they have invested their shares in the company’s unnamed contracts (contracts not specified authorised capital). The minimum amount of authorised capital of by law). Certain legal issues, especially those Photo: PhotoCombo a new limited liability company must state is CZK 200 000 (approx. in the area of liability law, are not covered in EUR 7 600). In the case of joint stock companies, the minimum amount their complexity and therefore in some cases is CZK 2 000 000 (approx. EUR 75 700). A trading company becomes the Civil Code is applied as a general rule of established on the day of its incorporation. Before filing the petition civil law. 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 27

BUSINESS IN THE CZECH REPUBLIC TRADE ACT Another 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 defines areas of business that are not trades and come under specific regulations (e.g. certain activities 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 provided for a great simplification of procedures in seeking the issue of a trade licence and in starting a business. TRANSFORMATION OF TRADING COMPANIES Another 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 simplifies the legislation and specifies it. An important feature is that it provides for the legal regulation of transformation with a foreign element. DATA BOXES A new provision that will concern the business sphere is the Act on ACT ON THE PROTECTION Electronic Communication and Authorised Document Conversion, OF ECONOMIC COMPETITION which became effective on 1 July 20096). The Act provides for the The Protection of Economic Competition Act setting up of a data box system. The data boxes will make it possible relates especially to larger businesses. The Act to send documents in electronic form to state administration author- regulates national legislation for the protection ities and receive them in that form. This communication method will of economic competition in connection with replace conventional delivery in paper form. It should be noted that cartel agreements, abuse of dominant position, public authorities and juristic persons - i.e. all trading companies and the joining of rivals. The Protection of Econ- – will have data boxes set up automatically. This may cause certain omic Competition Act is in agreement with difficulties in sending documents by public authorities to unin- European law and is based on it. formed trading companies. In conclusion, it can be said that Czech legislation regulating busi- INSOLVENCY ACT ness activities has undergone dynamic changes in recent years. In Insolvency issues are regulated by the Act on most cases, these changes are giving legislative support to the Czech Bankruptcy and Its Solutions (Insolvency Act)4). business environment and provide for a more efficient approach of According to the Insolvency Act, the debtor public authorities to the requirements of businessmen. falls bankrupt if he has more than one creditor and pecuniary liabilities that are overdue for Tomáš Nielsen more than 30 days, which he is unable to pay. ROWAN LEGAL, advokátní kancelář s.r.o. The principal ways of solving bankruptcy is- e-mail: Nielsen@rowanlegal.com sues or imminent bankruptcies of businessmen are the declaration of bankruptcy and reorgan- Note: 1 EUR = 26.445 CZK (average 2009 exchange rate, Czech National Bank) isation. Details can be found in the Act. 1) Act No. 513/1991 Coll., Commercial Code, as amended. PUBLIC PROCUREMENT 2) Act No. 455/1991 Coll., on Trades (Trade Act), as amended. Of great importance for practical business 3) Act No. 125/2008 Coll., on the Transformation of Trading Companies, as amended Photo: PhotoCombo activities is the Public Procurement Act5), which 4) Act No. 182/2006 Coll., on Bankruptcy and Its Solutions (Insolvency Act), as amended. regulates procedures leading to contracts be- 5) Act No. 137/2006 Coll., on Public Procurement, as amended. tween clients (usually bodies of state adminis- 6) Act No. 300/2008 Coll., on Electronic Communication and Authorised Document Conver- tration) and contractors (businessmen). sion, as amended. 28 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

ABOUT THE COMPANY WINDOWS AND DOORS TERMOLUX, s.r.o. is a Czech production and trade company, 7-chamber window system which was founded in Valašské Meziříčí in June 1991. Following the topical trends, we are now assembling 7-chamber plastic windows from the KVINTERM 2+ profile system. These are The scope of the company‘s main activities is as follows: A class profiles, which are manufactured by the company itself from Production and sale of plastic profiles high-quality and high-purity plastic materials. Thus we can guarantee Production and sale of plastic windows and doors 100% quality of our manufacture, which makes use of first-class com- Production and sale of plastic tubes, tube fittings, and related goods ponents, which is based on long-time experience of our experts, and Construction activities, installation of plastic windows which is verified by certifications and regular audits prescribed by the Up to the present day, the company is active in all these business branches. ISO 9001 system. In 1999 the company introduced a certified quality system according to the ISO 9001 standard. Among others, the company takes measures for minimising the environmental problems. TUBING SYSTEMS In the same manufacturing plant, polypropylene and polyethylene PVC PROFILE SYSTEMS tubes are extruded in common pressure series, designed for water dis- According to the customer‘s wish, we can offer extruded profiles made of hardened PVC tribution or for other purposes (pipe sleeves, side boards etc.). with the possibility of co-extrusion or post-extrusion on CINCINNATI CMT 58 extruders. All investments into new technologies, machines, and equipment are Each profile is unique, being developed in cooperation with our clients and engineers. effected among others to improve the environmental protection and If desired, we can offer you our mediation of manufacturing the extruding tool or the our employees‘ industrial safety. 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: termolux@termolux.cz 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 29 www.termolux.cz

BUSINESS IN THE CZECH REPUBLIC TRADITIONAL CZECH PRODUCER OF ELECTROTECHNICAL INSTRUMENTS FOR INDUSTRIAL AND RESIDENTIAL ELECTRICAL INSTALLATIONS 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: Services: cam switches 10A – 150A construction and production of injection house switches and outlets moulds and metal-stamping tools drug dispensers injection moulding of plastic metal-stamping metal-working THE COMPANY IS ACCREDITED WITH ISO9001 AND ISO14001 CERTIFICATES. 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 r www.obzor.cz OBZOR, výrobní družstvo Zlín, Na Slanici 378, 76413 Zlín, Czech Republic, Phone: + 420 577 195 111, Fax: + 420 577 195 138, E-mail: marketing@obzor.cz

How to Set Up a Company It is not the aim of this article to describe in detail the ways of registration several more steps must be taken setting up different types of companies in the Czech Republic. Its depending on the type of the company. purpose is to give a general outline of procedures to be followed in setting up a company in this country. Step 1: The company’s activities (a) obtaining registration of the company’s GENERAL MEETING business, if the object of its activities is The establishment of a company is preceded by a general meeting, a trade requiring a trade licence at which its founders sign the company’s foundation documents, (b) obtaining another licence under special whereby they set out the essentials concerning the future com- legislation, most frequently in the area of pany, such as its trade name, the place where it will be based, its health care, for example for running core business, the amount of its authorised capital, the person or a non-state health-care facility. persons who will be its statutory bodies, etc. The establishment of As a rule, a trade licence is required for the a company always has the form of a notarial deed. The fee for registration of all company forms in the drawing up the notarial deed upon the establishment of a compa- Commercial Register; the registration fee is ny depends on the amount of the company’s authorised capital CZK 1 000 (EUR 38). To speed up the and the number of annexes attached to the notarial deed. Usually process, the company may be entered in the it ranges between CZK 5 000 and CZK 10 000 (EUR 192–383). Commercial Register even without obtaining Photo: PhotoCombo a trade licence if under the Trade Licence FURTHER STEPS Act its activity is not considered a trade, In the period between the foundation meeting, the ﬁrst general such as renting apartments and non- meeting of the company, and the ﬁling of a petition for its residential space. 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 31

