INDIA 2016/2017

CZECH REPUBLIC Your Trade Partner

2016/2017 Republic of India

AŽD Praha Rail Transportation Road Transportation Telecommunications

Traditional Czech supplier of modern control and signalling systems

Safely to your destination www.azd.cz

Czech Republic  Your Trade Partner Compiled by the PP Agency s.r.o. in cooperation with

Ministry of Foreign Affairs of the Czech Repulic

Ministry of Industry and Trade of the Czech Repulic

Ministry of Regional Development of the Czech Repulic

Confederation of Industry of the Czech Republic

Czech Chamber of Commerce

International Chamber of Commerce in the Czech Republic

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

CzechTrade

CzechInvest

CzechTourism

Czech Centres

Centre for Regional Development of the Czech Republic

Deadline: 20th May 2016

® Teritoriální publikace Česká republika – Váš obchodní partner Published by the PP Agency s.r.o.

Myslíkova 25, 110 00 Praha 1, Czech Republic E-mail: journal@ppagency.cz, www.ppagency.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

3

Czech bank for Czech Export

Czech Export Bank I I I I

Fully state-owned One of the pillars of the Czech pro-export policy Provides export financing to the riskier territories Bank clients are Czech exporters regardless of their turnover

Rating Standard and Poor’s AA– Moody’s Investors Services A1

Products Česká exportní banka, a.s.

Vodičkova 34, 111 21 Praha 1 Czech Republic tel.: +420 222 843 111 e-mail: ceb@ceb.cz fax: +420 224 226 162 www.ceb.cz

I I I I I I

Pre-export Credits Supplier’s Credits Guarantees Purchase of Export Receivables Financing investments abroad Buyer’s Credits

Prague  Charles Bridge

Contents FOREWORD Foreword by Mr Milan Hovorka, Ambassador of the Czech Republic to the Republic of India

6

Photo: CzechTourism (Dagmar Veselková), www.freeimages.com, Cover photo: www.freeimages.com, the firm's archives (Český metrologický institut; Explosia a.s.; Czech Blades s.r.o.; CRYSTAL GLAMOUR, a.s.; TOS VARNSDORF a.s.; ŠKODA AUTO a.s.)

Foreword by Mr Krishan Kumar, Ambassador of the Republic of India to the Czech Republic

7

Czech Exporters

8

Useful Information

10

Prague  Prague Castle

ECONOMICS Czech Economy in 2015

12

Trade Relations between the CR and the Republic of India

14

BUSINESS IN THE CZECH REPUBLIC CzechInvest Arranged Investments Worth USD 1.8 Billion in 2015

INSTITUTIONS PRESENT THEMSELVES Confederation of Industry of the Czech Republic

31

Czech Chamber of Commerce

31

Indian-Czech Joint Chamber of Commerce

32

International Chamber of Commerce in the CR

32

CzechTrade – Czech Trade Promotion Agency

34

18

CzechInvest – Business and Investment

Trading Companies in the Czech Republic

20

Development Agency

35

Tax System of the Czech Republic

23

CzechTourism – Czech Tourist Authority

35

Examples of Czech Projects in India

23

Czech Centres

36

Centre for Regional Development of the CR

36

Confederation of Employers’ and Entrepreneurs’

KEY SECTORS IN THE CZECH REPUBLIC Czech Engineering – Tradition and Future

24

Czech Automotive Industry Stepping up Its Dynamics

27

The Czech Republic – a Strong Player

Associations of the Czech Republic

37

CONTACTS

in the EU Energy Market

28

Useful Contacts in the Czech Republic

38

Nanotechnologies Entering into Big Business

29

Useful Contacts in the Republic of India

38

The Czech Republic, an Attractive Tourist Destination

30

The Most Important Websites

39

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

Dear Readers, I welcome the publication of this comprehensive report, which contains the most salient features that need to be considered when discussing the prospects of economic relations between the Czech Republic and India. It is a timely and useful publication. It comes at a time when both friendly countries are taking important strides to solidify the already thriving bilateral partnership and to generate better understanding of what more can be done at business-to-business levels to make full use of the potential both countries mutually offer.

The Czech Republic and India have succeeded in establishing a solid basis to build on. They have enjoyed long-standing bilateral political and economic relations. Some of the Czech Republic-based companies have been in India since the early 20th century. Many others joined them later. Overall, almost 100 investment units have been delivered by them to India. Many of these units have contributed significantly to the industrialisation of India and the creation of its manufacturing base.

Trade has traditionally been a backbone of the Czech Republic–India economic partnership. It has increased significantly over the last decade to reach USD 1.2 billion in 2015. It is a balanced trade in which both countries benefit from their strengths and comparative advantages. The good news is that an increasing number of investors on both sides are keen to invest and develop business activities in the other country´s markets.

Thus, much has been achieved. But there is still much more to be done. I would even dare to say that the best is still ahead of both countries. There is so much they can achieve together through greater understanding and more intensive economic cooperation and more frequent people-to-people contacts. The significant opportunities still to be seized are evident.

India has been successful in accelerating its economy, maintaining the robust pace of growth and becoming the fastest growing among the largest economies in the world. It is a kind of economic island of hope in a sea of uncertainties faced by the global economy. For companies from across the world, India is a vast field in which to share modern technologies and set new manufacturing capacities.

The Czech Republic, for its part, is one of the fastest growing economies in Europe and one of the best places to do business in this region. It is a highly industrial country with one of the highest industry-to-GDP ratios in the world. It is also a country in which companies have excelled at their high level of professionalism, price competitiveness and capacity to do business globally. These companies have at their disposal leading edge technologies that perfectly suit the needs of the Indian economy.

To conclude, needless to say, I personally as Ambassador of the Czech Republic to India, as well as my New Delhi based team, will do our utmost to increase awareness of the existing opportunities and assist companies in both countries to transform these opportunities into new successful trade and investment stories.

Milan Hovorka Ambassador of the Czech Republic to the Republic of India

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

Dear Readers, It is a matter of great pleasure that the Press and Publicity Agency is bringing out a new edition of “The Czech Republic – Your Trade Partner” with the objective of providing information and useful contacts to Indian and Czech entrepreneurs. This new, updated edition will undoubtedly be of immense benefit to the business communities of both countries.

India continues to be the fastest growing major economy in the world, despite the challenging global economic conditions. The world continues to hold abiding faith in the Indian growth story. In 2014–15, India contributed 12.5% of global growth. India has consistently been ranked as the most attractive investment destination by several global agencies and institutions. India has jumped 12 ranks in the latest global ranking by the World Bank on the ease of doing business. It has improved its ranking by 16 places in the World Economic Forum’s global competitive index. The “Make in India”, “Skill India” and “Digital India” campaigns have ensured that India is a land of immense business opportunities, which are available to Czech companies interested in doing business with India. I invite the Czech businessmen to be a part of India’s unfolding success story.

The Indo-Czech economic and commercial partnership goes back a long way. Czech companies had established a number of major industrial projects in India in the fields of energy, metallurgy, machine tools and transportation and had about 60 projects in India before 1990. Major Czech companies such as Skoda Auto, Vitkovice, Tatra, Skoda Power Doosan, etc. have invested in India. Likewise, Indian companies such as Infosys, Café Coffee Day and Lloyds have a presence in the Czech Republic.

The Czech Republic has identified India as one of the priority countries for its trade relations. From humble beginnings, our bilateral trade has been registered at more than one billion USD for the last few years. The last Indo-Czech Joint Economic Commission meeting, which took place in January 2015 in New Delhi, set an ambitious trade target of five billion dollars by the year 2020.

Our entrepreneurs should actively promote bilateral trade and investment in order to realise the immense untapped potential. Interactions between Czech companies and Indian companies for joint ventures, technology transfer and collaboration in auto and auto components, life sciences/biotechnology, IT/ITeS, high technology and also sectors such as food processing, water treatment, clean energy, and chemicals would produce mutual benefit.

To this end, I am sure that the latest edition of “The Czech Republic – Your Trade Partner” will prove to be a useful resource for our business communities.

Krishan Kumar Ambassador of the Republic of India to the 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

7

FOREWORD

Czech Exporters Czech enterprises that present their products and services in this publication intend to expand their exports and seek trade partners in India. The firms are listed according to the branch codes – NACE.

20.51 23.10 23.11 23.13 23.19

25.40 25.70

25.71 26.50

26.51

27.10

27.11

27.12

27.40 27.90

28.11

28.40

28.91

Support activities for other mining and quarrying INCO engineering s.r.o.

Manufacture of explosives Explosia a.s.

Manufacture of glass and glass products CRYSTAL GLAMOUR, a.s.

Manufacture of flat glass Ing. Josef Chlum - ELITE BOHEMIA Manufacture of hollow glass CRYSTAL GLAMOUR, a.s.

Manufacture and processing of other glass, including technical glassware Ing. Josef Chlum - ELITE BOHEMIA Manufacture of weapons and ammunition Explosia a.s.

Manufacture of cutlery, tools and general hardware Czech Blades s.r.o.

Manufacture of cutlery Czech Blades s.r.o.

Manufacture of instruments and appliances for measuring, testing and navigation; watches and clocks NEWTE spol. s r. o.

Manufacture of instruments and appliances for measuring, testing and navigation ZAM - SERVIS s.r.o.

Manufacture of electric motors, generators, transformers and electricity distribution and control apparatus AŽD Praha s.r.o.

Manufacture of electric motors, generators and transformers ZEZ SILKO, s.r.o.

Manufacture of electricity distribution and control apparatus ZAM - SERVIS s.r.o.

ZEZ SILKO, s.r.o.

Manufacture of electric lighting equipment Ing. Josef Chlum - ELITE BOHEMIA Manufacture of other electrical equipment T Machinery a.s.

ZEZ SILKO, s.r.o.

Manufacture of engines and turbines, except aircraft, vehicle and cycle engines Doosan Škoda Power s.r.o.

Manufacture of metal forming machinery and machine tools TOS VARNSDORF a.s.

Manufacture of machinery for metallurgy INCO engineering s.r.o.

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

25 22 37 19 37

19 Prague – the Petřín Observation Tower

22 28.92 22 22 28.93

26

28.99

26

29.20

2

33.20

17

52.21 58.10

26 17 62.00 19 33 17

64.11 64.99

13 71.20 40

74.30 84.22

25

Manufacture of machinery for mining, quarrying and construction T Machinery a.s.

33 INCO engineering s.r.o.

25 Manufacture of machinery for food, beverage and tobacco processing J 4 s.r.o.

25 Manufacture of other special-purpose machinery n.e.c.

J 4 s.r.o.

25 Manufacture of bodies (coachwork) for motor vehicles; manufacture of trailers and semi-trailers AGADOS, spol. s r.o.

9 Installation of industrial machinery and equipment ZAM - SERVIS s.r.o.

26 Service activities incidental to land transportation AŽD Praha s.r.o.

2 Publishing of books, periodicals and other publishing activities STAR Czech s.r.o.

11 Computer programming, consultancy and related activities STAR Czech s.r.o.

11 Central banking Česká exportní banka, a.s.

4 Other financial service activities, except insurance and pension funding n.e.c. Česká exportní banka, a.s.

4 Technical testing and analysis Český metrologický institut 33 Translation and interpretation activities STAR Czech s.r.o.

