EU Company before a Czech Court: When You Need Local Representation

Facing a commercial dispute or lawsuit in the Czech Republic? This guide provides specific answers for foreign companies navigating the Czech court system. As English-speaking lawyers for a leading law firm based in Prague, European Union, we explain the critical procedural traps—from the mandatory Data Box to representation rules—that foreign clients often miss, and how our legal consultations can protect your business from costly, irreversible errors.

Need advice on this topic? Contact the ARROWS law firm by email office@arws.cz or phone +420 245 007 740. Your question will be answered by "Mgr. Vojtěch Sucharda", an expert on the subject.

"Can My EU Lawyer Represent My Company in a Czech Court?"

As a company based in another EU member state, you might assume your trusted home-country lawyer can simply manage your case in Prague. The EU's directives on the freedom to provide services for lawyers  create this expectation.

Your lawyer can indeed act as a "guesting" lawyer for temporary services or even register as an "Established European lawyer" with the Czech Bar Association. However, this creates a false sense of security due to a critical procedural exception.

Czech law stipulates that even an established European lawyer, when representing a client in court proceedings where local law mandates legal representation, "must appoint a Czech lawyer" to act with them.

This creates an inefficient and costly "two-lawyer" problem. Your company ends up paying for your home counsel and a local Czech advokát, leading to delays and the risk of miscommunication between a foreign lawyer who doesn't know Czech procedure and a local lawyer who doesn't know the case history.

A better solution is a single, expert team. ARROWS provides legal consultations directly to your foreign in-house counsel, bridging the gap between your home jurisdiction and Czech procedural reality. Need to coordinate your foreign legal team with local Czech experts? Our lawyers are ready to assist you – email us at office@arws.cz.

You can find additional details about this service HERE on our website.

Is Legal Representation Even Mandatory in Czech Civil Court?

Your next question might be whether you need a lawyer at all. In most first-instance civil and commercial cases, legal representation (povinné zastoupení) is not strictly mandatory. Many foreign companies see this as a way to save costs. This is a "false economy" and a serious strategic mistake.

The devastating exception is that legal representation by a licensed Czech advokát is absolutely mandatory (povinné zastoupení) for filing a dovolání—an extraordinary appeal to the Supreme Court of the Czech Republic.

This rule about the appeal has a massive impact on your initial trial. If you represent yourself (or use a non-specialist) and lose your case, you may find that you have already lost your right to appeal. An extraordinary appeal can only be based on the legal arguments and evidence presented in the lower courts. A procedural error made in the first trial can permanently forfeit your grounds for a successful appeal.

Engaging expert representation in court from day one is the only way to protect your rights at all stages of the dispute.

The Single Biggest Risk: What is the Datová Schránka (Data Box)?

The single greatest procedural risk for any foreign-owned company in the Czech Republic is the datová schránka (Data Box).

This is not email. It is a mandatory, secure, state-run digital mailbox. It is automatically created for all legal entities registered in the Czech Republic, including your s.r.o. (subsidiary).

Czech courts and public authorities (like the Tax Office) use this channel—and only this channel—for all official, legally binding communication, including lawsuits, summons, and fines.

The Data Box system operates on a 10-day "deemed delivery" rule, also known as a "fiction of delivery" (fikce doručení). A document, such as a court summons, is considered legally served 10 days after it arrives in your Data Box, even if you never log in and never open it.

For foreign directors, this is an operational time bomb. When your Czech company is formed, the access details are often sent by physical mail to the director's registered address, which could be in another country. If this letter is lost or ignored, you will be completely unaware that this active legal channel even exists.

Multinational companies face an added risk of internal delays. Even if a Prague office receives a notice, it may not reach the foreign legal department before the strict deadline expires.

The 'Datová Schránka' (Data Box) Trap

Risks and penalties	How ARROWS helps
Missing a court summons. A lawsuit is "deemed delivered" to your unmonitored Data Box. The 10-day deadline passes.	Legal consultations to provide professional monitoring of your datová schránka. Need your Data Box monitored? Write to office@arws.cz.
Losing your case by default. By missing the summons, you fail to defend yourself, and the court issues a default judgment against you.	Representation in court and immediate crisis response to prevent or challenge a default judgment. For immediate assistance, write to us at office@arws.cz.
Internal communication failure. Your Prague office receives a notice but fails to forward it to your foreign HQ before the strict deadline expires.	Preparation of internal company policies and professional training for employees on the legal duty of handling Data Box messages. Get tailored legal solutions by writing to office@arws.cz.
Failure to activate or access. Your company is registered, but you never activated the Data Box, or you lost the password. The box is still active and receiving legal notices.	Legal opinions and administrative support to regain access to your company's Data Box and audit its contents. Do not hesitate to contact our firm – office@arws.cz.

