The long construction permit process and complicated bureaucracy procedures are two of the primary barriers for potential investors in the Czech Republic. An additional complication is the high cost of labor when it comes to health and social insurance payments employers are required to make to the state. Czech Television reports that many Czechs prefer to set up companies abroad while setting up branch offices at home, in order to avoid extra costs and time. The government now intends to improve this state of affairs and its investment agency CzechInvest is expected to play an important role in implementing needed changes. Among the goals of the new program to bring in investors are reducing the changes paid to land purchased from the country’s agricultural fund and improving coordination between state offices and companies.
“It would be ideal if there were an agency here that would simplify things for the big investors and could take care of many of the things the companies have to do themselves,” said František Dostálek, vice president of the American Chamber of Commerce.
