czech republic your trade partner / india 2016/2017

2016/2017Republic of India

CZECH REPUBLICYour Trade Partner

Safely to your destination

Rail Transportation

Traditional Czech supplier of modern control

and signalling systems

Road Transportation

Telecommunications

www.azd.cz

AŽD Praha

3C 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 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 publikaceČeská republika – Váš obchodní partner

Published by the PP Agency s.r.o.Myslíkova 25, 110 00 Praha 1, Czech RepublicE-mail: [email protected], www.ppagency.cz

Czech bank for Czech Export

Česká exportní banka, a.s. Vodičkova 34, 111 21 Praha 1 Czech Republictel.: +420 222 843 111e-mail: [email protected]: +420 224 226 162www.ceb.cz

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


FOREWORD

Foreword by Mr Milan Hovorka, Ambassador of the Czech Republic to the Republic of India 6Foreword by Mr Krishan Kumar, Ambassador of the Republic of India to the Czech Republic 7Czech Exporters 8Useful Information 10

ECONOMICS

Czech Economy in 2015 12Trade Relations between the CRand the Republic of India 14

BUSINESS IN THE CZECH REPUBLIC

CzechInvest Arranged Investments Worth USD 1.8 Billion in 2015 18Trading Companies in the Czech Republic 20Tax System of the Czech Republic 23Examples of Czech Projects in India 23

KEY SECTORS IN THE CZECH REPUBLIC

Czech Engineering – Tradition and Future 24Czech Automotive Industry Stepping up Its Dynamics 27The Czech Republic – a Strong Player in the EU Energy Market 28Nanotechnologies Entering into Big Business 29The Czech Republic, an Attractive Tourist Destination 30

Contents

INSTITUTIONS PRESENT THEMSELVES

Confederation of Industry of the Czech Republic 31Czech Chamber of Commerce 31Indian-Czech Joint Chamber of Commerce 32International Chamber of Commerce in the CR 32CzechTrade – Czech Trade Promotion Agency 34CzechInvest – Business and Investment Development Agency 35CzechTourism – Czech Tourist Authority 35Czech Centres 36Centre for Regional Development of the CR 36Confederation of Employers’ and Entrepreneurs’ Associations of the Czech Republic 37

CONTACTS

Useful Contacts in the Czech Republic 38Useful Contacts in the Republic of India 38The Most Important Websites 39

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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

F O R E W O R D

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 bet-ter 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 compa-nies 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 signifi cantly 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 signifi cantly over the last dec-ade to reach USD 1.2 billion in 2015. It is a balanced trade in which both countries benefi t from their strengths and comparative advan-tages. 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 signifi cant oppor-tunities 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 com-panies from across the world, India is a vast fi eld 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 compa-nies 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


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 con-tacts to Indian and Czech entrepreneurs. This new, updated edition will undoubtedly be of immense benefi t 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 busi-ness. It has improved its ranking by 16 places in the World Econ omic 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 in-dustrial projects in India in the fi elds 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 pres-ence in the Czech Republic. The Czech Republic has identifi ed India as one of the priority coun-tries 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 fi ve billion dollars by the year 2020.Our entrepreneurs should actively promote bilateral trade and invest-ment 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 benefi t. To this end, I am sure that the latest edition of “The Czech Repub-lic – 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

Prague – the Petřín Observation Tower


F O R E W O R D

09.90 Support activities for other mining

and quarrying

INCO engineering s.r.o. 2520.51 Manufacture of explosives

Explosia a.s. 2223.10 Manufacture of glass and glass products

CRYSTAL GLAMOUR, a.s. 3723.11 Manufacture of fl at glass

Ing. Josef Chlum - ELITE BOHEMIA 1923.13 Manufacture of hollow glass

CRYSTAL GLAMOUR, a.s. 3723.19 Manufacture and processing of other glass,

including technical glassware

Ing. Josef Chlum - ELITE BOHEMIA 1925.40 Manufacture of weapons and ammunition

Explosia a.s. 2225.70 Manufacture of cutlery, tools

and general hardware

Czech Blades s.r.o. 2225.71 Manufacture of cutlery

Czech Blades s.r.o. 2226.50 Manufacture of instruments and appliances

for measuring, testing and navigation;

watches and clocks

NEWTE spol. s r. o. 2626.51 Manufacture of instruments and appliances for

measuring, testing and navigation

ZAM - SERVIS s.r.o. 2627.10 Manufacture of electric motors, generators,

transformers and electricity distribution

and control apparatus

AŽD Praha s.r.o. 227.11 Manufacture of electric motors, generators

and transformers

ZEZ SILKO, s.r.o. 1727.12 Manufacture of electricity distribution

and control apparatus

ZAM - SERVIS s.r.o. 26 ZEZ SILKO, s.r.o. 1727.40 Manufacture of electric lighting equipment