How Can You Lose a Lawsuit You Never Knew Existed?

The failure to monitor your Data Box leads directly to a devastating financial consequence: the rozsudek pro zmeškání, or judgment by default.

This is precisely what happens when a defendant (your company), having been properly served via the Data Box "deemed delivery," fails to appear at the first court hearing without a valid excuse. The court can, and often will, rule entirely in the plaintiff's favor.

For an EU company, this is a cross-border nightmare. Under EU law (specifically the Brussels Ia Regulation), a final judgment from a Czech court is automatically recognizable and enforceable across the entire European Union.

Our specialists are here for you

This means your company's first-ever notification of this entire lawsuit could be when a bailiff in your home country freezes your main corporate bank account or seizes your assets. Your only defense at that point would be to challenge the recognition of the judgment, perhaps by claiming you were not properly served. But because the Czech court did follow its own "deemed delivery" rule, this argument is exceptionally difficult to win.

FAQ – Legal tips about Default Judgments

•  What exactly is a rozsudek pro zmeškání?
  It is a judgment by default. If you are properly summoned (e.g., via your Data Box) and miss the first hearing without an excuse, the court can rule against you based entirely on the plaintiff's claims, which are assumed to be true. For immediate assistance, write to us at office@arws.cz.
• Can this Czech default judgment be enforced in my home country?
  Yes. Within the EU, the Brussels Ia Regulation means a final Czech judgment is recognized and enforceable in your home member state. Your domestic assets are at direct risk. Our lawyers are ready to assist you – email us at office@arws.cz.
• Can a default judgment be reversed?
  It is extremely difficult. You must apply within a very short deadline after learning of the judgment and prove a "justifiable excuse" for your absence. Simply "I didn't check my Data Box" is not a valid legal excuse. Get tailored legal solutions by writing to office@arws.cz.

"Why Is This So Different from a UK or US Court?" – The Civil Law Trap

For clients from Common Law jurisdictions (like the UK, US, or Ireland), the Czech legal system can be a procedural "culture shock." The Czech Republic is a Civil Law jurisdiction, and assuming the rules are the same is a strategic failure.

Trap 1: No "Discovery."
The broad, pre-trial "discovery" or "disclosure" phase common in the US and UK, where parties exchange all relevant documents, is "largely unknown" in the Czech system. You cannot file a "fishing expedition" lawsuit and hope to find evidence later.

Trap 2: The "Front-Loaded" Burden of Proof.
Because there is no discovery, the burden of proof (břemeno důkazní) is on you from Day One. You must state all decisive facts and identify all supporting evidence in your initial statement of claim, the žaloba. Your case must be "front-loaded" and fully prepared before you ever file.

Trap 3: The Language Barrier is a Legal Barrier.
All court proceedings are in Czech. A court will ignore any evidence—contracts, emails, invoices—submitted in English or another foreign language. You must provide an officially certified translation (soudní překlad) for a document to be considered as evidence. An English-language contract, which you believe is your primary protection, is legally worthless as evidence until it is translated and certified.

The 'Common Law vs. Civil Law' Strategy Trap

Risks and penalties	How ARROWS helps
Submitting a key contract or email in English as evidence. Penalty: The court legally cannot consider your proof. Your evidence is rejected, and your case fails.	Drafting legally required documentation, including full management of certified translations (soudní překlad). Do you need a document prepared? Contact us at office@arws.cz.
Filing a weak žaloba (claim) expecting to "find evidence" in discovery. Penalty: Your case is dismissed for failing to meet the "front-loaded" burden of proof.	Legal opinions and pre-litigation analysis to build a robust evidentiary strategy before filing your claim. Want to understand your legal options? Email us at office@arws.cz.
Relying on "binding precedent." Your legal strategy is based on case law from the UK or even other Czech cases. Penalty: The judge is not bound by precedent and dismisses your argument.	Legal consultations from experts who understand the Czech občanský soudní řád (Code of Civil Procedure) and how local judges interpret statutes. Get expert advice today by writing to office@arws.cz.

