BRANCH OFFICES

A branch office of a foreign company is not a Czech legal entity, but functions as the representative of a foreign company and incurs obligations on the foreign company's behalf. Branch offices must fully list their planned activities on their application for registration in the Commercial Register, as they are only allowed to engage in the activities listed.
The branch office must have an appointed director who is entitled to act on behalf of the foreign company as regards the branch office. He/she must be registered in the Commercial Register. The law under which the branch's parent entity was founded also applies to the branch's internal dealings. If start-up losses are anticipated, establishing a branch office may permit the deduction of such losses against the foreign company’s income in its home jurisdiction.
As of January 2002, there are no restrictions on acquisition of real estate by branch offices of foreign companies in the Czech Republic.

Based on materials published by CzechIvest.