Ing. Josef Chlum - ELITE BOHEMIA 1927.90 Manufacture of other electrical equipment

T Machinery a.s. 33 ZEZ SILKO, s.r.o. 1728.11 Manufacture of engines and turbines, except

aircraft, vehicle and cycle engines

Doosan Škoda Power s.r.o. 1328.40 Manufacture of metal forming machinery

and machine tools

TOS VARNSDORF a.s. 4028.91 Manufacture of machinery

for metallurgy

INCO engineering s.r.o. 25

28.92 Manufacture of machinery for mining, quarrying

and construction

T Machinery a.s. 33 INCO engineering s.r.o. 2528.93 Manufacture of machinery for food, beverage

and tobacco processing

J 4 s.r.o. 2528.99 Manufacture of other special-purpose

machinery n.e.c.

J 4 s.r.o. 2529.20 Manufacture of bodies (coachwork) for motor

vehicles; manufacture of trailers

and semi-trailers

AGADOS, spol. s r.o. 933.20 Installation of industrial machinery

and equipment

ZAM - SERVIS s.r.o. 2652.21 Service activities incidental to land transportation

AŽD Praha s.r.o. 258.10 Publishing of books, periodicals and

other publishing activities

STAR Czech s.r.o. 1162.00 Computer programming, consultancy

and related activities

STAR Czech s.r.o. 1164.11 Central banking

Česká exportní banka, a.s. 464.99 Other fi nancial service activities, except insurance

and pension funding n.e.c.

Česká exportní banka, a.s. 471.20 Technical testing and analysis

Český metrologický institut 3374.30 Translation and interpretation activities

STAR Czech s.r.o. 1184.22 Defence activities

Explosia a.s. 22

Czech enterprises that present their products and services in this publication intend

to expand their exports and seek trade partners in India. The fi rms are listed according

to the branch codes – NACE.

Czech Exporters

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

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.

TRADITION AND PROGRESSTRADITION AND PROGRESS

Mariánské Lázně – the Colonnade

Jindřichův Hradec

Křivoklát Castle

F O R E W O R D

ESSENTIAL INDICATORSPopulation 10 553 843 (December 2015)Surface area 78 864 sq. kmCapital city PragueParliamentary system Parliamentary democracyLanguage CzechHighest peak Sněžka (1603 m.a.s.l.)Time zone Central European time GMT + 1, summer time GMT + 2Currency Czech crown (Kč/CZK) = 100 hellers 100 INR = 35,699 CZKInternet domain: .cz

The President of the Czech Republic is Miloš Zeman

MEMBERSHIPThe 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 HERITAGEThe UNESCO World Cultural Heritage List comprises the following cities and sites: Prague, Český Krumlov, Kutná Hora, Litomyšl Cas-tle, 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 re-cruitment 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 PERSONSCzechs are considered a very cultured nation, which has given the world a number of signifi cant 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 fi eld 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,

Useful Information State symbols of the Czech Republic

National FlagCoat of Arms

Other practical information concerning travel conditions to visit

or reside in the Czech Republic are to be found at www.czech.cz

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

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and Milan Kundera. Oscar prizes have been awarded to fi lm 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.

PRACTICAL INFORMATIONDialling code: +(420). More detailed informa-tion 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 award-ed to the following companies: O2 Czech Repub-lic 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.

12

E C O N O M I C S

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 Economy in 2015In 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.

GROSS DOMESTIC PRODUCTIn 2015, GDP was 4.3% up on the 2014 year, ac-cording to the latest estimate, with year-on-year growth in 2014 amounting to 2.0%. The growth was assisted especially by household consump-tion and more intensive investment activity. Gross value added (GVA), measuring economic effi ciency, grew in all the quarters of 2015. Adding to its growth was in particular the manufacturing industry assisted by several smaller sectors.

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 chem-ical preparations (+ 9.5%). In general, the manu-facturing 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%).

FOREIGN TRADE*In foreign trade (cross border trading) the favour able trend of previous years continued. In comparison with 2014, exports increased by

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 defi cit was shown by the Mineral Oils and Lubri cants group and the Chemicals and related products group.

