General information and relevant facts about the Czech Republic
|Currency||Czech Koruna (CZK)|
The Czech Republic (in other words Czechia) is a Central European country, neighbouring Germany, Slovakia, Poland and Austria. The country is one of the most stable and growing economies in the European Union with the lowest unemployment rate. The Czech Republic is also particularly focused on ‘well-being’ of its society such as quality education, skilled people, work-life balance, and safety and security.
Czechia which has a population of approximately 10.6 million, has 5 large cities: Prague, Brno, Ostrava, Plzen, and Liberec, which are the best locations for licensing, incorporating or registering a business in the Czech Republic. Prague, the capital city of the country is considered the geographic centre of Europe.
Although Prague is the most business appealing city attracting many foreign businesses, the government has recently created more opportunities and incentives for businesses to expand in other regions of the country. These factors make the country best for doing business.
According to the World Bank’s Doing Business 2020 report, The Czech Republic has scored 83.56 out of 100 for starting a business. The country also ranked number 1 for cross-border trading and extensive transport routes network. Factors like the strategic geographic location, developed infrastructure, and skilled workforce, have made the Czech Republic an appealing prospect for foreign companies looking to expand in Europe, especially in CEE (Central and Eastern Europe).
The location of the Czech Republic is an exciting possibility for new investments and ideal supplier and distribution centre because of its closeness to both consumption and production regions. The Czech Republic possesses one of the most advanced transport networks in Central and Eastern Europe.
Equally important, expanding to the Czech Republic, a member of the EU is a great opportunity to get access to the single European market. In fact, the secure and powerful economic performance of the country attracted foreign direct investments to the country as more than 173000 companies in the Czech Republic are now supported by foreign capital with 8.3 billion euros FDI inflow in 2018.
The Czech Republic offers many business opportunities to companies looking for expansion especially in sectors like Advanced Engineering, biotechnology, education and training, food sector, healthcare and science and technology. There is an increasing demand for consumer goods such as clothing, textile and accessories, food and drink because of the increasing number of tourists and education and training for investment in human resources.
One of the most important factors that make the Czech Republic appealing to foreign businesses is the investment climate and incentives provided by the government. The open investment climate has been the country’s economic growth strategy with political and economic stability, existing R&D platform, safe and secure business environment. Under Czech law, foreign firms are given equal rights as the local firms with investment and property rights protection.
The government also provides financial support programmes to business outside of Prague in order to ensure the development of other regions of the country. OPEIC program, (The Operational Programme Enterprise and Innovation) is providing financial aid to small and medium-size firms in the Czech Republic. The workforce of the country has a well-educated, multi-lingual and skilled workforce consisting of both foreign and local population. The wages on the other hand in the Czech Republic are much lower than that of Western Europe.
Although the strong economic performance, human capital resources, and strategic geographic location are Czechia’s strong credentials, companies often encounter challenging bureaucratic procedures when they open a new business in this country. Because of the existing bureaucracy, the Czech Republic is ranked at 115 for the ease of starting a business, according to Doing Business Report 2019. Moreover, expanding to a new country requires some adjustments to the local culture. Dealing with the local authorities often requires knowledge of the Czech language and culture. Therefore, it’s recommended to have local help when expanding to the Czech Republic.
Despite difficulties regarding opening a business in the Czech Republic, the country offers many business opportunities for new foreign firms. As Yeye Agency, we are ready to help you to expand to the Czech Republic. For more information see our services.