Better r egulation of business environment in the Czech Republic 4 th of April , 2019

1. Betterregulationof business environment in the Czech Republic4thofApril, 2019

2. Reducingadministrativeburden on entrepreneurs; itsbriefhistory, fulfillingtheplan and future • Thegovernmentofthe Czech Republic has beenconstantlyreducingtheadministrativeburdenofentrepreneurssince 2005. Ministry ofIndustry and Tradeisresponsibleforreducingadministrativeburden on entrepreneurs. • In 2007 a Plan on reducingtheadministrativeburdenofentrepreneurswasfirstlyadopted by theGovernment. Itordered6 most involvedministriesto takestepsthatthey set themselves in order to reducetheadministrativeburden. • Theoriginalgoalwas to reducetheadministrativeburdenby 20 % by the end of 2010.ThenthisPlanwasextended to 25 % tillthe end of 2012. ThisPlanwasfulfilled in 2012 as theburdenwasreduced by 32 % according to the Report on reducingtheadministrativeburden on entrepreneurs2013. • TheGovernmentisbeingannuallyinformedthroughtheReport containinginformationaboutthecurrentburdensituation. • Relatedto theEurope´sgoal, theadministrativeburdenshouldbereduced by 30 % untilthe end of 2020.

3. Themeasures • Wechangedourfocusfromusingpercentageto aiming on numberofmeasuresforbetterunderstandingoftheoutline. Wenewlystoppeddividingtheburdenaccordingthedepartments. • Weachieved a successespecially in simplificationoftheprocessofestablishinga company. • We are nowfocused on 40 measuresplanned to befulfilled by 2020. Therewerealreadyimplemented18 measures. • Forthemeasurement, a Standard Cost Model isused – the link isavailable on ourwebsite (SCM represents a practicalguideforstaffworking in administration on how to assesstheburden)

5. The Expert Group • The Expert Group consistsofrepresentativesfrom business associations(themost important: Czech ChamberofCommerce, AssociationofSmall and Medium-SizedEnterprises and Crafts, ConfederationofIndustry and Transportationofthe Czech Republic, Czech ConfederationofCommerce and Tourism) • Themembersmeetseveraltimes per year. Theconceptofsix-monthrotatingpresidencywasimplemented and individualmembersofthe Expert Group performthe role oftherotatingchair. • This Group dealswithconcretesuggestions made by entrepreneursthataffectthemthe most (the most problematicareasaccording to theentrepreneursinvolved: lawissuescontaininglotsofchangesoramendments, statistic reporting, tax relatedissues, sharing data amongadministrations, duplicity and environmentalissues) • Thereis a link forentrepreneurswheretheycanpublishtheiropinionsregardingtheregulation – www.zjednodusujeme.cz(representsanotherwayofhow to make suggestions) • Therewasadded a presentationaboutthistopicfromoneofthemembers(AMSP).

6. Systemicmeasures • Loweringtheamountoflegislativechanges– itcontains Single effectivedate– thegoalis to unifytheeffectivedate and to make them more simpletowardsentrepreneurs. Theywouldcomeintoforceonlytwice a year (1.1. and 1.7.). Regardingthenewlegislation - thereshouldbe a minimum spaceof 3 monthsforentrepreneurs to bepreparedfor a newlaw • Betterregulation – specificeconomicnarrowerassessmentofimpactsofproposedregulationthatcomefromChamberofDeputies, SenateorHighergroundadministrationentities. Itwouldbealsorelated to theEuropeantranspositionnormswithoutthepossibilityofdiscretion. Theassessmentoftheusefulnessofnewlyacceptedlawscouldbeprovided via so-calledEx post RIA. Wewouldlike to use more ofthispossibility in thefuture. • Principle „One-in, minimum One-out“ – in case ofestablishing a new duty, anotheroldonewithsimilarimpact on entrepreneurs has to becancelled • Wewouldalsolike to seethecreationofsimilarworkinggroupsattheotherministries as wehavenowatthe Ministry ofIndustry and Trade