PRICESIn 2015, the infl ation 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 pric-es. The declining trend continued in the Posts and Telecommunica-tions sector. In the Health-care sector, the decrease was refl ected in the abolition of regulatory health fees for doctors‘ visits and for medical prescriptions. The higher tobacco prices had the opposite effect.

WAGESThe 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 infl uenced by the raising of the wage tariffs at the end of 2014.

Jana Bondyová

Czech Statistical Offi ce, www.czso.cz

*) The average monthly exchange rate fi xed by the CNB was used for CZK/EUR conversion.

Source: Czech Statistical Offi ce, 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, infl ation rate by EU method; 5) Foreign trade data expressed in USD are the sum of the diff erent monthly values in CZK calculated by the average monthly exchange rate announced by the Czech National Bank; 6) Czech National Bank;

Macroeconomic Indicators of the Czech Republic

2009 2010 2011 2012 2013 2014 2015

Gross Domestic Product (current prices)1) CZK, billion 3 924.6 3 950.6 4 019.8 4 041.9 4 077.3 4 261.1 4 475.8

Gross Domestic Product1) %, real, y/y -4.7 2.1 2.0 -0.8 -0.5 2.0 4.3

Industrial Production %, y/y -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

Infl ation Rate %, y/y 1.0 1.5 1.9 3.3 1.4 0.4 0.3

Infl ation (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

Exports5) %, y/y -22.7 16.9 22.5 -3.5 3.3 7.5 -9.4

Imports5) USD, mil. 105 256.0 126 600.0 152 122.0 141 515.0 144 319.9 154 233.2 141 318.5

Imports5) %, y/y -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

CZK/USD6) average 19.057 19.111 17.688 19.583 19.565 20.746 24.600

Czech Economy in 2015

Doosan Škoda Power single casing steam

turbine 180 MW for 3000 RPM,

type DST-S10 (MTD40CR)

with reheating and axial exhaust

Doosan Škoda Power, with 111+ years experience has pioneered

numerous technological advancement in steam turbine indus-

try. 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.

Salient features of the DST-S10 unit are:

pressures

comparable to double casing solution

start up module

Doosan Škoda Power Innovating Energy Solutions

www.doosanskodapower.com

14

E C O N O M I C S


and the Republic of IndiaTrade Relations between the CR

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 inde-pendence 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 rela-tions with the Czech Republic are excellent, as the latter is seen as the successor of the former Czecho slovakia and therefore a traditional sup-plier 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 num-ber 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 - Hin-dustan Tractors, plant for manufacturing Jawa motorcycles in Mysore, plant for manufacturing power-producing devices (turbines) in Hydera-bad, Ennore power plant near Madras, or a roll-ing 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 ma-chines, devices and components for the power industry, bearings, injection pumps, and regulat-ing and operating equipment. Non-engineering goods are mostly represented by telecommuni-cation devices, organic chemicals, optical fi bres, photomaterials, glass and paper products.Gradually, however, some Czech companies have begun to build on their export experi-ence 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 indus-trial infrastructure of India. The fi rst and so far

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 fi rst 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 signifi cant presence of Czech companies in India has led to the founding of Czech Business Platform, an informal associ-ation 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 signifi cant presence in India have actively applied to participate: Škoda Auto India, Tatra Trucks India, Bonatrans India, Gearspect, Lasvit India, Vítkovice India Pow-er, CATAI, Home Credit India Finance, Zetor India, Fans Asia, ZKL Bearings (India), Technicoat, STROS ESQUIRE, Doosan Skoda Pow-er, 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 com-modity continues to fi nd 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 num-ber 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

Source: Ministry of Industry and Trade of the Czech Republic

Mutual trade in the last fi ve 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

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investors who have decided in recent years to invest into produc-tion 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 ap-plied IT sector include: Kanoria Chemicals & Industries, Alok Textile Industries, Glenmark Pharmaceuticals, Lloyd Electric and Engineer-ing, 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 cer-tain 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 signifi cantly 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 wa-ter, or modernising the engineering industry within the above-men-tioned ”Make in India” initiative. In the fi eld of heavy engineering, mutual Indian-Czech cooperation can build not only on a long-run-ning 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 regular-ly 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-traffi c control have met with great success in recent years when supplying their products to several Indian airports. Czech manufacturers of aircraft and modu-lar 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-traffi c control. Aside from the above-mentioned Czech inves-tor 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 sev-eral Bollywood fi lms shot in Prague and other locations. A similar contribution to the devel-opment 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 pro-fessional life and can aid in promoting further development of the business relations. One of the pillars of the engineering cooper-ation 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

