Skip to content. | Skip to navigation

Personal tools
You are here: Home europe Czech Republic Access to Finance

Access to Finance

12 October 2009
by Ina Dimireva -- last modified 30 May 2012

Aside from structural funds of the European Union, companies and other entities can use subsidy programmes co-financed from the resources of the Czech state budget. These are for instance programmes for support of research and development.


Commercial Code

Funds covering the start-up capital needed to begin an activity may come from:

  • self financing (yours or your partners' resources);
  • public sources (subsidy and grant programmes of central and regional authorities);
  • private sector funding (i.e. bank credits, loans, leasing).

Another source of financing is legally-determined depreciation. Depreciation is even more favourable than profit as it is not subject to taxation. The issue of depreciation is handled by the Act on Income Tax.

Act on Income Tax

Public finance

Public support for business entities is divided into indirect support (investment incentives, tax relief) and direct support (subsidies, grants).

Indirect support

Investors launching a new product or extending an existing product in the area of processing industry may, in the case of investments exceeding CZK 50 million obtain investment incentives under the Act on Investment Incentives.

Investment incentives

Act on Investment Incentives

CzechInvest - Agency promoting business and investment

Another form of indirect state support especially for export activities of small and medium-sized businesses is to use the services of the Export Guarantee and Insurance Company (EGIC).

Its main mission is to insure export credit against territorial and commercial risks connected with the export of goods and services from the Czech Republic.

Rules for origin of goods

Act on State Support for Export Insurance and Finance


Indirect support is also provided in the Czech Republic by the Czech Export Bank (CEB). The CEB supplements the services offered by the domestic banking system concerning the financing of export operations requiring long-term sources of finance.

Czech Export Bank

Direct support

Direct support in the form of various subsidy programmes and grants is provided both by central bodies, represented mainly by the ministries, and by regional bodies, mainly the regional authorities.

The most accessible subsidy programmes for businesses are provided by the following ministries:

Ministry of Industry and Trade

Ministry of Agriculture

Ministry of the Environment

Ministry of Culture

Support programmes financed from the national budget of the Czech Republic and from other sources involve mainly small and medium-sized businesses, agriculture, R&D, energy saving and housing support.

State grants and support programmes

Small and medium-sized businesses may also use funding provided at a regional level. The provision of these financial resources is usually conditional, among other things, on the company having its head office in a given region.

Subsidy and grant programmes in individual regions

Access to EU funding

In order to make use of EU funds in the years 2007-2013 the Czech Republic is preparing a total of 24 operational programmes for the newly-conceived 3 Objectives of the EU's Economic and Social Cohesion Policy.

For business entities there is mainly Objective 1, entitled "Convergence." Information is available on the following websites concerning its various operational programmes.

Operational Programme "Business and Innovation"

Operational Programme "Environment"

Operational Programme "Education for Competitiveness"

Operational Programme "Research and Development for Innovation"

Operational Programme "Transport"

Operational Programme "Human Resources and Employment"

Integrated Operational Programme

Regional Operational Programmes

A database on support and subsidies for businesses includes subsidies from European funds, from the national budget of the Czech Republic or support provided by the regions and other entities. The database is regularly updated and enables easy searching according to selected criteria.

Database for support and subsidies

Private finance

Access to finance from private sources involves mainly bank loans and leasing.

Bank loans

The mandatory documentation for a bank loan application includes:

  • accounting statements,
  • a business plan (in case of start-ups).

Banks require a short-term asset guarantee for the provision of short-term loans and a bill of exchange for long-term loans. Loan conditions vary according to the amount required, the overall financial situation and the business plan.

Act on Banks

Act on Accounting

Czech National Bank


The most frequent type of business credit is the deferred payment. The concrete terms under which it is possible to secure bank credit vary for individual banks and non-bank institutions. Information can be obtained at the institution in question.

List of banks providing services in the Czech Republic


There are two different types of leasing:

  • operative, when you lease an item for a period shorter than the useful life of the leased item,
  • leaseback, when a leasing company purchases from you the item of the lease and then leases it back to you on the basis of a leasing contract. It is basically used to free up financial resources for other purposes.


These are a form of debt security. When you issue a bond to someone you are obliged to pay him/her interest and/or to repay the principal at a later date. Re-payment conditions depend on the bond's specific terms. Bond interest rates are not taxed.


This is a financial transaction where you sell your company's account receivables (i.e. invoices) at a discount. Unlike bank loans, factoring involves three parties:

  • the seller, who sells the receivable at a discount to the specialised financial organisation (the factor), to obtain cash;
  • debtor ;
  • the factor.


Forfeiting is when companies purchase receivables secured by a banking guarantee, a bill of exchange, or a letter of credit.

Silent partner

You can get funds from a so-called "silent partner" (e.g. an anonymous member of a business partnership, or one not involved in management) who in turn obtains the right to participate in the company's profit.

Risk capital

Risk capital (also known as venture capital) involves funding the expansion of private companies by increasing their registered capital. Venture capital is a partnership between the business and the investor.

It involves funding growing private companies by increasing their registered capital.

Risk capital

Alternative forms of financing

In the Czech Republic, the CVCA (Czech Private Equity & Venture Capital Association) represents companies operating in the area of risk capital. The main aim of CVCA is to promote venture capital in the Czech Republic.

Czech Private Equity and Venture Capital Association

The most effective way for an investor to obtain venture capital is to select a few investors and to present them with a business plan.

When selecting an investor you should be guided by these key factors:

  • The development phase of you business or the type of private capital investment you wish to obtain.
  • The branches in which you business operates.
  • The size of investment your company needs.
  • The geographical market in which your company operates.

Business support organisations can advise businesses on how to find financing.

Business support — Czech Republic

Source: Your Europe

Sponsor a Guide

EUbusiness Guides offer background information and web links about key EU business issues.

Promote your services by providing your own practical information and help to EUbusiness members, with your brand and contact details.

To sponsor a Guide phone us on +44 (0)20 7193 7242 or email sales.

EU Guides