7. TheAchievements in the area ofdigitalizationprocessesofservicesforentrepreneurs • These issueshavebeensuccessfullyresolvedor are still in progress: • TradeRegister– creatingof single registrationformknown as One stop shopplatform. Itisstillbeingmodernized and itisconnected to TradeActmaintained by the Ministry ofIndustry and Trade (Citizen portal). Itincludesestablishing a newcompany as well as interactionwith Tax Office (payingtaxes, chargesetc.) • BusinessInfoportal– itrepresents a portalforentrepreneurswithalloftheformsthattheyneedfortheir business activities. Thereis more than 1400 ofthem. Thegoalofthetoolis to have a 100 % interactiveview. • ProjectseCollection and eLegislation– ThisisoneoftheprojectsofeGovernment. Itrepresentstheavailabilityofallofthelawregulationforbothentrepreneurs and public online. Entrepreneurshavetheirownspecificsetting. • PES – lawelectronicsystem – followingon thenextslide

8. LawElectronicSystem • Isabbreviated as „PES“ in the Czech Republic. • Thesystemiscurrentlybeingtested and isabout to belaunched in a fewmonths. • ChamberofCommerceisresponsibleforthisproject. The Ministry ofIndustry and Tradecooperated on theversionofthesystemduringitsdevelopment. • Thesystemisrelated to theTradeActand wasdeveloped in order to helpentrepreneurswiththeorientation in thelegislative and regulatorypart oftheir business. • The Ministry ofIndustry and Tradewillencourageotherdepartments to cooperate. • There are 2 packagescurrentlyavailable: - Basic (dealsforexamplewithtaxationorhealth and socialinsurance) and - Employer (dealswiththeLabourCode, employeepaymentsetc.)

9. The„Top 10 keypointsforentrepreneurs“ by the Ministry ofIndustry and Trade (Youcanseethewholematerial on your table) ThismaterialdescribesTop 10 keypointsaimed on entrepreneursthat influence themthe most and offerseither a solutionor a simplification Here are someofthe most significantissues set in thedocument: • Controlling web (calendarwithcontrols) - thismeasurechangestheapproachofofficialauthorities to controls, reductionoftime and administrativeburden, sharingdocumentsamongauthorities. Thereshouldbe a maximum of 5 controlsper yearand a minimum spaceoftwomonthsbetweentwocontrols. • Simplificationofestablishingof businessthroughtheconnectionbetweenthe Business register and theCitizen portal • Cultivationof business environmentand support thesmallestentrepreneurs as well as redefiningthe term „family business“. Thisalsoincludessupport of these enterprises and support ofrural business activities • Simplification in dealingwithdocumentsduringconstructionprocess- Thisrepresentssupporting a pro-clientapproachofBuildingAuthorities. Assessmentsduringbuildingpermitprocedure are not performed by entrepreneurs, but by BuildingAuthorities • Employerswiththeemployees in execution; Wewouldlike to create a newdeductibleitem, whichwoulddealwiththecostsofemployerson theemployeeshavingexecution(s). (based on the establishment in theIncome tax)

10. Conclusion • Digitalisationofservicesforentrepreneurs and sharing data amongofficialinstitutions (onlyonce) • Makingcurrentlegislationclearer (withtheassistanceof RIA) - Creatingthefriendliestconditionsin dealingwithnewlegislation • PrincipleOne-in, minimum One-out – Thisprincipleshouldlead to avoidraisingadministrativeburden • Effectivemicromanagement– GTD „GetThings Done“ – fulfillingconcretepoints • We are preparing a newplanin theoutlook2019 – 2022 • Deep audit of all of the duties; A new re-measurementoftheadministrativeburden on entrepreneurswillbe done in 2021

11. Thankyouforyourattention • I hope I raisedyourinterest in theregulatoryenvironment in the Czech Republic • Here are somecontacts: • Mr. Petr Kleisner, kleisner@mpo.cz • Mrs. Zuzana Galajdová, galajdova@mpo.cz • Mrs. Veronika Paulová, paulova@mpo.cz – theHeadofthe Unit • Mr. Pavel Vinkler, vinkler@mpo.cz – theDirectorofthe Department