16

E C O N O M I C S


industry are interested in working with their Indian counterparts as well. Opportunities for cooperation are also pre-senting themselves in the fi eld 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 distribu-tors 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 ex-cellent 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 intro-duced onto the Indian market in 2016. The grow-ing popularity of wines among Indian consum-ers 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 metallur-gical 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 ex-change between the Czech Republic and India since 2004. In 2011, the turnover exceeded USD 1.5 mld. for the fi rst time. However, Czech ex-ports into India began to fl uctuate 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 refl ected the slowdown in Indian economic growth and therefore experi-enced its fi rst major drop since 2003. This was further infl uenced 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 fi rst 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

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 COUNTRIESl 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 Gov-ernment 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 Scientifi c, Tech-nical, 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 Phot

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ZEZ SILKO, s.r.o., Pod Černým lesem 683, 564 01 Žamberktel.: +420 465 673 111, faks.: +420 465 612 319, e-mail: [email protected], www.zez-silko.cz

ENERGY UNDER CONTROL

Power Capacitors

Power Electronics Capacitors

Induction Heating Capacitors

Reactors (Inductors)

Capacitor Banks

Components for Power Factor Correction

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 r18

B U S I N E S S

The signifi cantly reduced investment-aid intensity introduced by a European Commis-sion 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 fi eld. 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 signifi cant growth in investments from China last year. CzechInvest had previously mediated Chinese investments in the maxi-mum annual value of USD 21 million, whereas last year that fi gure reached USD 47 million. Further investments, which could bring more

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

Worth USD 1.8 Billion in 2015CzechInvest Arranged Investments

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.

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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

Bohemian crystal chandeliersof 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: [email protected]


B U S I N E S S

DIFFERENT TYPES OF TRADING COMPANIESThe 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 Per-sons. The Trading Corporations Act regulates the different types of trading companies in the CR, which include the Unlimited Liability Company and the Limited Partnership Compa-ny (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 Com-pany. 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 legis-lation 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 COMPANIESIn the Czech Republic, trading companies are founded on the basis of a Memorandum of Association. The Memorandum of Associ ation, 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 As-sociation is required. In the case of a compa-ny 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 Com-pany 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.

The registration of trading com-panies 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 Reg-

ister 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 Com-pany Register. The Company Register is one of the public registers regulated by the Act on Public Registers of Juristic and Natural Per-sons. 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 com-panies to the Company Register can be found in electronic form), or at www.obchodnirejstrik.cz. Petitions for entry in the Company Register must be fi led electronically on special forms available at https://or.justice.cz/ias/ui/podani. The petition for entry must be supported with documents confi rming the facts to be entered in the Company Register and documents to be fi led 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 confi rming that the investment was paid down, documents stating the company´s registered address, etc.). The petition for entry in the Company Register must be fi led

Trading Companies in the CRThe 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 com-

panies in the Czech Republic. In addition, we mention certain diffe-

rences and identical features in the legislations of the two countries.

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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

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 COMPANYUnder 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 COMPANYThe Limited Liability Company is defi ned as a capital company used for collective business. It is defi ned by law as a company whose part-ners 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 fi ve 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 regis-tered capital. The General Meeting may expel a partner who is in delay with the fulfi lment 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 COMPANYThe Joint Stock Company is defi ned by the Com-panies Act as a company whose registered cap-ital 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 ac-counts in euros under special legislation, it may express its registered capital in euros. Its min-imum 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 premi-um, 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 fi led. 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 invest-ments 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 Compa-ny 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 Gener-al Meeting. In the case of the monistic structure, the company, in place of these two bodies, sets up the Management Board, comprising the Stat-utory 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 Offi ce 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.

POWER • TRADITION

INNOVATION • PROPELLANTS

AMMUNITION • EXPLOSIVES

SAFETY

MORE THAN 40 COUNTRIES

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Tel.: + 420 466 824 649

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Fax: +420 466 822 943

Tel.: + 420 466 825 331

[email protected]

Fax: +420 466 822 939

CONTACTS:

CZECH BLADES s.r.o.

