Compared to the other emerging market Europe countries, the former Czechoslovakia was the only one to be a member of the advanced industrial states prior to the Second World War with a strong history of industrial production based on high levels of scientific and technical training. Its larger industries, especially those in the automotive sector, produce high-quality products that successfully compete on Western markets. A foreigner may become either the sole or cofounder of a company, and may also join an existing Czech enterprise. Foreigners who own businesses abroad may also conduct business activities in the Czech Republic provided they own a branch office within Czech borders. There is no upper limit on the level of foreign investment in the Czech Republic.
Foreign entrepreneurs can make use of credits granted by both Czech and foreign banks.
As in other countries, the rate of interest varies according to the duration of credit. On October 1st. 1995, full convertibility for current account transactions was achieved. Full convertibility of capital account transactions is to be achieved within the next year. The transfer of profits and capital abroad is guaranteed through various foreign currency and investment protection agreements.