BUSINESS IN THE CZECH REPUBLIC MORE INFORMATION AT: Step 2: Opening www.mpo.cz – Ministry of Industry and Trade that term and does not call on a bank account www.justice.cz – database of the Commercial Register the petitioner to complement Opening the www.mpo.cz/dokument55910.html – Trade Register forms his petition, it means that the company’s bank www.rzp.cz – Trades Register company has been registered. account and the www.businessinfo.cz/en – information websites on doing In case the data are not deposition of the business in the CR accurate or sufficient, the company’s author- http://portal.gov.cz/ – Public administration portal of the CR court will call on the peti- ised capital, tioner to complement the obtaining confirma- missing data within 10 days; tion from the bank that the stated amount of if the petitioner fails to comply, the petition shall be dismissed. authorised capital has been deposited, The entry is made solely on the basis of documents, without any provided the capital is formed by monetary proceedings being needed. Representation by lawyer is not contributions of partners. Monetary contribu- required when filing a petition for entry in the company or the tions to the company’s authorised capital is trade register, nevertheless, considering the formal requirements the most typical and at the same time the concerning certain documents submitted for entry, such represen- quickest way. A company’s authorised tation is recommended. capital may be created also by non-monetary contributions, but in that case an expert FORMS REQUIRED FOR ENTRY opinion is required, which may slow down All forms to be completed by petitioners wishing to have their the process of company establishment company entered in the Commercial Register can be found on the (having an expert opinion made takes about websites of the Ministry of Justice at www.justice.cz. In the one or two calendar months, depending on Obchodní rejstřík (Commercial Register) section on the left there is the kind of property being valued). the sub-section Formuláře ke stažení (Downloadable forms). All forms, including annexe forms and instructions for their correct PETITION FOR ENTRY completion, are available there. The forms are designed so as to IN THE COMMERCIAL REGISTER facilitate their interactive completion. A serious setback for foreign Petitions for entry in the Commercial Register businessmen and entrepreneurs is that the forms are available only must be made on an approved form and the in Czech. It goes without saying that all documents being submit- signature of the person acting on behalf of the ted to the court (Commercial Register), including annexes, must be company must be officially authenticated. in Czech, and foreign-language documents must be provided with Petitions are filed with a locally competent an authenticated translation. In the case of certain foreign docu- court in compliance with the address of the ments (e.g. statement of no criminal record, extract from the company’s registered office. The petition for Commercial Register) a special form for higher-level authentifica- entry must be supported by documents tion of the document certifying the authenticity of the office which proving the facts to be entered in the Com- issued the document, usually termed as apostille or superlegalis- mercial Register, e.g.: ation, is required. It is usually issued by the Ministry of Foreign l registered office – contract of lease or Affairs in the state of origin of the document or another body consent of the property owner to the entrusted with this competence in the state concerned (arranged by location of the company’s registered office in embassies of foreign countries in the Czech Republic for a fee.) his/her premises l authorised capital – bank confirmation of the PAY ATTENTION TO THE NAME OF THE COMPANY deposition of authorised capital; The name of the company must not be mistakable with that of any l confirmation by the deposit administrator; existing company entered in the Commercial Register. The busi- l extract from the crime register according to nessman must therefore verify this fact, preferably on the Internet, the foreigner’s citizenship and his/her on the website of the Commercial Register, www.justice.cz. permanent residence, usually from his/her mother country, and a certificate of no Ladislav Smejkal, Lawyer criminal records of persons figuring as the White & Case, LLP company’s statutory body; www.whitecase.com l subject of business – extract from the Trade (ladislav.smejkal@gmail.com) Register or another licence or authorisation issued in accordance with special regula- Note: EUR 1 = 26.076 CZK (The CNB monthly average exchange rate, December 2009) tions – if the trades are covered by the Trade Register, there is no need to submit a written The Commercial Code recognises four statutory forms of companies extract to the court, etc. and does not admit any enlargement of this number of forms or the creation of mixed forms. For personal trade companies the Commer- A fee of CZK 5 000 (approx. EUR 192) in cial Code regulates the statutory form of General Commercial stamps must be paid when filing the petition. Partnership (v.o.s. in Czech) and Limited Partnership (k. s. in Czech). For The statutory term for making the entry is 5 capital trading companies it admits the statutory form of Limited working days from filing day. If the registra- Liability Company (s.r.o.) and Joint Stock Company (a.s.) tion court does not make the entry within 32 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

BUSINESS IN THE CZECH REPUBLIC Why Invest in the 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 Why have you chosen the Czech Republic in As a businessman, how do you rate the business environment in the Czech particular for doing business? Republic in general? One of our key customers is located in Czech Business environment is very good, it complies with the highest EU Republic. We successfully sold and imple- standards. mented a large project for them. Apart from that, Tieto corporation has around 1600 What would you recommend to an entrepreneur from your country who employees in Ostrava providing IT services to plans to start a business on the Czech market? other Tieto units. Ostrava was chosen because Find your competitive niche in the Czech market. Most likely, if of the availability of skilled workforce at you are competitive in the EU market in general, you should be reasonable cost. competitive also in the Czech market with the same products and services. Since you considered qualified labour as one of the motivations for choosing the Czech Republic in www.tieto.com/newtieto 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. 34 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