Brnenska 559, 569 43 Jevicko, Czech Republic

Tel.: 00420 461 801 111

Fax: 00420 461 801 129

[email protected]

www.czechblades.cz

Czech Blades s.r.o. has been producing high-quality razors and in-

dustrial 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 certifi ed ISO 9001 and ISO 14001. The com-

pany 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 IN-DUSTRIAL, 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 effi ciency and excellent per-

formance are guaranteed by using high quality material and following

quality management system.

Applications: blades are mainly used in plastics industry (cutting of

foils, fi lms, tapes etc.) automotive industry (glass,textile, plastics), tex-

tile industry, constructions,rubber industry,consumer industry, medi-

cal industry (blades for shaving or pedicure) etc.

Special application is in food industry (blades for potato and veget-

able slicers, production of potato chips).


B U S I N E S S


1. DIRECT TAXESPayers 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 in-come, 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 in-come 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 depen-ding on the address of their registered offi ce 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 profi t, i.e. the dif-ference between income and expenditure relating to the relevant tax period. Income and expenditure are ascertained from the books of ac-

counts kept according to Czech national accoun-ting 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 re-spective Directives. Excise duties apply to mineral oils, spirits, beer, wine, tobacco products, electrici-ty, 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)

USEFUL LINKS

Ministry of Finance www.mfcr.cz

Czech Tax Administration www.fi nancnisprava.cz

OECD Tax Database www.oecd.org/ctp/taxdatabase

OECD Taxing Wages www.oecd.org/ctp/tax-policy/

taxing-wages.htm

In its main characteristics, the tax system of the Czech Republic

is similar to the systems of the other EU and OECD countries.

Tax System of the Czech Republic

One of the examples from among many Czech companies operat-ing 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 ap-plications including retrofi ts/modernisations. The company's tradi-tion dates back all the way to 1904 when Škoda produced the fi rst steam turbine with an output of 420 kW. Since 2009, the company is

Examples of Czech Projects in Indiapart 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 pro-motes 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 Mahar-asthra 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 fi rst single-body steam turbine with additional heating on the Indian market and one of the largest turbines of its type in the world. Ph

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24

K E Y S E C T O R S


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Engineering is an industry of key importance to the Czech Republic,

especially as regards GDP creation, the balance of trade and em-

ployment. 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 fi nd their use in most branches of the manufactur-ing industry and other sectors, such as agricul-ture, 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.

TRADITIONEngineering 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 engineer-ing 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 fi rms (with strong capital backing and know-how) entering the Czech market and changes in the ownership structure.

CURRENT SITUATIONIn the framework of the manufacturing indus-try 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

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 favour-able 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 Commit-tee for Cooperation in the Machine-Tool Industry (CECIMO).

FUTURE PROSPECTSA characteristic feature of the engineering industry is its relative-ly 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 rela-tively 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 devel-opment institutions in the Czech Republic to set up new workplaces.

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

Export of machinery and transport equipment (SITC 7)

Source: Czech Statistical Offi ce

Czech Engineering– Tradition and Future

INCO engineering designs and manufactures following equipment:

• friction winders

• drum winders

• automatic loading/unloading stations

• sheaves and pulleys

• mine signalling

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 modern ization of old

winders. INCO engineering modernizes its own products as well as

winders from other manufacturers. It can be a complete moderniza-

tion covering: brakes, control system, hydraulics, electrical parts, me-

chanical parts, or partial modernization when only the most troubling

difficulties are solved.

Currently a project in India is underway, two winders are being assem-

bled and will be commissioned in 2017.

INCO engineering s.r.o.

Thamova 13

186 00 Praha 8

Czech Republic

phone:+420 222 780 372

[email protected]

www.incoengineering.cz

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.


STRIAGRAPH – STRIATTER 1000TM

state-of-the-art appliance for imaging and record-ing imperfections in glass

Striatter 1000 striagraph is a device that automatical-ly provides a striagram of a glass sample. A striagram is a record of streaks, bubbles and other inhomoge-neities 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 sam-ple 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 com-piled and the test protocol is created.

NEWTE spol. s r. o., www.newte.eu

26

K E Y S E C T O R S



Stepping up Its DynamicsCzech Automotive Industry

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 par-ticipated in the total production of passenger cars in 2015: ŠKODA

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 fi rst 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 pro-duction 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 increa-se 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 manufac-turers, 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 produc-tion result since that year.JAWA Moto Company produced 1 727 machi-nes, which is 60.6% more than in 2014.