11 Defence activities Explosia a.s.

22

Photo: CzechTourism

09.90

TRADITION AND PROGRESS AGADOS s.r.o., the traditional Czech producer of trailers of total weight between 300 and 3500 kg; some of which can achieve speeds of 100 km per hour.

AGADOS s.r.o. • PRŮMYSLOVÁ 2081 • 594 01 VELKÉ MEZIŘÍČÍ • CZECH REPUBLIC • PHONE: +420 566 653 301 FAX: +420 566 653 368 • E-MAIL: OSTRY@AGADOS.CZ • WWW.AGADOS.CZ

FOREWORD

Useful Information State symbols of the Czech Republic Coat of Arms

National Flag

The Czech Republic is a landlocked country situated in Central Europe and bordering on Germany, Austria, Slovakia, and Poland.

ESSENTIAL INDICATORS

Křivoklát Castle

Population Surface area Capital city Parliamentary system Language Highest peak Time zone Currency Internet domain:

10 553 843 (December 2015) 78 864 sq. km Prague Parliamentary democracy Czech Sněžka (1603 m.a.s.l.)

Central European time GMT + 1, summer time GMT + 2 Czech crown (Kč/CZK) = 100 hellers 100 INR = 35,699 CZK .cz

The President of the Czech Republic is Miloš Zeman

MEMBERSHIP The Czech Republic is a member of the European Union, the United Nations, NATO, WTO, the International Monetary Fund, the International Bank for Reconstruction and Development, the European Bank for Reconstruction and Development, OECD and many other organisations.

UNESCO WORLD HERITAGE The UNESCO World Cultural Heritage List comprises the following cities and sites: Prague, Český Krumlov, Kutná Hora, Litomyšl Castle, Telč, Lednice-Valtice area, Zelená Hora (Green Mountain) – St. Jan of Nepomuk Church, Holašovice, Kroměříž (castle and gardens), Holy Trinity Column in Olomouc, Tugendhat Villa in Brno (architect Ludwig Mies van der Rohe), St. Procopius Basilica and the Jewish Quarter in Třebíč. In 2005, the Moravian-Slovakian Verbuňk recruitment dance was inscribed on the UNESCO Intangible Cultural Heritage List. In 2010, another entry on the List was the Shrovetide Carnival and Falconry and, in 2011, the Moravian-Slovakian Ride of the Kings. More information can be found at www.unesco-czech.cz.

NOTABLE PERSONS

Jindřichův Hradec

Czechs are considered a very cultured nation, which has given the world a number of significant persons. The most important rulers and heads of state are Emperor Charles IV and the Presidents T.G. Masaryk and Václav Havel. World renowned personalities include the scientists Jaroslav Heyrovský (holder of the Nobel Prize for Chemistry), Otto Wichterle, Czech chemist who invented contact lenses, and Antonín Holý, who helped to create a drug used in the treatment of AIDS. Other world renowned persons are Tomáš Baťa, creator of a shoe empire between the Two World Wars, and Madeleine Albright, former US Secretary of State. In the field of culture, great names are those of the composers Bedřich Smetana, Leoš Janáček, Antonín Dvořák, and Bohuslav Martinů, the writers Franz Kafka, Karel Čapek, Jaroslav Seifert (holder of the Nobel Prize), Jaroslav Hašek, Bohumil Hrabal, Other practical information concerning travel conditions to visit or reside in the Czech Republic are to be found at www.czech.cz

Photo: CzechTourism, www.freeimages.com; Map source: Roads and Motorways Headquarters

Mariánské Lázně – the Colonnade

PRACTICAL INFORMATION and Milan Kundera. Oscar prizes have been awarded to film directors Miloš Forman (born in the Czech Republic), Jiří Menzel, and Jan Svěrák. Other famous people of culture are the painters František Kupka and Alfons Mucha and the photographer Jan Saudek. Sportsmen who have gained international fame are, for example, Emil Zátopek, Věra Čáslavská, Martina Navrátilová, Jaromír Jágr, Petr Čech, Barbora Špotáková, Petra Kvitová, Martina Sáblíková, and Eva Samková.

Dialling code: +(420). More detailed information about telephone numbers can be found on the www.zlatestranky.cz website.

Licences for operating mobile networks on the territory of the Czech Republic have been awarded to the following companies: O2 Czech Republic a.s., T-Mobile Czech Republic a.s., Vodafone Czech Republic a.s. and Air Telecom a.s.

The most popular credit cards in the Czech Republic are Eurocard/Mastercard and Visa.

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

Czech Economy in 2015 In 2015, after years of recession, the Czech economy showed the best performance since 2008. Evidence of this is both the growth of gross domestic product and gross added value.

Both indicators rose throughout all the quarters year-on-year.

7.5% and imports by 8.6%. The balance of trade showed a surplus of CZK 426 billion (USD 17.3 billion). The highest surplus, the same as in 2014, was shown by the Machinery and Transport Vehicles group and the Industrial Goods group. On the other hand, a deficit was shown by the Mineral Oils and Lubricants group and the Chemicals and related products group.

GROSS DOMESTIC PRODUCT In 2015, GDP was 4.3% up on the 2014 year, according to the latest estimate, with year-on-year growth in 2014 amounting to 2.0%. The growth was assisted especially by household consumption and more intensive investment activity.

Gross value added (GVA), measuring economic efficiency, grew in all the quarters of 2015. Adding to its growth was in particular the manufacturing industry assisted by several smaller sectors.

PRICES In 2015, the inflation rate as measured by the consumer price index was 0.3%, the lowest since 2003. Prices in the Foods and Non-alcoholic Beverages group and the massive reduction in fuel prices were mostly responsible for the year-on-year decrease in the level of consumer prices. The declining trend continued in the Posts and Telecommunications sector. In the Health-care sector, the decrease was reflected in the abolition of regulatory health fees for doctors‘ visits and for medical prescriptions. The higher tobacco prices had the opposite effect.

INDUSTRY Industrial production in 2015 increased by 4.4% over the previous year. Nearly all branches of the manufacturing industry showed a year-on-year growth, in particular the manufacture of motor vehicles and other means of transport (+4.5%) and the manufacture of chemical substances and chemical preparations (+ 9.5%). In general, the manufacturing industry was 5.6% up year-on-year. The only sectors to be below the 2014 level were mining and extraction (98.3%), basic metals production (90.0%), and the chemical industry (94.3%).

WAGES The average monthly gross nominal wages of employees (in terms of the full-time equivalent) in 2015 was CZK 26 467 (approximately/ USD 1 076). Nominally the wages were up by 3.4% and really by 3.1% year-on-year. The growth rate was the highest for the past 8 years. Real growth in the business sphere was 0.2% lower than in the non-business sphere, where the growth of wages was favourably influenced by the raising of the wage tariffs at the end of 2014.

FOREIGN TRADE*

Jana Bondyová

In foreign trade (cross border trading) the favourable trend of previous years continued.

In comparison with 2014, exports increased by

Czech Statistical Office, www.czso.cz *) The average monthly exchange rate fixed by the CNB was used for CZK/EUR conversion.

Macroeconomic Indicators of the Czech Republic 2009

2010

2011

2012

2013

2014

2015

3 924.6

3 950.6

4 019.8

4 041.9

4 077.3

4 261.1

4 475.8

%, real, y/y

-4.7

2.1

2.0

-0.8

-0.5

2.0

4.3

%, y/y

Gross Domestic Product (current prices)1) CZK, billion 1)

Gross Domestic Product Industrial Production

-13.6

8.6

5.9

-0.8

-0.1

5

4.4

Registered unemployment 2)

%

9.2

9.6

8.6

9.4

8.2

7.5

6.2

General unemployment rate according to selective labour force examination3)

%

6.7

7.3

6.7

7.0

7.0

6.1

6.4

Inflation Rate

%, y/y

1.0

1.5

1.9

3.3

1.4

0.4

0.3

Inflation (HICP)4)

%, average

0.6

1.2

2.1

3.5

2.7

0.1

0.2

Exports5)

USD, mil.

113 176.0

133 020.0

162 897.0

157 167.0

162 302.4

175 016.8

158 646.6

5)

Exports

%, y/y

Imports5)

USD, mil.

Imports5)

%, y/y

-22.7

16.9

22.5

-3.5

3.3

7.5

-9.4

105 256.0

126 600.0

152 122.0

141 515.0

144 319.9

154 233.2

141 318.5

-26.0

19.4

20.2

-7.0

2.0

6.1

-8.4

Balance of Trade5)

USD, mil.

7 920.0

6 420.0

10 775.0

15 651.7

17 982.6

20 783.6

17 328.1

CZK/EUR6)

average

26.445

25.290

24.586

25.143

25.974

27.533

27.283

6)

average

19.057

19.111

17.688

19.583

19.565

20.746

24.600

CZK/USD

Source: Czech Statistical Office, Czech National Bank (ČNB); General note: y/y shows year-on-year change in the indicator; 1) Data after revision under the ESA 2010 system of accounts, 2015 estimate; 2) Unemployment to total population ratio = number of eligible job seekers aged 15-64 years/population in percent, situation at the end of the year; 3) LFSS = Labour Force Sample Survey; 4) HICP = Harmonised Index of Consumer Prices, inflation rate

by EU method; 5) Foreign trade data expressed in USD are the sum of the different monthly values in CZK calculated by the average monthly exchange rate announced by the Czech National Bank; 6) Czech National Bank;

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

Doosan Škoda Power Innovating Energy Solutions Doosan Škoda Power, with 111+ years experience has pioneered numerous technological advancement in steam turbine industry. We are a leading supplier of modern systems, components and services in the field of design and manufacturing of steam turbines and equipment throughout the world.

In 2015, Doosan Škoda Power has successfully commissioned, first of its kind,180 MW single casing reheat type steam turbine (DST-S10 model) at Gummidipoondi, Chennai, Tamilnadu of OPG Power Generation Ltd.

Doosan Škoda Power single casing steam turbine 180 MW for 3000 RPM, type DST-S10 (MTD40CR) with reheating and axial exhaust

www.doosanskodapower.com

Salient features of the DST-S10 unit are: Ǯ /DUJH RXWSXW RI UHKHDW VWHDP WXUELQH LQ VLQJOH FDVLQJ Ǯ $[LDO H[KDXVW WR $&& ZLWK UREXVW /6% IRU LQFUHDVHG EDFN pressures Ǯ +HDW UDWH DQG V\VWHP RI UHJHQHUDWLYH KHDWHUV DUH IXOO\ comparable to double casing solution Ǯ 6LPSOH OD\RXW ZLWK FRPSDFW YDOYHV FRQȨJXUDWLRQ RQO\ RQH FRPPRQ YDOYH FKDPEHU IRU HDFK +3 RU ,3 VWHDP

Ǯ 8QLIRUP SUHKHDW RI LQOHW FKDPEHU DQG URWRU HFFHQWULFLW\ start up module Ǯ ([FHOOHQW UHOLDELOLW\ DQG VDIH RSHUDWLRQ Ǯ (DV\ PDLQWHQDQFH

ECONOMICS

Trade Relations between the CR and the Republic of India

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

Mutual trade in the last five years (in thous. USD) Export

Import

Turnover

Balance

2011

852 886

653 098

1 505 984

199 788

2012

653 857

595 541

1 249 398

58 316

2013

561 588

641 843

1 203 431

-80 255

2014

593 489

725 900

1 319 389

-132 411

2015

545 926

669 757

1 215 683

-123 831

Source: Ministry of Industry and Trade of the Czech Republic

the most prestigious foreign direct investment by a Czech company into a manufacturing plant in India was the founding of Škoda Auto India company which began manufacturing its first passenger cars in 2001 in Aurangabad. In April 2016, the city of Aurangabad was also the witness to a ceremonial opening of a new plant for the second largest Czech industrial investor in India – Bonatrans. Thanks to its new factory in Aurangabad, the company Bonatrans, a long-term supplier of railway wheels and wheel-sets, will now be able to fully draw on the competitive advantages afforded by manufacturing in India for the local market. The investment of Czech companies in India, however, is not aimed solely at industry. The sector of services is on the rise as well, with Home Credit Company, a Czech provider of micro credits, coming forward to take its place in the sector and quickly becoming one of the largest employers in India from among Czech investors thanks to its vast network of subsidiaries.

