How to Handle Court Proceedings in the Czech Republic as a non EU Company: What You Need to Know

If you operate a business from outside the European Union and face a commercial dispute in the Czech Republic, navigating the court system can feel overwhelming. This article provides specific, practical answers to the key questions non-EU companies face: which courts have jurisdiction over your case, what procedural rules apply, how to prepare evidence, and how to ensure your judgment is enforceable. Understanding these elements from the beginning will save you time, money, and potential legal setbacks.

Understanding jurisdictional framework for non-EU companies

When a non-EU company becomes involved in a commercial dispute in the Czech Republic, the first critical question is whether Czech courts have the authority to hear the case at all. Unlike companies from European Union member states, which benefit from harmonized jurisdictional rules, non-EU companies face a different legal landscape governed primarily by the Czech Act on Private International Law.

The fundamental principle is straightforward: Czech courts will have international jurisdiction if they possess local jurisdiction (venue) under the Czech Civil Procedure Code.

For non-EU companies, the concept of reciprocity is also relevant, particularly regarding the recognition of judgments. According to Czech private international law, reciprocity is generally required when a foreign judgment will eventually be recognized in the Czech Republic. As a non-EU company, you must be aware that while Czech courts may hear your case against a Czech entity, enforcing a judgment from your home country in CZ depends on whether your home country would recognize Czech judgments.

Territorial jurisdiction: which Czech court?

The Czech Republic has a network of district courts (okresní soudy) and regional courts (krajské soudy). Understanding which specific court has territorial jurisdiction is essential because filing in the wrong court wastes time and may result in the transfer of the case. The general rule allocates jurisdiction to the court in whose district the defendant maintains its permanent residence or registered office.

If your Czech defendant operates multiple business locations or reorganized its corporate structure before the dispute arose, identifying the "correct" jurisdiction requires careful investigation of commercial registry records.

There are also special territorial jurisdiction rules available by choice in certain commercial matters, allowing you to sue, for example, in the district where the defendant has a permanent place of work or where the payment was to be made. These alternative venues can be strategically valuable but require careful assessment of your evidence. For guidance on selecting the optimal forum within Czech territory, contact office@arws.cz.

Subject-matter jurisdiction: what type of court?

Subject-matter jurisdiction in the Czech Republic distinguishes between district courts and regional courts. Following recent legislative amendments effective from mid-2024, the vast majority of commercial disputes now begin in district courts (okresní soudy) as the court of first instance. This represents a shift from previous years where regional courts handled many commercial matters directly.

Regional courts generally act as appellate courts, though they retain first-instance jurisdiction over specific, specialized matters such as disputes concerning corporate status, intellectual property, competition law, or insolvency proceedings.

For non-EU companies, understanding this distinction is vital. If you mistakenly file a standard commercial claim at a regional court instead of a district court, the regional court will issue a decision declaring its lack of jurisdiction and transfer the case to the appropriate district court. This process causes unnecessary delay. Conversely, filing a specialized corporate status claim at a district court will lead to similar delays.

Procedural differences: civil law system versus common law expectations

Non-EU companies from common law jurisdictions face an adjustment when entering Czech litigation. The Czech Republic operates as a civil law system, meaning the procedural framework and the role of courts differ fundamentally from what common law attorneys and business managers expect.

The most significant procedural difference is the absence of broad U.S.-style pre-trial discovery. In American litigation, parties are often compelled to disclose extensive documents and submit to depositions before trial. Czech civil procedure generally does not have this mechanism. Instead, the burden falls largely on you as the claimant to identify, gather, and present your evidence to support your claims.

The Czech statement of claim: a legally structured document

The initial claim document in Czech litigation—called the žaloba (statement of claim)—must conform to strict legal requirements laid out in the Code of Civil Procedure. It is not an opportunity for loose narrative. Instead, it is a legally structured submission that must precisely identify the claimant and defendant, describe the decisive facts, identify evidence to prove these facts, and clearly state what relief is being sought.

For non-EU companies, this structural requirement represents a frequent source of procedural errors. A narrative explaining the business relationship without clearly linking facts to specific evidence and legal entitlements does not satisfy Czech procedural rules. The statement of claim must follow a formal logical structure that anticipates how a Czech judge will evaluate the evidence.

Evidence requirements and official translations

A procedural requirement that catches many non-EU companies unprepared is the mandatory translation of evidence. The language of the proceedings is Czech. Therefore, if your contracts, invoices, email correspondence, or any other evidence exists in English, German, or any language other than Czech, the court typically requires them to be submitted with an officially certified Czech translation (soudní překlad).

The Czech court is not obliged to review evidence in a foreign language, even if the judge or the opposing party understands it.

