How Middle East companies can pursue legal action in the Czech Republic: key procedures

If your Middle Eastern company faces a contract dispute, unpaid invoices, or a breach of agreement with a Czech partner, understanding the local court system is essential. This guide provides practical answers to critical procedural and strategic questions for protecting your business interests in the Czech Republic—from jurisdiction basics to judgment enforcement.

Understanding the Czech legal system and your position as a foreign investor

The Czech Republic, as a member of the European Union, offers Middle Eastern companies a stable and transparent legal framework for resolving commercial disputes. However, the Czech civil litigation system operates fundamentally differently from the legal traditions in Middle Eastern jurisdictions.

These differences directly impact how your case will be managed, how quickly you can expect results, and what costs you should anticipate. Middle Eastern companies regularly pursue legal claims in Czech courts—from large-scale investment disputes to straightforward debt recovery.

The ARROWS Law Firm has extensive experience representing clients from the Gulf region and other Middle Eastern territories in exactly these situations. The Czech legal system is based on civil law principles, meaning judges apply detailed statutory codes rather than relying on judicial precedent as the primary source of law.

This creates certain advantages for foreign companies, but it also means that procedural compliance is unusually strict.

Unlike common law jurisdictions, Czech courts do not allow pre-trial discovery, do not conduct depositions in the American sense, and do not permit flexible procedural adjustments. Understanding these differences from the outset is critical because missteps taken early in a Czech proceeding are often irreversible.

The Czech judiciary is professional and generally efficient when cases are properly prepared. First-instance disputes over monetary claims typically proceed through the district courts (okresní soud), with regional courts (krajský soud) handling appeals.

The entire civil procedure is conducted exclusively in the Czech language.

While judges may understand foreign languages, legally valid evidence submitted in English, Arabic, or any other foreign language must be accompanied by officially certified translations. This is a strict requirement that many foreign companies underestimate until they face challenges regarding the admissibility of their evidence.

MicroFAQ – legal tips on Czech court system basics

1. As a Middle Eastern company, can I pursue legal action in Czech courts even though I am not domiciled in the Czech Republic?
Yes, you can absolutely file claims in Czech courts. If the defendant is located in the Czech Republic, Czech courts generally have jurisdiction over the dispute. The Brussels I Recast Regulation (for EU cross-border disputes) and the Czech Act on Private International Law establish that a defendant domiciled in the Czech Republic should generally be sued in Czech courts.

2. Will the judge understand international business practices and the context of my Middle Eastern company?
Czech judges apply Czech law and Czech civil procedure—they interpret contracts according to Czech Civil Code principles, specifically Act No. 89/2012 Coll. While they respect international commercial customs (lex mercatoria) where applicable, the primary lens is Czech statutory law. ARROWS lawyers regularly advise Middle Eastern clients on how Czech courts will interpret their agreements and what evidence the court will accept.

3. Do I need a local Czech lawyer, or can my company's home country counsel represent me?
While foreign lawyers can provide strategic advice, legal representation before Czech courts in civil proceedings generally requires a Czech attorney (advokát) licensed by the Czech Bar Association. For proceedings at the Supreme Court level, legal representation by a Czech lawyer is mandatory by law. This is a procedural requirement that foreign companies often fail to anticipate.

Jurisdiction: which Czech court has authority over your dispute?

Before filing any lawsuit, the first critical question is whether a Czech court has jurisdiction to hear your dispute. This question is governed by EU law—specifically the Brussels I Recast Regulation—and by the Czech Act on Private International Law.

The answer determines not only which court can hear your case, but also whether a judgment from that court will be enforceable across Europe without requiring additional proceedings. The basic rule is straightforward regarding domicile.

If your Czech business partner or debtor is domiciled in the Czech Republic and operates there, Czech courts have jurisdiction.

This rule applies whether the defendant is a natural person or a legal entity, and it applies regardless of where your Middle Eastern company is domiciled. It also applies regardless of whether the contract was negotiated and drafted elsewhere.

However, jurisdiction can also be established on other grounds. For example, if the contract specifies a Czech court as the forum for disputes (prorogation of jurisdiction), both you and the defendant are bound by that choice-of-court agreement.

Many commercial contracts between Middle Eastern companies and Czech partners include such clauses because they provide certainty and predictability.

The ARROWS Law Firm advises Middle Eastern clients on jurisdiction strategy from the moment a dispute arises. If your contract does not contain a jurisdiction clause and the defendant is Czech-domiciled, you should assume Czech courts will have jurisdiction.

If your contract includes a Czech jurisdiction clause, you have the advantage of predictability, but you must ensure the clause was drafted validly. The technical requirements for a valid jurisdiction clause under Czech law and EU law are specific.

The clause must clearly identify the scope of disputes covered and must be in writing or evidenced in writing.

