How can a South African company litigate in the Czech Republic

When a South African partner fails to pay or breaches a contract in the Czech Republic, a clear recovery strategy is essential. Navigating Czech courts requires understanding jurisdiction rules and enforcement mechanisms that differ from South African litigation. This article details how to successfully pursue claims, avoid procedural mistakes, and ultimately collect your money.

An expert on litigation

Understanding Czech jurisdiction and competent courts

The first critical decision when considering litigation in the Czech Republic is determining which court has authority over your dispute. Unlike the South African legal system, Czech jurisdiction regarding international disputes is governed by a combination of European Union regulations and the Czech Act on Private International Law.

The default jurisdiction rule is straightforward: if your Czech counterpart is domiciled or has its registered seat in the Czech Republic, you generally must sue in Czech courts. This principle derives from EU Regulation 1215/2012, which applies because the defendant is domiciled in an EU Member State.

This means that even though you are thousands of kilometres away in Johannesburg, Cape Town, or Pretoria, Czech courts will have jurisdiction over your Czech defendant.

Your contract may contain a choice-of-court clause—a jurisdictional provision that specifies which country's courts will hear disputes. If your agreement with your Czech partner explicitly states that disputes shall be resolved in South African courts or in Czech courts, that clause generally controls.

However, many South African entrepreneurs discover too late that their choice-of-court provision is ambiguous or invalid under Czech law. An additional jurisdictional avenue exists under special jurisdiction rules regarding the provision of services.

In contract disputes, you may often sue in the courts of the place where the obligation was performed (or should have been performed). This provision creates tactical flexibility, but it introduces complexity that requires experienced judgment to deploy effectively.

Identifying the correct court and defendant

Beyond international jurisdiction, you must identify the correct defendant and the correct court within the Czech Republic. This seems obvious, but ARROWS Law Firm regularly handles cases where foreign companies filed claims in the wrong Czech court.

The territorial jurisdiction is generally determined by the defendant's registered office. If your Czech counterpart is a company registered in Brno, the District Court or Regional Court in Brno will generally be the correct forum, not a Prague court.

The Czech court system consists of district courts (okresní soud) and regional courts (krajský soud) acting as courts of first instance depending on the subject matter. ARROWS Law Firm conducts a preliminary jurisdictional analysis for each international client, mapping the correct court based on the current Czech Procedure Code.

1. If I am a South African company, can I still sue in Czech courts?
Yes. South African companies have the standing to sue in Czech courts. If the defendant is domiciled in the Czech Republic, Czech courts generally have jurisdiction. However, as a non-EU plaintiff, you may be asked to post security for court costs upon the defendant's request. ARROWS Law Firm can advise on this specific procedural nuance.

2. My contract with a Czech supplier specifies disputes shall be resolved in South African courts. Will Czech courts refuse to hear my case?
Generally, yes, if the defendant invokes the jurisdiction clause. Valid choice-of-court clauses are enforceable. If your contract designates South African courts, Czech courts will respect that choice under the Act on Private International Law, provided the clause is valid.

3. Does the location where the obligation was performed matter for jurisdiction?
Yes. Under Article 7 of the Brussels I bis Regulation, you may sue in the courts of the place where the contractual obligation was performed (e.g., where goods were delivered or services provided). This can provide tactical flexibility.

Pre-filing steps and documentation

Before filing a single document with a Czech court, a South African company must complete several non-negotiable preliminary steps. These steps form the foundation of your entire case, and procedural errors at this stage can result in financial penalties.

To initiate any legal proceeding in Czech courts, your South African company must establish its legal capacity. You must provide a certified extract from the South African Companies and Intellectual Property Commission (CIPC).

You also need a notarized power of attorney authorizing a specific person to represent your company in the Czech proceedings. The apostille requirement is critical as South Africa and the Czech Republic are both parties to the Hague Apostille Convention.

Your public documents (like the CIPC extract and notarized power of attorney) must be apostilled by the competent South African authority. Without an apostille, Czech courts will treat these documents as invalid foreign public documents.

The process involves notarization by a South African notary, apostille certification, and certified translation into Czech. This multi-step process can take weeks, so start early.

The pre-litigation demand letter

Before initiating a lawsuit, the essential professional practice in the Czech Republic is to send a formal pre-action demand letter, known as předžalobní výzva.

If you win your lawsuit but never sent this demand letter at least 7 days before filing, the court will generally refuse to award reimbursement of legal costs. This means that even a successful lawsuit can become financially disappointing because your opponent will not be required to cover your legal expenses.

The předžalobní výzva must be a formal document that identifies the claim, specifies the amount, and calls for payment. ARROWS Law Firm handles this task for international clients at office@arws.cz.

Language and translation

One of the most significant barriers for South African companies is that Czech court proceedings are conducted exclusively in the Czech language.

If you submit a contract in English to a Czech court, the court will generally require a certified translation (soudní překlad or úřední překlad). While a judge might theoretically review a simple English document, the opposing party will almost certainly object. The court will order a translation to ensure legal certainty.