Registration and Tax Liabilities After the establishment of a company, an important company is required to report those changes thing to do is fulfilling the company’s liabilities under within 15 days (in the case of social and health Czech tax legislation. insurance, the term is usually 8 days) of the day on which those changes occurred. The changes Each entity which has obtained permission or entitlement to do concern, for example, the establishment or business has started independent gainful activity or draw income liable closing of the company’s permanent place of to tax in the Czech Republic, is obliged to file an application for business, change of trade name, change of registration with the financial authority concerned within thirty days of registered address, change of chief executives that moment. (An entity doing business on the basis of a trade licence and members of statutory bodies. can submit the application also with the trade licensing office.) With only a few exceptions, the local competence of the financial authority is CHANGE OF LOCAL COMPETENCE determined by the registered address of the entity liable to tax. OF FINANCIAL AUTHORITY A very important change is that of local TAX REGISTRATION competence (i.e. change of registered address), For registration, the applicant is required to submit to the appropri- on the basis of which the company comes ate financial authority all documents necessary for the pursuit of under the competence of another financial business activities (business licence, copy of entry in the Commercial authority. In that case, the company is required Register, etc.) and a duly completed registration application. to report that change to the relevant competent Tax registration, however, does not mean only corporate income tax financial authority, which will enter in the registration. The company must consider what other taxes may registration certificate the expiry date of its apply to it and register for such taxes – e.g value added tax (obliga- validity and after that will be carrying out only tory if the CZK one million/EUR approx. 38 300) turnover limit has urgent acts. Before the expiry of the validity of been exceeded during the term of 12 consecutive calendar months, the registration certificate the company is or it may register voluntarily, if its turnover has not exceeded that required to submit the registration certificate to limit), property tax, if the entity owns property, road tax, if the the financial authority at the place of its new entity uses a motor vehicle for business purposes, income tax as registered address, which will issue it with payer of tax on income derived from dependent activity and a new registration certificate. 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 fulfil its registration duty and the tax administrator ascertains that fact, he will make the registration himself as his official obligation. In that case, however, the company is liable to a fine (to a value not exceeding CZK 2 million/EUR 7.7 thousand). REGISTRATION OF EMPLOYEES If 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 registration/deregistration is 8 days. The company itself, as employer, must register with the social security administration and the health insurance companies concerned. DUTY TO REPORT Photo: PhotoCombo The company must also bear in mind that its obligations do not end with registration. If any facts stated in the registration certificate have changed in the course of the company’s business activities, the 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 35

BUSINESS IN THE CZECH REPUBLIC ORDINARY TAX AND ACCOUNTING DUTIES There is no need to say that companies must The Tax System comply with the country’s accounting and tax legislation and follow its changes in pursuing The main characteristics of the Czech tax system their business activities. are similar to those of other EU and OECD states. The basic obligations of every company are especially keeping account books and prepar- DIRECT TAXES ing a financial statement, possibly its verifica- Personal income tax is regulated by Act No. 586/1992 Coll. on tion by an auditor, and making corporate income tax. Its payers are all natural persons having their residence income tax returns and other tax returns each on the territory of the Czech Republic, or persons living there. The year within the set time limits. On the basis of tax period is the calendar year. The tax base is the sum of all appropriate certificates, the returns may be incomes, which the law divides into several categories: income from made electronically. The introduction of data employment, income from business, income from rent, capital boxes further expands the possibilities of income, and other income. As from 2008, the employment income electronic income tax returns. tax base is the gross wage plus social and health insurance premi- The appropriate financial authority can check the ums paid by the employer (supergross wage). From certain kinds of correctness of the stated tax base and the income, payers may deduct expenses “incurred to earn or maintain calculated amount of tax payable or the stated income”, either in their actual amount or as a percentage of their tax loss, carry out an investigation on site, even income fixed by law. As from 2008, it is not possible to deduct from during the tax period, and make records of its the tax base social and health insurance premiums paid. A loss may findings, both as regards taxes and the fulfilment be brought over to the next five years and deducted from the income of obligations in the administration of accounts. of future periods. Income from the sale of certain kinds of assets is exempted from tax if a period of time fixed by the law has passed TERMINATION OF BUSINESS ACTIVITIES between their acquisition and sale (e.g. 6 months in the case of In case the company is considering closing securities, or 5 years in the case of apartments). As from 2008, the down and the termination of its legal existence, linear 15-per-cent tax system applies. Tax returns must be filed by it is required to apply for a written consent 31 March of the following year, or by 30 June, if the tax return is from the appropriate financial authority to prepared by a tax adviser. The taxpayer must pay instalments having its name expunged from the Commer- depending on the amount of the tax. Employees are not required to cial Register. The consent must be attached to file tax returns, as this obligation falls on the employer. The Act its application for expunction from the Com- provides for a number of tax reliefs. For example, taxpayers may mercial Register. deduct from their tax base donations for charity purposes, interest If the appropriate financial authority finds that paid on mortgage and amounts paid under the pension saving and the company has ceased carrying out its life insurance systems. activities or drawing taxable income, it will Corporate income tax is also regulated by Act No. 586/1992 Coll. on take measures necessary for an accelerated income tax. Its payers are all types of juristic persons depending on determination of the tax base and the collection the address of their registered offices or the place from where their of its back taxes before they have fallen due. activities are directed. The tax period is the calendar year, or another twelve-month period, which must be in accordance with the Aleš Zídek and Kateřina Schrollová financial year. The tax base is the difference between incomes and White & Case, LLP, Lawyer’s Office expenditures relating to the tax period concerned. The incomes and e-mail: azidek@whitecase.com expenditures are ascertained from accounting documents according kschrollova@whitecase.com to Czech national accounting standards. Only tax-allowable expenses, i.e. those incurred so as to earn or maintain their income, Note: EUR 1 = 26.076 CZK (average monthly exchange rate may be deducted from the income. The depreciation of assets is fixed by CNB, December 2009) 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 filed within 3 months USEFUL REFERENCES: www.mfcr.cz – Ministry of Finance of the end of the tax period, or within 6 months, if the tax return is cds.mfcr.cz – Czech Tax Administration prepared by a tax adviser, or if the financial statement is to be www.mpsv.cz – Ministry of Labour and Social Affairs verified by an auditor, which is the case of most juristic persons. The www.mzcr.cz – Ministry of Health taxpayer is obliged to pay instalments according to the amount of www.cssz.cz – Czech Social Security Administration the tax. As from 2010, the tax rate is 19%. The act also provides for www.vzp.cz – General Health Insurance Company a number of tax reliefs, primarily the tax holiday for a period of up www.cmu.cz – Centre for Interstate Payments to five years. For example, tax payers may deduct 100% of their www.mfcr.cz/cps/rde/xchg/mfcr/xsl/dc2_tiskopisy. expenditures on scientific and research projects from their tax base Photo: PhotoCombo html – Tax forms available for downloading under the science and research support programme. www.cmu.cz/important-contacts/169 – A list of Property tax is paid on land and buildings. The level of the tax is Czech health insurance companies 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 36 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

USEFUL REFERENCES: www.mfcr.cz – Ministry of Finance http://cds.mfcr.cz – Czech Tax Administration www.oecd.org/ctp/taxdatabase – Tax Database www.oecd.org/ctp/taxingwages – Taxing Wages 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 filed 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 fulfilments 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, accommodation services, etc. is fixed 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 fixed rates (with the exception of cigarettes, where the duty is a combination of the fixed rate and a percentage amount of the final 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. intended to be used for business purposes. Vehicles used exclusively Energy taxes, introduced in 2008, are fully for personal use are not liable to tax. The tax rates are firmly fixed harmonised with the EU directive concerned. annual amounts. Other taxes are, for example, the inheritance tax Energy taxes apply to electricity, solid fuels and the gift tax, and a number of administration and local charges (coal and coke), and natural gas. Excise duty and rates. on cigarettes, mineral oils, spirits and beer are slightly raised as from 2010. INDIRECT TAXES Property transfer tax is levied at a rate of 3%. Value added tax (VAT) is regulated by Act No. 235/2004 Coll. VAT registration liability applies to persons with a turnover exceeding Martin Jareš CZK 1 000 000/approx. EUR 38 349 a year. Persons with a lower Ministry of Finance turnover may register voluntarily. As from 2008, the Act makes it www.mfcr.cz possible for a group of persons tied by capital to register as one VAT payer. Persons carrying out tax-allowable activities (e.g. financial Note: EUR 1 = CZK 26.076 (average monthly exchange rate services) are not required to register. For persons with a turnover of fixed by CNB, December 2009) 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 37