Written based on documentation obtained

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Vehicle category

Production for January–December Increase / Decrease

2015 / 20142015 2014

Passenger + small utility (M1 + N1) 1 298 236 1 246 506 4.15 %

Lorries, trailer trucks, chassis (N2 + N3) 850 821 3.53 %

Buses (M2 + M3) 4 517 3 893 16.03 %

Motorbikes (L) 1 727 1 075 60.65 %

Motor vehicles total: 1 305 330 1 252 295 4.24 %

Trailers and semi-trailers (O3 + O4) 1 790 1 633 9.61 %

Trailers and semi-trailers (O1 + O2) 21 668 23 949 -9.52%

Towed vehicles total: 23 458 25 582 -8.30 %

Road vehicles total: 1 328 788 1 277 877 3.98 %

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

K E Y S E C T O R S

Player in the EU Energy MarketThe Czech Republic – a Strong

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 elec-tricity 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 tech-nology, 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, elec-tronics, 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.

MARKET REGULATIONOn 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,

electricity prices for protected customers and the electricity suppliers‘ prices are regulated by an independent energy market regulator, the Energy Regulato-ry Offi ce. One of its competencies is the

support of econ omic 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 Offi ce decides on awarding, changing or withdrawing licences and on price regulation under special legal rules.

LARGEST PLAYERS IN THE 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 Repub-

lic exports) and the production of nuclear power stations.

Development and structure of gross electricity production

0

10 000

2010 2015 2020 2025 2030 2035 2040

20 000

GW

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30 000

40 000

50 000

60 000

70 000

80 000

90 000

100 000

Black coal

Brown coal

Natural gas

Other gases

Nuclear energy

Other fuels

Renewable and secondary energy sources

Source: Ministry of Industry and Trade

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

The main electricity generating company in the Czech Republic is ČEZ, a.s. (approximately 75%). In addition, there are more than 100 indepen-dent producers. Besides coal-fi red 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 CONCEPTThe 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 identifi es the mechanisms of ensur-ing the country‘s energy safety and the interest in maintaining its current full independence as regards heat and electricity supplies, but without any signifi cant 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 aris-ing from the realisation of the priorities and aims of the Concept. Ph

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Entering into Big BusinessNanotechnologies

In the past few years, the Czech industrial tradition has

acquired a new dimension with the addition of nanotechno-

logies 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 fi rst workplace in the world, an industrially usable nanofi bre, 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 fi rms. The absolute major ity of fi rms, whose core business is the use of nanotechnologies in their operations, are born global companies, which operate on the interna-tional scale and seek trade partners in other countries.

INVESTORS AND THEIR NEED TO EXPORTCurrently, 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 fi rms come for consultation to become acquainted with new scientifi c developments. Twenty-six workplaces of the Czech Academy of Sciences, 37 university faculties, and 9 research organisations fi nanced 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 fi rms could export their nano products. All the more so, as fi rms 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 signifi es a technological change, whereby man can manipulate matter at the molecular level, across all sectors. The portfolio of Czech nanotechnology fi rms 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 fi rm fi led a patent application for an electrically conductive nanofi bre. When electrical current is passed through it, the fi bre 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 MEDICINEA real breakthrough is the use of nanotech-nologies 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 more-over, 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 fi rms are keeping pace in this area and there are good prospects that, together with research laboratories, they will be in a posi tion to offer many more products that will fi nd their way into the world, despite the competition from nanotechnology development in the USA, Japan, and China.

30

K E Y S E C T O R S


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 CAPITALThe Czech Republic has been ranked among the 30 most suitable countries for congress tour-ism 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 conferenc-es 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 exten-sive 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 extend-ed by the Václav Havel International Airport, the destination for numerous international fl ights 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 signifi -cant medicinal resources are in the regions of Karlovy Vary, Ústí nad Labem, South Bohe-mia, Hradec Králové, and Olomouc.

The Czech Republic,

IN PURSUIT OF HEALTH AND RELAXATIONWith 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, fi tness, cycling, etc.), are offered by about 40 spa localities in the Czech Republic.Notably, the aforementioned golf is increasingly refl ected in the fa-vourable 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.

an Attractive Tourist DestinationThe Czech Republic is one of the countries with thriving tourism. The land

with a population of 10 million is a peaceful and safe destination, off ering

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.