The rather significant presence of Czech companies in India has led to the founding of Czech Business Platform, an informal association of Czech companies with the goal of sharing best practices and experience on the Indian market. At the founding of the platform in May 2016, coordinated by the Czech Embassy in Delhi, all Czech investors and other companies with significant presence in India have actively applied to participate: Škoda Auto India, Tatra Trucks India, Bonatrans India, Gearspect, Lasvit India, Vítkovice India Power, CATAI, Home Credit India Finance, Zetor India, Fans Asia, ZKL Bearings (India), Technicoat, STROS ESQUIRE, Doosan Skoda Power, Preciosa and Papcel Technology India. Other Czech companies operating actively on the Indian market have also expressed their interest in participating in the initiative: TTC, ERA, M & Bc Fiamoli, Retia, and Cink Hydro-Energy.

In mid-April 2012, a centre for Czech glass products and design, the Czech Art Gallery, has been opened in Mumbai. The interest of key Czech glass-making companies such as Preciosa, Lasvit, or Hamřík, and their success as well as contracts realised on the Indian market serve as evidence that this traditionally strong Czech export commodity continues to find its customers in India.

However, the Czech Republic is not only a source of investment in the promising and dynamically developing Indian economy. It is also a long-time leader among Central European countries in a number of indicators for competitiveness of economy and ease of doing business. Moreover, it can lean on its strategic position in the middle of Europe, as well as on its developed transportation network which connects it well to the neighbouring countries. That is to say nothing of the highly skilled labour available. The above arguments have surely played a vital role in the decisions of a number of Indian

Photo: www.freeimages.com

The Czech-Indian trade relations have a long tradition dating back all the way to the interwar period. These relations started picking up steam especially after India had gained its independence in 1947 due to, on one hand, India's position as one of the world's most important developing countries, and on the other hand the similarity of the political-economic views of both countries' governments in the 1960s and 70s. Even today, the country's economic relations with the Czech Republic are excellent, as the latter is seen as the successor of the former Czechoslovakia and therefore a traditional supplier of engineering equipment and technologies and India's partner in business and economic cooperation and in the industrialisation of the country since it gained its independence.

In the past, Czech companies have built a number of industrial facilities in India, such as the engineering metallurgy plant in Ranchi, plant for manufacturing machine tools in Ajmer, plant for manufacturing Zetor tractors - Hindustan Tractors, plant for manufacturing Jawa motorcycles in Mysore, plant for manufacturing power-producing devices (turbines) in Hyderabad, Ennore power plant near Madras, or a rolling mill plant in Vishakapatnam. Aside from these, India was also a buyer for a wide variety of engineering products (diesel units, Tatra lorries, machine tools, textile, printing, leather manufacturing and shoemaking machines, tools and machines for the food processing industry) and non-engineering goods (iron and steel products, plastic materials, glass).

Czech exports into India are still composed in large part of engineering equipment, primarily components for the assembly of Škoda cars and Tatra lorries, or machine tools, printing machines, devices and components for the power industry, bearings, injection pumps, and regulating and operating equipment. Non-engineering goods are mostly represented by telecommunication devices, organic chemicals, optical fibres, photomaterials, glass and paper products.

Gradually, however, some Czech companies have begun to build on their export experience with the Indian market and are realising investment projects in India, founding wholly owned subsidiaries or joint ventures with Indian partners. They do so in accordance with government initiative called "Make in India" and just as a few decades ago during the initial industrialisation of India, Czech companies are once again taking part in broadening the industrial infrastructure of India. The first and so far

investors who have decided in recent years to invest into production capacities in the Czech Republic. Indian investors in the Czech Republic include global companies such as Arcelor Mittal, Tata Sons, or Infosys, who have invested into metallurgy, tea production and BPO (Business Process Outsourcing) respectively. Other Indian companies investing in Czech production plants for the car industry, textile industry, chemical and pharmaceutical industry or the applied IT sector include: Kanoria Chemicals & Industries, Alok Textile Industries, Glenmark Pharmaceuticals, Lloyd Electric and Engineering, Minda Management Services, Shriram EPC, Spentex Industries, Varroc Group, and Zomato.

Other opportunities to expand Czech exports to India stem from highly competitive export branches which correspond well with certain priorities set by the Indian government. This category includes, for instance, national development initiatives such as Smart Cities or Clean Ganga, and Clean India Mission. Thanks to their advanced technologies, Czech companies could significantly contribute to the success of these important campaigns by supplying products for developing a modern transportation infrastructure, clean energy (including nuclear), obtaining resources, treating and purifying water, or modernising the engineering industry within the above-mentioned ”Make in India” initiative. In the field of heavy engineering, mutual Indian-Czech cooperation can build not only on a long-running tradition of supplying machinery for Indian manufacturing plants, but also on the institutionalised dialogue within the context of a common working group between the corresponding ministries and heavy engineering companies from both countries. Incidentally, the establishment of a mixed working group was decided upon by a mixed commission for economic cooperation which meets regularly and is chaired by ministers from both countries.

A large amount of interest and diverse opportunities for business cooperation can be found in air transport. Czech manufacturers of radio-locators and electronics used in air-traffic control have met with great success in recent years when supplying their products to several Indian airports. Czech manufacturers of aircraft and modular airports can contribute in India, for instance, to the development

of regional air transport, which is currently a topic of hot debate in India. In addition, a joint venture was founded in India with the goal of offering training capacities for aircrew and professionals for air-traffic control.

Aside from the above-mentioned Czech investor in India, Bonatrans, other Czech companies have also expressed their interest in long-term cooperation with Indian partners. To this end, a memorandum has been signed in 2014 regarding an understanding between the Czech railway company České dráhy, Association of Czech Railway Industry and Indian Railways.

The economic relations between India and the Czech Republic can today lean also on a dynamically growing travel industry in both directions. An undeniable contribution to this effort came, inter alia, from the making of several Bollywood films shot in Prague and other locations. A similar contribution to the development of economic relations between the two countries is made by educational exchange.

The number of Indian students attending Czech schools continues to grow and future graduates can draw on the knowledge gained in the Czech environment in their future professional life and can aid in promoting further development of the business relations.

One of the pillars of the engineering cooperation is without a doubt the construction of Tatra lorries in India in the factories of the Indian company BEML. A key point in mutual cooperation in the defence industry is the delivery of several thousand vehicles supplied to the Indian armed forces. However, other companies from the Czech defence and security 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 15

ECONOMICS

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

growth by 5.7% to USD 593.5 mil. During this period, exports from India increased by 13.1% to USD 725.9 mil. The trade gap grew to USD 132.4 mil. In 2015, Czech exports dropped by 8%, to USD 546 mil. compared to 2014, while imports from India decreased by 7.5% to USD 671 mil. Thus, the trade gap slightly decreased.

CONTRACTS CONCLUDED BETWEEN THE COUNTRIES l Agreement on Economic Cooperation between the Government of the Czech Republic and the Government of the Republic of India – Prague, 8. 6. 2010 (invalidated Trade Agreement between the Government of the Czech Republic and the Government of the Republic of India – Delhi 15. 3. 1993); l Agreement between the Czech Republic and the Republic of India on the Support and Protection of Investments – Prague 11. 10. 1996, effective since 6. 2. 1998; l Double Taxation Treaty between the Government of the Czech Republic and the Government of the Republic of India – Prague 1. 10. 1998, effective since 27. 9. 1999; l Agreement between Czechoslovakia and India on Scientific, Technical, and Industrial Co-operation – Prague 30. 5. 1973, effective since 30. 11. 1973; l Agreement between the Government of Czechoslovakia and the Government of the Republic of India on the Use of Nuclear Energy for Peaceful Purposes – Delhi 9. 11. 1966, effective since 1. 1. 1967; l Agreement between the Government of the Czech Republic and the Government of the Republic of India on Air Transportation – Delhi 16. 10. 1997, effective since 14. 9. 1999.

Written based on documents procured from Ministry of Industry and Trade of the Czech Republic Milan Touš Commercial Economic Counsellor, Embassy of the Czech Republic and Documents of the Ministry of Trade and Industry

Photo: www.freeimages.com

industry are interested in working with their Indian counterparts as well.

Opportunities for cooperation are also presenting themselves in the field of supplies for health care, as demonstrated by the foremost Czech producers of medical equipment, who have expressed interest in cooperating with Indian health-care facilities and distributors of equipment and health-care products.

Economic cooperation can also develop in the food industry. The Czech Republic is a producer of the Pilsner lager and the awareness of its excellent taste is quickly spreading through India thanks to the ever increasing number of Indian tourists travelling to the Czech Republic. Czech beer produced in India from Czech ingredients and based on a Czech recipe has been introduced onto the Indian market in 2016. The growing popularity of wines among Indian consumers has also gained the attention of Moravian winemakers, who have several times presented their assortment of excellent wines in India and are striving, alongside their Indian partners, to extend the assortment of wines available on the Indian market with wines from Moravia.

Imports from India consist predominantly of clothes and fabrics, pharmaceuticals, vehicles, components for electrical devices and metallurgical products. India also exports certain types of chemicals, plastics, engineering components, leather products, coffee, tea, spice, or tobacco.

Since the formation of an independent Czech Republic in 1993, Czech exports into India have been showing a gradual growth. Higher growth dynamics in both indicators (exports and imports) have been recorded in trade exchange between the Czech Republic and India since 2004. In 2011, the turnover exceeded USD 1.5 mld. for the first time. However, Czech exports into India began to fluctuate afterwards.

In 2012, the Czech Republic exported USD 656 mil. worth of goods into India (- 22% compared to 2011) and imported USD 596 mil. worth of goods (- 9% compared to 2011). Czech exports into India in 2012 reflected the slowdown in Indian economic growth and therefore experienced its first major drop since 2003. This was further influenced by a decrease in the import of car components by Škoda Auto India, which began obtaining some of these components directly on the Indian market. However, the trade balance remained in the black. In 2013, the drop in Czech exports continued to 13.5% compared to 2012, totalling USD 565.8 mil.