BUSINESS IN THE CZECH REPUBLIC EU Citizens not Required to Obtain Work Permits Citizens of European Union member states and their dependants are not regarded as foreigners and enjoy the same legal standing as citizens of the Switzerland, or their depend- Czech Republic, in the sense of the Employment Act. The same legal standing ants do not need a work permit. as citizens of the Czech Republic also extends to citizens of the European Dependants who are not citizens Economic Area (EEA) and Switzerland and their dependants. of the EU/EEA or Switzerland are, however, obliged to present Regardless of citizenship, the dependants of to the relevant Labour Office a document confirming they are the a citizen of the EU/EEA or Switzerland are dependant of a citizen of the EU/EEA or Switzerland. understood to be the spouse, partner with whom the EU citizen has a registered partner- OBLIGATION OF EMPLOYERS TO INFORM ship, their children, given they are under 21 An employer who employs citizens of the EU/EEA or Switzerland years of age or they are dependant, parents if or their dependants, or the legal entity or physical person to whom the person in question is a citizen under the age these persons are posted by a foreign employer, are obliged to of 21 subsisted by and sharing a common inform in writing the respective Labour Office (according to the household with the parent, and unprovided for place of employment) at the latest on the first day these persons take direct relatives in the ascending or descending up their duties. Upon termination of employment, the employer, line or such a relative of the spouse of an EU legal entity or physical person is obliged to inform the relevant citizen. For the purposes of employment in the Labour Office of this fact at the latest within 10 calendar days of the Czech Republic, citizens of the EU/EEA, 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 Office, situated in every district town. The list of Labour Offices and contacts is available at this website http://portal.mpsv.cz/sz/local . EURES PUBLIC EMPLOYMENT SERVICES Following the accession of the Czech Republic to the European Union, the employment offices 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 consulting services offered by EURES consultants and EURES contact persons at Labour Office in the Czech Republic. Further information on current procedures for employing foreign nationals available at: http://portal.mpsv.cz/sz/zahr_zam Photo: PhotoCombo Petra Boušková Ministry of Employment and Social Affairs e-mail: petra.bouskova@mpsv.cz www.mpsv.cz 38 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

MANUFACTURE OF DECORATIVE COSMETICS, BRANDS ACCORDING TO CLIENT REQUIREMENTS SALE OF READY-MADE PRODUCTS - ALSO IN BULK MANUFACTURE OF BRONZING POWDER PEARLS MANUFACTURE OF TERRACOTTA POWDERS AND WET AND DRY EYE SHADOWS BEST TECHNICAL EQUIPMENT HIGH-QUALITY TESTED RAW MATERIALS HYGIENICALLY CLEAN OPERATIONS STRICT PROFESSIONAL CONTROL NAIL POLISHES, NAIL POLISH REMOVERS, LIPSTICKS, LIP GLOSSES, MAKE-UP BASES Golden Line s.r.o., Semovická 483, 257 51 Bystřice u Benešova, Czech Republic Phone: +420 603 742169 communication possible in English, Italian, German and Russian, e-mail: cibulkova.jana@goldenline.cz cz www.goldenline. com 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 39

Mariánské Lázně – the Colonnade BUSINESS IN THE CZECH REPUBLIC Come and Discover the CR Come and discover the Czech Republic, a country where you can spend an active holiday, relax in contribute to making the Czech Republic one a spa, or conduct your business negotiations. of the international Spa Superpowers. Like all Superpowers, this country also has several The capital of Prague is one of the most primacies on its account. Nowhere else in the world can you find beautiful capitals in the world with the such a concentration of curative springs as in the West Bohemian spa unforgettable atmosphere of a city with triangle, which consists of the three famous spa towns: Karlovy thousands of years of history. A great many Vary, Mariánské Lázně, and Františkovy Lázně. The collection of museums, galleries, and sights can be found, famous Czech unique locations would not be complete without not only in Prague, but also in other regions of Jáchymov and Jeseník. In 1906, experts in Jáchymov continued with the Czech Republic. The map of the Czech the scientific discoveries made by Marie Curie and started, as the Republic is literally covered with historical world first, to use the curative effects of radon-rich waters. Jeseník towns, castles, chateaux, churches, and became famous thanks to Vincenz Priessnitz, who founded the first monasteries. A part of the unusual cultural hydrotherapeutic institute here in 1822. heritage are 12 UNESCO sites – nowhere else in the world are they situated so close together. THE CZECH REPUBLIC – THE GOLF REPUBLIC! The beauty of the Czech countryside will also The Czech Republic has been making a good name for itself in Europe captivate you. Its diversity makes this an ideal as a perspective golf destination. Golf has deep roots in the Czech venue for an active cycling or swimming Republic; as early as 1904, the first 9-hole course in Karlovy Vary was holiday. More than 70 golf courses lure visitors opened, after huge demand by the local spa clientele. In the Czech and numerous ski resorts are ready for the Republic, there are 124 clubs and 74 golf courses, of which two are 36- winter holidays. The Czech spa industry is hole courses, three are 27-hole courses, twenty-four are 18-hole world famous and has a tradition of several courses and forty-five are 9-hole courses. Standard organisations centuries. You can enjoy the pleasant environ- which teach golf, such as the Professional Golf Association of the ment of a spa town, not only for the curative Czech Republic (PGAC) (www.pgac.cz), are also present in this treatments, but also for the relaxation. During country. Most golf courses offer the possibility of booking golf lessons any of your visits to the Czech Republic you under the guidance of a professional. Czech golf courses also provide may discover the taste of Czech cuisine, famous the opportunity to participate in several-day-long basic golf playing Czech beer, and excellent Moravian wine. courses. Other organisations which provide useful information related Photo: CzechTourism to golf are the Czech Golf Federation (www.cgf.cz), the Czech Golf CZECH SPAS Travel Association (www.cgta.cz), and the web portal www.golf.cz. Several centuries of history, over 30 spa venues throughout the country, hundreds of curative Processed using information from the CzechTourism site: springs and rich deposits of peloids – all these www.czechtourism.com. 40 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

www.emotionsclinic.cz 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 management 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. BREAST PROCEDURES modelling, augmentation with silicone implants, reduction, correction of asymmetry ABDOMEN PROCEDURES fat reduction, tightening of stretched skin and abdominal muscles BODY CONTOURING stretched skin removal on arms and inner side of thighs TUMESCENT LIPOSUCTION abdomen, thighs, hips, arms, jowl EARLOBE SURGERY EYELID SURGERY eyebrow base RHINOPLASTY FACIAL REJUVENATION face-lifting, Aptos-minilifting LIP SURGERY lip augmentation (surgically or with injections) CORRECTION OF POST-TRAUMA DEFECTS AESTHETIC SCAR CORRECTION REMOVAL OF BIRTHMARKS, SKIN PROTRUSIONS The EMOTIONS Plastic Surgery Clinic, Bělehradská 14, 360 01 Karlovy Vary 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 41 Phone: +420 353 999 390, Fax: +420 353 999 392, GSM: +420 606 870 681