How Can ARROWS Protect Your Foreign Business?

We are a leading Czech law firm in Prague, EU, providing a "safe european harbour" for your investments. Our team combines deep local knowledge with a fluent understanding of foreign markets, and we are known for our speed and high quality.

When your dispute involves assets in multiple jurisdictions, our ARROWS International network is essential. Built over 10 years and active in 90 countries, we can coordinate complex, cross-border asset tracing and enforcement.

We are trusted legal partners to over 150 joint-stock companies and 250 limited liability companies, giving us unparalleled insight into the challenges you face.

We offer a complete suite of services to protect you at every stage:

• Preventative Services: Preparation of internal company policies (for Data Box management), drafting documentation to prevent fines and penalties, and professional training for employees or management (with certificates) on Czech compliance.
• Litigation Services: Full representation in court or before public authorities, expert contract drafting or review (in Czech and English), and strategic legal opinions.

Cross-Border and Enforcement Risks

Risks and penalties	How ARROWS helps
A Czech debtor moves assets to another EU country to avoid payment. Penalty: You win your Czech lawsuit, but the judgment is worthless as there are no assets to seize.	Legal analysis and cross-border asset tracing executed through our ARROWS International network. Do not hesitate to contact our firm – office@arws.cz.
Your foreign judgment is unenforceable in the Czech Republic. You won in your home country, but the judgment is rejected in Prague on a technicality (e.g., improper service).	Representation in court to manage the recognition and enforcement of your foreign judgment against Czech assets. Need legal help? Contact us at office@arws.cz.
You win a case, but the losing party appeals to the Supreme Court. You are now facing a complex dovolání proceeding, which has mandatory representation rules.	Representation in court by our expert advokáti, who are qualified and experienced in handling Supreme Court appeals. Get tailored legal solutions by writing to office@arws.cz.

What Is Your Next Step?

Ignoring a Czech legal document or a Data Box notification is not a strategy; it is a direct financial risk. The Czech procedural system is efficient but unforgiving of mistakes, especially for foreign entities.

As an international law firm operating from Prague, European Union, we are a safe european harbour for your business. We are trusted by hundreds of foreign companies to navigate these exact challenges. Do not wait until a 10-day deadline has passed. Our lawyers are ready to assist you – email us at office@arws.cz.

FAQ – Most common legal questions about Czech Litigation

1. What is a datová schránka (Data Box) and why is it mandatory for my company?
A Data Box is a secure, official electronic mailbox mandated by the Czech state for all legal entities. It is not email. All communications from the courts and tax authorities (including lawsuits) are sent only here. Monitoring it is essential to avoid losing your legal rights. For a full compliance check, contact our firm at office@arws.cz.

2. What happens if I ignore a Czech court summons?
If you are served (e.g., via your Data Box) and you ignore the summons, the court can issue a rozsudek pro zmeškání (judgment by default) against you. This means you lose the case automatically and will be liable for the full amount claimed. For immediate assistance with a court summons, write to us at office@arws.cz.

3. Can my lawyer from Germany/Poland/UK represent me in a Czech court?
While EU lawyers have rights to practice, Czech law has a critical exception: for many court proceedings, they must appoint a local Czech lawyer (advokát) to act with them. This creates inefficiency and high costs. It is safer and more effective to hire a local expert firm from the start. Our lawyers are ready to assist you – email us at office@arws.cz.

4. What are the typical costs for a civil court case in the Czech Republic?
You face two main costs. First, a mandatory court fee, which is typically 5% of the claimed amount (e.g., a €40,000 claim requires a €2,000 fee). Second, lawyers' fees. If you win, the losing party must reimburse your legal fees based on the "Advocates' Tariff" (Decree 177/1996), which calculates fees per "act of legal service" (úkon právní služby), not just by the hour. Get a tailored cost analysis by writing to office@arws.cz.

5. My Czech partner sent me a contract in English. Is it valid evidence in court?
The contract is valid between you, but it is not valid as evidence in a Czech court. All court proceedings are in Czech. Any document in a foreign language (English, German, etc.) must be submitted with an officially certified translation (soudní překlad) to be considered by the judge. Need contract review or certified translations? Contact us at office@arws.cz.

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