However, import from India has increased year-on-year by 5.8% to USD 629.9 mil., which pushed the trade balance into the red for the first time since 2004 (USD - 64.1 mil.). Mutual trade turnover reached USD 1 195.7 mil. and decreased compared to 2012 (USD 1 249.4 mil.) due to Czech exports decreasing by 4.3%. In 2014, Czech exports recorded a year-on-year

ENERGY UNDER CONTROL Power Capacitors Power Electronics Capacitors Induction Heating Capacitors Reactors (Inductors) Capacitor Banks Components for Power Factor Correction ZEZ SILKO, s.r.o., Pod Černým lesem 683, 564 01 Žamberk tel.: +420 465 673 111, faks.: +420 465 612 319, e-mail: zez@zez-silko.cz, www.zez-silko.cz

BUSINESS

CzechInvest Arranged Investments Worth USD 1.8 Billion in 2015 The significantly reduced investment-aid intensity introduced by a European Commission regulation in 2014 did not make it easier to attract investment to the country. CzechInvest is therefore striving to compensate investors for the reduction with the accelerated execution of projects, high-quality client service and an increase in the number of employees working in the field. In comparison with the past, there are fewer investors who rely on investment incentives. More than 30% of investors did not request them in the 2015 year.

Leaving aside Czech investments, the largest volume of arranged investments is from the United States, Germany, and Taiwan. There was also significant growth in investments from China last year. CzechInvest had previously mediated Chinese investments in the maximum annual value of USD 21 million, whereas last year that figure reached USD 47 million.

Further investments, which could bring more 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

than USD 200 million to the Czech Republic, are under discussion.

As usual, the largest share of investments is in the vehicle-manufacturing sector, as well as in metalworking and metal-processing and the electronics industry.

There is comparable growth in high-tech investments in the areas of ICT, technology centres, and shared-services centres.

The most interesting investments with large numbers of newly created jobs include those of INA Lanškroun and Foxconn, which were also the biggest investments negotiated last year. Foxconn has been operating in the Czech Republic since 2000 and currently employs 5 000 people here, making it one of the most important employers in the country.

The company’s Czech plant is its biggest facility in the world for the production of desktop computers. The planned investments should reach the value of CZK 2.5 billion. Foxconn is planning to invest an additional CZK 3.7 billion in human resources. The top ten investments of last year also include, for example, the expansion of production undertaken by MD ELEKTRONIK and the expansion of Devro.

CzechInvest www.czechinvest.org Note: USD 1 = CZK 23.836 (average exchange rate fixed by the Czech National Bank in April 2016

Photo: PhotoCombo (Photomontage)

In 2015, CzechInvest arranged 106 domestic and foreign investments, thanks to which nearly USD 1.8 billion will be added to the Czech economy and 14 040 jobs will be created.

Bohemian crystal chandeliers of European quality Elite Bohemia, 513 01 Semily, Czech Republic, tel./fax: +420 481 622 632, tel./fax: +420 481 622 566 www.elitebohemia.cz, e-mail: obchod@elitebohemia.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

19

BUSINESS

Trading Companies in the CR

DIFFERENT TYPES OF TRADING COMPANIES The legal regulation of trading companies within the Czech legal system is in particular comprised in the following legislative acts: Trading Corporations Act, Civil Code, and Act on Public Registers of Juristic and Natural Persons. The Trading Corporations Act regulates the different types of trading companies in the CR, which include the Unlimited Liability Company and the Limited Partnership Company (personal companies), plus the European Company Law and the European Economic Association. The most widely used forms of trading companies in the CR are the Limited Liability Company and the Joint Stock Company. In India, the legal regulation of trading companies is comprised in the 1956 Companies Act. There, too, the most widely used forms are the Limited Liability Company and the Joint Stock Company. In 2013, India´s legislation provided for the introduction of a new type of trading institution, the “One Member Company”, which, unlike the Limited Liability Company or the Joint Stock Company, may be founded by a sole person.

FOUNDING AND ESTABLISHING TRADING COMPANIES In the Czech Republic, trading companies are founded on the basis of a Memorandum of Association. The Memorandum of Association, on the basis of which the Limited Liability Company and the Joint Stock Company are founded, must have the form of a public instrument, i.e. must be drafted as a notarial deed. In the case of the Joint Stock Company, in addition, the adoption of Articles of Association is required. In the case of a company being established by a sole person, that company must be founded on the basis of the Foundation Deed and must have the form of a public instrument. The actual establishment of a Czech trading company is conditioned by the company´s being entered in the Company Register (constitutive registration). The authority to decide on its entry is the locally appropriate regional court according to the location of the company´s registered address.

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

The registration of trading companies in India is carried out by the Registrar of Companies. In the Czech Republic, in order to shorten the registration process and to save public funds in the area of justice, a direct entry in the Company Register through a Notary is permitted in some cases, provided all the required documents needed for registration have been submitted to the Notary. However, only a Notary who has him/herself drafted all the necessary documents may make the entry. In any case, this is only a facultative possibility and the founders can always apply to the locally appropriate Commercial Court in charge of the Company Register. The Company Register is one of the public registers regulated by the Act on Public Registers of Juristic and Natural Persons. This is a public administration system operated in electronic form and is administered by the appropriate court (the appropriate regional court) according to the company´s registered address. The Register, which comprises the most important information about the trading companies (name of company, its registered address, names of the members of the company´s statutory bodies and their number, the amount of the contributions, registered capital, etc.) and other data stipulated by the Act on Public Registers of Juristic and Natural Persons, is open to the public. Information about trading companies is also available on the website: http://portal.justice.cz/ Justice2/Uvod/uvod.aspx (where documents supplied by the companies to the Company Register can be found in electronic form), or at www.obchodnirejstrik.cz. Petitions for entry in the Company Register must be filed electronically on special forms available at https://or.justice.cz/ias/ui/podani. The petition for entry must be supported with documents confirming the facts to be entered in the Company Register and documents to be filed in the collection of documents in connection with this entry (especially the founding documents – Foundation Deed, Articles of Association or Company Statutes, documents proving the subject of the company´s business, documents on the payment of the investment – e.g. a statement by the investment administrator confirming that the investment was paid down, documents stating the company´s registered address, etc.). The petition for entry in the Company Register must be filed

Photo: www.sxc.hu (Photomontage)

The purpose of this article is to give an outline of the main features of Czech legislation concerning trading companies in context, with corresponding legal regulations in India. We define the different forms of trading companies in the Czech Republic and their essential features and also explain how to found and establish trading companies in the Czech Republic. In addition, we mention certain differences and identical features in the legislations of the two countries.

within six months of the founding of the company at the latest. An essential condition for entry in the Company Register is the payment of a court fee to the amount of CZK 12 000 (approximately INR 33 674) in the case of a Joint Stock Company and CZK 6 999 (approx.

INR 16 837) in the case of all other trading companies. In the case of a company being entered in the Company Register through the intermediary of a Notary, after all the above-mentioned terms and conditions have been met, the court fee is lower, for example in the case of a Limited Liability Company, the court fee is CZK 2 700 (approx. INR 7 577).

UNLIMITED LIABILITY COMPANY, LIMITED PARTNERSHIP COMPANY Under Czech law, the Unlimited Liability Company is a company of at least two persons who participate in their business activities or the administration of their assets and are liable for their debts jointly and severally. The Limited Partnership Company is a company in which at least one partner has limited liability for its debts (limited partner) and at least one partner has unlimited liability (general partner).

LIMITED LIABILITY COMPANY The Limited Liability Company is defined as a capital company used for collective business. It is defined by law as a company whose partners are liable for the company´s debts jointly and severally for the amount to which they failed to meet their contribution obligations to the level stated in the Company Register at the time when they were called upon by the creditor to pay. A Limited Liability Company may be founded by a sole founder, while the maximum number of founders (partners) is not limited by law. The share of a partner in a Czech Limited Liability Company is determined by the ratio of his contribution to his share of the company´s registered capital, unless otherwise provided for by the Memorandum of Association. The Memorandum of Association may admit the existence of different kinds of shares, where the partner may own more shares, even of a different kind (provided the Memorandum allows for this). The minimum amount of contribution, i.e. the pecuniary expression of the value of the object of contribution to the registered capital is CZK 1 (approximately INR 3), unless the Memorandum provides for a higher amount of the contribution. This means that the registered capital of a Czech Limited Liability Company may be only CZK 1 (approx. INR 3). A partner in a Czech Limited Liability Company must meet his obligation to pay down his contribution within a time limit determined by the Memorandum, but not later than within five years of the establishment of the company. The partner may not be exempt from his obligation to make the contribution, except in the

case of the company having reduced its registered capital. The General Meeting may expel a partner who is in delay with the fulfilment of his obligation to pay the contribution. The obligatory bodies of Czech Limited Liability Companies are the General Meeting and the Company Secretary or Secretaries. The partners in a Limited Liability Company execute their right to participate in the management of the company at the General Meeting or outside of it. The Secretary is the statutory body of the Limited Liability Company.

JOINT STOCK COMPANY The Joint Stock Company is defined by the Companies Act as a company whose registered capital is divided into a certain number of shares.

The registered capital of a Czech Joint Stock Company is denominated in Czech crowns. In the case of a Joint Stock Company keeping its accounts in euros under special legislation, it may express its registered capital in euros. Its minimum registered capital must be at least CZK 2 000 000 (approx. INR 5 612 302) or USD 81 301.

To found a company, the partners are required to adopt the company Articles of Association.

The founding of the company becomes effective after each founder has paid the share premium, and in sum at least 30% of the nominal or account value of the subscribed shares within a time limit stipulated in the Articles, in the account of the bank stated in the Articles, but not later than the petition for the company´s entry in the Company Register has been filed. In the CR, a Joint Stock Company may be founded even by a sole founder. A Joint Stock Company is founded without a public offer of shares, which means that it is founded only by the investments of the founders who shall subscribe for all shares. The Companies Act makes it possible for the founders of a Czech Joint Stock Company to choose, within the framework of the system of the internal structure of the Joint Stock Company bodies, between a dualistic and a monistic structure. In the case of the dualistic structure, the company sets up the Board of Directors and the Supervisory Board, in addition to the General Meeting. In the case of the monistic structure, the company, in place of these two bodies, sets up the Management Board, comprising the Statutory Manager, where the Management Board can have only one member. This means that a situation may arise where the sole member of the Management Board will simultaneously be the Statutory Manager.

Lawyers Office Hartmann, Jelínek, Fráňa a partneři, s.r.o. www.hjf.cz INR 100 = CZK 35.636 according to the exchange rate fixed by the Czech National Bank on 10 May 2016.

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

BUSINESS

POWER • TRADITION INNOVATION • PROPELLANTS AMMUNITION • EXPLOSIVES SAFETY

MORE THAN 40 COUNTRIES

www.explosia.cz Tel.: + 420 466 824 649 propellants@explosia.cz Fax: +420 466 822 943 Tel.: + 420 466 825 331 explosives@explosia.cz Fax: +420 466 822 939

Czech Blades s.r.o. has been producing high-quality razors and industrial blades for more than 60 years. This Czech-owned company is a leading producer of carbon steel blades throughout the world and continues the high standards of the previous owners Astra Diu and Gillette. Czech Blades is certified ISO 9001 and ISO 14001. The company is also the recipient of the Gillette Award for the top 20 global suppliers of Procter & Gamble. Our portfolio of trademarks include the famous brands TIGER, TATRA, SOKOL, LUXOR, LEON and INDUSTRIAL, which are of very high quality and value for customers around the world.