INSTITUTIONS CONFEDERATION OF INDUSTRY CZECH CHAMBER OF COMMERCE OF THE CZECH REPUBLIC The Czech Chamber of Commerce represents businessmen and entrepre- Representing those who create value neurs in the Czech Republic and is an integral part of its economic life. It The Confederation is a voluntary non-political protects the interests of its members – small, medium-sized, and large organisation that brings together employers and enterprises associated in the regional network of chambers and in entrepreneurs in the Czech Republic. It is the tradesmen’s associations. It is a platform for more than 13 000 companies largest association of employers and represents in the Czech Republic, which account for 60% of the country’s GDP. The a predominant sector of Czech industry and member companies employ two-thirds of the Czech Republic’s working transport. Its mission is to participate in shaping population. In regions, the Czech Chamber of Commerce is represented the Czech Government’s economic and social by 14 Regional and District Chambers of Commerce based in 62 cities and policy, in order to create optimum conditions for municipalities. The professional section of the Chamber comprises about business development in the country and to assert 80 trade associations. the common interests of its members. The Confederation’s membership base comprises The Czech Chamber of Commerce is a full member of the Eurocham- 30 branch and professional confederations and bres Association of European Chambers of Commerce and provides associations and 114 individual members. the following standard services for its members and non-members: it Altogether the Confederation of Industry has l organises business missions to other countries, missions accompanying 1 534 members. government representatives and missions of small and medium-sized As a representative of employers and entrepre- business entities to various meetings of businessmen abroad; neurs, the Confederation represents and promotes l organises visiting missions by entrepreneurs on the occasion of the the common interests of its members with the Czech Republic’s official participation in trade fairs and exhibitions in goal of creating an environment that is conducive other countries; to enterprise and employment, while respecting l receives delegations of foreign businessmen and organises seminars ethical business principles that will lead to long- and meetings with Czech companies for them; term, sustainable prosperity for Czech society. l promotes co-operation with partner Chambers of Commerce and other The Confederation promotes, co-ordinates, and business institutions in other countries and co-operates with them in protects the interests of its members in the organising international events; Council of Economic and Social Agreement, which l organises seminars, workshops, business forums and similar events with is a platform for negotiations between the a branch or regional focus; Government, employees, and trade unions on l publishes enquiries and offers by companies from all over the world essential political, economic, and social issues. and, vice versa, publishes enquiries and offers by Czech companies in Organisationally it ensures the establishment of other countries, while taking advantage of its access to international trade and economic relations between Czech and databases for seeking out contacts for Czech companies; foreign entities by means of trade missions, l participates in the international programmes of the European Commis- conferences, bilateral and multilateral negotia- sion, thereby supporting specific trade opportunities of Czech compa- tions, and through the participation of its nies at multilateral contact events abroad – programmes Asia Invest members in trade fairs, exhibitions, and profes- (Southeast Asia), Invest in Med (Mediterranean), Central Asia Invest sional seminars. (Central Asian countries, AL-Invest (Latin America), etc.; l is the compulsory site for comments by Czech legislative bodies and Co-operation with Foreign Partners and State administration authorities, thereby influencing the entrepreneurial International Organisations environment in the Czech Republic; On the basis of co-operation agreements, the l is the registered seat of the Czech National Body for the Facilitation of Confederation establishes bilateral relations with International Trade Procedures (FITPO), thereby making the methods partner confederations of industry, Chambers of used in international trade, including electronic data exchange, more Commerce, and other economic institutions abroad. efficient; The Confederation is a member of the important l verifies customs documents, issues ATA carnets and various certificates international organisations of employers and for foreign partners of Czech companies. businessmen – BUSINESSEUROPE, IOE and BIAC. Hospodářská komora České republiky Svaz průmyslu a dopravy České republiky Freyova 27, 190 00 Praha 9 Freyova 948/11, 190 05 Praha 9 Phone: +420 266 721 300 Phone: +420 225 279 111 Fax: +420 266 721 692 e-mail: spcr@spcr.cz e-mail: office@komora.cz l More information at www.spcr.cz l l More information at www.komora.cz l 42 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

EXPORT GUARANTEE AND INSURANCE CZECHINVEST – THE INVESTMENT AND CORPORATION (EGAP) BUSINESS DEVELOPMENT AGENCY The purpose of EGAP is to provide protection to exporters and banks fi- Vision of CzechInvest Agency: nancing exports against non-payment by foreign buyers in consequence “Czech Republic – one of the most competitive of uninsurable commercial and territorial (political) risks. EGAP complies EU states” with all WTO, OECD, and European Union rules and provisions applicable to export credit insurance with state aid. Its services are comparable to CzechInvest - the National Investment and those of other export credit agencies in the world. In addition to export Business Development Agency - is a state-run credit insurance, EGAP also provides insurance of pre-export financing, contributory organisation subordinated to the insurance of investments in foreign countries and loans for their financ- Ministry of Industry and Trade of the Czech ing, as well as insurance against manufacturing risks and insurance of Republic. Its aim is to raise the competitiveness bonds issued by banks on behalf of Czech exporters for export contracts. of the Czech economy by giving support to EGAP has been providing its services since 1992 - to all exporters of Czech small and medium-sized enterprises, the goods and services irrespective of their size, legal form, and the volume business infrastructure, and innovation. It of insured export. attracts foreign investors to invest in the manufacturing industry, strategic services, and Exportní garanční a pojišťovací společnost, a.s. technological centres and supports Czech Vodičkova 34/701, 111 21 Praha 1, Phone: +420 222 841 111 enterprises in their efforts to expand. Fax: +420 222 844 001, e-mail: info@egap.cz As part of the programme to simplify communication between the state, businessmen, and the l More information at www.egap.cz l 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- CZECH CENTRES tive for investors and is the only organisation entitled to file investment incentive applications Our mission is to foster international co-operation, partnership, and dia- to relevant bodies. It also supports Czech logue between the general public and the professional sphere. We focus companies interested in becoming included in on co-creating an attractive image of the Czech Republic as a modern the supply chains of supranational companies. and dynamic country in the areas of culture and tourism while support- With its services and promotion programmes, ing external economic relations. Currently there are 24 Czech Centres in CzechInvest helps domestic firms and Czech and 21 countries on three continents. Czech Centres is an independent organ- foreign investors in their expansion and the isation funded by the Ministry of Foreign Affairs of the Czech Republic. development of the business environment in In every area of our activities, Czech Centres present the best of Czech general. traditions while promoting the contemporary trends which emphasise the creative potential of the Czech Republic. All services are free of charge. In the area of external economic relations, Czech Centres offer services, such as organisation of presentations and meetings of Czech organis- CzechInvest ations with foreign partners. We are a liaison for information and enquiry Štěpánská 15, 120 00 Praha 2 services. Czech Centre – Czech House Moscow offers an extensive range Phone: +420 296 342 500 of services - the Moscow Business Centre provides accommodation Fax: +420 296 342 502 (rooms, apartments, offices, garage parking) as well as catering services. e-mail: info@czechinvest.org For additional information and specific services, please enquire directly at your local Czech Centre. l More information at www.czechinvest.org l Česká centra Václavské nám. 816/49, 110 00 Praha 1 Phone: +420 234 668 211, Fax: +420 234 668 215 e-mail: info@czech.cz l More information at www.czechcentres.cz l 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 43

