Small business incentives from Czech Government
Business investor incentive scheme bu Czech Government

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Smaller enterprises and companies are now eligible for investment incentives in the Czech Republic.

Prague, August 3, 2004:

Subsidies in an amount of 200,000 crowns per newly created job opportunity and of up to 30,000 crowns for retraining and training of employees have now become more easily available for entrepreneurs who decide to invest in the Czech Republic in areas with the highest unemployment rates.

This has been made possible by a new program for the promotion of creating new jobs in those areas where they are needed most direly: the North-west of Bohemia, Northern Moravia, and the Hodonín area.

Unlike previous incentive schemes aimed at large investors, the new Czech program enables even medium-sized companies to become eligible for investment incentives.

While large companies must thus invest at least 100 million crowns into regions with the highest unemployment rates, the new program has brought down this limit to 10 million crowns.

At least 5 million crowns of the investment volume must come from the company’s own funds.

“The basic requirement is that at least ten new jobs are created, an obligation which the company undertakes in an agreement with the labour office,”

“The new program also incorporates a clause whereby the newly created jobs must be maintained for at least three years.”

- Jan Hanzl, head of the investment support division at CzechInvest.

CzechInvest, the Investment and Business Development Agency, has already received first applications for investment incentives under the new scheme.
Among the first prospect beneficiaries of this form of subsidies are for instance Kornfeil, a manufacturer of machinery for the food industry, confectionery producer Candy Plus, meat producers and wholesalers Maso Hodonín and Kostelecké uzeniny, as well as others.

"... We have made state aid available to any firm investing into the manufacturing industry, shared services centers and customer contact centers in areas whose unemployment rate exceeds 14%... "

" ... Incentive options thus extend also to the districts of Ústí nad Labem, Decín, Most, Teplice, Chomutov, Louny, Jeseník, Bruntál, Karviná, Ostrava, Novy Jicín and Fridek – Místek, and Hodonín.
The money for this form of public aid is drawn exclusively from the state budget... "

- Miroslav Pribyl, head of the labour market department at the Ministry of Labour and Social Affairs.

The investment proposals submitted through CzechInvest, are being assessed by the Ministry for Industry and Trade, based upon whose decision the Ministry of Labour and Social Affairs releases the allocated amount.

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