First Annual Report On Czech FDI Screening – Main Takeaways

The Czech foreign direct investment screening regime entered into force on 1 May 2021. The Ministry of Industry and Trade ("MIT"), which is responsible for the screenings, has now published its first annual report. The report takes stock of the first year of enforcement. Below we discuss the enforcement trends that have emerged from the report.

1. The screening mechanism

The screening mechanism based on Act No. 34/2021 Coll. (the "FDI Act") covers investments by non-EU investors, including acquisitions on non-controlling minority shareholdings in companies active in the Czech market. A mandatory notification is required for investments into specific sectors important for public security. In addition, there is a voluntary consultation mechanism applicable across sectors. The Ministry published a list of sectors for which such a voluntary consultation is recommended.