Not entirely sure what you are trying to do here but you don't need an IF statement to do this type of thing.
See if this will get what you are looking for.
CREATE VIEW XYZ
AS
SELECT 'PR-' + '' + CAST(Count(ID) + CASE
WHEN EXISTS (
SELECT Code
FROM PR_Header
WHERE Code = (
SELECT 'PR-' + '' + CAST(Count(a.ID) + 1 AS VARCHAR)
FROM PR_Header a
GROUP BY a.Company
)
)
THEN 2
ELSE 1
END AS VARCHAR) AS PR_PR
,'Default PR'
,Company
FROM PR_Header
GROUP BY Company
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