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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

infl uence 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 fi nances, effi cient and

cost-eff ective public administration, motivating and simple

taxes, research, development and innovation at a top level,

modern technical education, fl exible labour market, develop-

ment of transport and infrastructure, effi cient 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 econ-

omic 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: [email protected]

l More information about the Confederation of Industry can be

found at www.spcr.cz l

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 member-

ship platform therefore makes it possible for businessmen and

entrepreneurs to use its specifi c 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 offi cial visits to foreign countries

l Visiting missions of businessmen on the occasion of the offi cial

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 certifi cates

l Foreign trade analysis

l Publication of off ers 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: offi [email protected]

l More information at www.komora.cz l

Institutions Present Themselves

32

I N S T I T U T I O N S


INDIANCZECH 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 effi ciently, and building meaningful

synergies among Industry, Trade, and Government by addressing

strategic issues of national signifi cance.

The Indian-Czech Joint Chamber of Commerce is an independent

non-profi t 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

off er very extensive knowledge of both markets, on the basis of

which we are capable of identifying the appropriate partner

according to the specifi c 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


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


l More information at www.icc-cr.cz l

CMI is a national metrology institute of the Czech Republic

providing comprehensive metrological services at the high-

est technical level in all the sectors of scientifi c, technical,

and economic activities. CMI is a signatory to the CIPM MRA,

Mutual Recognition Arrangement (see www.bipm.org).

www.cmi.cz

Calibration services Verifi cation 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 instru-ments (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 Certifi cation 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

CMI SERVICES [email protected]


34



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, off ers a wide range of services to assist your company in

fi nding a suitable contractor or trade partner in the Czech Republic.

Czech fi rms 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 offi ces abroad:

l Qualifi ed search of Czech business partners

l Initial consultation by phone or in person with the foreign

offi ces 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 Identifi cation and compilation of a list of potential suppliers in

the Czech Republic within the specifi ed sector

l Publication and targeting of a specifi c inquiry among Czech

suppliers to fi nd 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

fi nding contacts to suppliers of goods and services in the Czech

Republic according to your specifi cations.

Czech Exporters Directory

The Directory is an offi cial online database of Czech exporters,

where you can fi nd potential trade partners in the Czech Republic.

The Directory is available in 13 language versions at

http://exporters.czechtrade.cz

BusinessInfo.cz Portal

Offi cial 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 Offi ce

Dittrichova 21, 128 01 Praha 2, Czech Republic

Green line: +420 224 907 820


CzechTrade Mumbai

REWA Chamber Offi ce 412

New Marine Lines 31, 400 020 Mumbai, India

Phone: +91 22220 8535

GSM: +91 99 67 91 88 44


l More information at www.czechtrade.eu and

www.czechtrade.org.in l


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-specifi c market intelligence, identifi cation of business

properties and sites, investment incentives, identifi cation 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 eff orts.

To simplify communication between the state, business, and the

European Union, CzechInvest acts as an umbrella business-promo-

tion organisation for companies using both EU and national funding.

CzechInvest is exclusively authorised to fi le applications for

investment incentives at the competent governing bodies and

prepares draft off ers 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.

CzechInvest

Štěpánská 15, 120 00 Praha 2

Phone: +420 296 342 502


l More information about CzechInvest at www.czechinvest.org l

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

fi rms. 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 eff orts 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.

Česká centrála cestovního ruchu – CzechTourism

Vinohradská 46, P.O.Box 32, 120 41 Praha 2

Phone: +420 221 580 111


l More information can be found at www.czechtourism.com l

36



CZECH CENTRES

Czech Centres are an agency of the Czech Ministry of Foreign

Aff airs for the promotion of the Czech Republic worldwide. They

propagate the Czech cultural scene in the international fi eld and

advance Czech interests from their offi ces in 21 foreign capitals on

three continents. They are members of EUNIC — the Associ ation

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


l More information can be found at www.czechcentres.cz l

CENTRE FOR REGIONAL DEVELOPMENT OF THE CZECH REPUBLIC ENTERPRISEEUROPE NETWORK

The Centre for Regional Development of the Czech Republic

(the Centre) is an intermediary and control body for selected

operational programmes fi nanced from the EU Structural

Funds. The Centre also administers the Regional Information

Service system, where information from the regions and munici-

palities 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 govern-

ment, 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

offi ces in India, China, Japan, and South Korea.

EEN staff off er services to both Czech and foreign enterprises.

