The Czech Republic is almost constantly battling against its CEE neighbors to attract large foreign investors for whom government incentives such as tax breaks can be decisive when choosing a location for an investment venture. In given the current economic climate and downturn in investments less-developed regions especially would benefit from large inflows of investment capital, writes Jindra Předotová, a consultant at Deloitte Advisory.
What does chaining mean? The provision in § 105 para. 2 Commercial Code which was introduced in 2001 and which prohibits a Czech s.r.o. to have as sole shareholder another s.r.o. (or similar legal form if it is a foreign company) with only one shareholder. Despite the almost 11 years of existence by now, thousands of Czech s.r.o. still have this illegal structure and — at least theoretically — face liquidation by decision of the Commercial Court.
As an employer who plans some corporate restructuring, transfer of enterprise or simple outsourcing of some key activities, from next year on, things might get very complicated as of January 1, 2012, when the new Czech Labor Code takes effect — so nasty that you might decide to abstain from such restructuring.
The draft Act on Companies, as recently approved by the government, besides other drastic changes reduces the required basic capital of a Czech limited liability company (s.r.o.) from Kč 200,000 to Kč 1. Does this mean that the Czech s.r.o. will lose all credibility in the Czech Republic and the outside business world as protection of business partners is waived?
June 30 is generally known to be the last date for filing your tax return (and paying income tax) for the prior year if you use a tax adviser or lawyer. To a lesser degree it is general knowledge that the ordinary shareholders meeting of Czech companies that approves the accounts must be held within the first six months after the end of the year to which the accounts relate.
The Czech Republic has adopted the so-called program financing approach. Unfortunately, it has done so in a bureaucratic and inefficient manner. But this is exactly what needs to be cleared up if we want to start getting somewhere, writes Supreme Audit Office (NKÚ) vice chairman Milosalv Kala.
The Transport Ministry has presented its so-called “super strategy,” which among other things aims to engage the private sector in building the country’s road infrastructure through public-private partnerships (PPPs). If the objectives are implemented, the state will spend some Kč 20 billion a year on PPP projects for decades to come, writes Supreme Audit Office (NKÚ) vice chairman Miloslav Kala.
Businessmen are like gamblers who threaten the economy. “The competition for customers has turned into one of gaining rent from the state, if possible without doing a thing. Competition has changed into an attempt to gain a monopolistic or dominant position, if possible forever. And then never compete with anybody again,” writes Supreme Audit Office (NKÚ) vice president Miloslav Kala in part four of our anti-corruption series.
In part 3 of our anti-corruption handbook series, Supreme Audit Office (NKÚ) vice-president Miloslav Kala looks at the throny issue of remunerating state officials. In the ensuing atmosphere of fear after cutbacks, the first opportunity arises to reward those who understood who the boss is, he notes. And that’s a serious problem in public administration — are the criteria set by the boss always in compliance with the interests of the state?
According to various sources, the extent of losses resulting from corruption in the Czech Republic is estimated at between Kč 30 billion and Kč 60 billion; some even claim that it equals the entire public budgets deficit. In Part 2 of Czech Position’s anti-corruption handbook series, Supreme Audit Office (NKÚ) vice-president Miloslav Kala posits a correlation between the scale of corruption and economic mismanagement.