Agentura práce v ČR

Commercial agency agreement in Czech Republic: Legal guide

Autor Publikace: Mgr. Petr Uklein Datum:

Commercial Agency in Czech Republic: Rights and Obligations

Commercial agency is one of the most important forms of business representation in Czech Republic. Whether you’re looking for a commercial proxy (prokura) or an agent, understanding the legal framework is essential for your business.

 

What Is Commercial Agency?

Commercial agency (obchodní zastoupení) exists when one person (principal) authorizes another (agent) to negotiate and conclude contracts on their behalf. The agent acts independently but for the benefit of the principal.

Key Features:

  • Independence - agent operates independently
  • Continuity - typically long-term relationship
  • Territorial scope - often limited to specific territory or market
  • Remuneration - usually commission-based

 

Legal Framework

Commercial agency in Czech Republic is governed by the Commercial Code (Živnostenský zákon) and related regulations. Key aspects include:

Registration Requirements

Commercial agents must be registered in the Commercial Register and may require specific licenses depending on the industry. Learn more about business registration requirements.

Contractual Relationship

The relationship between principal and agent is governed by a written agency agreement that should specify:

  • Scope of authority
  • Territorial limitations
  • Commission rates and payment terms
  • Duration and termination conditions
  • Non-compete clauses

 

Rights of Commercial Agent

Right to Commission

The agent is entitled to commission for all transactions concluded during the agency period. Commission rates are typically 5-15% depending on industry and transaction value.

Right to Information

The principal must provide the agent with all necessary information for executing the agency, including product details, pricing, and market conditions.

Right to Indemnity

Upon termination, the agent may be entitled to indemnity for customer relationships built during the agency, if the principal continues to benefit from those relationships.

 

Obligations of Commercial Agent

  • Loyalty - act in principal’s best interests
  • Notification - inform principal of all material facts
  • Confidentiality - protect trade secrets
  • Performance - exercise due care in negotiations

Non-Compete Obligation

During the agency and for a reasonable period after, the agent typically cannot compete with the principal in the same market. This must be contractually specified.

 

Termination of Agency

Agency agreement can be terminated by:

  • Agreement of both parties
  • Notice period - typically 1-3 months
  • Breach of contract - by either party
  • Death of agent - in some cases
  • Insolvency - of either party

Unjustified termination may give rise to compensation claims. For information on termination of business relationships, consult a lawyer.

 

FAQ

Do I need a written contract for commercial agency?

Yes. While some aspects can be oral, a written contract is strongly recommended to avoid disputes and clearly define rights and obligations.

What commission rate is standard for commercial agents?

Commission rates vary by industry, typically ranging from 5-15% of transaction value. Some agencies use fixed fees plus commission.

Can a commercial agent work for multiple principals?

Yes, unless the agency agreement exclusivity specifies otherwise. However, the agent must disclose any conflicts of interest.

What happens if the principal goes bankrupt?

The agency relationship typically terminates and the agent becomes a creditor for unpaid commissions and indemnity claims.

Is non-compete enforceable after termination?

Yes, if contractually specified and reasonable in scope (territory, time, activity). Courts generally enforce non-compete clauses that protect legitimate business interests.

Conclusion

Commercial agency is a flexible business arrangement with significant legal implications for both parties. Proper contractual framework, clear commission structures, and termination provisions are essential. Our law firm ModerniPravnik.cz helps businesses with commercial agency agreements and disputes.

 

Need help with commercial agency? We’re here for you.

 

Author: Mgr. Petr Uklein, Managing Attorney, ModerniPravnik.cz Law Firm

Napište našim odborníkům, pomůžeme vám!

Advokat 1
Advokat 2
Advokat 3
Advokat 4
Advokat 5
Advokat 6
Advokat 7
Neváhejte se s námi podělit o svou situaci a stručně popsat, s čím vám můžeme pomoci. Sdělte nám, jak vás můžeme nejlépe kontaktovat, a náš tým se vám obratem ozve s návrhem řešení. Pro vaši lepší orientaci doporučujeme se předem seznámit s naším ceníkem služeb.

Po-Pá: 9:00 -18:00

📞 (+420) 732 394 849







Všechny tyto služby a produkty vám pomohou snadno zvládnout. Neváhejte nás kontaktovat a objednejte si naše služby, smlouvy či produkty přímo na webu.

Terminating an employee agreement

Employee Agreement Termination in Czech Republic: How to Do It Legally

Autor Publikace: Mgr. Petr Uklein Datum:

Employee Agreement Termination in Czech Republic: How to Do It Legally

Terminating an employee agreement is one of the most unpleasant obligations of any employer. This seemingly simple action contains several pitfalls that can later cause significant problems. How to fire an employee correctly under Czech labor law?

Types of Employee Termination

1. Termination by Agreement (Dohoda o ukončení práce)

The most recommended option. Both parties agree on the terms and date of termination. It doesn&038;038;8217;t require a specific reason and is typically faster and less contentious than other methods. The employee is entitled to severance pay if agreed.

2. Termination with Notice (Výpověď)

The employer or employee gives notice to terminate the employment relationship. Notice periods vary from 2 months to 3 months depending on the reason and length of service. See our detailed guide on termination notice periods.

3. Immediate Termination (Okamžité zrušení)

Allowed only in serious cases such as:

  • Employee violates work duties gravely
  • Employee is convicted of a criminal offense
  • Employee refuses to perform work despite warning

This requires very serious justification and is rarely recommended without legal counsel.

4. Termination During Probation (Zkušební doba)

During probation, either party can terminate with 3 days&038;038;8217; notice. No specific reason is needed. This is the simplest form of termination but must be documented properly.

Grounds for Termination by Employer

Czech law allows termination only for specific reasons (Section 52 of Labor Code):

a) Organizational Reasons (Organizační důvody)

  • Liquidation or relocation of the employer
  • Reduction in workforce
  • Change in tasks or technological conditions

b) Employee-Related Reasons

  • Inability to perform work due to health condition
  • Inability to perform work due to qualification
  • Disciplinary violations

c) Breach of Work Duties

For invalid termination to be avoided, employers must document all violations and follow proper procedures.

Notice Period Requirements

The notice period depends on the reason for termination:

Reason Notice Period
Organizational reasons 2-3 months
Health inability 2 months
Qualification inability 2 months
Disciplinary violation 2 months

Notice periods begin on the day following delivery of the notice.

Required Documentation

Every termination requires proper documentation:

  • Written notice - delivered in person or by registered mail
  • Reason for termination - must be specific and documented
  • Date of delivery - critical for notice period calculation
  • Severance calculation - if applicable
  • References to evidence - documents supporting the reason

Improper documentation is the most common cause of invalid termination claims.

Severance Pay

Employees terminated for organizational reasons or due to health inability or other reasons of Labor Act are entitled to severance pay:

  • 1 month average earnings - for organizational reasons
  • 2 months average earnings - for health inability
  • 3 months average earnings - in some cases specified by law

What Employers Must Avoid

Prohibited Termination Reasons:

  • Pregnancy or maternity leave
  • Military service
  • Exercise of union activities
  • Reporting illegal activities (whistleblowing)
  • Discrimination based on race, gender, age, etc.

Termination for any of these reasons is invalid termination and can result in significant compensation.

Common Mistakes:

  • Not documenting violations properly
  • Failing to give employee chance to respond
  • Unclear or vague termination reason
  • Retaliatory termination timing
  • Discriminatory language or actions

FAQ

Can an employer fire an employee without reason?

No. Czech law requires a specific reason for termination. Firing without a valid reason can result in a claim for invalid termination and compensation.

How much notice does an employee get?

Notice periods are 2-3 months depending on the reason. During probation, only 3 days&038;038;8217; notice is required.

What happens if an employee files a claim for invalid termination?

If the court finds the termination invalid, the employee can be reinstated or receive compensation up to 12 months&038;038;8217; salary.

Can an employee be fired during sick leave?

No. An employee cannot be terminated for health reasons during sick leave. Termination during sick leave is generally prohibited.

What is the difference between termination and dismissal?

Dismissal (výpověď) is the standard form of termination with notice. Immediate dismissal (okamžité zrušení) is only allowed for serious breaches.

Conclusion

Employee agreement termination requires careful attention to legal requirements, proper documentation, and fair treatment. Employers should always consult with our attorney at law office a Czech employment lawyer before termination to ensure compliance with labor law and avoid costly disputes.

Author: Mgr. Petr Uklein, Managing Attorney, ModerniPravnik.cz Law Firm

Všechny tyto služby a produkty vám pomohou snadno zvládnout. Neváhejte nás kontaktovat a objednejte si naše služby, smlouvy či produkty přímo na webu.

Establish LTD company in Czech

How to Establish a Czech Limited Liability Company (s.r.o.) in 7 Steps

Autor Publikace: Mgr. Petr Uklein Datum:

How to Establish a Czech Limited Liability Company (s.r.o.) in 7 Steps

A limited liability company (s.r.o. or spol. s r. o.) is the most popular form of doing business in Czech Republic. Unlike a sole trader (OSVČ), you don&038;038;8217;t risk your personal assets for business liabilities. This guide explains the complete process of forming a Czech company.

Use our best simple tool STEP-BY-STEP company establishment to establist Ltd. (s.r.o.) in few clicks NOW. Super easy and convenient. You also know all the prices in advance. Your company is waiting on you after filling few data to the tool. Direct cooperation with the notary and our lawyers to answer all your questions. Distant Ltd. company establishment from where you sit, no need to come to Czech.

Do you already have a company and you want to transfer it? Here is our guide Transfer of Share in Czech s.r.o.: Complete Guide.

What Is s.r.o.?

Spoločnost s ručením omezeným (shortcut s.r.o.) is a Czech type of limited liability legal. What are the limits? Shareholders are liable for company debts only up to the amount of their unpaid contribution. You pay the contribution to share capital (reccommended) 850€ and no further liability for company debts easy as that. The company&038;038;8217;s capital is divided into shares (podíly), and each shareholder&038;038;8217;s liability is limited to their investment.

This structure is ideal for small to medium businesses because it offers:

  • Limited liability - personal assets are protected
  • Flexible management - simple organizational structure
  • Tax advantages - corporate tax rates and expense deductions
  • Credibility - formal business presence

Step 1: Choose the Company Name

Your company name must be unique and distinguishable from other registered companies. It must include &038;038;8220;společnost s ručením omezeným&038;038;8221; or the abbreviation &038;038;8220;s.r.o.&038;038;8221; or &038;038;8220;spol. s r. o.&038;038;8221;

Check availability in our simple tool STEP-BY-STEP company establishment before proceeding. This tool allows you to complete the whole proces on one place.

Step 2: Define the Business Activities

List all business activities your company will perform. Some activities require special permits or licenses (e.g., construction, healthcare, finance). Others are free to perform after registration.

Free vs. Licensed Business Activities:

  • Free trades (volná živnost) - no special requirements
  • Regulated trades (řemeslná živnost) - require proof of qualifications
  • Concession trades (koncesovaná živnost) - require government approval

Step 3: Draft the Founding Document (zakladatelská listina)

The founding document is the main legal instrument that establishes your company. It must include:

  • Company name and registered office
  • Description of business activities
  • Amount of registered capital (minimum 1 CZK)
  • Number and value of shares
  • Identity of shareholders and their contributions
  • Rules for profit distribution
  • Management structure (jednatelé)

The document must be notarized. For help with company formation documents, consult a lawyer.

Step 4: Contribute Capital

Each shareholder must contribute to the company&038;038;8217;s capital. The minimum total capital is 1 CZK, most reccommended are 20,000 CZK (about 850€) while older companies (before 2014) start with 100,000-200,000 CZK for credibility and practical purposes.

Types of Contributions:

  • Cash contribution - most common, transferred to company account, up to 20,000 CZK
  • Non-cash contribution - assets, equipment, intellectual property. Expert opinion needed, we will arrange it for you.

Contributions is suggested to be paid before registration.

Step 5: Register the Company

Register your s.r.o. with the relevant notary through Registry Court (rejstříkový soud) by filing our simple tool STEP-BY-STEP company establishment. You ll find there:

  • Notarized founding document
  • Application for registration
  • Statement of contributions paid
  • List of shareholders and managers
  • Power of attorney if using a representative

The fee startes on approximately 12,000 CZK and rise with company structure complexity. Registration typically takes 5-10 working days.

Step 6: Obtain Business Licenses

Depending on your business activities, you may need additional licenses:

  • Trade license (živnostenský list) - from the Trade Licensing Office
  • Special permits - from relevant regulatory bodies
  • Building permits - from municipal authorities

If using our simple tool STEP-BY-STEP company establishment we will arange the business licence for your company on your behalf. For information on business registration requirements, see our detailed guide.

Step 7: Start Operations

Once registered, you can:

  • Open a business bank account in Czech, if statutory director has at least long term allow to stay in Czech,
  • Sign contracts on behalf of the company
  • Hire employees
  • Begin business operations of any type

Ongoing Obligations:

  • File annual financial statements
  • Pay corporate income tax
  • Maintain accounting records
  • Hold annual shareholder meetings
  • Update Commercial Register information
    Our team of lawyers, notaries, accountants and tax advisors will provide you with all the care needed.

FAQ

How much does it cost to establish an s.r.o.?

Total costs typically include: court registration fee (6,000 CZK), notarization (3,000-10,000 CZK), possible legal fees, and initial capital contribution. Total typically 15,000-50,000 CZK depending on complexity of the company.

What is the minimum capital required?

The legal minimum is 1 CZK, we recommend 20,000 CZK.

How long does the process take?

With proper preparation, you can establish an s.r.o. in 1-3 weeks. Complex cases may take longer.

Do I need a physical office?

No, you just need a registered office address in Czech Republic in form of paper with verified signature consenting having seat there. When using our simple tool STEP-BY-STEP company establishment it is a part of the process. This can be a rented office, virtual office, or your residence (with consent) and we can make it for you all in one place.

Can a foreigner establish an s.r.o.?

Yes. Foreigners with us from all around the world often establish and own s.r.o. companies in Czech, only a few appostiled documents are needed.

Need Help Establishing Your Company?

