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Why Czech Republic?

- The Czech Republic – a member of the EU, OECD, NATO, WTO, IMF, and EBRD- is an open market economy, parliamentary democracy, and one of the most successful post-transformation countries.

- Czech Republic has a stable economy and a quality infrastructure. 

- The Czech Republic is one of the most successful transition economies in terms of attracting foreign direct investment. Over 130,000 Czech firms across all sectors are supported by foreign capital. Since 1993, more than Euro 50 billion in FDI has been recorded and the inflow of FDI per capita is among the highest of the Central European countries for the past six years. According to an Ernest and Young survey, the Czech Republic is the seventh most attractive country for investors in the world. The survey further states that the main investment targets in Europe are in the automotive sector and cutting edge technologies. This trend is confirmed by the structure of investment currently flowing in the Czech Republic.

- For investments in transport and logistics, good for its perfect location with regard to consumption and production zones. This, together with its EU membership, makes the country a perfect gateway to the single European market of 455 million consumers.

- Since the Velvet Revolution in 1989, the Czech economy has grown steadily and the standard of living has been increased substantially. After recovering from a slight slowdown caused by the worldwide recession at the turn of the millennium, GDP growth soared above 6.6% in 2007, reaching one of the highest levels among European countries, while inflation remained low and unemployment decreased. 

- The Czech Republic has one of the most advanced transport networks in Central and Eastern Europe. Its geographical position makes it a natural crossroads for major transit corridors. The Czech Republic is ranked among the world's most advanced countries in terms of transport-network density. The significance of the Czech Republic as a transit hub has grown since the country became a member of the EU Single Market covering the area of the EU 15 and the new members in Central and Eastern Europe. 

- Investors - both foreign and Czech - have the possibility to obtain investment incentives whose purpose is to support the introduction or expansion of production in the manufacturing industry and projects in the area of business support services and technology centres.

- Due to the long tradition and great diversity of the country's industry, it offers vast sourcing opportunities for the business. Moreover, the Czech legal framework and business ethic ensure smooth and safe contracts with the Czech businesses.

- The Czech Republic combines an outstanding level of general education with strong science and engineering disciplines. According to a 2005 OECD study, the country ranked first among European countries in terms of the percentage of the population that has achieved at least upper secondary education. Technical education in the Czech Republic has a long tradition and enjoys a strong reputation around the world. The availability of technically educated graduates at a fraction of the cost of western labour creates a perfect environment for both manufacturing and R&D-oriented companies.

Astronomical clock- Prague ranks highest of all post-communist capitals in terms of standard of living. In most respects the Czech lifestyle approaches Western standards, even though the cost of living remains substantially lower - average prices of goods and services in Prague still do not amount to even half of those in Zurich.

- The system of investment incentives in the Czech Republic is set up differently for various types of investment projects. Support takes several forms - from tax relief and contributions for job creation to grants for business operation and training and re-qualification.Incentives are awarded to projects in the manufacturing industry and in the areas of research and development and business support services. There is also a programme of support for smaller-scale projects in regions worst affected by unemployment.

- The Czech Republic is a member of Multilateral Investment Guarantee Agency (MIGA), an international organization for protection of investment belonging to the World Bank-IMF group. India and Czech Republic have also signed Bilateral investment Protection Agreement.

- For protection of property rights, the Czech Republic is a signatory to the Berne, Paris and Universal copyright conventions. 

- Under the Czech law, foreign and domestic entities are treated identically in all areas of property rights to investment incentives. The government does not screen any foreign investment projects with the exception of defence and banking sectors.

- No limitation exist concerning the distribution and expatriation of profits by Czech subsidiaries to their foreign parent companies other than obligation of joint stock companies and limited liabilities companies to generate a mandatory reserve fund and pay withholding taxes. Besides India, CR has treaties to prevent double taxation with many countries.

- Well-developed institutional framework to facilitate business e.g. banks/financial institutions, promotional agencies like Czech trade, Czech Invest, apex industry organizations, Chambers of Commerce & Trade Fairs authorities.

- Joint ventures are encouraged and supported by the Czech Republic. CzechInvest maintains a database and will try to match a potential Czech partner.


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