Žďár nad Sázavou – St John of Nepomuk Church at Zelená Hora INSTITUTIONS CZECH TRADE PROMOTION AGENCY/CZECHTRADE The CzechTrade promotion agency is a contributory 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 offices 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 companies 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.czechtradeoffices. com/supplier. If a foreign firm wishes to meet representa- CENTRE FOR REGIONAL DEVELOPMENT CR tives of Czech firms in person, we will organise – ENTERPRISE EUROPE NETWORK negotiations in the building of the CzechTrade agency in Prague or, according to agreement, on The Centre for Regional Development CR (CRR CR) is the implementing the premises of the selected Czech firms. Czech agency for European programmes operating under the auspices of the suppliers are well-known and successful in many Ministry for Regional Development of the Czech Republic. industrial sectors and services. CRR CR hosts one of the centres of the Enterprise Europe Network (EEN), In the case of a foreign firm wishing to offer its a member of Europe’s largest network (with more than 500 partners) set products to Czech companies, it can do so through up and run by the European Commission with the purpose of promot- the Sell Leads service – www.czechtradeoffices. ing business. Its consortium based in the Czech Republic is composed com/SellLeads. of eleven partners from seven cities – Prague, Brno, Plzeň, Ostrava, Most, Liberec, and Pardubice. The mission of the network is to help especially CzechTrade Promotion Agency/CzechTrade small and medium-sized enterprises (SME) on entering the EU internal Dittrichova 21, 128 01 Praha 28 market and doing business there. Its officials provide comprehensive Phone: +420 224 907 820 consulting services to businessmen with the aim of broadening the e-mail: info@czechtrade.cz international cooperation of companies, raising the innovative potential of enterprises in the EU and helping SMEs to become integrated more CzechTrade Riga widely in EU framework programmes. Elizabetes 13, 1010 Riga, Latvia To foreign clients, CRR CR – EEN Prague offers: Phone: +371 67508371, Fax: +371 67508370 information about the Czech Republic, about the business environ- e-mail: riga@czechtrade.cz, www.czechtrade.lv ment in the CR, Czech legislation, about how to find Czech partners for co-operation, information about starting a business in the CR, sources of CzechTrade Vilnius financing from Structural Funds, and other information. Verkiu g. 5, 08218 Vilnius, Lithuania Phone: +370 52758891, Fax: +370 52759101 Centrum pro regionální rozvoj ČR – Enterprise Europe Network e-mail: vilnius@czechtrade.cz Photo: CzechTourism Vinohradská 46, 120 00 Praha 2, Phone: +420 221 580 201 www.czechtrade.lt Fax: +420 221 580 284, e-mail: crr@crr.cz l More information at www.czechtradeoffices.com l l More information at www.crr.cz , www.een.cz l 44 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

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 organisations 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 e-mail: kzps@kzps.cz l More at www.kzps.cz l 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 45

INSTITUTIONS CZECH EXPORT BANK CZECH TOURIST AUTHORITY – CZECHTOURISM Czech Export Bank (CEB) provides all financial The Czech Republic has been gradually strengthening its position of an services to Czech enterprises and their foreign established European tourist destination. Membership in the European partners involved in the export of Czech products Union and activities of the CzechTourism agency and its foreign and services. CEB provides both sides of the trade branches in Europe and overseas have all significantly contributed to relationship with favourable conditions in terms achieve this goal. The organisation with the original name the Czech of extended maturities and attractive price. This is Tourist Authority (Česká centrála cestovního ruchu, ČCCR) has existed done under internationally adopted rules govern- with the purpose of promoting the country as an attractive tourist ing state support of exports. The bank has broad destination on foreign and domestic markets since 1993. experience in financing of large transactions of With regard to long-term studies in the area of the tourist trade, Czech exporters, but also of export contracts for CzechTourism has been focusing the majority of its activities on lesser amounts or partial deliveries. On the one countries that represent the main source markets of incoming tourism hand, this benefits the bank’s clients and on the into the CR. The first among these are the neighbouring countries other hand, it indirectly creates higher employ- (Germany, Austria, Slovakia, Poland), followed by other European ment and improved conditions for business countries with high numbers of tourists going abroad (Belgium, France, development. Foreign buyers and partners of Italy, the Netherlands, the United Kingdom, Russia, and Spain). The most Czech firms use most CEB products under these important overseas countries are Japan, Canada, and the USA. favourable conditions of financing, thus making CzechTourism also introduces current and mid-term strategic presenta- Czech goods and services more lucrative not only tions of the Czech Republic abroad. A new strategy for the Promotion of in terms of their price and quality. the Czech Republic came into effect in the beginning of 2004, which was oriented at the promotion of the so-called national products. Five The bank’s focus on offering a comprehensive locations were chosen (Prague, Karlovy Vary, Český Krumlov, the range of products for the financing of exports sandstone rock towns, and Olomouc) with a selection of optional trips has proven invaluable in recent years. Exporters through their surroundings, and two time products (Christmas, Easter). appreciate this financial support as a useful form The agency switched from territorial and time topics to more generally of securing export-related financial needs. Besides defined products in 2007. They are Historical Treasures (castles, cha- standard financing of exports of goods, CEB sees teaux, technical and religious monuments), Czech Healthcare Spas, its new role in offering financing of big turn-key Active Holidays (golf, cycling, adrenalin sports, but also fishing or foot projects, construction works and infrastructure, tourism), Congress, Corporate, and Incentive Tourism, and Experience and especially investments abroad. A number of Vacation (gastronomy, music, festivals). CzechTourism focuses on the project and structured financing models allow promotion of golf tourism for the Active Holidays. It was a great success the realisation of projects at a new scale. Another to receive the Undiscovered Golf Destination of the Year 2007 title at the of the bank’s goals is to offer Czech companies International Golf Travel Market fair in Spain (November 2006) awarded advantageous financing of their plans to launch to the Czech Republic by the International Association of Golf Tour production abroad or to invest in establishment or Operators (IAGTO). The growth of the golf tourism is also evidenced by extension of production companies abroad. the new slogan: Czech Republic – The Golf Republic. The Czech Republic is currently represented by 25 CzechTourism Česká exportní banka, a.s. branches abroad. Vodičkova 34, 111 21 Praha 1 The CzechTourism agency also has a number of other activities. It Phone: +420 222 843 216 organises TOURFILM, the oldest film festival of tourism-themed films and Fax: +420 224 226 162 multimedia in the world (www.tourfilm.cz). Today, the festival is a part of e-mail: ceb@ceb.cz a larger event called the Karlovy Vary Week (Karlovarský týden). The agency participates in the common promotion of the Visegrad Four l More information at www.ceb.cz l (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 e-mail: info@czechtourism.cz l More information in 19 world languages at... www.czechtourism.com l 46 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

