An investment fund in the Czech Republic with a variable capital, or SICAV, is a modern investment tool designed for all types of assets.
The Czech investment fund is a convenient tool for implementing projects thanks to a combination of opportunities, such as taking a project offshore, raising its reputation and minimizing tax.
The main benefit, when registering an investment fund in the Czech Republic, in contrast to the usual form of organization, is the tax rate, which is 5%. Thus, this form is an alternative to offshore companies, but with the ability to have the status of a licensed European company.
What is SICAV?
Opening SICAV in the Czech Republic means registering an alternative form of a joint-stock Czech company. This modification was created in order to adapt joint-stock companies to the investment process. SICAV in the Czech Republic is, on the one hand, a separate legal entity, and on the other, a form of the investment fund.
The main difference between SICAV in the Czech Republic and the classic joint-stock company is the possibility of flexible changes in the authorized capital and the possibility of withdrawing from the fund through the repurchase of shares by the company. Thus, to increase the authorized capital, it is not necessary to amend the trade register, and there is no need for an appropriate decision of the general board of shareholders. The investor can quickly and easily change the amount of investment in accordance with the market situation at a certain point.
Another advantageous difference, that you will notice immediately after registering an investment fund with a variable capital in the Czech Republic, is the ability to create sub-funds. Moreover, the sub-fund does not have a minimum investment requirement. Restrictions on the minimum investment apply only to the entire fund, which may include a number of sub-funds. For the Czech Republic, the minimum investment amount is an order of magnitude lower, than in other European countries, and amounts to 1 million kroons or 40 thousand euros. Moreover, conditions for the functioning of the fund are much more loyal.
The investment fund in the Czech Republic includes such positions as an investment manager, the administrator, a depository and a promoter.
If you are interested in starting an investment business in the Czech Republic, our team will provide you with legal advice on setting up an investment fund in the Czech Republic. Consultations on any issue with us are free.
It is possible to register an investment fund in the Czech Republic from scratch for our help. In order to set up a fund in the Czech Republic, you must use any feedback form on the “Contact Us” page or this article.