Contact us, we are here to help you. Establishing a company involves many legal and administrative steps. Our law firm ModerniPravnik.cz provides complete company formation services, from document preparation to final registration.

Author: Mgr. Petr Uklein, Managing Attorney, ModerniPravnik.cz Law Firm

Všechny tyto služby a produkty vám pomohou snadno zvládnout. Neváhejte nás kontaktovat a objednejte si naše služby, smlouvy či produkty přímo na webu.

Building Permit in Czech Republic: Complete Guide 2026

Autor Publikace: Mgr. Petr Uklein Datum:

Building Permit in Czech Republic: Complete Guide 2026

A building permit is a document you must obtain before starting construction of real estate or before building modifications to a house or apartment. In this guide, we explain when you need a building permit, how to apply, and what conditions must be met.

What is a Building Permit?

A building permit is a document that must be obtained before starting construction of real estate or before building modifications to a house or apartment. It can also be defined as a license that confirms that the construction or building modifications have been approved by the relevant administrative authorities. The permit is issued upon application to the building authority, subject to further conditions.

When is a Building Permit Required?

Buildings requiring a building permit are determined by law. This includes buildings with a built-up area larger than 150 m², or interventions into load-bearing structures of residential buildings. For some buildings, however, only a notification (ohlášení) is sufficient.

If you are not sure when a building permit or just a building notification is required, do not hesitate to contact us to avoid any potential penalties.

How to Submit a Building Notification?

The notification is submitted to the building authority on the prescribed form, which is Annex No. 8 of Decree No. 503/2006 Coll. The form also lists all necessary attachments that must be included with the building notification.

How to Apply for a Building Permit?

As with the building notification, you need to complete the form which is Annex No. 9 of Decree No. 503/2006 Coll., which also establishes the necessary attachments.

What is the Process of Applying for a Building Permit?

Before initiating proceedings for a building permit, it is necessary to obtain all required consents and opinions. If the application meets all prescribed requirements, the building authority will initiate proceedings. The proceedings are primarily oral, but in certain cases can be conducted without an oral hearing, in written form. If you meet all conditions, the building authority will issue the building permit.

Validity of Building Permit

The building permit is valid for 2 years, during which construction should commence. If you do not start construction within this period, the permit loses its validity. However, if you cannot start work for some reason, you can apply for an extension of the permit.

If urgent complications have arisen and you cannot start construction for these reasons, do not hesitate to contact us. We will be happy to help you with obtaining or extending the building permit.

FAQ - Building Permit Czech Republic

What is a building permit?

A building permit is an official authorization required before starting construction or major renovations in Czech Republic.

When do I need a building permit?

You need a building permit for buildings over 150 m² or interventions into load-bearing structures.

How long does it take to get a building permit?

The process typically takes 2-6 months depending on the complexity of the project.

What documents do I need?

You will need project documentation, consent from neighbors, and various approvals from authorities.

Can I extend the building permit?

Yes, you can apply for an extension before the permit expires.

Internal Links

External Links

Author: Mgr. Petr Uklein

Contact Us

Napište našim odborníkům, pomůžeme vám!

Advokat 1
Advokat 2
Advokat 3
Advokat 4
Advokat 5
Advokat 6
Advokat 7
Neváhejte se s námi podělit o svou situaci a stručně popsat, s čím vám můžeme pomoci. Sdělte nám, jak vás můžeme nejlépe kontaktovat, a náš tým se vám obratem ozve s návrhem řešení. Pro vaši lepší orientaci doporučujeme se předem seznámit s naším ceníkem služeb.

Po-Pá: 9:00 -18:00

📞 (+420) 732 394 849







Všechny tyto služby a produkty vám pomohou snadno zvládnout. Neváhejte nás kontaktovat a objednejte si naše služby, smlouvy či produkty přímo na webu.

AML pro společnosti

AML Services for Businesses: We Help You Stay Compliant

Autor Publikace: Mgr. Petr Uklein Datum:

AML services for businesses are essential across a wide range of industries including finance, crypto, real estate, and more, where compliance is explicitly required. When establishing bank accounts, your bank will inquire about your AML documentation, risk assessment system, and MLRO officer. Today, Anti-Money Laundering (AML) compliance is crucial for any company that wants to operate legally, open a bank account, build partnerships with reputation-conscious individuals, and of course avoid significant fines. As a law firm with established infrastructure, we offer professional AML services at competitive rates.

Who Are Our AML Services For?

Our services are designed for entrepreneurs and companies providing B2C or B2B services or selling products (most commonly cryptocurrencies and investment products) who need to ensure compliance with AML legislation. This requires an MLRO officer, a specialist in AML. Every type of business has its specifics, which is why we approach each client individually.

Running a B2C Business? Use Automated Identification

If you provide B2C services, you typically use technical solutions like Sumsub for automated initial client identification. These systems work effectively and the costs for initial identification are low. To implement this, you will need us to prepare a risk assessment policy document under Section 21a of the AML Act. After that, your AML operations will be economically advantageous thanks to automation.

When conditions for AML control are met-for example, transactions exceeding EUR 1,000 or identification of a PEP (Politically Exposed Person)-our AML experts step in. The client is redirected to our control questionnaire at www.modernipravnik.cz/aml/ to fill in the required information. This data is then reviewed by our AML officer.

Running a B2B Business? Personal Approach Is Essential

For B2B services, we usually step in directly, without automated pre-screening. Crypto companies, investment funds, and investment companies we work with have all transactions exceeding EUR 1,000, which is why a personal approach is appropriate.

Our B2B clients appreciate individual care and fast communication. We are ready to provide comprehensive services from initial consultation to regular monthly reporting.

Our AML Service Pricing

Our prices are more than competitive compared to external AML officers:

  • Entry fee: EUR 600 + VAT covers system integration, sharing of machine code, redirect setup in cooperation with our IT team,
  • Monthly fee: EUR 200 + VAT includes 1 hour of AML officer legal work, which is sufficient for most of our B2C clients.

Standard pricing for an external AML or MLRP officer ranges from EUR 2,500 to 3,500 per month. With us, you get the same quality services for a fraction of the cost, which fully satisfies our clients.

Why Choose Our AML Services?

  • Professional law firm with a qualified MLRO and established infrastructure that we are willing to share,
  • Our clients appreciate that we provide them with machine code for our forms, which they can implement into their solutions so their customers do not leave their web or app environment due to AML checks,
  • Individual approach to each client,
  • Competitive pricing compared to external AML officers-we are 20x cheaper and highly effective,
  • Automated pre-screening option for B2C clients and long-term low compliance costs,
  • Fast processing, ticketing system, and transparent communication,
  • We also provide services to crypto companies. Learn more about MiCA in this article and about ready-made companies here.

Order Our Services

If you are looking for a reliable partner for AML compliance, do not hesitate to contact us. We will be happy to offer you an individual solution tailored to your needs.

Contact us today and ensure smooth AML operations for your company!

FAQ

What are AML services for businesses?

AML processes are established rules and procedures against money laundering and terrorism financing that comply with legal requirements and supervisory practices (compliance).

Who must fulfill AML obligations?

Entrepreneurs and companies that fall under obligated persons or address regulatory requirements in financial, investment, or crypto services.

What specifically can Modernipravnik.cz help with?

Assistance typically includes setting up internal processes and policies, preparing AML/KYC documentation, risk assessments, and related compliance consulting. We also provide external AML officer services, also known as MLRO.

Can you also prepare AML documentation for us?

Yes, we have the practice and experience in drafting documents linked to processes to ensure they remain usable long-term internally and serve as supporting documents for banks, notifications, or licenses.

Can you help us with AML risk assessment?

Yes, risk assessment is according to ModerniPravnik.cz one of the key AML obligations when you want to implement simplified AML processes across the board, and it is a recommended approach.

Is AML risk assessment just a formality?

It is a strategic process based on the risk assessment document, and the result is an AML opinion from which further AML measures and client monitoring intensity derive.

Can you assist with communication with the Czech National Bank (ČNB)?

Yes, in related services ModerniPravnik.cz provides representation or support in communication with the Czech National Bank and we will guide you through the licensing or notification process. We can also help you with communication with the Financial Analytical Office (FAU) or when establishing accounts.

Can you prepare a company for a license or registration?

Yes, our support includes documentation preparation, compliance plan setup, and responding to regulator comments during proceedings.

What is the main benefit of AML compliance for businesses?

Properly set up AML reduces regulatory and reputational risks and helps avoid problems during inspections or when dealing with supervisory authorities.

What happens if AML obligations are not met properly?

There is a risk of remedial measures, activity bans, reputational damage, and in extreme cases, criminal liability of the legal entity due to negligence, which can end the entire project. For example, for crypto projects, it becomes practically impossible to obtain a MiCA license, as such a project ends up on a blacklist.

Do you handle AML for crypto companies?

Yes, we provide AML and compliance support for crypto companies, investment, payment, and other regulated business plans. Learn more about MiCA licenses in this article and about ready-made companies here.

Can you also help after initial setup?

Yes, we will help you with setup, connect you with our IT team, and provide long-term support, ongoing compliance tasks, and monitoring of regulatory changes (upon request).

Chyba: Kontaktní formulář nebyl nalezen.

Všechny tyto služby a produkty vám pomohou snadno zvládnout. Neváhejte nás kontaktovat a objednejte si naše služby, smlouvy či produkty přímo na webu.

Real Estate Purchase in Czech Republic: Complete Guide for Safe Property with Due Diligence

Autor Publikace: Mgr. Petr Uklein Datum:

Why Is Real Estate Due Diligence Essential?

In Real Estate Purchase all investors need to know exactly what they are buying that applies in every country and also in Czech Republic. This is an absolute necessity in every real estate transaction. Whether you are purchasing an apartment, house, apartment building, commercial property, or development project, without thorough due diligence you expose yourself to significant risks. Do not buy a pig in a poke - invest in certainty and security for your property, practice shows it really pays off.

We have a team of experts with extensive experience in conducting due diligence for real estate transactions. We do this regularly and know what to focus on. This article reveals what you should verify before purchasing real estate.

What Is Real Estate Due Diligence?

Due diligence (legal audit) is a comprehensive process where we thoroughly analyze all legal, technical, and economic aspects of a property. The goal is to uncover any defects, risks, or hidden liabilities before signing the purchase agreement.

Without due diligence, you risk purchasing property with legal defects, hidden debts, or technical problems that will cost you thousands of crowns extra.

What Do We Verify?

1. Legal Verification of Ownership Structure

We determine who the actual owner of the property is, whether shares are encumbered by lien rights, preemptive rights, or other transfer restrictions. We also verify the history of transfers and any related litigation.

2. Land Registry

We check whether the property is properly registered in the cadastre, whether there are easements, executions, pledges, or other legal defects. We also verify whether there are claims secured by lien rights on the property.

3. Liabilities and Debts

We verify that the seller does not have any critical liabilities that could jeopardize the transaction. We primarily verify pledge and other property rights, perform a mini audit of the seller, and validate existing liabilities such as lease agreements.

4. Contractual Relationships

We analyze all contracts related to the property - lease agreements, energy supply contracts, services, and maintenance. We determine whether these contracts can be terminated or assumed and what obligations arise from them.

5. Technical Condition

We cooperate with technical inspection experts who assess the construction-technical condition of the property. We check load-bearing structures, wiring, insulation, roof, and other critical elements, including the building energy performance certificate.

6. Location and Spatial Planning

We verify whether the property complies with the zoning plan, whether there are planned constructions nearby that could reduce the property value, and whether the property has the necessary permits and occupancy certificates.

7. For Apartments - HOA Condition

For apartment units, we analyze the condition of the homeowners association (HOA). We check the budget, potential HOA debts, receivables, ownership structure, and inquire about the association ability to effectively manage the building.

Why Is Due Diligence Important?

Without thorough verification, you risk:

  • Property rights such as pledges, easements, and transfer prohibitions - with the property, you also acquire the property rights of the previous owner, this is a fundamental part of the entire transaction
  • Legal defects - the property may have defects that prevent its trouble-free use, such as non-compliance with the owner declaration or zoning plan
  • Technical problems - hidden construction defects may require expensive repairs
  • Unfavorable contracts - you may enter into contracts, especially leases, that are disadvantageous for you
  • Failed transaction - without legal due diligence, problems may arise during financing or transfer

How Do We Proceed?

Our law firm conducts due diligence systematically and professionally:

  • Initial consultation - we assess your situation and determine the scope of the audit
  • Documentation gathering - we obtain all necessary documents from the seller
  • Due Diligence (DD) analysis - we verify all legal aspects of the property
  • Technical inspection (optional) - upon request, we arrange professional assessment of technical condition
  • Final report - we prepare an overview of all findings with recommendations and a so-called red flag report, highlighting the biggest potential transaction problems. Based on this, we recommend further procedure such as asset deal (purchase of property) or share deal (purchase of business share). In practice, the purchase of a business share is typically the cheaper option for apartment buildings or industrial complexes, for which we recommend comprehensive DD as well.
  • Negotiation - we help you negotiate an appropriate price or discount with solid arguments, you will have a complete DD report in your hand to rely on.

How Much Does Due Diligence Cost?

The price of due diligence depends on the scope of the transaction and type of property, usually ranging between CZK 40,000-130,000 without VAT for apartment buildings and industrial properties. For a standard apartment or house, it ranges between CZK 7,000-15,000 separately, which is often one of the recommended extensions of standard real estate transfer documentation. It includes legal verification, possibly technical inspection (service beyond scope) and other specialized services described in 1 to 6. However, the investment in due diligence always pays off - whether through savings on repairs, negotiating a better price, or avoiding legal problems.

Do You Need Real Estate Due Diligence?

If you are planning to purchase property, do not underestimate the preparation. Our law firm has experience with dozens of real estate transactions. We know what to look for and how to protect your investments.

Contact us for a free consultation. We will verify your property and ensure you are buying exactly what you want - without surprises and hidden risks.

Contact us:

📧 info@modernipravnik.cz
📱 +420 732 394 849

FAQ - Frequently Asked Questions

What if I find problems during due diligence?