Industrial blades have extraordinary utility value and consistent high quality. Long durability life, cutting efficiency and excellent performance are guaranteed by using high quality material and following quality management system.

Applications: blades are mainly used in plastics industry (cutting of foils, films, tapes etc.) automotive industry (glass,textile, plastics), textile industry, constructions,rubber industry,consumer industry, medical industry (blades for shaving or pedicure) etc.

Special application is in food industry (blades for potato and vegetable slicers, production of potato chips).

CONTACTS: CZECH BLADES s.r.o.

Brnenska 559, 569 43 Jevicko, Czech Republic Tel.: 00420 461 801 111 Fax: 00420 461 801 129 sales@czechblades.cz www.czechblades.cz

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

Tax System of the Czech Republic In its main characteristics, the tax system of the Czech Republic is similar to the systems of the other EU and OECD countries.

1. DIRECT TAXES Payers of personal income tax are all natural persons domiciled on the territory of the Czech Republic or those habitually resident here.

The tax period is the calendar year. The tax base is the sum of all income, which the law divides into income from employment, income from business, income from lease, capital income, and other income.

The basic rate is 15%, and at the same time an additional increase of 7% solidarity tax is payable on above-limit income, i.e. monthly income of natural persons exceeding approx. CZK 100 000/USD 4 195 (four times the average monthly wage).

Payers of corporate income tax are all types of juristic persons depending on the address of their registered office or place from which they conduct their business. The tax period is the calendar year or another twelve-month period. The tax base is the amount of profit, i.e. the difference between income and expenditure relating to the relevant tax period. Income and expenditure are ascertained from the books of acUSEFUL LINKS Ministry of Finance www.mfcr.cz Czech Tax Administration www.financnisprava.cz OECD Tax Database www.oecd.org/ctp/taxdatabase OECD Taxing Wages www.oecd.org/ctp/tax-policy/ taxing-wages.htm

counts kept according to Czech national accounting standards. Only tax allowable expenses, i.e. those incurred to generate, secure, and maintain income, can be deducted. Asset depreciation is carried out individually. The rate is 19%.

Other taxes include Road Tax, Real Estate Tax, and Tax on the Acquisition of Real Estate.

2. INDIRECT TAXES Value-Added Tax is harmonised with EU legislation. Currently the liability to register for VAT applies to persons with a turnover of more than CZK 1 million/USD 41 953 per year.

Persons with a lower turnover may register voluntarily. The rates are 10%, 15% and 21%.

Excise Duties, too, are harmonised with the respective Directives. Excise duties apply to mineral oils, spirits, beer, wine, tobacco products, electricity, solid fuels (coal and coke) and natural gas.

Zdeněk Hrdlička Ministry of Finance www.mfcr.cz Note: USD 1 = CZK 23.836 (average exchange rate announced by the Czech National Bank in April 2016)

Photo: Doosan Škoda Power s.r.o. archive

Examples of Czech Projects in India

One of the examples from among many Czech companies operating on the Indian market is Doosan Škoda Power, a major Czech supplier of steam turbines in the range of 10 to 1200 MW for all applications including retrofits/modernisations. The company's tradition dates back all the way to 1904 when Škoda produced the first steam turbine with an output of 420 kW. Since 2009, the company is

part of the Doosan group, for which it became a global centre of research and development.

India is home to over one billion people and has an installed electrical capacity of 280GW. It is also a major trading partner for the Czech Republic with a total of 120 steam turbines purchased so far. Doosan Škoda Power operates on the market via a wholly owned subsidiary Škoda Power Pvt. Ltd., which promotes the realisation of projects in the region through local deliveries and services while also providing repair service for previously delivered devices.

Currently, the company has put into operation a 130 MW turbine in CCPP Pioneer in Maharasthra and a 210 MW steam turbine during the modernisation of an existing coal power plant Bandel in West Bengal. The company prides itself on the launch of a 180 MW turbine in the coal block of OPG in Tamil Nadu. It is the first single-body steam turbine with additional heating on the Indian market and one of the largest turbines of its type in the world.

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

KEY SECTORS

Czech Engineering – Tradition and Future Engineering is an industry of key importance to the Czech Republic, especially as regards GDP creation, the balance of trade and employment. Competitive engineering is an object of interest to foreign investors, and the support of research and development is therefore of decisive importance for maintaining and raising its standards.

In the Czech Republic, this sector comprises the manufacture of a wide range of machines, including parts and accessories, which find their use in most branches of the manufacturing industry and other sectors, such as agriculture, transport, forestry, metal manufacture, metallurgy, mining, the textile, paper and food industries and construction.

In 2015, the export of machinery and transport equipment (SITC 7) amounted to more than USD 88 billion, which accounts for 56% of the Czech Republic´s total annual exports.

TRADITION

CURRENT SITUATION In the framework of the manufacturing industry and the entire Czech economy, engineering has been growing steadily, with the exception of the year 2009, when, owing to the global economic crisis, exports in the sector declined by nearly 20%. Already in 2010, however, the

Export of machinery and transport equipment (SITC 7) Period

Stat. value USD (thous.) Stat. value (%)

2010

72 606 952

119.7

2011

89 163 034

122.8

2012

85 099 298

95.4

2013

87 467 453

102.8

2014

95 900 752

109.6

2015

88 046 782

91.4

Source: Czech Statistical Office

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

market showed a revival and the value of machinery and transport equipment exports rose to USD 72.6 billion, and 119.7% growth index (year-on-year). This trend continued in the following years. In 2015, exports were worth USD 88 billion and 91.7% growth index.

Engineering, as most of the other branches of the Czech manufacturing industry, is an export-oriented sector, which has been showing a favourable balance of trade for more than 10 years (USD 24 billion in 2015).

As regards the territorial structure of foreign trade, the unequivocally largest trade partner of the Czech Republic is Germany, followed by the UK, France, Slovakia, Spain, and Belgium.

In addition, the Czech Republic is the only state in Central and Eastern Europe (CEE), which is a member of the prestigious European Committee for Cooperation in the Machine-Tool Industry (CECIMO).

FUTURE PROSPECTS A characteristic feature of the engineering industry is its relatively high sensitivity to the economic cycle. The state of the Czech economy, the same as that of our largest foreign trade partners, is a factor that directly affects demand. Although Czech engineering has extricated itself from the consequences of the global crisis relatively quickly, it is continuously striving to orientate its manufacture towards higher added-value products based on new knowledge deriving from engineering research and new patents, often coming into being thanks to foreign investment enabling research and development institutions in the Czech Republic to set up new workplaces.

Photo: PhotoCombo

Engineering in the Czech Republic is continuing the long tradition, when in the period between the two world wars Czechoslovakia belonged among the world´s most advanced engineering countries. Over the more than 150 years, a large number of radical changes has taken place in this area, both as regards the standards of technological safety and the structure of production, and the entrepreneurial base. The essential change took place after 1989, when engineering companies were faced with the loss of their traditional markets, keen competition from foreign firms (with strong capital backing and know-how) entering the Czech market and changes in the ownership structure.

INCO engineering is a private company based in Prague, the Czech Republic. INCO engineering belongs to top world suppliers of vertical transport technology for underground mines.

INCO engineering designs and manufactures following equipment: • friction winders • drum winders • automatic loading/unloading stations • sheaves and pulleys • mine signalling

INCO engineering s.r.o.

Thamova 13 186 00 Praha 8 Czech Republic

phone:+420 222 780 372 sale@incoengineering.cz www.incoengineering.cz

INCO engineering provides remote consultancy, so the customers are never left alone.

Sophisticated Rockwell Automation control systems are used, including Rockwell Automation frequency converters.

INCO engineering has enormous experience in modernization of old winders. INCO engineering modernizes its own products as well as winders from other manufacturers. It can be a complete modernization covering: brakes, control system, hydraulics, electrical parts, mechanical parts, or partial modernization when only the most troubling difficulties are solved.

Currently a project in India is underway, two winders are being assembled and will be commissioned in 2017.

WE ARE SPECIALISTS IN THE PRODUCTION OF TUNNEL OVENS and suppliers of complete production lines for bakeries and confectioneries

www.j4.eu J4 s.r.o. | Prumyslova 96 503 02 Predmerice n. Labem Czech Republic tel.: +420 495 581 139 | j4@j4.eu

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

KEY SECTORS

STRIAGRAPH – STRIATTER 1000TM state-of-the-art appliance for imaging and recording imperfections in glass Striatter 1000 striagraph is a device that automatically provides a striagram of a glass sample. A striagram is a record of streaks, bubbles and other inhomogeneities in the thickness of glass scanned along the sample. It is not necessary to darken the room to evaluate the sample. Striatter 1000 is designed for glass samples with a thickness of 2 to 12 mm and a width of up to 25 mm. The striagram of the whole width of the produced strip of glass (up to 8 000 mm) is completed by the gradual measurement of several samples of glass of a maximum length of 1 000 mm.

The glass sample is inserted in a glass container filled with immersion fluid at the top of the striagraph.

The operator enters data about the test and the sample in the computer and then runs the automatic evaluation. The optical system moves along the measured sample and individual shots are recorded.

After the scanning has been completed, the data are automatically evaluated, individual images are compiled and the test protocol is created.

NEWTE spol. s r. o., -DWHĂžQt 7HSOLFH &]HFK 5HSXEOLF 7HO )D[ ( PDLO QHZWH#QHZWH F] www.newte.eu

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

Czech Automotive Industry Stepping up Its Dynamics In 2015, a total of 1 328 788 road vehicles was built in the Czech Republic, of which 1 305 330 were motor vehicles and 23 458 towed vehicles. That is the highest annual production in the history of the Czech Republic.

According to the data given by the individual manufacturers in 2015 the production of passenger cars in the Czech Republic was only slightly below 1.3 million units - a total of 1 298 236 passenger cars was built (including small utility vehicles). Three manufacturers participated in the total production of passenger cars in 2015: ŠKODA

Production of road vehicles in the Czech Republic in 2015 / 2014 Vehicle category

Increase / Decrease 2015 / 2014

2015

2014

1 298 236

1 246 506

4.15 %

850

821

3.53 %

Buses (M2 + M3)

4 517

3 893

16.03 %

Motorbikes (L)

1 727

1 075

60.65 %

1 305 330 1 252 295

4.24 %

Passenger + small utility (M1 + N1) Lorries, trailer trucks, chassis (N2 + N3)

Motor vehicles total: Trailers and semi-trailers (O3 + O4)

1 790

1 633

9.61 %

Trailers and semi-trailers (O1 + O2)

21 668

23 949

-9.52%

23 458

25 582

-8.30 %

1 328 788 1 277 877

3.98 %

Towed vehicles total: Road vehicles total:

Photo: ŠKODA AUTO a.s., www.freeimages.com

Production for January–December

Auto constituted 56.8% of production, HMMC Nošovice almost 26.4% and TPCA Czech over 16.9%. The number of passenger cars produced per 1 000 inhabitants was 123.2 units (in 2014, the number was 118.4 cars/1000 inhabitants).

Another historical record was broken in 2015 in the production of buses: for the first time in the history of the Czech Republic, bus production exceeded 4 000 units – the total production by Czech manufacturers amounted to 4 517 units.