Therefore, all key evidence must be professionally translated into Czech by a translator registered with the Ministry of Justice. ARROWS Law Firm coordinates translation services to ensure compliance.

1. Do I need to obtain an apostille on my South African company documents?
Yes. Because South Africa is a member of the Hague Apostille Convention, your power of attorney and commercial register extract must be apostilled to be accepted by Czech authorities.

2. What is the deadline for the pre-litigation demand letter?
You must send the předžalobní výzva at least 7 days before filing the lawsuit at the court. Failure to do so does not dismiss the case, but it generally disqualifies you from recovering legal costs from the defendant.

3. Can I submit documents in English?
Generally, no. Documents must be accompanied by a certified Czech translation to be admissible as evidence. Exceptions are rare and risky.

The Czech litigation process

Czech civil litigation is characterized by the principle of concentration of proceedings and strict evidentiary rules. Unlike the broad discovery process in some jurisdictions, Czech courts expect you to substantiate your claim primarily with the initial filing.

Burden of proof and absence of discovery

A fundamental principle is that each party bears the "burden of allegation" and "burden of proof" (důkazní břemeno). The court will not investigate the facts on your behalf.

There is no US-style "discovery" or "disclosure" phase where you can compel the other side to hand over broad categories of internal documents. You must possess the evidence to prove your claim before you sue. While you can ask the court to order the defendant to produce a specific document, you must identify it precisely, and the court is not obliged to grant the request.

This places the evidentiary burden heavily on the plaintiff. A Czech lawsuit is often won or lost based on the preparation before filing.

Filing your claim

Claims are typically filed electronically. For Czech legal entities, having a "data box" (datová schránka) is mandatory.

As a foreign entity, you are not required to have one, but your Czech attorney will file via their data box or with a recognized qualified electronic signature. Upon filing, you must pay the court fee (soudní poplatek). For commercial disputes, the fee is generally 5% of the claimed amount.

The fee must be paid promptly; otherwise, the court will stop the proceedings.

Court fees and timeline

Commercial litigation in the Czech Republic typically takes between 12 and 24 months for a first-instance decision, though this varies by region.

After filing, the court serves the claim on the defendant, who may be issued a "qualified call" requiring a detailed defense within 30 days. If they fail to do so, a default judgment (rozsudek pro uznání) may be issued in your favor. If the case proceeds, the court will order a hearing (jednání).

1. Can I file my claim in English?
No. The lawsuit (žaloba) must be drafted and filed in Czech.

2. How much are the court fees?
For standard commercial claims, the fee is 5% of the amount sued for (e.g., if you sue for 1,000,000 CZK, the fee is 50,000 CZK). There is a cap for very high amounts, but for most SMEs, 5% is the rule.

3. Do I need to appear in court personally?
Usually, no. Your legal counsel represents you. However, in some cases, the court may request the interrogation of a statutory director. This can often be done via videoconference or legal assistance, but specific arrangements must be made.

Accelerated procedures and payment orders

For straightforward, undisputed monetary claims, Czech law provides accelerated procedures: the standard Payment Order (platební rozkaz) and the Electronic Payment Order (elektronický platební rozkaz).

The Czech payment order

If you submit a claim for a monetary sum and the right to payment follows clearly from the submitted facts, the court can issue a Payment Order without a hearing. The Payment Order instructs the defendant to pay the claim plus costs within 15 days of service, or to file an objection (odpor) within the same period.

If no objection is filed, the Payment Order becomes a final, enforceable judgment. If an objection is filed, the Payment Order is cancelled in its entirety, and the case proceeds to standard litigation.

The Electronic Payment Order

The Electronic Payment Order (elektronický platební rozkaz) is a specific sub-type designed for efficiency. It applies to claims up to 1,000,000 CZK.

The court fee is reduced (4% instead of 5%) if filed via a specific electronic form, making it the most common route for routine B2B debt collection. The European Payment Order (EPO) is generally designed for cross-border cases where at least one party is domiciled in an EU Member State other than the court's state.

Since a South African company is non-EU, the applicability of the EPO is limited and the domestic Payment Order is the standard route. ARROWS Law Firm advises South African clients on whether their claim qualifies for these accelerated tracks.

Enforcement and collecting money

Obtaining a judgment is step one. Step two is enforcement (exekuce). In the Czech Republic, enforcement is privatized and highly effective.

It is carried out by Court Bailiffs ( soudní exekutoři ), who have broad powers to seize assets once you have an enforceable judgment. For B2B claims, the most effective tools are blocking bank accounts, garnishment of receivables, and seizure of movable or immovable property.

The costs of enforcement are primarily borne by the debtor, but the creditor usually advances a minor fee or covers legal representation costs initially.

Recognition of South African judgments

If you already have a judgment from a High Court in South Africa, you cannot enforce it immediately in the Czech Republic. It must first be recognized. Unlike EU judgments which are automatically recognized, a South African judgment falls under the Act on Private International Law.