That is exactly the purpose of the entire audit. If we find defects, you can either negotiate a discount on the purchase price - this is the most common because we also provide you with the scope of financial and time solution, and with such solid arguments our clients successfully negotiate a discount. You can also require the seller to remedy the situation before purchase, which we set as a condition of the purchase agreement.

Is due diligence necessary for new construction too?

Yes, we also recommend verification for new constructions. You may uncover construction defects, problems with occupancy certificates, or documentation deficiencies. For development projects, we also check the developer financial health.

How long does due diligence take?

It depends on the transaction complexity. For a standard apartment or house, usually 1-2 weeks. For commercial properties or development projects, it may take 3-4 weeks.

Can I conduct due diligence myself?

Technically yes, but we do not recommend it. Without professional knowledge, you may overlook critical defects. Our law firm has experience and knows what to look for. We also have access to registers and databases that are not publicly available.

Do you need assistance? Feel free to contact us!

Author: Mgr. Petr Uklein

 
Serbia Developement

Development of Residential Projects in Serbia: Only 36 Months from Start to New Housing

Autor Publikace: Mgr. Petr Uklein Datum:

Development of Residential Projects in Serbia: 36 Months from Start to New Housing

Serbia is becoming an increasingly attractive destination for residential development projects. Many International developers are already implementing residential projects in Serbia. In this article, we will introduce you to how residential development works in Serbia and why this sector is so promising.

Why Invest in Development Projects in Serbia?

Serbia offers numerous advantages for developers and investors in residential real estate:

  • Land prices - Compared to the Czech Republic, land in Serbia is significantly cheaper, especially in the Belgrade area
  • Investment requirements - The minimum investment threshold for obtaining a residence permit is favorable
  • Market growth - The Serbian real estate market is experiencing stable growth, particularly in the new construction segment
  • EU perspective - Serbia is an EU candidate country, providing long-term stability
  • Demographic trends - Growing populations in urban areas create demand for new housing

How Long Does Residential Development Take in Serbia?

The average duration of a residential development project in Serbia is approximately 36 months (3 years) from project preparation to occupancy permit and apartment handover. This period includes:

Phase 1: Project Preparation (6-12/18 months)

  • Land acquisition and due diligence
  • Zoning proceedings and building permit acquisition
  • Project documentation and contractor selection
  • Financing arrangement

Phase 2: Construction (18/24-30 months)

  • Actual construction according to the project
  • Ongoing inspections and reports
  • Coordination with suppliers and subcontractors
  • Occupancy permit preparation

Phase 3: Completion (3-6 months)

  • Occupancy permit procedure
  • Property ownership registration
  • Sale/rental of completed units

Legal Framework for Development in Serbia

Development in Serbia is governed by the Law on Spatial Planning and Construction. Key aspects include:

  • Building permit - The process of obtaining a permit can take 6-12 months depending on the location
  • Environmental assessment - EIA is required for larger projects
  • Land security - Thorough legal verification of ownership rights and potential encumbrances
  • Work permits - Foreign workers require work permits

Why Use a Law Firm with an Office in Belgrade?

Our law firm has a permanent office in Belgrade, which allows us to provide comprehensive legal services for your development projects in Serbia:

  • Local knowledge - We understand Serbian legal environment, local authorities, and their practices
  • Language capabilities - We communicate in Czech, Serbian, and English
  • Network of contacts - We have established relationships with local institutions, architects, and developers
  • Comprehensive services - From land acquisition, through building permits, to occupancy permits and sales

Our Services for Developers and Investors

We offer comprehensive legal support for development projects in Serbia:

  • Due diligence of land and real estate
  • Legal assistance in obtaining building permits
  • Preparation and review of contracts with contractors
  • Representation in negotiations with authorities
  • Legal supervision during construction
  • Assistance with occupancy permits and property transfer

Timeline of a Development Project in Serbia

Phase Duration Key Activities
Preparation 6-12/18 months Acquisition, zoning, design
Construction 18/24-30 months Realization, control, reporting
Completion 3-6 months Occupancy, sale, handover
TOTAL approx. 36 months From idea to new housing

FAQ - Development Projects in Serbia

How long does residential development take in Serbia?

The average duration of a residential development project in Serbia is approximately 36 months (3 years), including preparation, construction, and occupancy permit.

Can foreigners develop in Serbia?

Yes, foreigners can invest in real estate and implement development projects in Serbia. We recommend using the services of a local law firm to ensure compliance with local legislation.

Do I need permits from authorities for development?

Yes, a building permit is required for any development in Serbia. The process can take 6-12 months depending on the location and size of the project.

How can your firm help me?

We have an office in Belgrade and provide comprehensive legal services for development projects - from land acquisition, through building permits, to occupancy permits and unit sales.

Is Serbia safe for investments?

Serbia is a stable country with an EU membership perspective. The political and economic situation is relatively stable, making it an attractive destination for real estate investments.

Conclusion

Residential development in Serbia represents an attractive investment opportunity with a return period of approximately 36 months. The key to success is selecting the right legal partner with local expertise.

Our law firm will help you with the entire process - from the initial idea to handing over the keys to new owners.

Author: Mgr. Petr Uklein

uklein@modernipravnik.cz

Whatsapp, Viber, Telegram +420 775 958 853

(calls accepted only from Serbian numbers) +381 63 1729883

Contact Us

Napište našim odborníkům, pomůžeme vám!

Advokat 1
Advokat 2
Advokat 3
Advokat 4
Advokat 5
Advokat 6
Advokat 7
Neváhejte se s námi podělit o svou situaci a stručně popsat, s čím vám můžeme pomoci. Sdělte nám, jak vás můžeme nejlépe kontaktovat, a náš tým se vám obratem ozve s návrhem řešení. Pro vaši lepší orientaci doporučujeme se předem seznámit s naším ceníkem služeb.

Po-Pá: 9:00 -18:00

📞 (+420) 732 394 849







Všechny tyto služby a produkty vám pomohou snadno zvládnout. Neváhejte nás kontaktovat a objednejte si naše služby, smlouvy či produkty přímo na webu.

Company inspection

Company Inspections in Czech Republic: How to Prepare and Defend

Autor Publikace: Mgr. Petr Uklein Datum:

Company Inspections in Czech Republic: How to Prepare and Defend

Company Inspections may lead to high penalty fees. Here is a guide how to prepare and defend against them once facing them. Running a business brings not only opportunities but also obligations towards state authorities. Among the most common inspections companies may face are those from the Financial Office, Czech Social Security Administration, Labor Inspection, or Trade Licensing Office. How to prepare and defend against unjustified procedures?

Most Common Company Inspections and Their Process

  • Financial Office - examines tax returns, accounting records, correctness of VAT and other tax settlements.
  • Czech Social Security Administration (ČSSZ) - focuses on correctness of social security contributions, employee registration, and compliance with legal obligations towards the social security system.
  • Labor Inspection - checks compliance with labor law regulations, employment contracts, work safety, minimum wage compliance, and focuses on illegal employment.
  • Trade Licensing Office - monitors compliance with conditions set by the Trade Licensing Act and business eligibility.
  • Customs Office and Czech Trade Inspection (ČOI) - monitors whether counterfeits or fake products are not being sold, focuses on small shops on main streets.

How to Effectively Defend

If you do not want to face an inspection alone, which we recommend as it often results in high fines, you have several options:

  • Objections, appeals, or other remedies - against decisions of authorities, you can most commonly file objections to the inspection protocol if you have evidence of incorrect procedure.
  • Filing a complaint - if the inspection was conducted unprofessionally or in violation of regulations, a complaint can be filed with the superior authority.
  • Legal representation - our experienced attorneys will help you defend against authority decisions, prepare appeals, and protect your rights before courts or administrative authorities.

Prevention as the Best Strategy

The best defense against problems with authorities is thorough preparation. We can help you with:

  • Regular internal documentation checks to ensure compliance with legal requirements
  • Training for employees on labor law and safety regulations
  • Preparation for inspections including document organization and legal support during the inspection

FAQ - Company Inspections Czech Republic

What inspections can my company face in Czech Republic?

The most common are: Financial Office, Czech Social Security Administration, Labor Inspection, and Trade Licensing Office.

How to prepare for an inspection?

Keep all documentation in order, respond to requests promptly, and consider having legal representation present.

What to do if the inspection was unfair?

File objections, appeal, or complaint. Our attorneys can help you defend your rights.

Can inspections result in fines?

Yes, inspections can result in significant fines, procedural penalties, or even criminal liability.

How long does an inspection take?

It depends on the type and complexity, from several days to several months.

Internal Links

External Links

Author: Mgr. Petr Uklein, head attorney at law

Contact Us

Napište našim odborníkům, pomůžeme vám!

Advokat 1
Advokat 2
Advokat 3
Advokat 4
Advokat 5
Advokat 6
Advokat 7
Neváhejte se s námi podělit o svou situaci a stručně popsat, s čím vám můžeme pomoci. Sdělte nám, jak vás můžeme nejlépe kontaktovat, a náš tým se vám obratem ozve s návrhem řešení. Pro vaši lepší orientaci doporučujeme se předem seznámit s naším ceníkem služeb.

Po-Pá: 9:00 -18:00

📞 (+420) 732 394 849







Všechny tyto služby a produkty vám pomohou snadno zvládnout. Neváhejte nás kontaktovat a objednejte si naše služby, smlouvy či produkty přímo na webu.

Debt collection in Czech Republic. When Debtor Does Not Communicate: Complete Guide

Autor Publikace: Mgr. Petr Uklein Datum:

What to Do When Debtor Does Not Communicate: Complete Guide

Here is our comprehensive debt collection guide for debtors in Czech republic. When a debtor does not communicate, it is very frustrating for the creditor. If you find yourself in this situation and the debtor is not paying their debts, you need to act quickly and effectively. Debt collection in these cases can be a complex process and there are various ways to resolve this situation.

Thanks to our 13 years of experience we have high success rate for debt collection against companies and natural persons.

Sometimes Agreement Helps

The first step is to stay calm. It may be that the debtor has a temporary financial problem or simply needs time to get their finances in order. Try to reach an agreement with the debtor first.

Even if they do not communicate, try to contact the debtor in various ways. You can send a reminder by letter, email, or phone call. This communication with the debtor should be polite and emphasize your willingness to find a solution. Some debtors who originally did not communicate may be grateful for the opportunity to agree on a payment schedule or extend the deadline.

Send a Pre-Legal Demand Letter

If the debtor still does not communicate, you can consider sending a pre-legal demand letter through our attorneys, in which we also request payment of attorney costs according to law. This step of sending a pre-legal demand letter is absolutely essential before initiating judicial debt collection.

If despite your efforts the debtor does not communicate and does not fulfill their obligations, contact our professionals. ModerniPravnik.cz law firm has extensive experience in resolving situations where debtors do not communicate and can provide valuable legal advice and assistance.

Mini Audit

Before judicial debt collection, we conduct a so-called mini audit in which we verify the debtor’s solvency, as well as any executions or insolvencies. This will clarify whether we will pursue the matter as civil collection or criminal matter most commonly fraud.

Collect Debt Through Courts

If the situation is still not resolved and the debtor does not communicate, you can initiate judicial debt collection. This involves filing a lawsuit with the court. If the court rules in your favor, you will receive an enforceable judgment that can be used to enforce the debt through execution.

FAQ - Debtor Does Not Communicate

What to do when debtor does not communicate?

First, try various ways to contact them. If this does not work, send a pre-legal demand letter with ModerniPravnik.cz and conduct legal action. Mini audit is necessary.

Is pre-legal demand letter necessary?

Yes, it is essential before initiating judicial debt collection in Czech Republic in connection to costs.

How long does debt collection take?

It depends on the complexity, but typically several months to years.

What costs are involved?

Attorney fees, court fees, and execution costs may apply. The counterparty shall pay them back at the end.

Can I collect attorney costs from the debtor?

Yes, if you use an attorney like ModerniPravnik.cz, you can claim attorney costs according to law from counterparty since the moment of signing the Power of Attorney.

Internal Links

External Links

Author: Mgr. Petr Uklein

Contact Us

Napište našim odborníkům, pomůžeme vám!

Advokat 1
Advokat 2
Advokat 3
Advokat 4
Advokat 5
Advokat 6
Advokat 7
Neváhejte se s námi podělit o svou situaci a stručně popsat, s čím vám můžeme pomoci. Sdělte nám, jak vás můžeme nejlépe kontaktovat, a náš tým se vám obratem ozve s návrhem řešení. Pro vaši lepší orientaci doporučujeme se předem seznámit s naším ceníkem služeb.

Po-Pá: 9:00 -18:00

 

📞 (+420) 732 394 849

 







🎧 Listen to This Article - bellow

Audio version of this article - subscribe to our podcast on YouTube

Všechny tyto služby a produkty vám pomohou snadno zvládnout. Neváhejte nás kontaktovat a objednejte si naše služby, smlouvy či produkty přímo na webu.

Debt collection laws in the Czech Republic 2025

Debt Collection in Czech Republic 2025

Autor Publikace: Mgr. Petr Uklein Datum:

Debt Collection in the Czech Republic: How to Recover Your Money in 2025

You feel defrauded. You feel dishonest. We know exactly how you feel. Your debtor promised to pay tomorrow, next week, or next month. But now? He has stopped communicating completely.

He is not replying to your messages, emails, or phone calls. You are far away, but he is in the Czech Republic. You might be worried that your money is lost forever or that the Czech legal system is too complex to navigate from abroad.

Do not give up. With the right strategy, the law is on your side.

 

The “Ghosting” Debtor: Why you need to act fast

The worst feeling is uncertainty. Is the debtor just ignoring you, or do they genuinely have no money? In the Czech Republic, time is money-literally.

According to Czech law, the general statute of limitations is three years. If you wait too long hoping for a voluntary payment that never comes, your right to enforce the debt in court may expire. Furthermore, effective from January 1, 2025, new rules regarding wage deductions and unseizable amounts have been introduced, making the calculation of recoverable debts more complex. You need a partner who understands these current regulations.

 

Don’t Sue Blindly: The “Mini Audit” Strategy

Many foreign creditors make the mistake of immediately filing a costly lawsuit without checking the debtor’s situation. This can be a waste of money if the debtor has no assets.

