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flag Czech Republic Czech Republic: Operating a Business

In this page: Setting Up a Company | The Active Population in Figures | Working Conditions | Cost of Labor | Social Partners

 

Setting Up a Company

Private Limited Company (SRO)
Number of partners: No minimum.
Maximum: 50.
Capital (max/min): Minimum CZK 200,000
Shareholders and liability: Partners' liability is limited to the amount contributed.
Public Limited Company (AS)
Number of partners: No minimum: one or more; can be a sole proprietorship.
Capital (max/min): Minimum CZK 2 million when established without public bid, at least 30% must be released before the constituting general meeting. Minimum CZK 20 million with public bid.
Shareholders and liability: Liability is limited to the amount contributed.
The general partnership
Number of partners: At least 2 natural partners.
Capital (max/min): No minimum capital requirement.
Shareholders and liability: Liability is unlimited for all partners.
The limited partnership
Number of partners: At least 2 partners: 1 active partner and 1 sleeping partner.
Capital (max/min): No minimum capital but the input of the partner with limited liability must be at least CZK 5,000.
Shareholders and liability: Liability of active partners is unlimited. Liability of sleeping partners is limited to the amount contributed.
The Competent Organization
Ministry of Industry and Trade (in Czech and English)

European e-Justice Portal

Forms of offices, e.g. the Financial Authorities and Trade License Offices Trade License Offices – on the web sites of municipal authorities
Search a Company or a Financial Report
Portal Justice
 
Setting Up a Company Czech Republic Eastern Europe & Central Asia
Procedures (number) 9.0 6.0
Time (days) 20.0 14.0

Source: Doing Business.

 
Business Setup Procedures
Consult Doing Business Website, to know about procedures to start a Business in Czech Republic.
Trade Register, in Czech.

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The Active Population in Figures

201120122013
Labor force 5,410,0005,545,0005,304,000

Source: CIA - The world factbook

 
200920102011
Total activity rate -57.90%58.60%
Men activity rate 67.60%68.20%68.20%
Women activity rate 48.80%49.30%49.60%

Source: UN - United Nations

 
Employed Persons, by Occupation (% of Total Labor Force) 2008
Manufacturing 28.6%
Construction 9.2%
Transport and Storage 7.5%
Real Estate, Renting and Business Activities 7.4%
Health and Social Work 6.5%
Education 5.6%
Hotels and Restaurants 3.5%
Agriculture, Hunting and Forestry 3.3%
Electricity, Gas and Water Supply 1.6%
Mining and Quarrying 1.1%

Source: International Labor Organization (ILO)

 
For Further Statistics
Ministry of Labor and Social Affairs
Czech statistical office

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Working Conditions

Legal Weekly Duration
40 hours
Retirement Age
Men 63 years, Women 59-62 years depending on number of children. In order to reach retirement age it is necessary to pay pension insurance (to be employed or to do own business) for at least 25 years. It is planned to change retirement age for 65 Years.
Working Contracts
Legal clauses regulate employment contracts and to a lesser degree collective agreements and individual negotiations.
The terms of employment contracts are extremely rigid and the limits for dismissal are less strict.
Labor Laws
Consult Doing Business Website, to obtain a summary of the labor regulations that apply to local entreprises.

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Cost of Labor

Minimum Wage
CZK 328 per month (source: ILO, 2011).
Average Wage
Gross average monthly wage of men: CZK 28,233 (source: ILO, 2011);
Gross average monthly wage of women: CZK 22,389 (source: ILO, 2011).
Social contributions
Social Security Contributions Paid By Employers: 35%
Social Security Contributions Paid By Employees: 12.5%

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Social Partners

Social Dialogue and Involvement of Social Partners
The Czech Republic operates on the principle of free establishment and competition of unions. Establishment of a union is not mandatory in companies. The minimum number of employees needed to establish a company union is three.
The most powerful is Czech-Moravian Confederation of Trade Unions (so called CMKOS). It is an important social partner in tripartite negotiations in the framework of the Council of Economic and Social Agreement of the Czech Republic. It works in the regions of the Czech Republic through Regional Councils of Trade Unions (RROS) and Regional Offices for Legal Assistance (RPP). There are 33 trade unions in the framework of CMKOS.
Unions
CMKOS, Czech-Moravian Confederation of Trade Unions
Other Unions affiliated to CMKOS
Unionization Rate
11% of all employees.
Labor Regulation Bodies
Ministry of Labor and Social Affairs
Confederation of Industry of the Czech Republic (SPCR)
Czech Council for Safety, Hygiene and Health at Work

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Last Updates: October 2014