Stricter rules for granting employment cards to corporate members

Sep 21, 2017

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, among others, also for members of the executive bodies of companies. Up to the time of the amendment, foreigners in the position of a partner, member of the executive body, or another corporate body could apply for a long-term business visa and also an employment card, provided that an employment permit was issued in this context.

However, Section 42g of the Act significantly restricts the above-mentioned possibility. Starting from 15 August 2017, a partner or member of an executive body is no longer authorised to apply for an employment card if this person carries out tasks for this company relating to its scope of business. If this member carries out tasks for the company not relating to the scope of its business (e.g. executive director of an IT company employed as an accountant), the person 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 authorisation, 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.