Investment Funds in the Czech Republic

One of the best alternatives to offshore companies is your own investment fund in the Czech Republic!. Collective Investment Vehicle (CIV) is a modern Czech investment instrument that complies with European MiFID directives and is intended for all categories of assets. Funds registered in form of SICAV can be a respectable option for bigger investment projects.

SICAV is a joint stock company with a variable statutory fund; it is a special legal form created for use in the field of investment funds. SICAV takes as a basis a traditional joint-stock company, but at the same time gives investors the opportunity to freely enter and exit this fund. In SICAV, the constituent and investment parts of the fund are separated from each other by the charter or by creating sub-funds. In accordance with this division, SICAV issues two types of shares – constituent shares (intended for founders), with which the right to vote is associated, and investment shares (for investors) with the right of redemption and, most often, without voting rights.

To optimize taxation. One of the most important advantages of investment funds or collective investment vehicles (CIV) in the Czech Republic is a preferential taxation – a 5% profit tax on the fund.

To raise capital. Investment funds are one of the best ways to raise capital for your own projects or investment strategies. And it is perfect for combining the capital of partners in the joint business tasks implementation.

To implement a wide range of business tasks. With the help of investment funds it is possible to invest and manage all types of business anywhere in the world (real estate, enterprises, securities, issue and take loans, etc.). For example, in the Czech Republic the largest real estate companies operate through their own investment funds. At the same time, they create sub-funds for the individual projects implementation.

To withdraw business from offshore. Investment funds have a clear advantage over any offshore companies. Loyalty to offshore from all government agencies and banks every year becomes lower and lower. And doing business through offshore companies becomes more difficult. The main task of offshore companies is tax optimization. Investment funds solve this problem and provide additional benefits as a status of a licensed European company.

We have many years of experience in the investment field, and we constantly monitor the development of legislation and market trends. Use our advice from the very beginning, and you will get much more than if you do it all on your own.

Contact us and already during the first FREE consultation we will be able to evaluate the feasibility of creating (registering) an investment fund for you, your business and for solving your problems. We will offer the optimal structure of the fund and evaluate the economic benefits.

What are the advantages of an investment fund in form of SICAV in the Czech Republic?

• Optimization of taxation. Fund profit tax 5% for most types of funds.
• Concealment of beneficiaries. Participant investors of funds are not listed in public registries and are not subject to exchange of information.
• Ability to raise capital – easy entry and exit of investors, transparent structure.
• Protection of investors’ rights – regulation of the activity of the CNB, supervisory functions of the depositary.
• Legal withdrawal of assets.
• Easy distribution of shares in fund assets.
• Trouble-free transfer of shares to other persons through the sale of shares of the fund.
• Compliance with European law on investment companies and funds.
• Compliance with all requirements of MiFID, OECD, FATF.
• Czech jurisdiction has a spotless reputation.
• 100% foreign ownership of the fund is allowed.
• Ability to target the fund for any type of activity.
• Czech membership in the EU opens up tremendous opportunities for doing business around the world.
• A large number of international treaties against double taxation.

Note! SICAV is an Qualified Investors Fund:

• is intended for qualified (experienced and professional) investors, institutional and private;
• the minimum amount of investment to the fund from the investor is 125 000 EUR;
• can be used in all investment strategies and directions and their combinations;
• can be established as a single entity or as a structure with sub-funds.

When managing an investment fund, the services of several entities are used as standard, among which the main role is played by the manager, administrator and depository. Their practical activity depends on the parameters by which this investment foundation operates.

Fund management

The fund manager deals mainly with investment and risk management. Most often, the fund is managed and administered by an investment company (not a self-managed fund) or the fund is self-managed (a self-managed fund).

Fund Administrator

The administrator is engaged in activities related to the issuance and redemption of securities, accounting, calculating the value of net assets, communicating with investors and other entities, valuation and other activities necessary for the operation of the fund. He is a registration agent, maintains a register of shares, maintains contacts with shareholders, is responsible for accounting and other aspects of the fund.

Depository

Assets storage, control and monitoring is carried out by the depository of the fund. The task of the depositary is to take care of the fund assets and conduct control activities, within which it conducts accounting and control of financial activities, issuance and redemption of securities, setting value of securities and others. The depositary acts on the basis of a depositary agreement and in the interests of the fund and its investors. In its activities, the depositary cooperates with the manager and administrator of the fund.

Auditor

The requirements for the transparency of the fund’s activity oblige the fund to submit its annual reports to independent auditors, as well as inform the Czech National Bank and the fund’s investors about the annual reports.

• Full consultation before creating or buying of an investment fund;
• Evaluation of an investment plan or an existing asset portfolio;
• Creating the structure of the qualified investors fund and benefits and costs analysis;
• Selection of a licensed management company based on your needs and conclusion of an agreement with it;
• Company registration;
• Statutory documents development;
• Documents for the Czech National Bank (CNB) preparation;
• Fund submission to the CNB;
• Licensing application from the CNB;
• Selection and opening of depositories and bank accounts for an investment fund;
• Elaboration of financing methods and further capitalization of the fund’s assets;
• Selection of a professional auditor, appraiser, tax consultant and accountant.