1. Setting up a new business in the Czech republic

2. Content of this lecture: Overview of types of business in CR Bureaucratic hurdles Comparison with Portugal and the UK

3. Content of this lecture: Overview of types of business in CR Bureaucratic hurdles Comparison with Portugal and the UK

4. Types of business Limited liability company Branch of a foreign company Joint-stock company Partnerships

5. Types of business Limited liability company Branch of a foreign company Joint-stock company Partnerships

6. Limited liability company Společnost s ručením omezeným (s.r.o.) A company owned by up to 50 shareholders No shares issued, but details entered in Commercial Register Liability of individual shareholders protected from debts of company Headed by at least one Executive Starting capital CZK 200,000 (approx. €8,000) Must be licensed to trade in a particular activity

7. Types of business Limited liability company Branch of a foreign company Joint-stock company Partnerships

8. Branch of a foreign company Organiyační složka (o.s.) Not recognised as a separate company Headed by the Branch manager Must register in the commercial register

9. Types of business Limited liability company Branch of a foreign company Joint-stock company Partnerships

10. Joint-stock company Akciová společnost (a.s.) Issues share certificates to its’ owners Headed by the Board of directors under supervision from the Supervisory body 1 / 3 rd Supervisory board elected by workers (if more than 50) Start-up capital CZK 2 million (approx. €80,000) Must be licensed to trade

11. Joint-stock company Akciová společnost (a.s.) Issues share certificates to its’ owners Headed by the Board of directors under supervision from the Supervisory body 1 / 3 rd Supervisory board elected by workers (if more than 50) Start-up capital CZK 2 million (approx. €80,000) – or CZK 20 million (€800,000) Must be licensed to trade If shares offered publically

12. Types of business Limited liability company Branch of a foreign company Joint-stock company Partnerships

13. In general: –A group of people working together under the same name. Three types: –General partnership (Veřejná obchodní společnost) –Limited partnership (Komanditní společnost) –Silent partnership (Tiché společnostvi)

14. Content of this lecture: Overview of types of business in CR Bureaucratic hurdles Comparison with Portugal and the UK

15. Bureaucracy Commercial code Stock exchange Trade licenses Commercial register

16. Overview of types of business in CR Bureaucratic hurdles Comparison between Portugal and the Czech Republic

17. Czech Rep rank in 2009 Portugal rank in 2009 UK rank in 2009 Doing Business75486 Starting a Business86348 Dealing with Construction Permits8612861 Employing Workers5916428 Registering Property657922 Getting Credit431092 Protecting Investors88389 Paying Taxes1187316 Trading Across Borders493328 Enforcing Contracts953424 Closing a Business113219 International comparisons Based on information from the World Bank

18. PortugalCzech RepUnited Kingdom Score Rigidity of Employment Index482814 Difficulty of Hiring Index33 11 Rigidity of Hours Index604020 Difficulty of Firing Index5010 Firing costs (weeks of salary)95.221.722.1 Employing Workers Indicators

19. Thank you! Details are on my website: http://www.richardinprague.eu