This translation requirement affects both the timeline and budget. Certified translation costs generally range in the hundreds of Czech crowns per standard page, depending on the language and urgency. For a commercial dispute involving substantial documentation, these costs must be factored into the litigation budget. Furthermore, obtaining certified translations takes time, which must be accounted for in your strategy.

Beyond language translation, foreign public documents must also meet authentication requirements.

The lawyers at ARROWS Law Firm handle these translation and authentication requirements routinely for non-EU companies. Contact office@arws.cz to ensure your evidence is properly prepared.

Rigid statutory deadlines

The Czech legal system operates under strict procedural deadlines. While the court may waive a missed deadline in exceptional cases for serious reasons under § 58 of the Civil Procedure Code, one cannot rely on "excusable neglect" in the broad sense often found in common law systems. Generally, if you miss a statutory deadline—whether for filing an appeal or responding to a payment order—you risk losing your right to pursue that procedural step.

This rigidity creates challenges for non-EU companies managing disputes from distant time zones. The moment a document is effectively delivered to your data box or legal representative, the clock starts ticking.

MicroFAQ – Legal tips on procedural timelines and deadlines

1. What happens if I miss a statutory deadline in Czech court proceedings?
The right to perform the act is generally lost. While you can apply for a waiver of the missed deadline within 15 days of the obstacle's removal, you must prove there was a serious, objective reason (excuse) why the act could not be performed. Mere oversight or administrative error is not sufficient.

2. Does the Czech court notify me directly if I have an outstanding deadline?
The court delivers documents through the data box system (if applicable) or post. Delivery is strictly regulated. For data boxes, a document is deemed delivered the moment you log in, or automatically on the 10th day after delivery to the box if you do not log in. You are responsible for monitoring your delivery channels.

3. Can I get an extension of time to file an appeal?
Statutory deadlines (like the 15-day appeal period) cannot be extended by the judge. However, judicial deadlines (set by the judge for specific tasks, like providing additional comments) can be extended if a request is made before the deadline expires and there are valid reasons.

The pre-litigation demand letter: a strategic necessity

Before filing a formal claim in Czech court, it is essentially mandatory to send a formal pre-litigation demand letter (předžalobní výzva) to the defendant.

According to § 142a of the Civil Procedure Code, a plaintiff who fails to send this demand letter to the defendant at their delivery address at least seven days before filing the lawsuit generally forfeits the right to reimbursement of legal costs.

The pre-litigation demand letter must specify the amount owed and the legal ground, and explicitly warn that failure to pay will result in court action. It serves as a final negotiation opportunity and ensures you are eligible for cost recovery.

Document service and the data box requirement

The pre-litigation demand letter must be sent to the defendant's address for service. For Czech companies, the most effective method is using the Data Box (datová schránka), a state-guaranteed electronic communication system. Delivery to a Data Box is legally verified.

For non-Czech companies, accessing the Data Box system usually requires setting up an account or acting through a Czech attorney. The lawyers at ARROWS Law Firm have experience serving foreign companies and Czech defendants efficiently. Contact office@arws.cz to ensure your demand letter meets all procedural requirements.

Filing your claim in Czech court: electronic and paper options

Once you have prepared your evidence and sent your pre-litigation demand letter, you are ready to file your statement of claim. Czech law permits filing both electronically and in paper form.

Electronic filing is highly efficient. Claims can be submitted via the Data Box system or by email with a recognized electronic signature. If you file by email without a recognized electronic signature, you must confirm the submission by providing the hard copy or an electronically signed version within three days, otherwise, the court will disregard the filing.

Court fees and initial filing expenses

When you file your claim, you generally must pay a court fee (soudní poplatek). The fee is calculated based on the monetary amount claimed. For commercial claims, it is typically 5% of the amount claimed (for amounts over CZK 20,000), with a minimum fee of CZK 1,000. For very high amounts, the percentage decreases to 1% for the exceeding part, and there is a total cap on the fee.

Failure to pay the court fee upon request by the court will result in the discontinuation of proceedings.

The preliminary hearing and court's active role

After the defendant files a response (or fails to file one), the court may schedule a hearing. In complex cases, a preliminary hearing (přípravné jednání) may be held to clarify the disputed facts and evidence.

Czech judges play an active role in managing the proceedings. They lead the hearing, question witnesses, and instruct parties on their procedural duties. However, the judge relies on the parties to propose evidence. You must be prepared to present a comprehensive factual argument.

MicroFAQ – Legal tips on filing claims and initial court procedures

1. What is the advantage of electronic filing for a non-EU company?
It allows for instant submission from anywhere, provided you or your counsel have the necessary access (Data Box or electronic signature). It is faster and provides immediate proof of delivery.

2. Can I include my company's financial documents as evidence if they are not in Czech?
They must be translated. While you can submit the originals, the court will require certified translations for the relevant parts to consider them as evidence.