The previous highest annual production of buses (3 893 units from 2014) was thus exceeded by more than 600. Iveco Czech Republic's production grew by 13.4% compared to 2014 (the company's share in total production was 82.5%) and SOR Libchavy Company produced 33.9% more buses than the year before (16.4% share in production). Other domestic manufacturers only contributed to the total bus production by 1.0%.

TATRA Trucks, located in Kopřivnice, produced 850 vehicles in 2015, which represents an increase in production by 3.5%.

In towed vehicles of categories O3 and O4 (trailers and semi-trailers), there was an increase in production by 9.6% compared to 2014, thus totalling 1 790 units. Summed for both manufacturers, it is the highest annual production in the last 7 years (since 2009).

The production of towed vehicles in categories O1 and O2 (AGADOS Company) reached 21 668 units (decrease by 9.5%). The production of this category of vehicles is being monitored since 1998 and it is so far the second highest production result since that year.

JAWA Moto Company produced 1 727 machines, which is 60.6% more than in 2014.

Written based on documentation obtained from the Automotive Industry Association 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

KEY SECTORS

The Czech Republic – a Strong Player in the EU Energy Market Thanks to its energy mix, the Czech Republic is one of the EU member states the least dependent on the import of energy raw materials. A large part of its energy production is based on its own solid fuel resources (mainly coal, some of which the Czech Republic exports) and the production of nuclear power stations.

Development and structure of gross electricity production 100 000 90 000 80 000 70 000

Renewable and secondary energy sources Other fuels Nuclear energy Other gases Natural gas Brown coal Black coal

60 000 50 000 40 000 30 000 20 000 10 000 0 2010

2015

2020

2025

2030

2035

2040

Note: other gases – coke oven, blast furnace, degassing and other gases other fuels – oil products, industrial waste and alternative fuels, municipal solid waste (non-renewable), waste heat Source: Ministry of Industry and Trade

The main electricity generating company in the Czech Republic is ČEZ, a.s. (approximately 75%). In addition, there are more than 100 independent producers. Besides coal-fired power plants, there are two nuclear power stations in the Czech Republic – Temelín and Dukovany – plus hydroelectric, solar, wind and biomass incineration power plants.

STATE ENERGY CONCEPT The State Energy Concept approved in 2015 sets out the Czech Republic´s long-term energy vision and the country‘s strategic aims in the area of power generation. It describes the current situation and expected trends in the Czech energy sector within the context of the EU and the regions and identifies the mechanisms of ensuring the country‘s energy safety and the interest in maintaining its current full independence as regards heat and electricity supplies, but without any significant export of home-generated electricity.

This can only be achieved with the further development of nuclear power generation in the Czech Republic. The State Energy Concept has undergone a comprehensive analysis of its potential impacts on the environment, while taking into account all requirements and conditions resulting from the analysis and presumable effects arising from the realisation of the priorities and aims of the Concept.

Photo: www.freeimages.com, www.sxc.hu

MARKET REGULATION On the territory of the Czech Republic, the electricity market is operated on the basis of regulated access to the transmission system, the distribution systems, and the possibility of building electricity generating plants and direct power lines. Electricity transmission and distribution prices and system services’ prices,

LARGEST PLAYERS IN THE MARKET

GWh

Thanks to its own solid fuel resources, the Czech Republic only imports crude oil and natural gas, on which, however, it is highly dependent. Therefore, the basis for its electricity supplies is nuclear and coal-burning power plants, heating plants, big hydroelectric power stations, and works power plants. This mix is complemented with renewable sources, mainly wind and photovoltaic power stations and biomass burning sources, plus biogas. The greatest increase in recent years was witnessed in the area of photovoltaic sources. Thanks to the system of support and the price of the technology, sources with an aggregate capacity of nearly 2 GW were installed in 2009 and 2010.

In 2015, the Czech Republic produced 84 brutto tetra watt-hours of electricity, of which 28 TWh went across the border. The largtest customer for Czech electricity on a long-term basis is Austria followed by Slovakia.

From the macroeconomic point of view, it is an advantage that the Czech Republic has another important export article, in addition to cars, electronics, and engineering goods. From the energy safety point of view, the important thing is that the Czech Republic not only imports energy raw materials, such as natural gas and crude oil, but that it also itself exports a strategic commodity, which, in addition, has a certain added value when compared with the raw materials.

electricity prices for protected customers and the electricity suppliers‘ prices are regulated by an independent energy market regulator, the Energy Regulatory Office. One of its competencies is the support of economic competition and the protection of consumer interests in those areas of the power sectors where no competition is possible, with the aim of satisfying all requests for power supply.

The Office decides on awarding, changing or withdrawing licences and on price regulation under special legal rules.

Nanotechnologies Entering into Big Business In the past few years, the Czech industrial tradition has acquired a new dimension with the addition of nanotechnologies to its conventional practice. Nanotechnology based on the combination of organic and inorganic components gives rise to new materials that have a variety of uses, for example in medicine, the textile industry, air and water cleaning and the manufacture of electrical batteries.

Since the moment in 2004 when the Technical University in Liberec, in collaboration with Elmarco Company, developed, as the first workplace in the world, an industrially usable nanofibre, this new technology has witnessed a dynamic development. Thanks to the physical properties of nano microscopic particles a thousand times thinner than the human hair, this technology has found its way into a number of Czech manufacturing firms. The absolute majority of firms, whose core business is the use of nanotechnologies in their operations, are born global companies, which operate on the international scale and seek trade partners in other countries.

INVESTORS AND THEIR NEED TO EXPORT Currently, more than 15 private research companies and some 70 manufacturers in the Czech Republic use nanotechnologies in their operations. In addition, there are specialised centres in this country to which firms come for consultation to become acquainted with new scientific developments. Twenty-six workplaces of the Czech Academy of Sciences, 37 university faculties, and 9 research organisations financed by the state in the Czech Republic concern themselves with basic research in different nanotechnology areas. Despite being the cradle of nanotechnology research and its practical application, the important thing for the Czech Republic in future is to arouse the interest of investors from neighbouring states, to which Czech firms could export their nano products. All the more so, as firms in as many as 70 regions of the European Union are focusing on nanotechnology research and nanotechnologies are becoming an important instrument of the national economies in their efforts to gain a competitive edge.

WHAT HAVE CZECH FIRMS MANAGED TO ACHIEVE? According to the Nanotechnology Industry Association of the Czech Republic, this technology does not mean just innovation. In actual fact it signifies a technological change, whereby man can manipulate matter at the molecular level, across all sectors.

The portfolio of Czech nanotechnology firms is quite broad. Among other areas, it includes the manufacture of photocatalytic paints with titanium oxide nano particles. This practically transparent paint has an extraordinary ability – to clean the ambient air and remove viruses, bacteria, toxins and cigarette smoke from it. This principle can be used to reduce air pollution in cities and industrial agglomerations.

Recently, a Czech firm filed a patent application for an electrically conductive nanofibre. When electrical current is passed through it, the fibre acquires the capacity to kill viruses and bacteria in contaminated water. The material can be used for different purposes and in different areas, including the military environment and health care, and can be useful in third-world countries, where clean water is scarce.

NANOTECHNOLOGY TRIGGERS OFF A REVOLUTION IN MEDICINE A real breakthrough is the use of nanotechnologies in medicine, where thus far unheard of possibilities are opening up. They can be used in diagnostics, drug distribution within the body or the treatment of patients with the aid of special nano instruments. And moreover, nano medicine ranges in sizes in the order of billionths of a metre, and this is the size of the particles of which the human body is composed – molecules, the DNA helix and also a large number of dangerous viruses. By enabling a detailed view of the biological processes, nanotechnology offers a new set of instruments for understanding the sources and mechanisms of diseases. Czech firms are keeping pace in this area and there are good prospects that, together with research laboratories, they will be in a position to offer many more products that will find their way into the world, despite the competition from nanotechnology development in the USA, Japan, and China.

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

KEY SECTORS

The Czech Republic, an Attractive Tourist Destination

During 2015, a total of 17.2 million foreign visitors came to the Czech Republic, 10.3% more than in the previous year. The earnings of the Czech economy from tourism amounted to CZK 148.8 billion (USD 6.2 billion) in 2015. This, again, was a year-on-year increase – of 5%.

CONGRESS CAPITAL The Czech Republic has been ranked among the 30 most suitable countries for congress tourism over the long term and the Czech capital, Prague, is even one of the 15 most favoured cities. Among others, this evaluation is due to the successful organisation of several conferences of global importance that have been hosted

by Prague in recent years. A stable economy, strategic position, favourable climate, various tourist attractions as well as the high quality of services provided in the congress facilities are factors making Prague an attractive destination.

The city provides modern hotels with an extensive choice of conference premises, including state-of-the-art facilities. The Prague Congress Centre has been extensively modernised, and capacities and services are also being extended by the Václav Havel International Airport, the destination for numerous international flights operated by renowned airlines as well as a number of low-cost air carriers.

SPA SELECTION Another important segment of tourism is the spa industry. The Bohemian and Moravian regions are especially rich in mineral water sources, which in the past gave rise to the existence of famous spa localities ranked among the best in the world. The joint work of man and Nature has won world renown and become the country´s important health and economic commodity. The use of natural healing sources, baths, mineral waters and spa treatments has a long-standing tradition.

Although spa facilities can be found in all the regions of the Czech Republic, the most significant medicinal resources are in the regions of Karlovy Vary, Ústí nad Labem, South Bohemia, Hradec Králové, and Olomouc.

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

IN PURSUIT OF HEALTH AND RELAXATION

With the change of lifestyle in recent years, Czech spas have extended their standard offer of curative treatments with new forms of relaxation, regeneration and anti-stress programmes suitable for overworked entrepreneurs and managers. These special extended programmes, combined with a range of accompanying recreational activities (golf, tennis, fitness, cycling, etc.), are offered by about 40 spa localities in the Czech Republic.

Notably, the aforementioned golf is increasingly reflected in the favourable tourism statistics. So much so that numerous quality courses are situated close to natural beauty and heritage sites. More than 130 golf clubs operate in the Czech Republic territory and lovers of this game can use more than 70 golf courses. Those of the best quality, with the highest standard of services, have been set up around the capital city of Prague, in what is known as the West Bohemian Spa Triangle near Karlovy Vary, and in Northern Moravia.

Photo: CzechTourism (David Marvan)

The Czech Republic is one of the countries with thriving tourism. The land with a population of 10 million is a peaceful and safe destination, offering historical monuments, picturesque scenery, world-famous spas, a network of luxury hotels as well as facilities for leisure activities. In recent years, the Czech Republic has also gained a reputation for congress tourism, for which capacities have been adapted especially in big cities.

Institutions Present Themselves

CONFEDERATION OF INDUSTRY OF THE CZECH REPUBLIC The largest alliance of employers in the Czech Republic, which represents the predominant part of industry and transport, groups together 28 sector federations and a total of 1550 member companies having more than 800 000 employees.

Its mission is to defend the shared interests of its members and influence the economic and social policy of the government, with the aim of creating optimum conditions for business which, while respecting the ethical principles of enterprise, will help to increase the competitiveness of members and lead to the sustainable prosperity of Czech society.