Additionally, if multiple proceedings arise from the same dispute—for example, if you have filed a claim in a Czech court and the defendant simultaneously files a counterclaim in another EU jurisdiction—the lis pendens rule applies.

Under EU law, the court first seized of the matter generally proceeds, and any subsequent parallel proceedings in another EU member state court must be suspended. This rule protects judicial efficiency but also means that your timing in filing is strategically important.

MicroFAQ – legal tips on jurisdiction strategy for Middle Eastern companies

1. Our contract with a Czech company specifies that disputes will be resolved in Prague District Court. Does this mean Prague courts have exclusive jurisdiction?
Yes, provided the jurisdiction clause is validly drafted. However, be aware that Prague has multiple district courts (for different districts of the city). The clause should ideally specify the specific court or the court with local jurisdiction in Prague. ARROWS lawyers regularly review jurisdiction clauses to ensure enforceability.

2. If we have not agreed on a forum in our contract, where should we file our lawsuit?
If the Czech defendant is domiciled in the Czech Republic, you should generally file in the "general court" of the defendant. For a legal entity, this is the district court where the company has its registered seat. Filing in the wrong court can result in the transfer of the case, causing delays. Contact office@arws.cz to verify the correct venue for your situation.

3. Can the Czech defendant challenge the jurisdiction of a Czech court?
Yes, the defendant can challenge jurisdiction if they believe another court has exclusive jurisdiction or if a valid arbitration agreement exists. The defendant must generally raise this objection at the very beginning of the proceedings (typically in their first submission on the merits). The court will then decide whether to accept or decline jurisdiction.

The pre-litigation demand: a mandatory step with hidden procedural consequences

Before filing a lawsuit in Czech court, Czech law imposes a critical preliminary step. You must send a pre-litigation demand letter (předžalobní výzva) to the defendant at least seven days before filing your claim.

This requirement is codified in Section 142a of the Czech Code of Civil Procedure (OSŘ). The purpose of this pre-litigation demand is to give the debtor a final opportunity to settle the dispute.

If you fail to send this demand, the Czech court generally will not award you reimbursement of your legal costs even if you win the lawsuit.

This means that in a dispute over, say, CZK 5 million, you could recover the principal, but you would bear your own attorney fees. This results in a significant financial loss.

The pre-litigation demand must contain specific elements: clear identification of the creditor and debtor, specification of the claim (legal basis and amount), and a clear demand for payment. While the law requires sending it at least seven days before filing, in practice, providing a slightly longer deadline is common to demonstrate good faith.

The ARROWS Law Firm advises Middle Eastern clients to treat the pre-litigation demand as part of the litigation strategy.

Each demand must be carefully drafted to ensure it complies with Czech procedural law and clearly communicates the seriousness of the claim. It should be sent by registered post or Data Box (datová schránka) to ensure proof of delivery.

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Filing your claim: procedural requirements and the front-loaded burden of proof

Once the pre-litigation period has elapsed without settlement, you are ready to file your claim (žaloba) with the appropriate Czech district court. This is where many Middle Eastern companies face their first major procedural shock.

Czech courts do not allow the kind of broad discovery phases common in US or UK jurisdictions. The Czech statement of claim must be a legally structured document that identifies specific facts and designates specific evidence supporting each fact.

Critically, the burden of allegation and burden of proof are on you as the claimant.

You must gather your evidence and be ready to present it. While you can propose evidence during the proceedings (until the "concentration of proceedings" at the end of the first hearing), you cannot force the defendant to open their files to you through a discovery process.

For commercial disputes, the most critical evidence typically includes: executed contracts, accepted invoices, delivery notes (CMRs, protocols of handover), and relevant correspondence. All documents in foreign languages must be accompanied by officially certified Czech translations (soudní překlad).

Documents must be super-legalized or apostilled to be valid in Czech court.

The ARROWS Law Firm advises Middle Eastern clients to budget time for evidence preparation. An experienced Czech law firm will analyze your documentary evidence, identify gaps, and coordinate the necessary translations and legalizations (Apostille/Superlegalization) before filing.

Risks and sanctions	How ARROWS (office@arws.cz) helps
Failure to send pre-litigation demand letter: You risk losing the right to recover legal costs from the defendant even if you win the case, forcing you to pay your own legal fees.	Pre-litigation demand preparation: ARROWS lawyers draft and send formally compliant pre-litigation demand letters to secure your right to cost recovery and manage the statutory waiting period.
Non-certified translations of foreign evidence: Documents submitted without official Czech translation may be disregarded by the court or the court will order you to provide them under short deadlines.	Translation and authentication coordination: ARROWS arranges certified Czech translations, ensures apostille/superlegalization authentication where required, and prepares the evidence package.
Improperly structured statement of claim: A claim that fails to meet the requirements of § 79 of the Civil Procedure Code can lead to the court asking for corrections or eventually rejecting the claim.	Claim drafting and case strategy: ARROWS lawyers draft legally structured statements of claim that meet all statutory requirements and strategically present the facts and evidence.
Insufficient evidence: Relying on the hope that the defendant will admit facts is risky. Missing evidence can lead to the loss of the dispute.	Evidence analysis: ARROWS reviews your evidence before filing to ensure the claim is substantiated and identifies any potential weak points.

