I Insurance of Investment in Foreign Countries Basic terms and conditions of insurance

  1. the investor is a legal entity meeting the requirement of registered office and property interest under act No. 58/1995 Coll.
  2. the investor has existed and executed the activity being the subject of investment for no less than 2 years before submitting the application for insurance investment abroad or its activity follows up on the activity of its legal predecessor, carried out for no less than 2 years before submitting the application for insurance of investment abroad (this does not concern a foreign company if newly established by the investor)
  3. company which is subject of investment is a legal entity based outside the Czech Republic:
    • which is being founded or acquired by the investor or
    • in which the investor is to increase its share or
    • in which the investor spends financial or other values expressed in monetary terms or property rights in order to expand its business,
    all of the above under the condition that the legal entity is controlled by a legal entity based in the Czech Republic through a direct or indirect share of more than 50 % in its registered capital or controlled by the absolute majority of rights of vote associated with share in the registered capital of the company or is entitled to appoint the majority of board members, members of supervisory board or other similar top authority of the company.
  4. trouble-free credit history1 of entities2 participating in investment
  5. the investment is spent by the investor and has the form stipulated in Act No. 58/1995 Coll.
  6. the investment must be spent by the investor for a period of at least 3 years
  7. the investment is established, or spent, as the case may be, in accordance with the law of the host country, and the investor has obtained necessary permissions from the host country
  8. it is not investment in:
    1. manufacture of weapons,
    2. gambling or highly speculative projects,
    3. production of narcotic and psychotropic substances.
  9. environmental and social impact assessment of the investment in the target country and non-applying of international sanctions towards entities involved in the investment

1 the trouble-free credit history shall be interpreted as absence of record on default payment for the entity involved in the investment in the Central Credit Register maintained by the ČNB or another similar credit register or register of information in the term of no less than last 5 years.

2 persons involved in the investment - investor, company which is the subject of investment (unless it is a newly established company) and, as the case may be, foreign company of the investor

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