How to open an investment fund (IF) in the Czech Republic in 2020

How to open an investment fund (IF) in the Czech Republic in 2020

Today, the idea of ​​opening a private investment fund (PIF) is becoming quite popular. Firstly, the head office is an official legal entity, and secondly, both a legal entity and an individual can establish a head office.

One of the best options in the current economic conditions will be the decision to open an investment fund in the Czech Republic.

YB Case specialists will talk about main advantages of this country:
  • The tax rate is 5% in the Czech Republic.
  • Registering an investment fund in the Czech Republic, as well as its contents, will cost you significantly cheaper, than in most EU countries.
  • Using a PIF in this jurisdiction is very convenient, if you need to manage investment resources for business development anywhere in the world.
  • The structure of the investment fund in the Czech Republic is created in such a way, that the shareholder, or its official representative, has both the right of final decision on any of transactions under a consideration, and the right of control signature, which significantly increases the security of invested funds.
  • Standard instruments of the investment fund in the Czech Republic, whether it be securities, bills or stocks, real estate transactions, etc., will help you to develop your international business.
  • Investment funds here, like other private investment funds, are the optimal mechanism for the redistribution of the capital.
  • Opening a private investment fund in the Czech Republic is an option to get a financial instrument with European jurisdiction.
  • An investment fund in the Czech Republic will help you to act with a fairly high anonymity.

Among all advantages, that you will receive by deciding to register an investment fund in the Czech Republic, it is worth noting the following:

  • Your current IF will help you to attract the additional investment for any promising projects;
  • A PIF is created to effectively manage any assets and resolve commercial issues at a higher level, than a private company could do;
  • Using the fund provides ample opportunities for financing projects and programs through the provision of loans, as well as in other ways, permitted by a law;
  • IF can participate in the creation of enterprises, including a foreign participation;
  • Your investment fund will give you the opportunity to participate in third-party, but profitable projects and programs both in the Czech Republic itself and internationally.
How to register an investment fund in the Czech Republic?

The fund is registered as SICAV, i.e. A Joint-Stock Company with an authorized capital, issues two types of shares: for active participants - owners, and passive - investors.

The investor of the fund is a shareholder, who has the right both to receive a profit from participation and to repurchase shares. The fund’s income consists of dividends and interest on loans/credits issued.

YB Case will provide full professional support in registering investment funds in the Czech Republic and other foreign jurisdictions.

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Activities of investment funds in the Czech Republic provide main expenses for:
  • an activity management;
  • the administration;
  • a depositary;
  • the auditor.

In addition to the 5% income tax, the investor pays a dividend tax, which is absent for legal entities and 15% for individuals (if they are not redeemed within a 3-year period).

Exiting participants is easy with the transfer and redemption of shares.

Private investment funds in the Czech Republic have a high regulated liquidity, in which investors can buy back shares. There is also the possibility of their stock quotes. Separately, we note, that there may be some limitation in time and in payments.

So, according to YB Case, to open the investment fund in the Czech Republic means to you to get an effective, transparent and fairly simple controlled tool for a mutually beneficial cooperation with your partners. In addition, a private investment fund in the Czech Republic is a closed structure for outsiders.

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