C O N TA C T S Useful Addresses USEFUL ADDRESSES Ministry of Education, Youth, and Sport USEFUL CONTACTS IN THE CZECH REPUBLIC Ministerstvo školství, mládeže IN THE REPUBLIC Embassy of the Republic of Estonia a tělovýchovy OF ESTONIA Na Kampě 1 www.msmt.cz Embassy of the Czech Republic 118 00 Praha 1 Lahe 4 Phone: +420 257 011 180 Ministry of the Environment 101 50 Tallinn Fax: +420 257 011 181 Ministerstvo životního prostředí Phone: +372 6274400 e-mail: embassy.prague@estemb.cz www.mzp.cz Fax: +372 6314716 www.estemb.cz e-mail: tallinn@embassy.mzv.cz Ministry of Finance www.mzv.cz/tallinn Embassy of the Republic of Latvia Ministerstvo financí Hradešínská 3 www.mfcr.cz Honorary Consulate P.O.Box 54 of the Czech Republic 101 00 Praha 10 Ministry of Foreign Affairs Vana Keila 52, 756 06 Save Phone: +420 255 700 881 Ministerstvo zahraničních věcí Phone: +372 507219 Fax: +420 255 700 880 www.mzv.cz e-mail: embassy.czech@mfa.gov.lv www.latvia.cz Ministry of Health USEFUL CONTACTS Ministerstvo zdravotnictví IN THE REPUBLIC Embassy of the Republic www.mzcr.cz OF LATVIA of Lithuania Embassy of the Czech Republic Pod Klikovkou 1916/2 Ministry of Industry and Trade Elizabetes iela 29a 150 00 Praha 5 Ministerstvo průmyslu a obchodu 1010 Riga Phone: +420 257 210 122, 257 210 123 www.mpo.cz Phone: +371 67217814 Fax: +420 257 210 124 Fax: +371 67217821 e-mail: amb.cz@urm.lt Ministry of the Interior e-mail: riga@embassy.mzv.cz, http:/cz.mfa.lt / Ministerstvo vnitra Commerce_Riga@mzv.cz www.mvcr.cz www.mzv.cz/riga Consulate of the Republic of Lithuania Ministry of Justice CzechTrade Riga Hlinky 40/102 Ministerstvo spravedlnosti Elizabetes 13 603 00 Brno-Pisárky www.justice.cz 1010 Riga Phone: +420 543 244 145 Phone: +371 67508 371 Fax: +420 543 244 146 Ministry of Labour and Social Affairs Fax: +371 67508 370 e-mail: slacalap@seznam.cz Ministerstvo práce a sociálních věcí e-mail: riga@czechtrade.cz www.mpsv.cz www.czechtrade.lv CENTRAL AND OTHER Ministry for Regional Development KEY BODIES OF THE Ministerstvo pro místní rozvoj USEFUL CONTACTS CZECH REPUBLIC www.mmr.cz IN THE REPUBLIC Office of the Government OF LITHUANIA of the Czech Republic Ministry of Transport Embassy of the Czech Republic Úřad vlády ČR Ministerstvo dopravy Birutes g. 16 www.vlada.cz www.mdcr.cz 08117 Vilnius Phone: +3705 2661 040 OTHER INSTITUTIONS Fax: +3705 2661 066 MINISTRIES Czech National Bank e-mail: vilnius@embassy.mzv.cz Ministry of Agriculture Česká národní banka Commerce_Vilnius@mzv.cz Ministerstvo zemědělství www.cnb.cz www.mzv.cz/vilnius www.eagri.cz Czech Statistical Office CzechTrade Vilnius Ministry of Culture Český statistický úřad Verkiu g. 5 Ministerstvo kultury www.czso.cz 08218 Vilnius www.mkcr.cz Phone: +3705 275 8891 Academy of Sciences Fax: +3705 275 9101 Ministry of Defence of the Czech Republic e-mail: vilnius@czechtrade.cz Ministerstvo obrany Akademie věd ČR www.czechtrade.lt www.army.cz www.cas.cz 48 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

C O N TA C T S The Most Important Websites General information on the Czech Republic www.czech.cz Official site for the CR Official site for professionals searching for information, assistance, or BusinessInfo www.businessinfo.cz business contacts in the CR General Information about business climate, structure, and Doing Business in the Czech Republic www.doingbusiness.cz development on the Czech economy The electronic gateway for the public to administration and Portal of the Public Administration http://portal.gov.cz government services Company Contact Information www.justice.cz/ Business Register Public directory xqw/xervlet/insl/index 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 http://exporters. Czech exporting companies Czech Exporters Directory czechtrade.cz/en Zlaté stránky www.zlatestranky.cz Telephone and companies directory www.info.mfcr.cz/ares/ ARES Access to Registers of Economic Subjects ares.html Legislation Iuridika http://iuridica.eunet.cz Legal services in the Czech Republic Portal of Czech judiciary www.justice.cz Course of legal proceedings Finance Czech National Bank www.cnb.cz Monetary, financial, 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 www.cs.mfcr.cz/ Directory of taxpayers registered under individual tax identification Register of excise duty payers spd_internet numbers Chamber of Tax Advisers www.kdpcr.cz Database of tax advisers Statistics Czech Statistical Office www.czso.cz Official statistical data and information covering various subjects Fairs and Exhibitions BVV – Brněnské veletrhy a výstavy www.bvv.cz List of exhibitions in Brno and relevant information Association of Fair and Exhibition Organisers of Exhibition centre companies organising trade fairs in the CR and www.czechfairs.cz the CR abroad Miscellaneous The Industrial Property Office www.upv.cz Norms, Patents, and Standards Awards grants to the best projects of basic research The Grant Agency of the Czech Republic www.gacr.cz in all branches of science Expert assistance in choosing and working with advertising and The Register of Advertising Agencies www.registrra.cz/rra 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 www.ahrcr.cz Directory of hotels in the CR and Restaurants 50 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