Court filing mechanics: electronic submission and formal procedures

Once your claim is finalized, the filing process is efficient. Czech courts accept claims filed electronically, typically through the Data Box (datová schránka) system, which is mandatory for all legal entities and professionals in the Czech Republic.

The court fee is due upon filing the claim. The fee is statutory and must be paid to the court's account. For electronic payment orders (elektronický platební rozkaz) and standard commercial lawsuits, the fee is typically 5% of the claimed amount.

Importantly, the court fee is capped at CZK 2,000,000 for standard civil and commercial claims, regardless of how high the claim amount is.

If you do not pay the court fee when filing, the court will issue a call for payment; failure to pay within the deadline results in the proceedings being stopped. After filing, if the claim is proper and fees are paid, the court will serve the claim on the defendant.

The defendant typically has 30 days (in the case of a qualified call for defense) to file a written statement of defense (vyjádření k žalobě). If the defendant fails to respond to a qualified call within this period without serious reason, the court may issue a judgment by acknowledgement.

MicroFAQ – legal tips on Czech court filing procedures for foreign companies

1. Can we file our claim electronically?
Yes, electronic filing through the Data Box system is the standard and preferred method for legal representatives in the Czech Republic. It provides immediate proof of delivery.

2. What if we calculate the court fee incorrectly?
If you underpay, the court will not reject the claim immediately. It will send a resolution calling for the payment of the balance within a specified period (usually 15 days). If you pay within this period, the filing date remains valid.

3. The defendant claims they never received the claim. What happens?
Czech law uses a "fiction of delivery" for Data Boxes. A message is deemed delivered the moment the user logs in, or on the 10th day after the message reached the Data Box if the user does not log in. This prevents defendants from avoiding service by simply ignoring their inbox.

The preliminary hearing and evidence strategy

Unless the case is decided by a payment order or default judgment, the court will typically schedule a hearing. Often, a "preliminary hearing" (přípravné jednání) is summoned first to clarify the positions of the parties and attempt a settlement.

At the hearing, the judge leads the proceedings. The judge will ask the parties to state their claims and defenses and to identify evidence. The principle of "concentration of proceedings" applies: parties must generally assert all facts and designate all evidence by the end of the first hearing.

Evidence submitted later is generally not taken into account, with limited exceptions.

This rule makes the first hearing pivotal. Middle Eastern companies must be fully prepared with their Czech counsel to present their entire evidentiary case at this stage. You cannot "save" evidence for later as a surprise.

The judgment and cost recovery: understanding the "loser pays" principle

After the proceedings, the court issues a judgment. A key feature of Czech litigation is the "loser pays" principle. If you prevail in full, the court will typically order the defendant to reimburse your legal costs.

However, "legal costs" are not calculated based on what you actually paid your lawyer. They are calculated based on the Advocates' Tariff (Decree No. 177/1996 Coll.), which assigns a fixed value to legal acts based on the value of the dispute.

You will recover the court fee paid and the attorney fees as calculated by this Tariff.

If your actual legal fees were higher than the Tariff rate (which is common with international firms), the difference is not recoverable. Conversely, if you lose, you are generally obligated to pay the defendant's costs calculated in the same way. This system discourages frivolous lawsuits and encourages settlement.

Risks and sanctions	How ARROWS (office@arws.cz) helps
Poor case strategy at preliminary hearing: Failing to present all evidence before the "concentration of proceedings" (end of the first hearing) can lead to the exclusion of key evidence.	Hearing representation: ARROWS counsel attends hearings, ensures all evidence is properly introduced on time, and manages the procedural deadlines strictly.
Confusion about attorney fees: Expecting full reimbursement of hourly rates.	Cost transparency: ARROWS explains the difference between contractual fees and the statutory "reimbursement" tariff, helping you estimate the net financial outcome of litigation.

Appeals and extraordinary appeals: the multi-level Czech court system

If you are dissatisfied with the district court's judgment, you have the right to appeal (odvolání) to the regional court. The appeal must be filed within 15 days from the delivery of the written judgment. This deadline is strict.

The appellate court reviews the first-instance decision. It can confirm, change, or cancel the judgment and return it for further proceedings. Beyond the appeal, an extraordinary appeal (dovolání) to the Supreme Court is possible, but only on specific questions of law.

Representation by an attorney is mandatory for filing an extraordinary appeal.