At ModerniPravnik.cz, we start with a smart, low-cost step: the Mini Audit. For a starting fee of approximately €150, we perform a background check that includes:

  • Insolvency Check: We verify if the debtor is in insolvency proceedings.
  • Execution Registry: We check if there are already forced debt collections against them.
  • Asset Tracing: We look for immovable property (real estate).

Why is this crucial?

If the debtor is already in deep debt or insolvency, a standard lawsuit might not be the best path. However, if they have assets or an income, we proceed to the next step immediately.

 

The Legal Process: Speed is Key

Execution: Getting Your Money Back

If the Mini Audit shows the debtor has funds, we move to the Pre-litigation Notice. This is a mandatory step. Sending this notice gives the debtor a final chance to pay, but more importantly, it is a legal requirement if you want the court to order the debtor to pay your legal costs as well.

The “Payment Order”

We don’t want to drag you through years of court hearings. In many cases, we utilize a specific tool in Czech law called the Payment Order. The court can issue this order without a hearing. Once delivered, the debtor has only 15 days to pay the debt plus costs or file an objection. If they do nothing, this order becomes as powerful as a final judgment.

 

Execution: Getting Your Money Back

Once we have a judgment, if the debtor still refuses to pay, we initiate execution. In the Czech Republic, we can recover debts through:

  • Wage Deductions: Directly taking a portion of their salary (subject to 2025 limits).
  • Bank Account Freezing: Seizing funds directly from their bank accounts.
  • Sale of Property: Selling their movable or immovable assets.

Our goal is to recover not just the principal debt, but also the interest and the legal service fees.

 

Why Choose ModerniPravnik.cz?

We have been established on the Czech market for more than 13 years. Our team of 7 lawyers specializes in helping foreign clients navigate local laws.

We understand that you want your money back, not more bills. We are here to bridge the distance between you and your debtor.

 

Contact us today

Are you dealing with a non-paying debtor in the Czech Republic? Don’t let the statute of limitations run out. Send us the details, and let’s start with a Mini Audit to see where you stand.

 

Autor: Matěj Šedivý, právní praktikant a Mgr. Vojtěch Ruta, advokátní koncipient

Napište našim odborníkům, pomůžeme vám!

Advokat 1
Advokat 2
Advokat 3
Advokat 4
Advokat 5
Advokat 6
Advokat 7
Neváhejte se s námi podělit o svou situaci a stručně popsat, s čím vám můžeme pomoci. Sdělte nám, jak vás můžeme nejlépe kontaktovat, a náš tým se vám obratem ozve s návrhem řešení. Pro vaši lepší orientaci doporučujeme se předem seznámit s naším ceníkem služeb.
Po-Pá: 9:00 -18:00

📞 (+420) 732 394 849

trust fund serves not only the rich asset protection

Trust: How to Protect and Pass on Assets (trust in Czech and EU)

Autor Publikace: Mgr. Petr Uklein Datum:

Trust fund: How to protect and transfer property in the Czech Republic (trust)

A trust fund (the “fund”) is a legal instrument that, since 2014 in Czech and in continental Europe and EU, has enabled the protection of property from creditors and intergenerational preservation of property. It allows the separation of your property from your ownership and its entrustment to independent management in the so-called ownerless property regime.

It is most often established by entrepreneurs who want to protect their hard-earned wealth and protect themselves in the event that, God forbid, the business fails. This ensures that the property of the trust fund is not affected by execution or insolvency.

The fund is also established by people who want children or their representatives (spouse, etc.) to be unable to sell, devalue, etc. the property intended for the children. The key is that separate and independent ownership is created that is not the property of you (the founder), nor the administrator, nor the beneficiary. It actually stands alone as if without an owner. Is managed and acted as the owner by the fund administrator.

This structure proves particularly effective for protecting family assets, planning intergenerational succession, and ensuring long-term property management. The concept gained prominence among the rich and powerful, such as Andrej Babiš (Czech prime minister).

 

Why should you consider a trust fund?

You should consider a trust fund primarily because it represents a reliable and robust mechanism for protecting and separating assets from your person. The administrator retains full control over it for life. But creditors cannot get hold of it, nor will it fall into divorce or inheritance proceedings. By separating assets from your personal assets, you reliably protect them from risks associated with business. This includes possible executions or insolvency proceedings.

Furthermore, a trust fund is an extremely effective tool for intergenerational transfer. It allows you to organize property relations during your lifetime. And ensure a smooth transfer of assets without the need for lengthy inheritance proceedings. At the same time, the fund creates a legal structure with clear rules. These rules define in detail the terms of asset management and performance for your loved ones. It helps prevent family disputes. And also prevents the assets from being scattered by children or their representatives, because they technically do not belong to them.

 

How a trust fund works and who manages it - step-by-step instructions

Step 1 - contact us, we are experts in trust funds, we have already established many of them, with us you will have the best service.

Step 2 - Establishing a trust fund by signing a notarial deed (ND). Trust fund is done by setting aside assets and entrusting these assets to a trustee for a specific purpose by contract or by acquiring them in the event of death, in the form of a notarial deed, where we will describe all this.

Come to our office and we will prepare everything for you with a cooperating notary. Due to the costs of the ND itself, we recommend transferring only one property to the fund. And donating the others with our professional donation contracts. The fund itself is created on the date of entry in the trust fund register. Except in the case where the fund is established by acquisition in the event of death - in which case it is created upon the death of the testator.

And how it works?

The founder is you, who establishes the fund, allocates the assets and issues the statute in the form of a trust deed. After the assets are allocated, you lose ownership rights to them by registration in the land register. But you typically retain a certain degree of control through the right to supervise the management of the fund. Or you are the trustee yourself (we recommend).

The trustee is the key person who exercises ownership rights to the assets in the fund in his own name. But on behalf of the fund. The assets of the fund are not his property. This ensures that he is not subject to his personal obligations. We recommend that the trustee be entrusted with full management. This also includes the reproduction of the assets.

Another important person is the Beneficiary. The beneficiary is a person who is to be paid from the fund according to the conditions set out in the statute. Typically paid, for example, a financial amount as a share of the rent, etc. The beneficiary can be granted either the right to the fruits and benefits (e.g. rent, dividends). Or the right to the property itself from the fund. This is not recommended because its value is being reduced and should be increased.

The fund’s basic and regulatory document is the Statute. Which is issued by the founder in the form of a notarial deed (ND). The Statute is a kind of “constitution” of the fund and must contain minimum legal requirements. These include the name of the fund. The definition of the purpose and designation of the beneficiary or the method of its designation, methods of administration, etc.

 

Tax aspects that you should know

For income tax purposes, the fund is considered a separate taxpayer of corporate income tax and is subject to the standard rate. Taxation of benefits to beneficiaries has its own specific rules. Since the fiction applies that it is first paid from the fund’s profit and only then from the other assets of the fund. If it is paid from the fund’s profit, such income to the beneficiary is considered income from capital assets. And is subject to a withholding tax of 15% for individuals.

However, the key tax advantage is the exemption from any form of inheritance tax. The beneficiary’s free income from assets that have been allocated to the fund by acquisition in the event of death is exempt from personal income tax. And you also avoid huge notary fees calculated on the value of the inheritance. Especially if you plan to pass on larger assets.

This arrangement significantly increases the attractiveness of the fund for inheritance planning. And the effective low-cost transfer of assets to subsequent generations and their effective protection. It is also important that the allocation of assets to the fund (by acquisition in the event of death or by acquisition in the event of death) is viewed for income tax purposes as a contribution to a business corporation. Which essentially means that the founder would not be taxed upon the contribution itself.

 

Is a trust fund right for you? Advantages and risks

A trust fund is not a universal solution and is most advantageous for managing larger assets.

Advantages:

  • Protection and separation of assets: The assets are separated from personal assets and are protected from risks such as business (execution, insolvency).
  • Be the administrator, you still have full control over the assets,
  • Set aside full management, you can continue to expand the assets, sell them, etc. when you see fit,
  • Flexibility in transfer: Allows for precise setting of the conditions and time horizon of fulfilment (unlike immediate inheritance), you can set the time horizon, e.g. children will receive real estate only after reaching the age of 25 or until their children, until then rent, etc.
  • Security for the future: It will secure the financial needs of your loved ones in the long term, you will prevent a sale, which is otherwise limited to a maximum of your lifetime.
  • Low costs and long-term value: Establishment and administration are simple, quick and inexpensive. Our experienced lawyers will guide you every step of the way. The price for a comprehensive establishment is around 50-75,000 CZK + VAT including notary and administrative fees and can be prepared within a week and transferred within a month (cadastral period of at least 21 days in the case of real estate, this is what we do most often).

 

Minor disadvantages:

  • Sometimes complications of direct creditworthiness from banks as a sole proprietorship: By separating the property, you lose direct ownership in the eyes of bank, which bothers some banks if you want to use the property as base for collateral. Usually, however, the banks have not had a problem with this, only once.
  • Minor administrative burden: It is necessary to keep accounts, file tax returns, but since you already know everything well and know that it is not a problem with an accountant, because you already have active companies, so it will not be a problem.

 

What to watch out for: Protection from creditors and abuse

Although the fund provides asset protection, this protection is not absolute. It can be breached in cases where the asset allocation was made with the intention of harming the creditor, e.g. just before the commencement of foreclosure. The law explicitly enshrines the joint and several liability of all participants - the trustee, the founder or the beneficiary - who participate in acts aimed at intentionally harming the rights of the founder’s creditor. However, it is not easy for a creditor to invoke such protection.

Creditors can also defend themselves by invoking the ineffectiveness of a legal act through the institute of the objectibility of legal acts (a type of action). If it was done with the intention of harming them, they must prove it. Therein lies the complexity for the creditor. Judicial practice is gradually defining the boundaries of the permissible use of a trust fund. Now playing in the favour of the trust fund.

In general, assets in a trust fund cannot be subject to executions, neither directed at the trustee nor at the beneficiary. The beneficiary can only be seized what you pay them from the trust fund. This protects the assets against the extravagance of descendants.

The same is true in insolvency.

 

Why contact specialists from ModerniPravnik.cz

Establishing a fund is a complex process. It requires professional legal and tax assistance. Before establishing it, it is necessary to carefully consider the goals and expectations of the fund. Realistically evaluate the cost-benefit ratio and carefully plan the fund structure and Statute. The key is choosing a suitable and trustworthy trustee. Come to us and we will prepare the best solution tailored to you, our reviews show our extensive experience.

Contact us! We will be happy to help you analyse your situation and to find the most effective solution for the protection and management of your assets, whether it is a trust fund or another suitable legal instrument.

 

Author: Mgr. Petr Uklein, attorney and Matěj Šedivý, legal trainee

Napište našim odborníkům, pomůžeme vám!

Advokat 1
Advokat 2
Advokat 3
Advokat 4
Advokat 5
Advokat 6
Advokat 7
Neváhejte se s námi podělit o svou situaci a stručně popsat, s čím vám můžeme pomoci. Sdělte nám, jak vás můžeme nejlépe kontaktovat, a náš tým se vám obratem ozve s návrhem řešení. Pro vaši lepší orientaci doporučujeme se předem seznámit s naším ceníkem služeb.
Po-Pá: 9:00 -18:00

📞 (+420) 732 394 849

Investing in real estate through a real estate fund in the Czech Republic

How to Establish a Real Estate Fund in the Czech Republic - Guide

Autor Publikace: Mgr. Barbora Janáčková Datum:

How to Establish a Real Estate Fund in the Czech Republic?

Investing in real estate has long been one of the safest and most sought-after ways to grow capital in the Czech Republic. A real estate fund offers a modern approach to managing assets professionally, efficiently, and under the supervision of the Czech National Bank (ČNB). It allows investors to participate in ownership of residential and commercial properties with a relatively low entry point, while giving founders access to stable capital for business development.

The most common form in the Czech Republic is the Fund for Qualified Investors (FKI), primarily used by developers, investment groups, or family businesses. Public collective investment funds are also popular, focusing on pooling funds from a wider audience.

 

How Does a Real Estate Fund Work?

The principle of a real estate fund is straightforward. Investors contribute capital, and the fund purchases selected properties on their behalf. These properties then become co-owned by all shareholders. This model spreads risk, increases accessibility to real estate investments, and opens the door to owning office buildings, shopping centers, or residential complexes even for those who cannot afford a direct purchase.

Benefits of a Real Estate Fund for Investors

The main appeal is stable returns, either through regular rental income or the appreciation of property values over time. A real estate fund also offers a natural hedge against inflation, as rental agreements typically include inflation clauses. Another significant advantage is credibility, as funds operate under strict supervision by the ČNB.

 

Why Should a Founder Establish Their Own Fund?

Establishing a real estate fund is not only beneficial for investors but also for founders. Developers, family businesses, or private equity groups gain access to significantly larger capital, achieve greater tax efficiency, and operate professionally and transparently with partners and investors.

A real estate fund also enhances brand prestige and allows precise targeting of investment strategies-whether focused solely on residential development, office buildings, or retail projects.

 

How to Establish a Real Estate Fund

The entire process requires legal, regulatory, and tax expertise. First, investment objectives must be defined, and a legal structure chosen, most commonly a SICAV company or a mutual fund. Next comes the preparation of documentation, particularly the fund’s statutes and agreements with the custodian, administrator, and asset manager.

Role of the Czech National Bank in Fund Approval

The crucial step is the application process with the Czech National Bank, which grants the fund permission to operate. Once approved, the fund can begin acquiring properties, which involves legal due diligence, negotiating rental agreements, and securing relationships with service providers.

Setting the Right Investment Strategy

Long-term operation also includes compliance, AML processes, investor reporting, and regular auditing.

 

Who Typically Establishes a Real Estate Fund?

A real estate fund is ideal for developers seeking effective financing for their projects. It is also commonly chosen by family businesses and private investors with larger property portfolios who want professional management. Private equity groups use funds for transparent capital management, while institutional investors value the regulated and trustworthy framework.