According to Czech law, a foreign judgment generally requires reciprocity to be recognized. While reciprocity is generally presumed, the process involves a specific review by the Czech court.

Because recognition creates an extra procedural hurdle, ARROWS Law Firm often recommends suing directly in the Czech Republic for a faster path to enforcement.

Risk analysis and key procedural pitfalls

Risks and sanctions

How ARROWS (office@arws.cz) helps

Loss of legal costs reimbursement: Failure to send the předžalobní výzva (demand letter) at least 7 days before filing leads to the court denying your claim for legal cost reimbursement.

Drafting compliant demand letters: We ensure the demand letter meets all statutory requirements and is sent via verifiable channels to secure your right to costs.

Rejection of authority: Missing apostille on the Power of Attorney renders the filing invalid.

Apostille coordination: We guide you through the South African apostille process (DIRCO/High Court) to ensure documents are accepted by Czech courts.

Inadmissible evidence: Submitting documents in English without certified translation.

Translation management: We coordinate certified translations (soudní překlady) compliant with the Act on Experts and Interpreters.

Statute of limitations: In commercial relations, the general limitation period is 3 years. Missing this deadline extinguishes the enforceability of the claim.

Timely filing: We monitor limitation periods (promlčecí lhůta) to ensure claims are filed before they expire.

Alternative dispute resolution

Arbitration is a viable alternative to court litigation. The Czech Republic is a signatory to the New York Convention on the Recognition and Enforcement of Foreign Arbitral Awards.

This means an arbitral award issued in an international arbitration (e.g., in London, Paris, or Prague) is enforceable in the Czech Republic. The Arbitration Court attached to the Economic Chamber of the Czech Republic and Agricultural Chamber of the Czech Republic is the primary permanent arbitration court.

If your contract contains an arbitration clause, you generally cannot go to state court unless the defendant doesn't object. ARROWS Law Firm has extensive experience representing clients in arbitration proceedings.

Executive summary for management

Jurisdiction and forum selection: Check your contract. If it says "Czech Courts," you must sue here. If it's silent, and the defendant is Czech, you sue here.

Procedural formalities: You need a notarized and apostilled Power of Attorney from South Africa. You must send a formal demand letter 7 days before suing to get your legal fees back.

Evidence: No discovery. You must have your evidence (contracts, proof of delivery) ready and translated into Czech before you file.

Speed: Payment Orders can be issued in weeks. Full litigation takes 12-24 months.

Enforcement: Private bailiffs are effective at freezing accounts and seizing assets once you have a judgment.

Conclusion

Litigating in the Czech Republic as a South African company is achievable and, thanks to efficient enforcement mechanisms, often yields results. However, success requires adherence to strict procedural rules rooted in the Civil Procedure Code and the Act on Private International Law.

The absence of discovery, the requirement for apostilled documents, and the mandatory pre-litigation demand letter are key differences from the South African system.

ARROWS Law Firm specializes in representing international clients in Czech commercial disputes. We handle the jurisdictional analysis, document authentication, translation coordination, and strategic enforcement planning.

If you are a South African company facing a commercial dispute with a Czech partner, contact office@arws.cz for a professional assessment of your legal position.

1. If I have a contract with a Czech company that specifies South African courts as the forum, should I still consider suing in Czech courts?
If the clause is valid, you are bound by it. However, if the defendant agrees (or doesn't object), Czech courts can hear the case. Suing in CZ avoids the later need to recognize a foreign SA judgment. ARROWS Law Firm can analyze the validity of your forum clause.

2. How long does it typically take to obtain an enforceable judgment?
For undisputed claims using the Payment Order, it can be 2-3 months. For contested litigation, expect 12-24 months for a first-instance decision.

3. My power of attorney was notarized in South Africa. Does it need an apostille?
Yes. South Africa is a party to the Hague Apostille Convention. Czech courts require the apostille to verify the signature of the South African notary.

4. Do I really need to translate all of my business documents into Czech?
Yes. To be admissible as evidence, documents generally require a certified translation (soudní překlad).

5. Is legal representation mandatory?
For the district court proceeding, it is not strictly mandatory but highly recommended due to language and procedural complexity. For an appeal to the Supreme Court, legal representation by an attorney is mandatory.

6. If I obtain a Czech judgment, how does enforcement work?
You instruct a private bailiff (soudní exekutor). They can freeze bank accounts and seize assets usually within days of the enforcement order being issued.

Disclaimer: The information contained in this article is for general informational purposes only and serves as a basic guide to the issue as of 2026. Although we strive for maximum accuracy, laws and their interpretation evolve over time. We are ARROWS Law Firm, a member of the Czech Bar Association (our supervisory authority), and for the maximum security of our clients, we are insured for professional liability with a limit of CZK 400,000,000. To verify the current wording of the regulations and their application to your specific situation, it is necessary to contact ARROWS Law Firm directly (office@arws.cz). We are not liable for any damages arising from the independent use of the information in this article without prior individual legal consultation.

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