3. What happens at the first hearing?
The judge verifies the presence of parties, summarizes the claim and defense, attempts to facilitate a settlement, and then proceeds to take evidence (reading documents, hearing witnesses).

Service of documents and communication with Czech courts

Service of documents is strictly formal. For Czech defendants, service occurs primarily through the Data Box. For non-EU companies acting as defendants, service is more complex and depends on international treaties (such as the Hague Service Convention) or diplomatic channels.

If a defendant cannot be located (unknown address) and has no Data Box, the court may eventually appoint a guardian (opatrovník) to represent the absent defendant, or effect service via public notice, allowing the case to proceed.

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Recognizing and enforcing foreign judgments in the Czech Republic

For non-EU companies seeking to enforce a judgment from your home country against a Czech defendant, the process is governed by the Act on Private International Law. Unlike EU judgments, which are automatically recognized, non-EU judgments must pass a recognition review.

Generally, a foreign judgment will be recognized and enforced if it is final and conclusive in the country of origin and the case did not fall under the exclusive jurisdiction of Czech courts. Additionally, proceedings must not have been already pending or decided in the Czech Republic involving the same parties and cause of action.

Reciprocity requirement

Reciprocity means that the foreign state would enforce a comparable Czech judgment. This is a crucial check for non-EU judgments. If your home country does not recognize Czech judgments, Czech courts may refuse to recognize yours. The Ministry of Justice can provide confirmation on reciprocity with specific countries.

The lawyers at ARROWS Law Firm assist non-EU companies in verifying reciprocity and managing the recognition process. Contact office@arws.cz.

Grounds for refusing recognition

Beyond reciprocity, recognition is refused if it violates public policy (ordre public). This applies if the foreign judgment conflicts with fundamental principles of the Czech legal order (e.g., punitive damages are generally not enforceable in the full extent if they are deemed excessive and contrary to public policy, though this is a nuanced area).

Arbitration as an alternative to court proceedings

Arbitration is a widely used alternative for commercial disputes in the Czech Republic, governed by the Arbitration Act. The Czech Republic is a signatory to the New York Convention, making Czech arbitral awards enforceable globally, and foreign awards enforceable in CZ.

The arbitration court at the economic chamber

The most prominent permanent arbitration body is the Arbitration Court attached to the Economic Chamber of the Czech Republic and Agricultural Chamber of the Czech Republic. It offers established rules and administrative support.

Arbitration is only possible if the parties have concluded a valid arbitration agreement (arbitration clause). This allows for faster resolution (often within a year) compared to court litigation and ensures confidentiality.

Managing international evidence and witness testimony

The Czech Republic is a party to the Hague Evidence Convention. If you need to obtain evidence (e.g., witness testimony) from a person located abroad for use in Czech court, the court can request assistance from the foreign judicial authority.

Conversely, obtaining evidence in CZ for foreign proceedings is also regulated. It is generally not permitted for foreign lawyers to conduct "depositions" on Czech soil without permission or following the Convention procedures, as this can be considered an infringement on state sovereignty.

MicroFAQ – Legal tips on international evidence and witness testimony

1. Can I submit written witness statements (affidavits) instead of live testimony?
Czech civil procedure favors oral testimony before the judge. While written statements can be submitted as documentary evidence, they often carry less weight than a witness examined in court, and the judge may insist on questioning the witness (in person or via videoconference) to verify credibility.

2. How long does international judicial assistance take?
Obtaining evidence via the Hague Convention can take several months. It is advisable to plan well ahead.

3. Can I have my lawyer from my home country participate?
Your home country lawyer cannot represent you in Czech court proceedings unless they are registered with the Czech Bar Association. You must engage a Czech-qualified attorney. Your home lawyer can, however, collaborate with your Czech counsel on strategy.

Risks and sanctions	How ARROWS helps (office@arws.cz)
Missed statutory deadline causing loss of rights : Failure to meet rigid deadlines (e.g., appeal periods) generally results in the loss of the right to perform the act. Exceptions for waivers are narrow and difficult to prove.	Deadline management : ARROWS Law Firm monitors all deadlines via the Data Box system and ensures timely filing, mitigating the risk of procedural default.
Defective statement of claim : If the claim does not meet § 79 Civil Procedure Code requirements (proper identification, evidence linkage, specific petition), the court may reject it or require time-consuming corrections.	Expert drafting : ARROWS Lawyers draft claims that strictly comply with Czech procedural law, preventing rejection for formal defects.
Evidence in foreign languages disregarded : Submitting documents without certified Czech translations often leads to the court refusing to consider them as evidence.	Translation coordination : ARROWS Law Firm arranges for necessary certified translations and authentication (apostille) of foreign documents.
Non-EU judgment refused recognition : If reciprocity is not proven or public policy is violated, a foreign judgment may be unenforceable in CZ.	Reciprocity analysis : ARROWS Law Firm investigates reciprocity status and prepares the motion for recognition and enforcement to maximize chances of success.
Loss of cost recovery : Failure to send a pre-litigation demand letter at least 7 days before filing suit leads to forfeiture of the right to reimbursement of legal costs.	Pre-litigation compliance : ARROWS Lawyers ensure the formal demand letter is drafted and served correctly to preserve your right to cost compensation.