 

Establish Your Own Real Estate Fund with Us

If you are considering establishing a Fund for Qualified Investors (FKI) or another type of real estate fund, it is advisable to have a partner who can guide you through the entire process. Our law firm assists with choosing the legal form, preparing all documentation, representing you before the ČNB, ensuring legal compliance in acquisitions, and setting up ongoing compliance processes.

With our expertise, you can ensure your fund has a solid legal foundation from the start and that the proper rules are in place for long-term success. Contact us to learn how we can help you establish your own real estate fund in the Czech Republic.

 

Časté dotazy

How long does it take to establish a real estate fund?

It usually takes several months, mainly due to the ČNB approval process and preparation of all necessary documentation.

What is the minimum investment for a fund for qualified investors?

The current minimum investment in an FKI is €125,000 or the equivalent in Czech crowns.

What are the advantages of a real estate fund compared to direct property purchase?

Investors gain access to a professionally managed portfolio, risk diversification, stable returns, and the opportunity to participate in larger projects than they could finance individually.

How much does it cost to establish a fund for qualified investors?

Costs vary depending on the legal structure and fund size. Expenses include legal preparation, ČNB fees, and long-term management costs.

 

Autor: Mgr. Barbora Janáčková, specialista na právo nemovitostí

 

Want to set up a real estate fund? Contact us!

Napište našim odborníkům, pomůžeme vám!

Advokat 1
Advokat 2
Advokat 3
Advokat 4
Advokat 5
Advokat 6
Advokat 7
Neváhejte se s námi podělit o svou situaci a stručně popsat, s čím vám můžeme pomoci. Sdělte nám, jak vás můžeme nejlépe kontaktovat, a náš tým se vám obratem ozve s návrhem řešení. Pro vaši lepší orientaci doporučujeme se předem seznámit s naším ceníkem služeb.
Po-Pá: 9:00 -18:00

📞 (+420) 732 394 849

Minifund v České republice a investiční správa kapitálu

Establish § 15 ZISIF Funds in the Czech Republic

Autor Publikace: Mgr. Petr Uklein Datum:

How to Set Up a minifund in the Czech Republic and Manage Up to €500 Million

Under Section 15 of the Czech Investment Companies and Investment Funds Act (§ 15 ZISIF), qualified and non-qualified investors alike can swiftly set up a private alternative investment fund (“minifund”) with assets up to €500 million, enjoying streamlined registration and flexible capital-raising instruments - so long as the fund remains closed to public offerings and limits non-qualified participants.

 

In this article you will learn: 

  • The two core requirements for establishing a minifund in the Czech Republic
  • The step-by-step CNB registration process and timeline
  • The limits on non-qualified investors (max. 20) and assets under management (€500 million or €100 million with leverage)
  • Which capital-raising instruments you can use (investment shares, bonds, hybrids, derivatives)
  • How to form the management entity, file with the CNB, and obtain an LEI
  • The advantages and potential pitfalls of running a “light” alternative fund
  • Ideal use cases: family offices, private investor clubs, and professional investor groups

 

Overview of § 15 ZISIF funds

Section 15 ZISIF funds - often called “light alternative investment funds” or “minifunds” - offer a lightly regulated vehicle ideal for family offices, private clubs, and professional investor groups. Unlike fully licensed mutual funds, § 15 funds are only registered (not licensed therefore faster) by the Czech National Bank (ČNB), enabling faster setup, reduced ongoing oversight, and broad investment flexibility.

 

Why to establish minifund? It is way more practical than classic fund. Advantages and Considerations

Advantages: 

  • Speed and Efficiency: Registration (not licensing) accelerates market entry.
  • Reduced Compliance Burden: No ongoing ČNB supervision beyond registration and annual reporting.
  • Strategic Flexibility: Broad toolkit of capital-raising and investment vehicles.
  • Super low maintenance fees, accountancy and ČNB (regulator) reporting in comparison to classic invest fund or even runed by investment company as a service that usually cost at least 40.000 € yearly.

 

Considerations: 

  • Investor Protection: Non-qualified participants have limited safeguards - full disclosure and risk awareness are essential.
  • Asset Limits: Exceeding €500 million (or €100 million with leverage or sooner paid then in 5 years) triggers full licensing requirements.
  • Private Placement Discipline: Robust procedures must ensure no unintended public offering.

 

Two Core Conditions

All minifunds must adhere to two fundamental restrictions:

 

1. No Public Offering

Fund interests cannot be marketed or sold to the public. Capital must be raised through private placement to a closed circle of investors.

 

2. Investor and Asset Limits

  • Maximum of 20 non-qualified (retail) investors. Non-qualified investor invests less the 125.000 €.
  • Aggregate assets under management must not exceed €500 million, or €100 million if any leverage or sooner paid outcome then 5 years is employed.

These limits ensure that non-professional participants are protected and that regulators maintain a clear view of smaller, privately held funds.

 

Step-by-Step Setup Process

Important: You can do all this really fast using our legal services. Contact us for FREE consultation. Prices of mini fund starts on 8.000 € plus VAT. Terms and conditions apply.

 

1. Form the Management Entity

Establish a Czech limited liability company (s.r.o.) or joint-stock company (a.s.) as the fund manager. 

 

2. Prepare with us Fund Documentation

  • Draft the fund’s investment strategy and rules, update company status, AML procedures, internal control mechanism scheme etc.
  • Create investment agreements and investor questionnaires. Qualified and non-qualified investors need different approach.
  • Compile required exhibits (e.g., risk-management procedures),
  • Do it all with us your stable and experienced legals. We will guide you through all the procedure and provide you long term fund compliance and management if wanted.

 

3. Submit Registration to ČNB

  • File electronically - via data box or ČNB’s e-submission portal - in Czech.
  • Include all mandated information and registration fee (10.000 CZK).
  • ČNB generally registers in five business days, issuing a simple entry in its public register.

 

4. Obtain LEI (If Trading on Exchanges)

A Legal Entity Identifier is required for any secondary trading or brokerage connectivity.

 

5. Implement Ongoing Procedures

  • Establish separate accounting for each investor class.
  • Finalize internal policies and risk-control systems within 60 days.
  • File an annual report with ČNB.

 

Total setup time: Approximately 3-4 weeks from incorporation to registration.

 

Capital-Raising Instruments and Strategies

Minifund can deploy a wide array of instruments:

  • Investment Shares: Issue redeemable or non-redeemable shares tailored to investor classes.
  • Debt Securities: Structure bonds or debentures for fixed-income profiles.
  • Hybrid Instruments: Combine equity and debt features to meet bespoke investor needs.
  • Derivatives and Structured Products: Hedge or leverage exposures within regulatory limits.

This flexibility empowers fund managers to design strategies suited to real estate, private debt, venture capital, distressed assets, or cross-border opportunities.

 

Ideal Use Cases

  • Family Offices: Centralize multi-generation wealth management under one private fund.
  • Professional Investor Clubs: Pool capital for real-estate development, private equity, or infrastructure projects.
  • Niche Strategies: Launch specialized sub-funds for sectors such as mezzanine finance, renewable energy, or emerging markets - super low maintenance fees, accountancy and ČNB (regulator) reporting in comparison to classic invest fund or even runed by investment company as a service that usually cost at least 40.000 € yearly.

By capping non-qualified investors at 20 and total AUM at €100 to €500 million, minifund strikes the right balance between exclusivity and scale.

With minimal red tape and powerful structuring options, a minifond is an accessible, cost-effective vehicle for managing substantial assets in the Czech Republic - perfect for family offices, expert investor groups, and bespoke capital-raising ventures.

Always consult with us, your legal expert in financial regulation, before launching any fund. Incorrect classification can lead to severe fines or project shutdown by regulators and problems.

 

Author: Mgr. Petr Uklein

 

Searching for minifund experts? You are on the right place, contact us and ask for FREE consultation on your fund NOW

Napište našim odborníkům, pomůžeme vám!

Advokat 1
Advokat 2
Advokat 3
Advokat 4
Advokat 5
Advokat 6
Advokat 7
Neváhejte se s námi podělit o svou situaci a stručně popsat, s čím vám můžeme pomoci. Sdělte nám, jak vás můžeme nejlépe kontaktovat, a náš tým se vám obratem ozve s návrhem řešení. Pro vaši lepší orientaci doporučujeme se předem seznámit s naším ceníkem služeb.
Po-Pá: 9:00 -18:00

📞 (+420) 732 394 849

Business meeting discussing ART tokens and financial regulation

ART Token as Investment Instrument: MiFID II Licensing Guide

Autor Publikace: Mgr. Petr Uklein Datum:

ART Token and It´s Classification as Investment Instrument

Asset-Referenced Tokens (ARTs) represent a breakthrough in digital finance-they allow issuers to create tokens whose value is linked to real-world assets like gold, real estate, or baskets of currencies. But their regulatory treatment depends on their specific structure and the rights they give to investors. Understanding when an ART token is-or is not-an investment instrument is crucial for regulatory compliance and business success.

 

What Is an ART Token?

An Asset-Referenced Token (ART) is a crypto-asset that maintains its value by referencing one or several underlying assets (e.g., gold, currencies, real estate). ARTs can be used for stablecoins, real estate tokenization, or other applications where buyers want digital exposure to tangible assets.

 

Key Features of ART token:

  • Value is linked to external assets.
  • May (but does not necessarily) give rights to receive asset yield (e.g., rent from property).
  • Does NOT provide shareholder rights, voting rights, or direct ownership in a company.
  • Offers exposure to asset value, NOT company governance.

  

When It Is Not an Investment Instrument?

An ART token is not considered an investment instrument (financial instrument under MiFID II/securities law) when:

1. It only gives the right to redeem or exchange the token for the underlying referenced asset

Example: You can redeem the token for a fixed amount of gold, but you have no claim to profits, voting, dividends, or other financial advantages.

 

2. It does not entitle the holder to additional income, profit sharing, dividends, or any form of voting/governance power

Example: Tokens ONLY allow the holder to exchange for the asset (like physical gold or property), not participate in decision-making or receive a share of issuer’s profits.

 

3. It is not marketed, structured, or commonly used for speculative investment

If the token is primarily meant for straightforward asset exposure and redemption, and not for capital gain, speculation, or trading, it does not typically meet the criteria of a security or investment instrument.

 

In short: If your ART allows users to swap their digital token for the asset it represents, and nothing more-no dividends, no participation, no profit sharing-it is usually NOT an investment instrument.

 

Our suggestion

For easier launch and less legislative needs we suggest modifying the characteristics of your token to stay out of investment instrument, which needs additional cooperation with licenced broker but still possible through us. List of investment instrument triggers are listed below.

 

When Does It Become an Investment Instrument?

An ART token becomes an investment instrument if:

1. It offers profit sharing, dividends, or exposure to income generated by the underlying asset (beyond asset redemption)

Example: You hold an ART token that pays you periodic rental income from the properties it references-this can trigger securities law.

 

2. It gives the token holder any voting, governance, or management rights in the issuer or in the underlying asset’s business operations

Example: Token gives voting rights on how the asset is managed or lets you decide on project direction.

 

3. It is designed or marketed for speculative trading or capital gain and is available on secondary markets with liquidity comparable to investment instruments

Example: Token holders buy and sell tokens on exchanges to profit from price fluctuations.

 

4. If the ART token includes other investment-type rights, or structure comparable to shares, bonds, or fund units

Example: Token acts like a share in a fund or company, allowing you profit from company performance, not just asset value.

 

Important: If the legal analysis finds your token provides rights typical of securities (such as profit sharing, voting, or speculative trading), regulators will likely treat the ART token as a financial instrument under MiFID II or comparable securities law.

 

Regulatory Consequences

If your ART token is classified as a financial (investment) instrument under MiFID II, you must:

1. Collaborate With us and with Licensed Investment Firm

You can only issue, distribute, or trade such tokens through companies with a MiFID II investment services license (e.g., licensed securities broker, investment company).

 

2. OR obtain Your Own MiFID II License

If you wish to issue or distribute these tokens yourself, without outsourcing to a licensed firm, you must obtain the relevant MiFID II license (or national equivalent, e.g., Czech law for investment intermediaries).

 

3. Comply With All Securities Regulations

This includes:

  • Preparing an approved prospectus
  • Registration and notifications with financial regulators
  • Ongoing audit and reporting requirements
  • AML/KYC (Anti-Money Laundering / Know Your Customer) checks
  • Strict rules on transparency, investor protection, marketing, and governance.

 

4. Distribution and Secondary Trading

Offering to the public, secondary trading, or listing on regulated exchanges requires compliance with securities rules. Unlicensed public offers, even via digital platforms, can lead to severe penalties and shutdowns.

 

When Is Your ART Token Also Investment (Financial) Instrument?

SECTION C of MIFID II defines financial instruments:

  1. Transferable securities;
  2. Money-market instruments;
  3. Units in collective investment undertakings;
  4. Options, futures, swaps, forward rate agreements and any other derivative contracts relating to securities, currencies, interest rates or yields, emission allowances or other derivatives instruments, financial indices or financial measures which may be settled physically or in cash;
  5. Options, futures, swaps, forwards and any other derivative contracts relating to commodities that must be settled in cash or may be settled in cash at the option of one of the parties other than by reason of default or other termination event;
  6. Options, futures, swaps, and any other derivative contract relating to commodities that can be physically settled provided that they are traded on a regulated market, a MTF, or an OTF, except for wholesale energy products traded on an OTF that must be physically settled;

 

Another Financial Instruments According to MIFID II

  1. Options, futures, swaps, forwards and any other derivative contracts relating to commodities, that can be physically settled not otherwise mentioned in point 6 of this Section and not being for commercial purposes, which have the characteristics of other derivative financial instruments;
  2. Derivative instruments for the transfer of credit risk;
  3. Financial contracts for differences;
  4. Options, futures, swaps, forward rate agreements and any other derivative contracts relating to climatic variables, freight rates or inflation rates or other official economic statistics that must be settled in cash or may be settled in cash at the option of one of the parties other than by reason of default or other termination event, as well as any other derivative contracts relating to assets, rights, obligations, indices and measures not otherwise mentioned in this Section, which have the characteristics of other derivative financial instruments, having regard to whether, inter alia, they are traded on a regulated market, OTF, or an MTF;
  5. Emission allowances consisting of any units recognised for compliance with the requirements of Directive 2003/87/EC (Emissions Trading Scheme).

