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In 2015, legislative changes continued to facilitate business activities in the Czech Republic and reduce the administrative burden for businessmen. Not much, however, has changed as regards the general conditions for doing business, and the changes really mean simplification, not complication. The most important changes made in 2015 so far include changes leading to faster and cheaper registration in the Companies Register and changes in the functioning of Trade Licence offices.

QUICKER AND CHEAPER REGISTRATION IN THE COMPANIES REGISTER In the framework of private law recodification, Parliament have passed a new Act on public registers of legal and natural persons, which also regulates the registration of legal entities in the Companies Register. The Act, already effective in its version from 1 January 2014, stated that, in addition to the Commercial Court, registration in the Companies Register can also be effected by a Notary Public (“direct entry”). Because of delays in processing the changes and their feeding into the Companies Register information system and the non-existence of legislation concerning the amount of administration fees, this option was only made possible as from 1 May 2015, when the Court Fees Act

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Amendment became effective. This means that, from June 2015, businessmen may use the services of either a Notary Public or the Commercial Court. The main aim of this legislation was to simplify and speed up the process of registration in public registers. While in court, court proceedings must be held to prove that the registration has been implemented, the Notary Public makes the entry in the register immediately, provided that the required conditions have been met. Therefore, in most cases a registration carried out by a Notary Public is quicker (and in many cases also cheaper) than a registration effected by the court. However, it will not be possible to use the direct entry in all cases, as the entry must be based on a Notarial Deed and all the documents required by law for entry in the public register or must be presented to the Notary Public for being filed in the collection of documents. For example, if a company wants to increase its registered capital, further steps are required which will have to be registered in the relevant Deeds Registry, and this may incur further costs. Immediate entry in the register and

Photo: Accenture archives

MORE BUSINESS RELIEFS IN THE CZECH REPUBLIC IN 2015

Doing Business in the Czech Republic 2016  

This title (in English), appearing since 1994, contains topical economic, business and practical information intended for foreign businessme...

Doing Business in the Czech Republic 2016  

This title (in English), appearing since 1994, contains topical economic, business and practical information intended for foreign businessme...

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