Its priorities include balanced public finances, efficient and cost-effective public administration, motivating and simple taxes, research, development and innovation at a top level, modern technical education, flexible labour market, development of transport and infrastructure, efficient support for export, a safe, reliable, and accessible power supply, and sustainable care of the environment.

It expresses and promotes its comments on legislative issues. It defends and coordinates the interests of its members especially in the Council for Economic and Social Agreement, which is a platform for negotiations between the government, employers, and trade unions on basic political, economic, and social themes.

It organises activities for the establishment of trade and economic relations between Czech and foreign entities, in the form of business missions, conferences, bilateral and multilateral negotiations, and participation of its members in trade fairs, exhibitions, and expert seminars.

The Confederation formulates and promotes the interests of employers and entrepreneurs of the Czech Republic in European and international organisations, especially as a member of the Confederation of European Business (BUSINESSEUROPE) and within the framework of the Business and Industry Advisory Committee to the OECD (BIAC). On the basis of agreements, it actively cooperates with partner industrial federations, chambers of commerce, and other economic institutions abroad.

Svaz průmyslu a dopravy České republiky Freyova 948/11, 190 00 Praha 9 Phone: +420 225 279 111 E-mail: spcr@spcr.cz

CZECH CHAMBER OF COMMERCE The Czech Chamber of Commerce is empowered by law to pursue and protect the interests of the business community, ensure its needs and support its development. It consists of a regional network of chambers, associations, professional and trade confederations on a national scale. The broadly-based membership platform therefore makes it possible for businessmen and entrepreneurs to use its specific services, including international support undertakings and programmes.

Although membership of the Czech Chamber of Commerce is not compulsory, the Chamber provides its services, whose standard is comparable with that of the chambers of commerce in the other EU states, not only to its members, but also to non-members:

l Organisation of international and bilateral company contact events (outgoing and incoming missions)

l Organisation of accompanying business missions of Czech state representatives during official visits to foreign countries

l Visiting missions of businessmen on the occasion of the official participation of the Czech Republic in trade fairs and exhibitions abroad l Missions of foreign investors for small and medium-sized Czech enterprises l Organisation of seminars, workshops, business forums and similar expertly and territorially oriented events l Participation in the programmes and activities of the European Union l Seeking out trade partners in the Czech Republic and abroad, consulting in the area of foreign trade l Active support on entry of foreign markets l Provision of export certificates l Foreign trade analysis l Publication of offers and enquiries at the Chamber´s websites

Hospodářská komora České republiky Florentinum, Na Florenci 2116/15, 110 00 Praha 1 Phone: +420 266 721 300 E-mail: office@komora.cz l More information at www.komora.cz l

l More information about the Confederation of Industry can be found at www.spcr.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 31

INSTITUTIONS

INDIANCZECH JOINT CHAMBER OF COMMERCE Founded in 2010, the Indian-Czech Joint Chamber of Commerce (ICJCC) is the leading organisation for Indian and Czech markets, with headquarters in Prague in the Czech Republic, and is one of the most pro-active and forward-looking Chambers in the country today. Over the last few years, it has truly emerged as a national Chamber of repute, with representatives also in New Delhi and Pune in India functioning efficiently, and building meaningful synergies among Industry, Trade, and Government by addressing strategic issues of national significance.

The Indian-Czech Joint Chamber of Commerce is an independent non-profit organisation that supports business, economic, and cultural relations between India and the Czech Republic. ICJCC provides assistance in the choice of the correct projects and appropriate investments.

In addition to dealing with marketing and economic surveys for a number of companies in a variety of sectors, the Chamber can offer very extensive knowledge of both markets, on the basis of which we are capable of identifying the appropriate partner according to the specific requirements of the request, and of becoming a mediator for subsequent mutual cooperation.

ICJCC has a special focus on India’s trade & commercial relations and has played a key role in building synergies between both countries through Trade & Business Delegation visits, B2B meetings, exhibitions and many other business events and opportunities.

Indicko-česká smíšená obchodní komora Medkova 719/4, 149 00 Praha 4-Chodov Phone: +420 777 896 603 E-mail: info@indianczech.com l For more detailed information on ICJCC services, activities and membership, please see our website: www.indianczech.com l

INTERNATIONAL CHAMBER OF COMMERCE IN THE CZECH REPUBLIC The International Chamber of Commerce – ICC – was founded in Paris in 1919. Its mission is to support world trade. Today it comprises thousands of companies and associations from more than 130 countries. ICC CR has been providing its services for more than 15 years.

Prestige – Through national ICC committees, businessmen transfer their interests, standpoints and views to representatives of supreme bodies, institutions and governments, including the UN, EU, WTO and OECD, in which ICC has the highest status level of consultant.

Rules – ICC has incontestable authority to create rules according to which international trade is operated. The rules are used in everyday contact and they have become an indivisible part of international trade throughout the world. Examples are Incoterms (R) 2010, banking rules, and international model agreements.

Partnership – ICC provides a wide range of services; for example, it organises arbitration proceedings within the framework of the ICC International Court of Arbitration in Paris and educational events, and it also provides consulting services and arranges meetings with foreign trade partners.

Territorial meetings – The aim of these events is to support Czech diplomacy, create business and investment opportunities for Czech exporters, help diversify Czech exports and establish useful trade contacts.

Specialised courses – Subjects are linked with international trade, in particular: Incoterms(R) 2010, bank guarantees and URDG 758, documentary letters of credit and standby, and international purchase contracts.

ICC CR, in collaboration with the Ministry of Industry and Trade, has created the document: “Competitiveness Strategy for the Czech Republic and Export Strategy for the Czech Republic for the period 2012–2020”.

Národní výbor Mezinárodní obchodní komory v České republice (National Committee of the International Chamber of Commerce in the Czech Republic) Florentinum, Na Florenci 2116/15, 110 00 Praha 1 Phone: +420 257 217 744 E-mail: icc@icc-cr.cz l More information at www.icc-cr.cz l

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

CMI is a national metrology institute of the Czech Republic providing comprehensive metrological services at the highest technical level in all the sectors of scientific, technical, and economic activities. CMI is a signatory to the CIPM MRA, Mutual Recognition Arrangement (see www.bipm.org). www.cmi.cz

CMI SERVICES ` ` ` ` ` `

`

` ` ` ` `

info@cmi.cz

Calibration services Verification of regulated measuring instruments Outsourcing – comprehensive care for your measuring instruments, particularly in the automotive industry Metrological control of prepackages Type approval of measuring instruments Conformity assessment of non-automatic weighing instruments (EU NAWI Directive), measuring instruments (EU MID Directive) and radio and telecommunications terminal equipment (EU R&TTE Directive) Manufacture of reference materials in the area of physical chemistry and gas mixtures (accreditation) and other services for chemical measurings Training of company metrologists Certification of personnel Accredited provider of interlaboratory comparisons (organisation, pilot laboratory function, assessment) Consultations and technical audits in metrology R/D and manufacture of standard radionuclide sources

MVPO 2800

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 33

INSTITUTIONS

CZECHTRADE  CZECH TRADE PROMOTION AGENCY DEVELOP YOUR INTERNATIONAL BUSINESS CzechTrade is a government trade promotion agency of the Czech Republic, which was set up by the Ministry of Industry and Trade of the Czech Republic. Its main objective is to develop international trade and cooperation between Czech and foreign entities. Through its services, CzechTrade supports Czech companies in trading on foreign markets. Foreign companies contact CzechTrade when they are looking for interesting, reliable partners and suppliers in the Czech Republic.

Our professional team, including employees in our foreign network, offers a wide range of services to assist your company in finding a suitable contractor or trade partner in the Czech Republic.

Czech firms have the reputation of being reliable partners and suppliers of high-quality products, technologies and services.

Services provided free of charge by the network of CzechTrade offices abroad: l Qualified search of Czech business partners l Initial consultation by phone or in person with the foreign offices representative concerning the potential of Czech suppliers based on your requirements l Provision of basic information on the sector of interest in the CR l Identification and compilation of a list of potential suppliers in the Czech Republic within the specified sector l Publication and targeting of a specific inquiry among Czech suppliers to find out their interest in cooperation l Organisational arrangement of a meeting with potential Czech suppliers in the Czech Republic during so-called Sourcing Days

Online Services Online form on the websites, where you can specify your requirements. A team of CzechTrade specialists will assist you in finding contacts to suppliers of goods and services in the Czech Republic according to your specifications.

Czech Exporters Directory The Directory is an official online database of Czech exporters, where you can find potential trade partners in the Czech Republic.

The Directory is available in 13 language versions at http://exporters.czechtrade.cz BusinessInfo.cz Portal Official website for foreign businessmen seeking information, assistance or contacts for their business activities in the Czech Republic. Language of the portal: English. Translation into other languages is possible with the Google Translator application.

Česká agentura na podporu obchodu / CzechTrade Main Office Dittrichova 21, 128 01 Praha 2, Czech Republic Green line: +420 224 907 820 E-mail: info@czechtrade.cz

CzechTrade Mumbai REWA Chamber Office 412 New Marine Lines 31, 400 020 Mumbai, India Phone: +91 22220 8535 GSM: +91 99 67 91 88 44 E-mail: tomas.rousek@czechtrade.cz l More information at www.czechtrade.eu and www.czechtrade.org.in l

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

CZECHINVEST  BUSINESS AND INVESTMENT DEVELOPMENT AGENCY CzechInvest: Your gateway to success in the Czech Republic The Business and Investment Development Agency CzechInvest is a state contributory organisation subordinated to the Ministry of Industry and Trade of the Czech Republic. Services include sector-specific market intelligence, identification of business properties and sites, investment incentives, identification of potential business partners, suppliers and acqusition targets as well as aftercare services. The Agency contributes to attracting foreign investors operating in the manufacturing industry, business support services and technology centres, and also supports Czech enterprises in their expansion efforts.

To simplify communication between the state, business, and the European Union, CzechInvest acts as an umbrella business-promotion organisation for companies using both EU and national funding.

CzechInvest is exclusively authorised to file applications for investment incentives at the competent governing bodies and prepares draft offers to grant investment incentives. Its task is also to provide for potential investors current data and information on business climate, investment environment, and investment opportunities in the Czech Republic.

All services are provided free of charge.

CZECHTOURISM  CZECH TOURIST CENTRE CzechTourism, the Czech Tourist Centre, publicises the Czech Republic at home and abroad as an attractive tourist destination.

Its partners are representatives of regional institutions and tourist regions, destination managements, towns and communities, and firms. With all its activities, the Centre attempts to awaken the interest of foreign tourists in the Czech Republic’s wealth of unique sights and attractions and to inspire them to visit the country. Its policy is to promote incoming tourism, while systematically supporting tourism at home.

All its marketing activities place special emphasis on the communication strategy, which presents the Czech Republic as an exciting country where visitors can not only discover thrilling tales of its history, past and present, but also experience and share these with their companions. CzechTourism is assisted in these efforts by a network of foreign representations; it actively collaborates with the media and addresses partners in the Travel Trade sector at trade fairs. The Agency organises study tours to the Czech Republic for representatives of the media and tour operators and mediates tourism news for the local tourist community, acquainting them with the trends and analyses in the sphere of global tourism. It acts as a service organisation for the regions and the B2B segment in the area of tourism, assisting tourist entities to present themselves abroad at a level which they could not easily achieve if acting on their own.