The role of ARROWS Law Firm in non-EU commercial disputes

The lawyers at ARROWS Law Firm have extensive experience representing non-EU companies in Czech commercial disputes and provide comprehensive support throughout the litigation process. As a leading Czech law firm based in Prague, European Union, ARROWS Lawyers combine in-depth knowledge of Czech procedural rules with experience in international and cross-border disputes.

ARROWS Law Firm regularly manages cases for non-EU companies, reducing the administrative burden and minimizing the risk of procedural errors.

The firm's portfolio includes representation of numerous international entities operating in Central Europe. ARROWS Law Firm holds professional liability insurance with coverage up to CZK 400,000,000. If you are a non-EU company facing commercial disputes in the Czech Republic, contact office@arws.cz to discuss your specific situation.

Executive summary for management

Statutory deadline rigidity : Czech procedural law operates under strict deadlines. Missing a 15-day appeal deadline or a court-imposed deadline for a response usually results in permanent loss of rights. Continuous monitoring of the Data Box (if applicable) or communication with counsel is critical.

Reciprocity barriers : Enforcement of non-EU judgments is not automatic. It requires a specific procedure and often proof of reciprocity. This should be assessed before initiating litigation abroad with the intent to enforce in CZ.

Evidence translation : Litigation is conducted in Czech. Budget for certified translations of all key evidence (contracts, communications). This adds time and cost to the process.

Burden of assertion and proof : You must actively identify and present evidence. There is no broad discovery process to force the other side to reveal their internal documents unless specific conditions are met.

Procedural assistance is key : Navigating Czech Civil Procedure (OSŘ) requires a qualified Czech attorney. The system is formalistic, and errors in form can be fatal to the case.

Conclusion of the article

Handling court proceedings in the Czech Republic as a non-EU company requires understanding a specific legal system with rigid procedural requirements and strict deadlines. The path from initial dispute through judgment and enforcement involves complex steps: jurisdictional checks, evidence translation, formal demand letters, and precise claim drafting.

The lawyers at ARROWS Law Firm handle these situations for non-EU companies from various jurisdictions.

Rather than attempting to navigate these complexities independently, non-EU companies benefit from engaging experienced Czech counsel from the outset. ARROWS Law Firm will help you with strategic dispute analysis and representation. Contact office@arws.cz to discuss your specific situation.

FAQ – Frequently asked legal questions about handling court proceedings in the Czech Republic

1. As a non-EU company, do I have the same litigation rights in Czech courts as EU companies?
Yes, you have equal access to justice, but the rules determining jurisdiction and recognition of judgments differ. You are subject to the Act on Private International Law rather than EU Regulations (like Brussels I Recast) in relations with non-EU entities. However, once in court, the procedural rules (Civil Procedure Code) apply equally to all parties.

2. What should I do immediately if I receive notice of a Czech court claim against my non-EU company?
Note the date of receipt precisely. If served with a payment order (platební rozkaz), you typically have 15 days to file a resistance (odpor). If served with a lawsuit, you will be given a deadline to file a written defense. Missing these deadlines can lead to a default judgment. Contact office@arws.cz immediately.

3. Can I rely on my home country lawyer to represent me in Czech court proceedings?
No. Only attorneys admitted to the Czech Bar Association (or registered European lawyers under specific conditions) can represent clients in Czech courts. Your home lawyer cannot act as your counsel of record in CZ.

4. How much will Czech litigation cost, and can I recover legal costs if I win?
Court fees are generally 5% of the claim value. Attorney fees are contractual. If you win, the court typically orders the losing party to reimburse your legal costs, but this reimbursement is calculated based on a statutory tariff (advokátní tarif), which may be lower than the actual hourly fees you paid your lawyer.

5. What is the typical timeline for Czech commercial litigation?
A standard commercial dispute at a district court can take 1-2 years for a first-instance decision. If appealed, add another year or more. Simple undisputed debt claims can be faster if a payment order is issued and not opposed.

6. If I obtain a Czech judgment against a Czech defendant, can I enforce it in my home country?
This depends entirely on the laws of your home country and whether it has a treaty with the Czech Republic. You should consult with your local counsel on the requirements for enforcing foreign (Czech) judgments in your jurisdiction.

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 necessary to contact ARROWS Law Firm directly (office@arws.cz).