 

Further Criteria by Czech Regulation

Unfortunately, higher than MiFID II regulation Czech Act sets further criteria for tokens as financial tools stating in Act 256/2004 § 3 s.1 ss. g) to i):

g) options, futures, swaps, forwards and other instruments, the value of which relates to commodities and from which arises the right to settlement in cash or the right of at least one party to choose whether it wishes to settle in cash, unless settlement in cash is due to the default of one of the parties to the derivative or for another reason for the early termination of the derivative,

h) options, futures, swaps, forwards and other instruments, the value of which relates to commodities and from which arises the right to delivery of this commodity, and which are traded on a European regulated market or in a multilateral trading facility or in an organised trading facility, with the exception of wholesale energy products pursuant to Article 2(4) of Regulation (EU) No 1227/2011 of the European Parliament and of the Council on wholesale energy market integrity and transparency traded in an organised trading facility, which entail the obligation to deliver this commodity,

i) options, futures, swaps, forwards and other instruments, the value of which relates to commodities and from which the right to delivery of this commodity arises, which are not listed in letter h), are not intended for trading purposes and have the characteristics of other derivative investment instruments […].

As of these criteria are set ambiguous, we are in contact with regulator Czech national bank seeking regulator legal opinion.

 

Specific Examples from praxis

Example 1: ART Token (Not an Investment Instrument)

A digital token pegged strictly to 1g of gold. The holder can redeem for gold, but receives no dividends, voting rights, profit-sharing, or speculative incentive. Such a token is not a security but must comply with MiCA if issued in the EU.

 

Example 2: ART Token (Is an Investment Instrument)

A real estate token gives holders a share of rental income or project profits, can be freely traded on secondary markets, and provides holders voting on property management. This token qualifies as a security token under MiFID II-full securities law applies.

 

What to Do If Your Token Is on the Borderline

Legal Analysis Is Essential: You must conduct a detailed review of the token’s rights, use, trading structure, and marketing materials.

Consult Your National Regulator: Seek opinions from experts and discuss with your local financial authority or the Czech National Bank.

Adapt the Token Design: Structure the token so it only allows asset redemption if you want lighter regulation or prepare for full securities compliance when launching investment-type tokens.

Prepare for Regulatory Overlap: Sometimes, both MiCA and MiFID II apply, and issuers must comply with both regimes - this is called “regulatory layering” or “compliance stacking.”

 

Summary Table: ART Token vs. Security Token

Feature / Requirement

ART Token

Security Token (Investment Instrument)

Underlying Asset Reference

Yes

Yes

Redemption for Asset

Yes

Optional

Rights to Profits / Dividends

No

Yes

Voting / Governance Rights

No

Yes

Speculative Trading Potential

Low / None

High

Regulatory Regime

MiCA

MiFID II / Prospectus Regulation

License Needed

Usually None / MiCA CASP

MiFID II investment firm license or cooperation with such firm

Prospectus / Whitepaper

Whitepaper (MiCA)

Prospectus and/or whitepaper, regulator notice

Investor Protection

Standard (MiCA)

Strict (securities law)

 

 

Final Recommendations - contact us and ask for FREE consultation

Issuers should always conduct legal and regulatory due diligence and consult with experienced legal counsel before releasing any digital asset or token.

If your token looks, acts, or feels like an investment instrument, be ready for full securities law compliance.

If structured strictly for asset redemption without investment-type rights, ART tokens fall under the MiCA crypto-asset regime, with fewer regulatory requirements.

 

What if I don’t have a licence and will emit anyway?

Misclassification can lead to fines, legal action, or termination of the project by regulators, so getting this decision right is essential for successful and compliant operation in Europe.

 

Always consult a legal expert in financial regulation before launching any tokenized project. Incorrect classification can lead to severe fines or project shutdown by regulators.

 

Autor: Mgr. Petr Uklein

 

Searching for tokenization experts? You are on the right place, contact us and ask for FREE consultation NOW

Napište našim odborníkům, pomůžeme vám!

Advokat 1
Advokat 2
Advokat 3
Advokat 4
Advokat 5
Advokat 6
Advokat 7
Neváhejte se s námi podělit o svou situaci a stručně popsat, s čím vám můžeme pomoci. Sdělte nám, jak vás můžeme nejlépe kontaktovat, a náš tým se vám obratem ozve s návrhem řešení. Pro vaši lepší orientaci doporučujeme se předem seznámit s naším ceníkem služeb.
Po-Pá: 9:00 -18:00

📞 (+420) 732 394 849

MiCA grandfather period and cross-border crypto-asset services in the EU

MiCA Grandfathering Period: Cross-Border Crypto Services and the Reality of EU Fragmentation

Autor Publikace: Mgr. Petr Uklein Datum:

Published on modernipravnik.cz | August 13, 2025

The Markets in Crypto-Assets (MiCA) Regulation has fundamentally transformed the European cryptocurrency landscape since its full application on January 1, 2025. However, the transitional provisions under Article 143(3) have created a complex patchwork of national implementations that severely limits cross-border crypto asset exchange services during the grandfathering period. This analysis examines the practical implications for crypto-asset service providers (CASPs) seeking to operate across EU member states during this transitional phase.

Can you provide services in other EU country in grandfathering period? Yes, if all following criteria are met:

ESMA has clarified that cross-border activities during grandfathering are only permissible where:

 1. Home state national law permits the entity to provide services abroad (usually at least MiCA application submission needed),

 2. Host state national law allows foreign entities to provide crypto services on its teritory, and

 3. Both jurisdictions maintain active grandfathering or alternative authorization frameworks.

Clear way: The way for cross boarder service provision is opened after receiving the licence and passportization in target country.

Understanding Article 143(3): The Grandfathering Provision

Article 143(3) of MiCA allows crypto-asset service providers who were providing services in compliance with applicable law before December 30, 2024, to continue their operations until July 1, 2026, or until the granting or refusal of authorization under Article 63, whichever occurs first. This provision appears to offer a grace period for existing operators to adapt to the new regulatory framework.

However, the regulation also grants member states significant discretion: “Member States may decide not to apply this transitional regime or to shorten its duration if they consider their national regulatory framework to be less stringent than this Regulation.”

The Fragmentation Reality: 27 Different Approaches

The European Securities and Markets Authority (ESMA) has documented substantial fragmentation across EU member states in their approach to grandfathering periods:

18-Month Grandfathering Period (12 countries)

  • Countries: Czech Republic, France, Malta, Luxembourg, Estonia, Croatia, Italy, Cyprus, Romania, Bulgaria, Denmark, Iceland
  • Cross-border potential: Highest likelihood for bilateral arrangements due to extended periods
  • Special conditions: Various application deadlines (Czech Republic: July 31, 2025; Bulgaria: October 8, 2025; Denmark: December 30, 2024)

12-Month Grandfathering Period (9 countries)

  • Countries: Germany, Austria, Ireland, Spain, Lithuania, Greece, Slovakia, Liechtenstein, Norway
  • Cross-border potential: Moderate likelihood, especially with other 12-month countries
  • Special conditions: Germany and Austria have shortened periods until December 31, 2025, with simplified procedures for certain entities

6-Month Grandfathering Period (6 countries)

  • Countries: Netherlands, Poland, Latvia, Hungary, Slovenia, Finland (already lapsed and under grandfathering period these are no go jurisdictions)
  • Cross-border potential: Very limited due to shorter periods
  • Special conditions: Netherlands period until June 30, 2025, with strict enforcement after deadline

No Grandfathering/TBA (2 countries)

  • Countries: Belgium, Portugal
  • Status: Belgium has no registered VASPs with political decision pending; Portugal lacks implementing legislation

See here official ESMA statement:
1) Grandfathering period and cross boarder crypto service provision:

ESMAQA2086Stáhnout

2) List of countries and their grandfathering periods:

-Bulgaria: June 24, 2026
-Czech Republic: June 24, 2026
-Denmark: June 24, 2026
-Estonia: June 24, 2026
-France: June 24, 2026
-Croatia: June 24, 2026
-Italy: June 24, 2026
-Cyprus: June 24, 2026
-Luxembourg: June 24, 2026
-Malta: June 24, 2026
-Romania: June 24, 2026
-Iceland (EEA): June 24, 2026
-Germany: December 26, 2025
-Ireland: December 26, 2025
-Greece: December 26, 2025
-Spain: December 26, 2025
-Lithuania: December 26, 2025
-Austria: December 26, 2025
-Slovakia: December 26, 2025
-Liechtenstein (EEA): December 26, 2025
-Norway (EEA): December 26, 2025
-Sweden: September 27, 2025
-Latvia: June 29, 2025
-Hungary: June 29, 2025
-Netherlands: June 29, 2025
-Poland: June 29, 2025
-Slovenia: June 29, 2025
-Finland: June 29, 2025

List_of_MiCA_grandfathering_periods_art._143_3Stáhnout

The Critical Limitation: No EU Passport During Grandfathering

ESMA’s official guidance has definitively clarified that grandfathered entities cannot utilize MiCA’s EU passport mechanism. This represents the most significant limitation on cross-border services during the transitional period.

ESMA Q&A 2086 Clarifications

Question 1: Can grandfathered entities passport their crypto services to other member states?
ESMA Answer: NO. Grandfathered entities do not benefit from an EU passport unless they obtain MiCA authorization and thereby cease to be “grandfathered” entities.

Question 2: Can a grandfathered entity from one state provide cross-border services in a state that has not allowed grandfathering?
ESMA Answer: NO. Grandfathered entities are prohibited from providing cross-border services in states where grandfathering does not apply.

ESMA Statement of December 17, 2024

ESMA further clarified: “Different transitional periods should be taken into account by CASPs providing services in more than one Member State… a CASP seeking MiCA authorization in Member State A with a 12-month transitional period while also serving clients in Member State B with a 6-month period should ensure compliance with applicable law of Member State B.”

Cross-Border Services: The Bilateral Requirement

The absence of harmonized cross-border rules during the grandfathering period means that any cross-border crypto asset exchange services require bilateral compliance. ESMA confirmed: “Cross-border activities by an entity benefiting from grandfathering may occur only if the entity complies with relevant legislation applicable in both - home and host Member States.”

Key Requirements for Cross-Border Operations

  1. Dual Compliance: Must satisfy both home state grandfathering requirements and host state national law
  2. Active Grandfathering Periods: Both jurisdictions must maintain active grandfathering or alternative authorization frameworks
  3. National Discretion: Each member state determines its own cross-border policies during transition
  4. AMLD5 Basis: Cross-border permissions rely on pre-existing anti-money laundering frameworks, not harmonized EU crypto rules

The Reality: No Official Bilateral Agreements

Extensive analysis reveals that no EU member state has officially confirmed bilateral recognition of Czech grandfathered entities. This absence stems from several factors:

  • No harmonized framework: ESMA explicitly confirmed that “Anti-Money Laundering framework (AMLD5) does not offer a harmonized passporting regime”
  • Fragmented national approaches: Each member state maintains distinct national rules for cross-border crypto services
  • Lack of coordination: No formal bilateral agreements exist between member states regarding mutual recognition of grandfathered CASP entities

Case Study: Czech Republic’s Position

A Czech entity with a grandfathering application submitted to the Czech National Bank (CNB) before July 31, 2025, faces significant limitations in cross-border expansion:

Domestic Rights

✅ Right to continue operations in Czech Republic until July 1, 2026, or license decision
✅ Protection under 18-month grandfathering period
✅ Recognition by CNB of submitted application

Cross-Border Limitations

❌ NO automatic right to provide services in other member states
❌ NO EU passport during grandfathering period
❌ NO bilateral recognition by other member states without individual compliance assessment

Practical Analysis: Austria and Norway

Austria (EU Member State)

  • Implementation: Active since December 30, 2024
  • Grandfathering: 12 months (until December 31, 2025) - SHORTENED
  • Cross-border requirements:
  • FMA registration as VASP under FM-GwG required
  • No automatic recognition of Czech grandfathering application
  • High compliance standards with strict Austrian regulation

Norway (EEA State)

  • Implementation: Expected from July 1, 2025
  • Grandfathering: 12 months (until July 1, 2026)
  • Cross-border requirements:
  • Finanstilsynet (FSA) registration as VASP required
  • Compliance with Norwegian AML Act and TFR II
  • Local presence requirements for certain activities

Market Targeting: The Geographical Limitation Defense

For entities seeking to avoid cross-border compliance obligations, careful attention to market targeting criteria becomes crucial:

Factors Indicating Market Targeting

  • Language versions: Website content and marketing materials in local language
  • Local presence: Virtual or physical branches, local addresses, phone numbers
  • Payment methods: Local payment options (EUR, local banking systems)
  • Advertising: Local media campaigns, geo-targeted ads, local SEO optimization

Defensive Strategies

  • Single language websites (Czech only) with .cz domain
  • Czech payment methods and CZK pricing only
  • Geoblocking: Technical blocking of access from foreign IP addresses
  • Terms of service: Explicit limitation to Czech residents only
  • No local marketing: Absence of foreign language advertising or local campaigns

Implementation Status and Regulatory Risks

Countries with Implementation Delays

  • Not fully implemented (4 countries): Italy, Luxembourg, Poland, Romania
  • Not implemented (2 countries): Belgium, Portugal

These delays create regulatory uncertainty for cross-border services, as entities cannot rely on unclear legal frameworks.

