Companies from all over the Czech Republic are moving their seats to Prague
Date: February 26th, 2009
In 2008, 8 458 entrepreneurs moved their company seats from the regions to Prague. This is about 40 % more than in 2007 and 2006 when about 6 000 subjects did so. In the last three years, the largest group that changed the seat location traditionally consisted of companies from the Central Bohemia Region, which last year numbered 2 500. This is the result of an analysis prepared by Office House based on data from the Financial Directorate of the City of Prague. “Companies are moving to Prague in search of better opportunities; when they succeed in the regional competition, they often make attempt to attain the same in the capital city,” explains Daniel Lattner, CEO Office House.
In his opinion, a company seat in the capital city is already by itself a complimentary slip; for this reason, this may be a marketing move on the part of the company. “In many cases, we encounter situations where our clients acquire the company seat as an investment in own reputation. According to some, they have a better chance to succeed in tenders or acquisition of interesting orders,” explains Daniel Lattner.
This is also confirmed by the results of regular surveys conducted by Office House among its clients concerning the reasons for which they opt to change their seat. From more than five hundred replies in the second half-year of 2008, it follows that the most common reasons of the existing companies for transfer of their seats from the region to the large cities is acquisition of prestige (35 %). This is followed by search for the easiest and quickest mode of business expansion to other regions (25%), transfer of the seat for reason of problems with state administration institutions (15 %) and cost savings on hire of office space and administrative services. "It generally applies in the medium size and large company segment that acquisition of prestige is decisive for transfer of the company seat from the region to Prague. More than half of these companies have just this motive. Reduction of costs and support of expansion do not play a primary role in their case, a certain portion of them may by this step solve problems with state administration institutions in their operating locations," explains Daniel Lattner, CEO Office House.
