In spite of the best intentions of the government regarding the new laws brought into effect for SRO setup as of July 1st of this year, the changes are proving to be a step backwards in more than one way.
One goal was to speed up the registration time to 5 business days. This has so far not been the case and, in part, due to the confusion that exists in the Commercial Courts themselves as to what the changes require. Currently we are seeing registration times of 10 business days which is not much speedier than previously if you had all your documentation together.
Another goal of the changes was to make the application process simpler. Previously the initial application could be made and then subsequent documents added over the next weeks as they became available. If something was still missing the party was informed (see newsletter of June 2005) and had time to obtain it.
Now the application must be submitted with all the paperwork accompanying it. You have one chance and each submission is subject to the usual 5000 CZK stamp fee. If your paperwork is wrong, it will be rejected and you will be down 5000 CZK.
Instead of simplifying the process this change will prove to make it more difficult and daunting.
Other small changes are also proving to make things more difficult. For example, previously UK citizens could sign an affidavit saying that they did not have a criminal record (of course, criminals are the actual ones who would have no hesitation signing this) but now they require a criminal record check from the UK with an Apostille (for an explanation of what this is see www.apostille.co.uk) and then to have this translated into Czech by a legal translator.
One practice that is common here among individuals and companies offering assistance in the setting up of SROs is the bribing of officials in the Commercial office. This is done to either overlook missing paperwork or to put priority on the SRO so that it gets completed ahead of applications submitted at an earlier date.
At Czech Point 101 we are proud to say that we are never involved in this as we feel it continues to promote the prevalence of corruption in this country among government offices. We always get the job done and on time but we do this through legal means and rely on an accurate knowledge of the requirements rather than bribing. We like to think we are making a difference for the future of your investments.
Updated/Aktualizováno: July 22, 2014,