Foreign fi rms can benefi t from the following services: assistance in

seeking partners for business, production and technological

cooperation, information about the Czech business environment,

setting up fi rms 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

U Nákladového nádraží 3144/4, 130 00 Praha 3

Phone: +420 234 006 232


l More at www.crr.cz, www.een.cz l


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

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 specifi c interests of its members in the area of

legislation and other spheres;

l formulates the common business and employer interests of its mem-

bers and pursues them in collaboration with the state authori-

ties con cerned, other employer organisations and trade unions and

es pe cially 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 Cooper-

ative Association and other organisations;

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:

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 custo-

mers’ proposals and wishes

www.crystalglamour.eu, [email protected], +420 569 480 501

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!

l is one of the social partners representing the business sector in

the Council of Economic and Social Agreement (Tripartite Body).

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


l More information at www.kzps.cz l


C O N T A C T S

Useful ContactsUSEFUL CONTACTS IN THE CZECH REPUBLIC

Embassy of the Republic of India

Indie – Velvyslanectví Indické republiky

Milady Horákové 60/93, 170 00 Praha 7Phone: +420 257 533 490E-mail: amboffi [email protected], [email protected]

[email protected]

Indian-Czech Joint Chamber of Commerce

Indicko-česká smíšená obchodní komora

Medkova 719/4, 149 00 Praha 4Phone: +420 777 896 603, 737 256 401E-mail: [email protected]

MINISTRIES

Ministry of Foreign Aff airs / 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 Transport / Ministerstvo dopravy

www.mdcr.cz

Ministry of Finance / Ministerstvo fi nancí

www.mfcr.cz

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 Aff airs

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

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

USEFUL CONTACTS IN THE REPUBLIC OF INDIA

Embassy of the Czech Republic in the Republic of India

50-M, Niti Marg, Chanakyapuri, 110 021 New DelhiPhone: +91 11 2415 5200E-mail: [email protected] Commerce Section: [email protected]/newdelhi

Honorary Consulate Mumbai

Rewa Chamber Offi ce 501 (5th Floor), 31, New Marine LinesChurchgate (E), 400 020 MumbaiPhone: +91 22220 78531, 78532, 78533, 78534 E-mail: [email protected]

Honorary Consulate Kolkata

4 Lee Road, Kolkata, 700 020 KolkataPhone: +91 033 2290 7406, +91 033 2283 7178 E-mail: [email protected]

CzechTrade Mumbai

REWA Chamber Offi ce 412New Marine Lines 31, 400 020 Mumbai, IndiaPhone: +91 22220 78535E-mail: [email protected] www.czechtrade.org.in Ph

oto:

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The Most Important WebsitesGeneral information on the Czech Republic www.czech.cz Offi cial site for the CR

BusinessInfo www.businessinfo.cz Offi cial site for business and exports

Doing Business in the Czech Republic www.doingbusiness.czGeneral information on business climate, structure, and development of the Czech economy

Portal of the Public Administration www.vlada.czThe electronic gateway for the public to administra-tion 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 Information operator

Czech exporting companieshttp://exporters.czechtrade.cz/en/

Company-Catalogue Czech Exporters Directory

Zlaté stránky www.zlatestranky.cz Telephone and companies directory

Legislation

Iuridika http://iuridica.eunet.cz Directory of legal services and offi cial bodies

Portal of Czech judiciary www.justice.cz Course of legal proceedings

Finance

Czech National Bank www.cnb.cz Monetary, fi nancial, 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

Statistics

Czech Statistical Offi ce www.czso.czOffi cial statistical data and information covering diff erent subjects

Fairs and Exhibitions

BVV – Brněnské veletrhy a výstavy/Trade Fairs Brno

www.bvv.czList of exhibitions and fairs in the CR and relevant information

Association of Fair and Exhibition Organisers of the CR /SOVA ČR/

www.euroexpo.czExhibition centres and companies organising trade fairs in the CR and abroad

Miscellaneous

The Industrial Property Offi ce www.upv.czPatents, trade marks, utility models, and industrial designs

The Czech Science Foundation www.gacr.czAwards grants to the best projects of basic research in all branches of science

The Register of Advertising Agencies www.registrra.cz/rraExpert assistance in choosing and working with advertising and communication agencies in the CR

Česká pošta (the Czech Post) www.ceskaposta.czIncl. postcodes of municipalities and its districts (PSC), philately etc.

Residence of Foreigners in the CR www.domavcr.cz 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 www.mytocz.eu Information on toll and charges

National Register of Vocational Qualifi cations

www.narodni-kvalifi kace.czSurvey of professional qualifi cations recognised in the Czech Republic

Portal of the Regional Information Service www.risy.cz Information website on the regions

The Czech Association of Hotels and Restaurants

www.ahrcr.cz Directory of hotels in the CR