CzechTourism Agency is a state-run contributory organisation of the Ministry for Regional Development of the Czech Republic.

CzechInvest Štěpánská 15, 120 00 Praha 2 Phone: +420 296 342 502 E-mail: fdi@czechinvest.org

Česká centrála cestovního ruchu – CzechTourism Vinohradská 46, P.O.Box 32, 120 41 Praha 2 Phone: +420 221 580 111 E-mail: Info@czechtourism.cz

l More information about CzechInvest at www.czechinvest.org l l More information can be found at www.czechtourism.com 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 35

INSTITUTIONS

CZECH CENTRES Czech Centres are an agency of the Czech Ministry of Foreign Affairs for the promotion of the Czech Republic worldwide. They propagate the Czech cultural scene in the international field and advance Czech interests from their offices in 21 foreign capitals on three continents. They are members of EUNIC — the Association of European National Cultural Institutions.

Czech Centres promote all sectors of Czech cultural and creative industries, presenting the Czech Republic as a modern country with valuable cultural traditions. They bring together and promote the cooperation of foreign cultural institutions, experts and artists with their Czech counterparts.

In the area of education, science, research and innovation, Czech Centres collaborate with universities and other higher learning and specialised institutions, help promote cooperation between them and propagate the achievements of Czech science abroad. They support the tuition and popularisation of the Czech language internationally.

In the area of external economic relations, Czech Centres assist in the promotion of Czech trade interests in other countries.

In promoting the Czech Republic as an attractive tourist destination, the Centres, in collaboration with their partners, devote themselves especially to the presentation of Czech regions abroad.

As regards the provision of information about the Czech Republic, Czech Centres act as communication centres for the lay and expert public, the media, and international entities abroad.

Česká centra – ústředí (Centre) Václavské nám. 816/49, 110 00 Praha 1 Phone: +420 234 668 211 E-mail: info@czech.cz

CENTRE FOR REGIONAL DEVELOPMENT OF THE CZECH REPUBLIC  ENTERPRISE EUROPE NETWORK The Centre for Regional Development of the Czech Republic (the Centre) is an intermediary and control body for selected operational programmes financed from the EU Structural Funds. The Centre also administers the Regional Information Service system, where information from the regions and municipalities of the Czech Republic can be found. The system is focused especially on the economic, social, and living environment, administrative division, public administration and local government, grants, etc.

The Centre hosts one of the partners of the Enterprise Europe Network (EEN). This network was established by the European Commission in 2008 to support businesses and enterprises. Since then it has spread its activities throughout the world, so, today, it comprises 600 partners with more than 4 000 experts in over 50 countries – for example (apart from all EU countries) it has offices in India, China, Japan, and South Korea.

EEN staff offer services to both Czech and foreign enterprises.

Foreign firms can benefit from the following services: assistance in seeking partners for business, production and technological cooperation, information about the Czech business environment, setting up firms and information about taxation, Czech and EU legislation concerning business and opportunities of funding from national and EU sources. International B2B trade meetings organised by the EEN during selected important trade fairs are very popular among businesses, e.g. in the Czech Republic, during the International Engineering Fair in Brno and the FOR ARCH building Trade Fair in Prague.

Centrum pro regionální rozvoj ČR – Enterprise Europe Network l More information can be found at www.czechcentres.cz l

U Nákladového nádraží 3144/4, 130 00 Praha 3 Phone: +420 234 006 232 E-mail: een@crr.cz l More at www.crr.cz, www.een.cz l

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

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

l is one of the social partners representing the business sector in the Council of Economic and Social Agreement (Tripartite Body).

l associates seven representative employer associations in the area of construction, textile industry, small and medium-sized businesses, cooperative enterprises, agriculture, mining and oil industries, transport, woodworking industry, education, health care, culture, and social services; l represents 22 285 member entities with more than 1 322 179 employees; l supports the specific interests of its members in the area of legislation and other spheres; l formulates the common business and employer interests of its members and pursues them in collaboration with the state authorities concerned, other employer organisations and trade unions and especially in various forms of consultation with the government; l cooperates with the Czech Confederation of Industry, the Czech Chamber of Commerce, the Czech Agrarian Chamber, the Czech Confederation of Commerce and Tourism, the Czech Cooperative Association and other organisations;

The members of the Confederation include the following associations and unions: l Association of Textile, Clothing, and Leather Industry; l Association of Businessmen and Tradesmen of the Czech Republic; l Association of Czech and Moravian Manufacturing Cooperatives; l Association of Building Entrepreneurs in the Czech Republic; l Union of Employer Associations; l Employer Union of Mining and Oil Industries; l Czech Agricultural Union.

Konfederace zaměstnavatelských a podnikatelských svazů ČR Václavské náměstí 21, 113 60 Praha 1 Phone: +420 222 324 985 E-mail: kzps@kzps.cz l More information at www.kzps.cz l

Our glassworks are a producer and supplier of traditional cut Czech lead crystal with BOHEMIA CRYSTAL mark to the whole world since year 1991.

Our production is entirely hand made!

Our glass products are decorated with classical decors, our own modern cut types, they are gilded with pure 24 carat gold and platinum. They are further adorned by high enamel. Crystal products can also be coloured.

The ordinary range includes: y y y y y y y y y

Decor 500PK, Pinwheel Gilded crystal with high enamel Crystal electric lamps Oil and paraffin lamps Coffee mills, pepper and sea salt mills, serving accessories Water pipes and bongos Flacons and perfume bottles with sprayers Crystal trophies and cups Special products according to our customers’ proposals and wishes

www.crystalglamour.eu, info@crystalglamour.eu, +420 569 480 501

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

C O N TA C T S

Useful Contacts USEFUL CONTACTS IN THE CZECH REPUBLIC Embassy of the Republic of India Indie – Velvyslanectví Indické republiky Milady Horákové 60/93, 170 00 Praha 7 Phone: +420 257 533 490 E-mail: amboffice@india.cz, hoc@india.cz commerce@india.cz www.india.cz Indian-Czech Joint Chamber of Commerce Indicko-česká smíšená obchodní komora Medkova 719/4, 149 00 Praha 4 Phone: +420 777 896 603, 737 256 401 E-mail: info@indianczech.com www.indianczech.com

MINISTRIES Ministry of Foreign Affairs / Ministerstvo zahraničních věcí www.mzv.cz Ministry of Industry and Trade / Ministerstvo průmyslu a obchodu www.mpo.cz Ministry of Agriculture / Ministerstvo zemědělství www.mze.cz

Ministry of Justice / Ministerstvo spravedlnosti www.justice.cz Ministry of Defence / Ministerstvo obrany www.army.cz Ministry of the Interior / Ministerstvo vnitra www.mvcr.cz

Ministry of Transport / Ministerstvo dopravy www.mdcr.cz

USEFUL CONTACTS IN THE REPUBLIC OF INDIA

Ministry of Regional Development Ministerstvo pro místní rozvoj www.mmr.cz Ministry of the Environment Ministerstvo životního prostředí www.mzp.cz Ministry of Labour and Social Affairs Ministerstvo práce a sociálních věcí www.mpsv.cz Ministry of Health / Ministerstvo zdravotnictví www.mzcr.cz Ministry of Education, Youth, and Sport Ministerstvo školství, mládeže a tělovýchovy www.msmt.cz Ministry of Culture Ministerstvo kultury www.mkcr.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

Embassy of the Czech Republic in the Republic of India 50-M, Niti Marg, Chanakyapuri, 110 021 New Delhi Phone: +91 11 2415 5200 E-mail: newdelhi@embassy.mzv.cz Commerce Section: commerce_delhi@mzv.cz www.mzv.cz/newdelhi Honorary Consulate Mumbai Rewa Chamber Office 501 (5th Floor), 31, New Marine Lines Churchgate (E), 400 020 Mumbai Phone: +91 22220 78531, 78532, 78533, 78534 E-mail: mumbai@honorary.mzv.cz Honorary Consulate Kolkata 4 Lee Road, Kolkata, 700 020 Kolkata Phone: +91 033 2290 7406, +91 033 2283 7178 E-mail: kolkata@honorary.mzv.cz CzechTrade Mumbai REWA Chamber Office 412 New Marine Lines 31, 400 020 Mumbai, India Phone: +91 22220 78535 E-mail: tomas.rousek@czechtrade.cz www.czechtrade.org.in

Photo: CzechTourism (Pavel Hroch)

Ministry of Finance / Ministerstvo financí www.mfcr.cz

The Most Important Websites General information on the Czech Republic

www.czech.cz

Official site for the CR

BusinessInfo

www.businessinfo.cz

Doing Business in the Czech Republic

www.doingbusiness.cz

Portal of the Public Administration

www.vlada.cz

Official site for business and exports General information on business climate, structure, and development of the Czech economy The electronic gateway for the public to administration and government services

Company Contact Information ARES

www.info.mfcr.cz/ares/ares.html Access to Registers of Economic Subjects/Entities

Business Register

http://portal.justice.cz

Public directory of companies

Hoppenstedt Bonnier

www.hbi.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

European Databank

www.edb.cz http://exporters.czechtrade.cz/ en/ www.zlatestranky.cz

Information operator

Czech exporting companies Zlaté stránky

Company-Catalogue Czech Exporters Directory Telephone and companies directory

Legislation Iuridika

http://iuridica.eunet.cz

Directory of legal services and official bodies

Portal of Czech judiciary

www.justice.cz

Course of legal proceedings

www.cnb.cz

Monetary, financial, and macroeconomic data

Prague Stock Exchange

www.pse.cz

Prague Stock Exchange data

RM-Systém

www.rmsystem.cz

Czech Stock Exchange

Czech Insurance Association

www.cap.cz

Directory of insurance companies operating in the CR

Patria Finance, a.s.

www.patria.cz

Investment portal

Chamber of Tax Advisers of the CR

www.kdpcr.cz

Database of tax advisers

www.czso.cz

Official statistical data and information covering different subjects

Finance Czech National Bank

Statistics Czech Statistical Office Fairs and Exhibitions BVV – Brněnské veletrhy a výstavy/Trade www.bvv.cz Fairs Brno Association of Fair and Exhibition Organisers www.euroexpo.cz of the CR /SOVA ČR/

List of exhibitions and fairs in the CR and relevant information Exhibition centres and companies organising trade fairs in the CR and abroad

Miscellaneous The Industrial Property Office

www.upv.cz

The Czech Science Foundation

www.gacr.cz

The Register of Advertising Agencies

www.registrra.cz/rra

Česká pošta (the Czech Post)

www.ceskaposta.cz

Residence of Foreigners in the CR

www.domavcr.cz

Patents, trade marks, utility models, and industrial designs Awards grants to the best projects of basic research in all branches of science Expert assistance in choosing and working with advertising and communication agencies in the CR Incl. postcodes of municipalities and its districts (PSC), philately etc.

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 National Register of Vocational Qualifications Portal of the Regional Information Service The Czech Association of Hotels and Restaurants

www.mytocz.eu

www.risy.cz

Information on toll and charges Survey of professional qualifications recognised in the Czech Republic Information website on the regions

www.ahrcr.cz

Directory of hotels in the CR

www.narodni-kvalifikace.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 39