Nearly 17,000 will cease to exist in the Czech Republic by the end of 2019,
according to the estimates of the Czech Credit Bureau (CRIF), which is the
highest number in the country’s history.
The first three quarters of this year saw nearly 12,000 companies close, which is only 15,000 more than for the whole of 2018.
At the same time, around new 31,000 companies are expected to be registered in the country in 2019, which is the third-highest number since 1989 and only a two-percent drop on the previous year.
The Czech Republic has placed 41st on the World Bank’s Ease of Doing
Business ranking for 2019. New Zealand topped the list, followed by
Singapore and Hong Kong.
A country’s performance is judged on a variety of factors, and a higher ranking indicates better, usually simpler, regulations for businesses and stronger protections of property rights.
The Czech Republic excelled in conditions for foreign trade but did poorly as concerns excessive bureaucracy in starting a business and in gaining a construction permit where it placed 134th and 157th respectively.
The Czech branch of the travel agency Neckermann, which is part of the
bankrupt British group Thomas Cook, has cancelled the trips of another 500
clients, as uncertainty regarding it future grows.The company still has 800
Czech clients abroad.
So far the Czech branch of Neckermann has not filed for bankruptcy. According to the deputy chair of the Association of Czech Travel Agencies Jan Papez the company will either be sold, file for bankruptcy or its employees may decide to establish a brand new travel agency.
The travel agency Neckermann, which is part of the bankrupt British travel
agency Thomas Cook, has issued a statement saying the collapse of its
mother company should not affect its own clients.
The head of marketing at Neckermann, Jan Šrámek, said the travel agency has approximately 1,100 Czech clients abroad who should return on schedule with no foreseeable problems.
The return flights have been covered and everything should go according to schedule, Šrámek said.
He noted that in connection with the recent developments the company might have to scrap the foreign holidays of clients who have not yet left but gave assurances their money would be refunded in full.
According to the head of the Association of Czech Travel Agencies Jan Papež, the problem could affect Czech clients who had bought their holidays in Germany or Great Britain.
During the first half of 2019, the Czech Republic registered a three year low in the amount of new companies being set up, data from the website Bisnode shows. A record amount of businesses, 7964, was also shut-down during the same measured period. Overall, the number of companies registered in the country grew to just under 450,000.
The Czech Republic’s system of company tax is one of the most complicated in the EU, claims a study made in collaboration by the consultancy BDO and two German universities. The Czech Republic ranked fourth from bottom among EU states and its tax system was considered below average in the world-wide ranking.