Enforcement Risks

  • Regulatory sanctions: Providing unlicensed services abroad can result in fines up to €20 million or 5% of annual turnover
  • Legal uncertainty: Different interpretations by national regulators regarding territorial scope
  • Reputational risks: Compliance issues may jeopardize MiCA license applications

Strategic Recommendations

Conservative Approach

  1. Limit services exclusively to domestic market until full MiCA authorization
  2. Focus resources on MiCA license application to obtain EU passport rights
  3. Avoid cross-border activities during grandfathering period due to legal uncertainty

If Cross-Border Expansion is Essential

  1. Individual legal analysis for each target country required
  2. Direct consultation with host state regulators
  3. Local legal opinions from specialized crypto law practitioners in each jurisdiction
  4. Comprehensive compliance assessment under both home and host state laws

Market Targeting Mitigation

  1. Implement robust geoblocking measures
  2. Maintain single-language websites and marketing materials
  3. Document defensive measures for regulatory compliance
  4. Regular compliance audits to ensure territorial limitation effectiveness

The Path Forward: From Grandfathering to EU Passport

The analysis clearly demonstrates that the grandfathering period creates a legally fragmented environment rather than a harmonized transition. The most viable path for legitimate cross-border crypto asset exchange services remains obtaining full MiCA authorization, which provides:

  • Article 65 passporting rights: Automatic access to all EU/EEA markets
  • Regulatory certainty: Clear legal framework for cross-border operations
  • Competitive advantage: Market access unavailable to grandfathered competitors
  • Future-proof compliance: Alignment with permanent regulatory framework

Conclusion

The MiCA grandfathering period represents a complex regulatory transition that severely limits cross-border crypto asset exchange services. Despite Article 143(3)’s EU-wide application, the absence of harmonized cross-border rules and the prohibition on EU passport usage creates a fragmented landscape of 27 different national approaches.

Key takeaways for practitioners:

  1. Grandfathering ≠ EU passport: No automatic cross-border rights during transitional period
  2. Bilateral compliance required: Each cross-border relationship requires individual legal assessment
  3. No official bilateral agreements: Member states have not formally recognized each other’s grandfathered entities
  4. High regulatory risk: Cross-border services without proper authorization face significant sanctions
  5. Strategic focus recommended: Prioritize full MiCA authorization for legitimate EU-wide market access

The regulatory landscape will continue evolving as member states complete their MiCA implementations and ESMA provides additional guidance. However, the fundamental limitation remains: true cross-border crypto asset services in the EU require full MiCA authorization and EU passport rights, not grandfathering protection.

For crypto-asset service providers navigating this transition, the safest and most strategic approach is to focus on domestic operations during the grandfathering period while preparing for full MiCA compliance to unlock genuine EU-wide market access through legitimate regulatory channels.

Keywords:
#MiCAgrandfathering, Article 143(3), #crypto-asset_services, #cross-border crypto, #EUcryptopassport, #CASPcompliance, #transitional_regime, #bilateral_recognition, #AMLD5, #MiCA_compliance, #EU_crypto regulation, #crypto_licensing, #crypto_national_implementations, #market_targeting, #MiCA_passporting.

This analysis is based on publicly available regulatory guidance and legal sources as of August 13, 2025. Regulatory landscapes continue evolving, and specific legal advice should be sought for individual circumstances.

Author: Mgr. Petr Uklein, head attorney at law

Business meeting illustrating the process of obtaining a MiCA License for crypto-asset service providers under the MiCA Regulation.

How to get MiCA license fast, easily, with low capital requirements?

Autor Publikace: Mgr. Petr Uklein Datum:

How to Get a MiCA License for a Crypto Exchange Fast, Easily, and with Low Capital Requirements

The MiCA Regulation (Markets in Crypto-Assets) introduces an unified legal framework for crypto-asset service providers (CASPs) across the European Union, including the Czech Republic. If you plan to operate a crypto exchange or provide custody services, obtaining a MiCA license will soon become a legal necessity. This article explains how to navigate the licensing process efficiently, meet capital requirements, and take advantage of transitional rules if you’re already operating or launching a new entity.

 

What Is a CASP 2 License Under MiCA?

A CASP Class 2 license under MiCA is required for companies offering exchange or custody services for crypto-assets. Starting from 30 December 2024, these companies must fully comply with MiCA.

One of the key requirements is capital adequacy-meaning a minimum capital of EUR 125,000, or one-quarter of the company’s fixed overhead costs from the previous year, whichever is higher. This requirement acts as a financial safeguard for users and regulators.

 

Transitional Period for Existing Crypto Exchanges

If you were already operating a crypto exchange in 2024, you benefit from transitional provisions:

  • Apply for a MiCA license by 31 July 2025.
  • After submitting the application, you can continue operations until July 2026, or until your license is approved.
  • During this period, you are expected to gradually align with all MiCA requirements, including capital adequacy.

This grace period gives existing providers a realistic timeline to comply without disrupting their business.

 

Starting a New Company in 2025: What You Need to Know

If you plan to establish a new company in 2025 but continue the business activities of an earlier entity (for example, through restructuring or legal transformation), the date of legal incorporation is not a major barrier.

What matters most under MiCA is the continuity of service provision, not the technical establishment date of the company. As long as your new company effectively continues operations from 2024, you are likely eligible for the same transitional rules:

  • License application must be submitted by 31 July 2025.
  • You may continue operating during the licensing process (until July 2026).
  • You must meet the capital requirement of EUR 125,000 within that timeframe.

 

Step-by-Step: How to Prepare Your Crypto Exchange for MiCA

Timeline

Obligation

Notes

By 31 July 2025

Submit CASP license application

Applies to existing and functionally continuous firms

By July 2026

Complete the licensing process

Operations may continue in the meantime

Immediately

Prepare for capital adequacy (EUR 125,000)

Core part of license approval

 

Summary: Fast-Track Your MiCA License

Obtaining a MiCA license for your crypto exchange does not have to be complicated or capital-intensive-especially if you already operate or can demonstrate continuity of service from 2024. By preparing early, meeting capital adequacy standards, and submitting your license application before the deadline, you can operate confidently within the new regulatory environment.

Need help navigating MiCA licensing or restructuring your crypto business for EU compliance? Contact us today. We provide legal guidance tailored to crypto projects-so you can focus on innovation while we handle the regulation.

 

Author: Petr Uklein

 

Contact us, we will be happy to help you!

Napište našim odborníkům, pomůžeme vám!

Advokat 1
Advokat 2
Advokat 3
Advokat 4
Advokat 5
Advokat 6
Advokat 7
Neváhejte se s námi podělit o svou situaci a stručně popsat, s čím vám můžeme pomoci. Sdělte nám, jak vás můžeme nejlépe kontaktovat, a náš tým se vám obratem ozve s návrhem řešení. Pro vaši lepší orientaci doporučujeme se předem seznámit s naším ceníkem služeb.
Po-Pá: 9:00 -18:00

📞 (+420) 732 394 849

Purchase a MiCA-ready Company | CASP Licensing

Autor Publikace: Mgr. Petr Uklein Datum:

Have your MiCA-ready Company tomorrow and run crypto in EU

Looking to launch your cryptocurrency, crypto exchange or any type of crypto project in EU? From now on (2025) you need to follow the EU’s Markets in Crypto-Assets (MiCA) regulation or face huge penalties. Our pre-established MiCA-ready company offers a seamless, compliant foundation for your venture. It is easy to obtain, relatively cheap and reasonable to run. With expertise in crypto licensing and regulatory compliance, we handle all legal, administrative, and operational hurdles, allowing you to focus on innovation. What demands MiCA from you see in detail here https://modernipravnik.cz/podnikani/mica-regulation/. We are experts. We went this way by ourselves and also with our clients. Judge for yourself.

 

Why Choose Our MiCA-ready Company?

1. Turnkey Solution for CASP Licensing

  • CASP Level 1 Registration: Ideal for crypto custodians, simple emission of tokens or coins, wallet providers etc.
  • CASP Level 2 & 3 Licenses: Full licensing for exchanges, trading platforms, and advanced token issuers.
  • Pre-Approved Structure: The company has no prior activity (shelf company), ensuring a clean slate for your project.

 

2. End-to-End Support

We guarantee to run the whole process for you. We will be your guide and long-term cooperative partner that you can rely on every day for the rest of your days:

  • Legal & Regulatory Compliance: We manage company transfer, MiCA registration and complete compliance, including whitepaper reviews, AML, KYC document drafting, competition of Czech National Bank application and capital/insurance requirements.
  • Accounting & Advisory Services: Partnered with experts in tax optimization and financial reporting.
  • Long-Term Management: Ongoing administrative support to ensure uninterrupted operations.

 

3. Flexible Collaboration

  • We can meet at our modern office in Vinohrady, Prague, or work remotely, just ask for free entry consultation where we will explain all the details to you.
  • Fast-track setup: Provide us with basic project details and we handle the rest.

 

Launch Your Crypto Project Effortlessly

Whether you’re issuing tokens, operating an exchange, or offering custody solutions, our package includes:

  • company transfer
  • pre-verified MiCA compliance
  • licensing tailored to your business model (Levels 1-3).
  • competitive pricing with transparent terms, usual costs for complete MiCA company reach only 12.000 € or equivalent in crypto. With less complex cases, the investment can come down to 8.000 €.

 

One MiCA license and whole EU market to conquer

Want to run your project in the whole EU? Expanding from your new base in Czech Republic was never easier. Once you obtain confirmation in the Czech Republic that your company is MiCA compliant (that’s included in company purchase price), you can just do so called “passportization process”.

This means that you only send a letter to the National Bank of another country and register for tax there, and you can do business there as well. So, for example, your customer base is biggest in Germany, Spain and France, but their tax law is complicated and prices sky high. Therefore, you better establish headquarters in the Czech Republic by buying the MiCA-ready company and we will run the Czech National Bank process. Later let’s just send the letters and registration to Germany, Spain and France and that’s it.

 

Czech Republic is Tax-Friendly Crypto Hub

Become the part of expanding Czech Crypto Hub. Czech Republic offers one of Europe’s most attractive regimes for crypto projects:

  • 0% VAT on Crypto Transactions: Cryptocurrencies are treated as a currency, exempting exchanges and everyday purchases from VAT.
  • 0% tax on crypto sold after 3 years. Capital Gains Tax Exemption: Hold assets for over three years and pay 0% tax on profits.
  • 0% tax if you get a year profit from buying and selling crypto below 100.000 CZK (about 4100 USD). Such short-term gains under CZK 100,000 (~$4,136) annually are tax-free and can make your cash flow better.

This aligns with MiCA’s framework while enhancing competitiveness for businesses and investors. We are part of Crypto Hub, and we also run our crypto project, so we went this way by ourselves and also with our clients. By acquiring our MiCA-ready company, you leverage these benefits alongside full regulatory compliance.

 

We are professionals, you won’t go wrong with us

Specializing in crypto licensing, we combine regulatory expertise with cost efficiency. Ready to start? Contact us today to secure your MiCA-ready entity and accelerate your market entry.

For details on MiCA requirements, see https://modernipravnik.cz/podnikani/mica-regulation/.

 

Author: Petr Uklein

 

Have your MiCA-ready Company tomorrow. Contact us!

Napište našim odborníkům, pomůžeme vám!

Advokat 1
Advokat 2
Advokat 3
Advokat 4
Advokat 5
Advokat 6
Advokat 7
Neváhejte se s námi podělit o svou situaci a stručně popsat, s čím vám můžeme pomoci. Sdělte nám, jak vás můžeme nejlépe kontaktovat, a náš tým se vám obratem ozve s návrhem řešení. Pro vaši lepší orientaci doporučujeme se předem seznámit s naším ceníkem služeb.
Po-Pá: 9:00 -18:00

📞 (+420) 732 394 849

Bank Fraud: We’ll Get Your Stolen Money Back Quickly!

Autor Publikace: Mgr. Barbora Janáčková Datum:

Bank Fraud: How to Get Your Money Back After an Online Scam

Have you fallen victim to bank fraud and lost money due to an online scam? In this article, you’ll find a concrete guideto the steps we take when someone steals a client’s account and transfers their money away. We’ll explain why you must react immediately, how to properly file a complaint with your bank, and why you shouldn’t let yourself be brushed off. You’ll also learn which arguments we use against banks and how we’ve already helped many clients recover hundreds of thousands of crowns.

 

This time, we’ll break down a typical course of an online bank fraud. You will learn:

  • What a typical scenario of an online scam and stolen account looks like
  • How we act immediately after discovering the fraud to increase the chance of recovering the money
  • How to properly file a complaint with the bank and why we don’t accept being dismissed
  • Which specific arguments we use against the bank and why they are successful
  • How we file a criminal complaint and why it makes sense
  • Why it pays to be represented by a lawyer who has already helped clients recover hundreds of thousands

 

What Does a Typical Online Bank Fraud Look Like?

Imagine you want to log into your online banking. You open an email or SMS with a link to a page that looks exactly like your bank’s website. You enter your login details, perhaps even an authorization code. The fraudsters then gain access to your account, activate mobile banking on their device, and within minutes transfer all your money away. You only realize your account has been stolen when you receive a notification about unknown transactions or you can’t access your online banking at all.

Fraudsters often use phishing, fake emails, SMS, fraudulent payment gateways, or even deepfake calls. The result is always the same: a stolen account and your money gone.

 

STEP 1: Contact the Bank Immediately

A quick reaction is crucial for success. When a client discovers bank fraud, we immediately contact the bank and flag the payments as fraudulent. We call the customer service line or go directly to a branch. We insist that a bank fraud has occurred and demand the immediate blocking of all suspicious transactions and the account itself.

We don’t accept the claim that the client made the payments themselves. If someone falls victim to an online scam, the fraudsters have manipulated them and the client acted in good faith. We always demand that the bank marks the payments as fraudulent in international systems (such as “fraudulent payment”), which increases the chance of freezing the funds in the target accounts.

If the bank claims it’s already too late, we don’t give up. Even several hours after the fraud, we can sometimes intercept transactions, especially if the money hasn’t yet left the Czech banking system. We also help the client change all passwords and secure their accounts. If the fraudsters obtained card details, we immediately block the card.

 

STEP 2: Challenging the Bank’s Procedure

Banks often reject complaints, arguing that the client entered their login details or confirmed payments. Such arguments don’t hold up if the client was deceived. We never accept a simple rejection.

When making a complaint, we always argue that the bank must protect the client from unauthorized payments. The Payment Services Act and European legislation require banks to implement and use detection mechanisms to identify suspicious transactions and typical fraud scenarios. For example, if someone makes several large transfers in a short time to an unknown account, the bank must flag these as suspicious and halt them.

In practice, banks often don’t set up control mechanisms properly or disable them because they cost money to operate. In our complaints, we always point to specific circumstances-such as transactions not matching the client’s usual behavior, occurring at unusual times, being split into several smaller transfers, and all going to one account.