The deadline for an extraordinary appeal is two months from the delivery of the appellate court's decision. While Czech law allows for a waiver of a missed deadline in very specific, exceptional circumstances, this is rare. For business purposes, treat all deadlines as absolute.

Enforcement: converting a judgment into actual payment

A final judgment is an enforcement title. If the defendant does not pay voluntarily, you can proceed to enforcement (exekuce). In the Czech Republic, enforcement is typically handled by judicial executors (soudní exekutor)—private officers authorized by the state.

You can choose any executor; they operate nationwide. Once the court authorizes the executor (usually a formality handled quickly), the executor has broad powers to seize assets.

Executors can freeze bank accounts, seize movable and immovable property, and garnish wages or receivables.

They have access to central registers to locate assets. The effectiveness of enforcement in the Czech Republic is generally high compared to many jurisdictions, as executors are motivated by statutory fees recovered from the debtor.

A Czech judgment is enforceable throughout the European Union under the Brussels I Recast Regulation.

This enforceability allows you to pursue assets without the need for a complex "exequatur" procedure if the debtor moves them to another EU country.

Arbitration as an alternative

For future contracts, Middle Eastern companies might consider arbitration. The Arbitration Court attached to the Economic Chamber of the Czech Republic and Agricultural Chamber of the Czech Republic is the main permanent arbitration body.

Arbitration can be faster and allows for confidentiality. However, it requires a valid arbitration clause in the contract.

If your current dispute is based on a contract without such a clause, you must proceed through the standard courts unless you and the other party agree otherwise.

Executive summary for management

Litigation Risk and Timeline: First-instance litigation typically takes 12 to 18 months, depending on complexity and the specific court's workload. Appeals can add another year.

Cost Structure: Court fees are generally 5% of the claim amount (capped at CZK 2 million for standard cases). Attorney fees are negotiable, but cost recovery from the losing party is capped by the statutory Tariff.

Evidence: No discovery. You must possess the evidence (contracts, invoices) before suing. Certified translations are mandatory for foreign documents.

Enforcement: Effective private executor system with powers to freeze accounts and seize assets nationwide. EU-wide enforceability.

Strategic Value: The "loser pays" principle and strict deadlines often encourage debtors to settle once they realize a credible claim has been filed by a represented plaintiff.

Conclusion

Pursuing legal action in the Czech Republic as a Middle Eastern company is a structured process governed by strict procedural rules. The system is reliable and enforceable, but it requires adherence to local formalities—particularly regarding pre-litigation demands, evidence translation, and deadlines.

The ARROWS Law Firm advises Middle Eastern companies on Czech litigation strategy, handles all procedural compliance, and manages evidence preparation.

Our experience managing cases with international elements allows us to bridge the legal and cultural gap for our clients. If your Middle Eastern company faces a commercial dispute in the Czech Republic, rely on experienced local counsel.

ARROWS Law Firm will help you evaluate your legal position and represent your interests. Contact us at office@arws.cz to discuss your situation in confidence.

FAQ – frequently asked legal questions

1. Our Middle Eastern company has a contract with a Czech supplier who has failed to pay invoices totaling CZK 10 million. How long will Czech litigation take, and what will it cost?
Standard litigation can take 12-24 months for a final decision if appealed. The court fee would be 5% of the claim (CZK 500,000). Attorney fees depend on the complexity. If you win, the defendant generally reimburses costs according to the statutory tariff. Contact office@arws.cz for a specific estimate.

2. We did not include a jurisdiction clause. Which court do we use?
Generally, the district court where the defendant has their registered seat. ARROWS lawyers can identify the exact competent court to avoid delays.

3. Do we need to send a formal demand letter?
Yes. A pre-litigation demand (předžalobní výzva) sent at least 7 days before filing is crucial for cost recovery. Failing to send it is a costly mistake.

4. Can we submit English documents?
They must be accompanied by certified Czech translations to be formally admitted as evidence. ARROWS coordinates this process.

5. Will the defendant pay after judgment?
If they are solvent, usually yes, to avoid enforcement costs. If not, a judicial executor can forcibly seize assets, bank accounts, and property.

6. Can we pursue action without a Czech office?
Yes. You do not need a physical presence in the Czech Republic, but you need a Czech attorney to represent you effectively and handle the mandatory electronic communications with the court.

Disclaimer: The information contained in this article is for general informational purposes only and serves as a basic guide to the issue. Although we strive for maximum accuracy in the content, legal regulations and their interpretation evolve over time. To verify the current wording of the regulations and their application to your specific situation, it is therefore necessary to contact ARROWS Law Firm directly (office@arws.cz). We accept no responsibility for any damage or complications arising from the independent use of the information in this article without our prior individual legal consultation and expert assessment. Each case requires a tailor-made solution, so please do not hesitate to contact us.