Stricter rules for granting employment cards to corporate members

With respect to the last amendment to Act no. 326/1999 Sb. on the residence of foreign nationals in the Czech Republic (the “Act”), several important changes have occurred, including for members of company bodies. Until the amendment took effect, foreign nationals who were members or shareholders of a company, or members of its statutory or other bodies, could apply for both a long-term business visa and an employee card, provided that they had been issued an employment permit in this context.

However, Section 42g of the Act significantly restricts the above-mentioned possibility. From August 15, 2017, a member or shareholder of a company, or a member of one of its bodies, may no longer apply for an employee card if they perform only tasks arising from the company’s scope of business. If they perform tasks unrelated to that scope (e.g. a managing director of an IT company employed as an accountant), they may still apply for the card.

The above amendment could have an adverse effect not only on future entrepreneurs applying for residence in the Czech Republic, but also current holders of employment cards issued for this purpose. If a foreigner in the Czech Republic has this authorization, it will remain valid, but it may no longer be renewed. In this respect, a person could request a change in the purpose of residence from employment to business. However, this option is allowed only if the foreigner has lived in the Czech Republic for longer than five years. If this condition is not met, the person must visit the relevant Czech consulate in its home country and apply for a long-term business visa.

Our law firm is prepared to provide its clients with all requested services relating to the above restrictions.