 

A Rejected Complaint Is Not a Defeat-We File an Appeal!

If the bank rejects the complaint, we immediately file an appeal. In the appeal, we detail how the bank failed in its duties and attach evidence that the client acted in good faith and was manipulated by fraudsters. We always remind the bank that labeling the client’s behavior as “gross negligence” is not justified just because they fell for sophisticated phishing. Fraudsters today can mimic a bank’s website so perfectly that an average user can’t tell the difference.

Thanks to these arguments, we have already recovered hundreds of thousands of crowns for many clients who had their money stolen by fraudsters. Banks often back down only after thorough legal argumentation and pressure from our side.

The bank must prove that the client truly acted recklessly-for example, knowingly gave login details to a third party, ignored warnings, or repeatedly entered details on suspicious websites. Most victims of online fraud, however, act in good faith, under pressure, and in stress. Fraudsters use psychological tricks and can deceive even experienced users.

 

We Know How to Negotiate with Banks

When dealing with bank fraud, in appeals against rejected complaints we always mention options such as publicizing the case or turning to the financial arbiter. Our experience shows that banks have a strong interest in settling such cases amicably. Banking institutions care deeply about their reputation and public image, so they try to avoid negative publicity and long disputes with clients. Publicizing a case of bank fraud can damage public trust in the security of their services, which is a much greater loss for the bank than returning stolen money to a few clients who seek professional legal help.

 

STEP 3: Immediately File a Criminal Complaint

At the same time as dealing with the bank, we file a criminal complaint with the prosecutor’s office on behalf of the client. This step is crucial not only for the client but also for other victims.

The police and prosecutor have the authority to immediately freeze funds in accounts where the fraudsters transferred the money. If the money is still in the system, we can get it back. Fraudsters often rob multiple people at once. Timely reporting helps other victims and increases the chances of catching the perpetrators.

We prepare the criminal complaint for the client, explain what documents we need, and proceed in a way that maximizes the chance of success. The prosecutor can, within criminal proceedings, order the freezing of funds in an account if there is suspicion that the money is proceeds of crime. The police or prosecutor issue a resolution that orders the bank not to pay out a certain amount or to freeze the funds in the account.

If the reasons for freezing disappear, the freeze is lifted and the account holder regains the right to use the money. Freezing can be applied not only to the suspect’s accounts but also to third-party accounts if there is evidence that the funds come from criminal activity.

 

Bank Fraud and Typical Scenarios: What We Encounter Most Often

  • Phishing emails and SMS: The fraudster sends a link to a fake bank website where the client enters their login details.
  • Fake banker calls (vishing): The caller pretends to be a bank employee, claims the account is compromised, and convinces the client to transfer money to a “safe account.”
  • Classified ad scams: The client sells goods via an online marketplace, the fraudster sends a link to a fake payment gateway where the client enters their account details.
  • Deepfake calls and fake identities: Fraudsters use artificial intelligence to imitate the voice or identity of known persons.
  • Stolen account: The fraudster obtains login details and takes control of online banking.

 

We Can Help You Get Your Money Back from Bank Fraud!

If you’re troubled by bank fraud, internet fraud, or an online scam, we can help. We have experience with dozens of cases where we’ve helped clients recover hundreds of thousands of crowns. We always act quickly, thoroughly, and with maximum care for your rights. We are well-versed in bank fraud and know what steps to take to protect your money.

 

Author: Mgr. Barbora Janáčková, lawyer at ModerniPravnik.cz, and Jonáš Melecký, legal assistant

 

Don’t hesitate to contact us today! We’re available and will respond quickly!

 

Napište našim odborníkům, pomůžeme vám!

Advokat 1
Advokat 2
Advokat 3
Advokat 4
Advokat 5
Advokat 6
Advokat 7
Neváhejte se s námi podělit o svou situaci a stručně popsat, s čím vám můžeme pomoci. Sdělte nám, jak vás můžeme nejlépe kontaktovat, a náš tým se vám obratem ozve s návrhem řešení. Pro vaši lepší orientaci doporučujeme se předem seznámit s naším ceníkem služeb.

Po-Pá: 9:00 -18:00

📞 (+420) 732 394 849







Všechny tyto služby a produkty vám pomohou snadno zvládnout. Neváhejte nás kontaktovat a objednejte si naše služby, smlouvy či produkty přímo na webu.

Cash payment limit in Czechia and money transfers abroad

Autor Publikace: Mgr. Petr Uklein Datum:

Cash Payment Limit in the Czech Republic: How to Handle Larger Transfers

Handling cash, whether within the Czech Republic or during international travel, is governed by a number of legal regulations. Since failure to comply can result in substantial penalties, it is important to understand these rules in detail. Whether you are planning a major cash purchase or intend to carry a larger amount of money across borders, you should be aware not only of the current cash payment limit in the Czech Republic, but also of the specific conditions that apply to cash transport within the European Union and beyond. In this article, we will explain step by step everything you need to know to avoid legal issues and manage your finances safely and lawfully.

 

Daily Cash Payment Limit in the Czech Republic

According to Act No. 254/2004 Coll., the maximum amount allowed for cash payments is set at CZK 270,000 per day for a single transaction or for related payments between the same payer and recipient. In other words, this daily limit represents the legal threshold that cash operations must not exceed. It is also important to note that the limit applies to payments in both Czech and foreign currencies - converted according to the current Czech National Bank exchange rate. Moreover, this restriction applies to both individuals and legal entities, as well as to all types of commercial transactions, including real estate purchases.

 

Example

For better clarity, let’s consider a real-life scenario: if you are selling a car for CZK 500,000, it is not legally permissible to receive the full amount in cash in a single day. In such a case, a practical solution would be to divide the payment into two installments of CZK 250,000 each, made on different calendar days.

 

Transporting Cash: Rules in the Czech Republic, the EU, and Third Countries

1. Transport Within the EU

If you are travelling between EU member states - for example, from the Czech Republic to Hungary - there is no obligation to declare the transported cash. However, we strongly recommend carrying documentation that can prove the origin of the money. Typical documents include bank account statements, gift agreements, or loan contracts. Our experienced legal team can assist you in preparing these documents. Keep in mind that customs inspections may still occur in case of suspicion of criminal activity.

 

2. Transport Outside the EU

If you plan to transport more than €10,000 (approximately CZK 250,000) beyond the borders of the EU - for example, to Montenegro or Serbia - stricter rules apply. The procedure also differs depending on the mode of transportation:

  • If you are travelling by car, you must declare the cash at the border crossing when leaving the EU.
  • If travelling by plane, the declaration must be made at the customs office at your departure airport (e.g., at the airport in the Czech Republic).

The required procedure includes:

  • Filling out the standard EU declaration form,
  • Presenting a valid travel document,
  • Undergoing verification to confirm that the declared and actual amounts match.

 

Practical Tips for Transporting Cash

1. Documentation

Always carry:

  • Proof of the origin of funds,
  • Backup copies of key documents stored separately from the originals,
  • Your travel itinerary.

 

2. Security

It’s also advisable to consider the following safety measures:

  • Use of a secure vehicle (armored transport),
  • Splitting the cash between multiple individuals,
  • Taking out insurance for the transported funds.

 

3. Alternatives

Instead of carrying cash, you may wish to consider safer alternatives, such as:

  • SWIFT bank transfers (typically with a fee of 0.1-0.3%),
  • Traveler’s cheques,
  • Payment cards with a sufficiently high limit.

 

Penalties for Non-Compliance

If you fail to follow the applicable rules, be aware that individuals in the Czech Republic can be fined up to CZK 500,000, while companies can face penalties as high as CZK 5,000,000. Abroad, violations may result not only in fines, but also in seizure of the entire amount and criminal prosecution - especially in cases where there is suspicion of money laundering.

 

Conclusion

To ensure smooth and legal handling of large cash amounts - whether domestically or when travelling abroad - we recommend observing the following key rules:

  • Always respect the daily CZK 270,000 limit.
  • If this limit is exceeded, opt for a non-cash transfer instead.
  • Declare any transported cash exceeding €10,000 across borders.
  • Keep all documentation related to financial transactions for at least five years.

By following these guidelines, you not only avoid legal penalties, but also make it much easier to prove the legal origin of your funds in the event of an inspection.

 

Author: Petr Uklein

 

Not sure about the cash payment limit or how to legally transport funds abroad? Contact us - we’ll be happy to assist you!

Napište našim odborníkům, pomůžeme vám!

Advokat 1
Advokat 2
Advokat 3
Advokat 4
Advokat 5
Advokat 6
Advokat 7
Neváhejte se s námi podělit o svou situaci a stručně popsat, s čím vám můžeme pomoci. Sdělte nám, jak vás můžeme nejlépe kontaktovat, a náš tým se vám obratem ozve s návrhem řešení. Pro vaši lepší orientaci doporučujeme se předem seznámit s naším ceníkem služeb.
Po-Pá: 9:00 -18:00

📞 (+420) 732 394 849

Unfair Competition: Defense against Slander from Competitors!

Autor Publikace: Mgr. Petr Uklein Datum:

Are Your Competitors Slandering You? It Could Be Unfair Competition!

Does the term unfair competition ring a bell? As a business owner, you may have fallen victim to it. Common examples include cases where competitors spread false information about your business or copy copyrighted articles from your website. In this article, we will explain what unfair competition means, what steps you can take, and what claims you can assert. We’ll show you which claims we can pursue on your behalf and how we can secure adequate compensation.

 

What Is Unfair Competition?

Unfair competition refers to conduct that violates good morals in economic competition and threatens or infringes upon the rights of another business owner or disrupts customer behavior. The most common forms of unfair competition include:

  • Spreading misleading information
  • Creating confusion (e.g., copying a brand)
  • Misleading or comparative advertising (e.g., providing false information or tarnishing a competitor’s reputation in advertisements)
  • Theft of content or know-how

 

Real-Life Example: Slander About Business Closure

Imagine running a successful café. Your competitor starts spreading false claims that you are closing down due to financial troubles. Customers begin to doubt your stability and stop visiting your establishment. Your revenue drops, and your good reputation suddenly suffers. This case clearly falls under the concept of unfair competition.

 

Unfair Competition and How to Defend Against It

The Civil Code provides extensive defense options for those harmed by unfair competition. If someone has threatened or infringed upon your rights, we will ensure that you receive all the compensation the law allows us to demand. You can assert the following claims against your competitor:

 

1. Cease-and-Desist Claim

The cease-and-desist claim allows you to demand an immediate halt to illegal actions. In cases of slander, you can request that the competitor stop spreading false information about your business.

How We Proceed: Our law firm will send the perpetrator a pre-litigation notice demanding they cease spreading slander, along with other claims described below. If they fail to respond, we will file a lawsuit requesting a preliminary injunction from the court. The court can decide very quickly and order an immediate cessation of the harmful conduct.

 

2. Remedy of Defective Condition

This claim allows you to demand the removal of consequences caused by unfair competition. In cases of slander, for example, you can request that false information be removed from the internet and all other accessible platforms.

How We Proceed: If the competitor has published a false article about your business, we will secure a court decision ordering its removal from websites or social media platforms.

 

3. Reasonable Compensation

Reasonable compensation includes moral restitution for harm caused-such as an apology or other actions to restore your reputation.

How We Proceed: In cases of reputational damage, we will ensure a public apology from the perpetrator via media or social networks. If the competitor has a website, we will demand that the apology be prominently displayed on their homepage. The apology must be sufficiently visible and clearly state that the false information they unlawfully spread about you was untrue.

 

4. Damages

If you have suffered financial harm due to unfair competition (e.g., revenue loss caused by slander), you have the right to claim compensation for damages.

How We Proceed: We collaborate with experts in economic analysis and accountants-using their assistance, we calculate the exact amount of damage caused by slander. We will file a lawsuit seeking compensation for these damages and ensure that your competitor fully reimburses you.

 

5. Release of Unjust Enrichment

If the competitor gained unlawful profits through unfair practices (e.g., attracting customers through false information), you have the right to demand the release of these profits.

How We Proceed: We will gather evidence showing that the competitor gained profit due to harming your business (e.g., increased revenue due to your customers switching). In our lawsuit, we will assert a claim for unjust enrichment and ensure full reimbursement.

 

Slander as a Criminal Offense

Slander is not only an unfair competitive practice but may also constitute a criminal offense under the Criminal Code. If someone knowingly spreads false information about your business with the intent to harm your reputation, we will file a criminal complaint directly with the public prosecutor’s office, which will then take further necessary steps and instruct law enforcement authorities to act.

 

How Do We Defend Against Slander?

  • Gathering Evidence:
    We collect all evidence related to slander-such as screenshots from websites, customer testimonies, or social media communications.
  • Contacting the Perpetrator:
    We send a pre-litigation notice demanding an immediate halt to spreading false information and assert all other claims arising from unfair competition as described above.
  • Filing Criminal Complaints:
    If the perpetrator refuses to cooperate, we file a criminal complaint with law enforcement authorities.

 

We’ll Help Protect Your Rights!

Do you feel that your competitor has harmed you through unfair competition? Whether it involves slander, content theft, or other unethical practices, our law firm will help you achieve justice and compensation for damages caused. With extensive experience in asserting claims related to unfair competition, we are professionals in this legal field-you can rely on us!

 

Author: Mgr. Petr Uklein, Lead Attorney at ModerniPravnik.cz Law Firm, and Jonáš Melecký, Legal Assistant

 

Contact Us Today! We’ll Protect You Against Unfair Competition

Napište našim odborníkům, pomůžeme vám!

Advokat 1
Advokat 2
Advokat 3
Advokat 4
Advokat 5
Advokat 6
Advokat 7
Neváhejte se s námi podělit o svou situaci a stručně popsat, s čím vám můžeme pomoci. Sdělte nám, jak vás můžeme nejlépe kontaktovat, a náš tým se vám obratem ozve s návrhem řešení. Pro vaši lepší orientaci doporučujeme se předem seznámit s naším ceníkem služeb.
Po-Pá: 9:00 -18:00

📞 (+420) 732 394 849