Today, businessmen are increasingly choosing the Czech Republic to establish an investment fund. It is a tool for implementing various business projects since it can help to improve the business reputation while paying minimal taxes. An investment fund in the Czech Republic offers businessmen a wide range of opportunities for doing business in the EU.
Basic funds are subject to income tax at a 5% rate. The following projects can be included in this category:
Other investment funds in the Czech Republic, whose activities differ from those described above, are taxed at the rate of 19%.
The Czech Republic is notable for its economic and banking stability. The creation of a fund in this jurisdiction is one of the most popular ways for business people to raise capital for other investment projects and strategies.
The creation of a fund usually begins with the registration of a management company. A limited liability company is suitable for this purpose, but companies of other organizational and legal forms can be used. The management company is registered in the same way as an ordinary operating company.
The company needs to open a bank account in order to deposit the share capital and further acceptance of investments. Opening an account is a complex process that should be entrusted to professionals. In order to open an account, you should to collect a package of documents and competently conduct further negotiations.
The exact amount of authorized capital depends on the type of the fund. The beneficiary must provide documents on the source of origin of funds contributed as authorized capital upon bank's request.
The company must have key positions employees, some of them must be local. We will help with the search and selection of employees.
The main direction of the investment fund is determined by its policy. Investors make investments on the basis of an investment agreement. Also, it is necessary to have an AML policy and other documents to create a fund.
It is necessary to submit an application to the regulator after preparing the company and documents. After submitting an application, you must be ready to answer additional questions from the regulator. We will take care of timely and competent answers.
the fund is registered after the successful completion of the previous stages. After the end of registration, the fund can start accepting investments that must be used strictly in accordance with the investment policy and investment agreement.
Among all the basic funds available, the Qualified Investor Fund (QIF) is the one most often selected by business people. Such a project is a tool for collective investment, the activities of which are based on a particular strategy. In this case, funds are collected not from the population but from investors who have experience in investing in other QIFs.
The minimum investment should not be less than 1 million CZK. This gives even minor investors the opportunity to participate in various projects that in the past were available only to big banks and institutional investors.
There must be at least two investors, and there are no other legal restrictions on their number. For a Czech fund to continue operations, its capital must be at least CZK 1,250.000 within one year after successful licensing.
The value of each asset must not exceed 35% of the total value of the fund's assets. The manager, promoter, custodian, and administrator must have special permits, which are also issued by the Czech National Bank.
If you wish to obtain a flexible and reliable tool for managing financial assets, the best solution is to register QIF. For this, the company must meet the previously mentioned requirements, after which it is necessary to:
All of these steps must be taken in accordance with the legal requirements of the Czech Republic; otherwise, the establishment of an investment fund in the Czech Republic may be denied.
To reduce this risk to a minimum and register the fund promptly, please contact the specialists of our company. We will provide you with legal support at every stage and will take care of the creation and licensing of the fund. If necessary, we will also provide you with comprehensive advice regarding investment companies in the Czech Republic.
The opening of investment funds abroad is often of interest to those who already have a similar experience in other countries. Switzerland allows business people to start doing business on a completely different level, not only preserving but also increasing their capital. To achieve this goal, business owners often opt for this particular jurisdiction. Swiss funds are an excellent alternative to trusts — they allow for not only keeping assets but also increasing them.
If you want to create an investment fund aimed at investors from European Union countries, Malta could be the right jurisdiction to register. The island is known as an innovative and reputable financial services center, and business people seek to establish an investment fund here to grow their capital. Since 1994, the activity of such structures is regulated by the Investment Services Act.
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