C O N TA C T S Baths and shower baths Your excellent choice for many years Comfort and quality for your bathroom Slip-safe Thermal features Insulating features Sound suppressing Easy maintenance Solid RIHO CZ,a.s. Suchý 37 680 01 Boskovice Czech Republic www.riho.cz 138 | Interiér 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 r

bathroom furniture LE BON will make furniture to your order. LE BON has been manufacturing bathroom furniture LE BON furniture is distinguished for its modern de- for more than 13 years. Currently, we export our prod- sign: the series have their front surfaces made, for ex- ucts to Switzerland, Sweden, and Slovakia. ample, from laminate glued to plywood, from faultlessly We make furniture suitable to fit both Laufen, Keramag, worked massive wood, or from tropical veneer. Kolo, and Villeroy Boch wash-basins and cabinets for non-brand ceramic pieces at very good prices. LE BON bathroom furniture is extremely variable: A substantial part of our product range includes mir- several types of cabinets (with doors, drawers) are sup- rors, lighting fixtures, mirror cabinets, and different plied for one type of wash-basins in a variety of shades. types of complementary cabinets. Our product range is being continuously enlarged For our products we use the best components: full ex- – LE BON reacts quickly to changing customer needs. tension drawers, soft closing for the smooth closing of We handle customer orders promptly and in top quality. doors, integrated illumination… We speak English. Our furniture is fully moisture resistant, with several layers of polyurethane lacquer covering both white and Detailed information and EUR public prices are coloured furniture surfaces. available at www.lebon.cz. If you wish to trade in LE BON bathroom furniture, kindly contact: Ms Klára Nováková, e-mail: novakova@le-bon.cz, phone: +420 603 810 583 LE BON spol. s r.o., Zábrdovická 16, 615 00 Brno, Czech Republic 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 53 www.lebon.cz

C O N TA C T S www.road-rail.eu Czech manufacturer of Special Railway Machinery 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 machinery 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 traditional Czech manufacturer since 1954. We are always ready to offer tailor-made solution meeting your special needs and to put your …Trucks on Tracks ... SaZ s.r.o., Koupelní 3908/6, 695 01 Hodonín, Czech Republic www.saz.cz 54 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 Phone: +420 518 328 621, Fax: +420 518 328 622, E-mail: info@saz.cz

C O N TA C T S • Manufacture and sale of current and voltage transformers • Current transformers for voltages ranging from 1 to 40.5 kV - indoor and outdoor design • Voltage transformers for voltages ranging from 1 to 40.5 kV - indoor and outdoor design • Special transformers, manufacture of epoxide components SLO Latvia Maleju 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: info@kpbintra.cz www.kpbintra.cz 56 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

TRADITIONAL CZECH MANUFACTURER OF CABLES: 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 www.kabelovna.cz d e Pa r t n e r C z e c h R e p u b l i c – Yo u r Tr a 57

C O N TA 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 presence, 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. WIDE OFFERING OF INDUSTRIAL FURNACES CUSTOMISED TECHNICAL SOLUTIONS 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 deliveries 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 transport equipment. A number of special plants have been developed and realised for these demanding customers, such as a line for the heat treatment 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 HEATING FURNACES FOR FORGE SHOPS AND ROLL- construction units for the building industries. ING MILLS ANNEALING FURNACES FOR FORGE SHOPS, FOUN- As a supplier of equipment that consumes large amounts of en- DRIES AND ROLLING MILLS ergy, E-therm TZ s. r. o. offers this equipment with the highest ef- CONTINUOUS HEAT TREATMENT FURNACES FOR AN- ficiency, and thus the lowest operational costs. Great operator‘s NEALING AND PICKLING LINES supervision comfort, programmability, and process automation REFINING LINES AND LINES FOR HEAT TREATMENT IN are considered a matter of fact, as they themselves have a signif- PROTECTIVE ATMOSPHERES icant impact on energy consumption. On top of that, maximum DRYING FURNACES FOR VARIOUS TECHNOLOGICAL utilisation of waste heat from exhaust gases is considered in gas PROCESSES furnaces which, besides fuel savings, leads to the lowering of TESTING WALL FURNACES FOR REASERCH AND QUAL- emissions of glass-house gases, thus significantly affecting efforts ITY CONTROL INSTITUTES AND FOR PRODUCERS OF to improve the natural environment. BUILDING COMPONENTS, BUILDING MATERIALS AND SHEET GLASS Owing to the possibility of the free movement of goods between COMBUSTION CHAMBERS AND HEAT SOURCES FOR the countries of the EU, conditions for service and assembly ac- DRY-KILN PURPOSES IN THE CERAMIC AND GLASS tivities related to deliveries of industrial furnaces have improved INDUSTRIES significantly. For this reason, E-therm TZ s. r. o. delivers this equip- BELL ANNEALING FURNACES – SHEET METAL AND ment not only in the Czech Republic but to other EU countries as WIRES well, in turnkey fashion. However, deliveries and projects bearing EQUIPMENT FOR HEAT STABILISATION AND TESTING the E-THERM logo are also shipped to Asia or CIS countries. OF RADIAL RUN-OUT OF TURBINE ROTORS, ANOTHER ROTORS AND SHAFTS E-therm TZ s.r.o., Jateční 661, 33901 Klatovy, Czech Republic www.ethermtz.cz phone: +420 378 603 251, fax: +420 378 603 270 58 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 email: ethermtz@ethermtz.cz

Intero Chmelan & spol. 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. Manufacture and delivery of devices for food Projects, deliveries, and assemblies and pharmaceutical production: of production lines for dairy farming: stainless tanks of various capacities and types, including stirrers milk reception custom pressure tanks (calculations, certificates) and their service milk and cream storage autoclaves and sterilisers pasteurisation of milk, cream, and specialities minibreweries production of fermented products pumps of all types (impeller, displacement, proportioning) production of cheese plate exchangers for various applications (heaters, coolers, pasteurisers) bottling of dairy products custom stainless products, service platforms for tanks and machinery Deliveries of purification plants of various outputs and makes Designs, reconstructions, and modernisations of technological tubing Projects and deliveries of electrical installations, controls, operations, and automations of technological devices and processes, monitoring and data storing 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. Contact: Jan Dostál dostal@intero.cz for communication in Russian Petr Voborník gs@globalservis.cz for communication in English www.intero.cz / www.globalservis.cz 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 59

BUSINESS IN THE CZECH REPUBLIC PARTNERS 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 w w w . p p a g e n c y. c z Export Guarantee and Insurance Corporation A company with the ISO 9001 certified quality Czech Export Bank management system for publishing services 60 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

Teritoriální projekt pobaltí

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Teritoriální projekt pobaltí — Document Transcript

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