Act of the Czech National Council No. 299 / 1992 Coll.
Act of the Czech National Council on State aid for small and medium-sized enterprises
Valid
Effective from 23.06.1992
299
THE LAW
Czech National Council
of 28 April 1992
on State aid for small and medium-sized enterprises
The Czech National Council decided on this law:
Basic provisions
(1) The purpose of this Act is to facilitate the establishment and consolidation of the economic position of small and medium-sized enterprises (hereinafter referred to as "undertakings") which are active and have their registered office in the Czech Republic. For the purposes of this Act, such undertakings are undertakings with a maximum of 500 employees.
(2) This law does not apply to agricultural and forestry primary production enterprises.
(1) In order to implement this law, the central government of the Czech Republic takes support measures, in particular providing funding from the budget of the Czech Republic and establishing institutions to promote entrepreneurship (hereinafter referred to as "institutions"). The establishment of the institution is approved by the Government of the Czech Republic.
(2) Support measures under this law strengthen the performance and competitiveness of businesses and thus compensate for their disadvantages resulting from small economic power, facilitate the adaptation of businesses to economic and technological change and lead businesses to self-help.
Principles of aid
Financial support from the state budget of the Czech Republic 1) (hereinafter referred to as "the aid") is provided to entrepreneurs of m2) from the funds earmarked under the budget chapters of the central government bodies of the Czech Republic or from subsidies for the purpose of the established institutions.
(1) The Government of the Czech Republic lays down the principles and conditions for granting aid to entrepreneurs by approving programmes of financial support for business projects (hereinafter referred to as "support programmes").
(2) The aid programmes must include in particular:
(a) the subject matter and purpose of the aid;
(b) the definition of beneficiaries;
(c) a central authority of the Czech Government or an institution declaring the programme,
(d) the authority responsible for granting the aid and the method of decision granting the aid;
(e) the types of aid and the conditions for obtaining it;
(f) penalties for non-compliance with the conditions under which the aid was granted;
(g) the definition of the individual types of aid for one business plan;
(h) the details of the application for aid and the method of submitting it;
(i) the duration of the programme.
(1) The publication of programmes, assessment and selection of applications by entrepreneurs for support is carried out by the entrusted institutions or, where appropriate, by the central government of the Czech Republic. The aid programme shall be published in the Commercial Journal.3)
(2) Applications for aid shall be submitted to the entrusted institutions or central government bodies of the Czech Republic.
(3) The aid is granted on the basis of a contract between the applicant and the institution or central authority of the Czech Republic. This contract must specify in particular the purpose, amount and conditions of the aid, the period of its implementation and the penalties for failure to comply with the contract.
(4) The control of the use of budgetary resources in accordance with government approved support programmes and concluded contracts pursuant to paragraph 3 shall be carried out by the competent central control authority of the Czech state administration.
Types of aid
Capital strengthening measures for enterprises
In order to establish new undertakings or to support the activities of existing firms, in particular for investment purposes, (4) they may be granted from funds intended to support the guarantee for loans, loans with a preferential interest rate and maturity, payment of part of the interest or subsidy (hereinafter referred to as "financial contributions').
Promoting increased expertise
(1
(2) The aid shall be granted in the form of financial contributions to entrepreneurs or natural and legal persons who provide services to undertakings to increase the expertise on favourable terms.
Support for corporate advice
(1) Economic and technical advice aimed at assisting undertakings may be supported financially.
(2) The aid shall be granted in the form of financial contributions to natural and legal persons providing consultancy services to undertakings on favourable terms.
Promoting business cooperation
(1) The establishment of common, in particular non-profit-making facilities providing services to several undertakings or their interest associations may be supported financially.
(2) The aid is granted in the form of financial contributions by joint undertakings.
Support for the acquisition, processing and brokering of information
(1) The acquisition, processing and brokering of information for the needs of undertakings may be supported financially.
(2) The aid shall be granted in the form of financial contributions to natural and legal persons providing information services to undertakings referred to in paragraph 1 on favourable terms.
Support for applied research and technical development
(1
(2) The aid shall be granted in the form of financial contributions to natural and legal persons who, under favourable conditions or free of charge, provide the undertakings with the results of their research and development activities or of their eligibility checks.
Promoting job creation
(1) The creation of new jobs in enterprises, in particular for workers with reduced skills, can be supported financially.
(2) The aid is granted in the form of financial contributions to entrepreneurs to cover the costs of creating a job.
Support for economic development of areas
Financial contributions may be granted to entrepreneurs in economically weak areas with serious social and environmental consequences.
Promoting cooperation with abroad and participation in exhibitions
Support in the form of financial contributions or free services may be provided to establish contacts and cooperation with foreign partners and to enable the active participation of enterprises in national and foreign exhibitions and fairs.
Support for research results on SMEs
The resources allocated to support may finance the results of research relevant to the knowledge relating to small and medium-sized enterprises, provided that these results are accessible to the public.
Final provisions
The Government of the Czech Republic submits once a year to the Czech National Council a report on the development of small and medium-sized enterprises, including an evaluation of the effectiveness of support measures and the economy of the use of the Czech budget under this Act and proposals for further support measures.
This Act shall take effect on the day of its publication.
Burešová v. r.
Pithart v. r.
1) Act No. 576 / 1990 Coll., on the Rules of Management of Budget Resources of the Czech Republic and Municipality in the Czech Republic (Budget Rules of the Republic), as amended by Act No. 579 / 1991 Coll. and Act No. 166 / 1992 Coll.
2) Article 2 (2) of Act No. 513 / 1991 Coll., Commercial Code.
3) Government Decree No. 63 / 1992 Coll., on the Commercial Journal.
4) Article 4 of Decree No. 586 / 1990 of the Federal Ministry of Finance Coll., on the write-off of basic funds, as amended by Decree No. 345 / 1991 Coll.
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Regulation Information
| Citation | Act of the Czech National Council No. 299 / 1992 Coll., on State aid to small and medium-sized enterprises |
|---|---|
| Regulation Type | - |
| Author | - |
| Collection | Code of Laws |
| Date of Promulgation | 23.06.1992 |
|---|---|
| Effective from | 23.06.1992 |
| Effective until | - |
| Status | Valid |
The regulation text is for informational purposes only.
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