General information about The Czech Republic

LOCATION

The Czech Republic is located in the centre of Europe and has shared borders with Germany, Austria, Poland and the Slovak Republic.

KEY FACTS

Area 78,866 km2

Population 10.5 million (approx.)

Labour force 4.896 million (approx.)

Capital Prague

Language Czech

Currency : Czech Crown (CZK)

Despite the fact the Czech Republic is a EUmember state, it is not member of the EUROZone. The date of EURO introduction has not been determined yet. The Czech koruna (CZK) is fully convertible. All international transfers (e.g. profits and royalties) related to an investment can be carried out freely and without delay.

CONSTITUTION

Following the Velvet Revolution of 1989, Czechoslovakia promoting democracy, changed to a market economy. From 1993 the previous Czechoslovakia split into two separate countries – Czech Republic and Slovak Republic. The Czech Republic is a parliamentary democracy. The parliament consists of two Houses, a House of Representatives and a Senate. The President, elected by Parliament, is the head of state.

LEGAL SYSTEM

In 1989 a new legal system in the Czech Republic was set up. The legal system is based on written laws. Compared to common law, of which a substantial binding part is created by judicial (court) decisions, the source of continental law mainly takes the form of written and binding acts, orders, bills and directives to be adopted and issued by competent legislative bodies, i.e. parliament, government and municipalities. Judicial rulings serve mainly as a subsidiary and supportive source for the purpose of interpreting the written codified laws. EU legislation was adopted in preparation for EU accession; commercial, accounting and bankruptcy laws are compatible with Western standards.

EU AND OTHER MEMBERSHIPS

The Czech Republic became a full member of the European Union on 1 May, 2004. For more than seven years the country has enjoyed the business and trade benefits of being part of one large market governed by principles such as the free movement of goods, services, capital and persons. The borderless importing and exporting of goods within the European market, no matter where the goods were manufactured, serves as one of the main benefits of the EU. Individuals and companies resident or registered permanently outside the Czech Republic may now even provide certain services without the need to establish any corporate presence (be it a company or other Czech entity) in the Czech Republic.

The Czech Republic is a member of NATO (1999) and also a member of the General Agreement on Tariffs and Trade (GATT), of the OECD and of the United Nations.

BUSINESS HOURS AND PUBLIC HOLIDAYS

8 a.m. – 6 p.m.

Opening hours vary depending on the type of business and locations. Most offices and businesses are closed all day on Sunday. Some major stores are open on Sunday and in the bigger cities there are an increasing number of hypermarkets open around the clock.

Public holidays are:

January 1st , May 8th, July 5th, July 6th,

September 28th, October 28th and

November 17th.

Other holidays are:

Easter Monday, May 1st, December 24th,

December 25th and December 26th.