Establish Investment Company with Variable Capital in Czech Republic
Set Up Czech Investment Company with Variable CapitalUpdated on Tuesday 22nd November 2016
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The investment climate in Czech Republic started to develop after the '90s, becoming one of the most preferred business destinations in its region. Some of the key aspects which led to increased foreign direct investments (FDI) in Czech Republic refer to its quality infrastructure, the skilled workforce and business competitiveness. Foreign businessmen can register here an investment fund or an investment company, which can be set up as an investment company with variable capital (SICAV) and our team of Czech lawyers can provide more details on its legislation.
SICAV in Czech Republic
The SICAV can be registered in Czech Republic following the regulations of a new act that was signed by the local authorities in 2013. The Act of Investment Companies and Investment Funds became applicable from the beginning of January 2014 and it provides the legal framework under which SICAV structures can be registered here. Businessmen can find out in-depth information on the law from our team of attorneys in Czech Republic.
A SICAV in Czech Republic has the same structure applicable to joint-stock companies, and investors should know that the act included in its provisions the basic advantages the shareholders have under a joint-stock structure.
Types of shares in a Czech SICAV
When incorporating a company in Czech Republic, the investors will have to draw the articles of association, in which they will provide details on the shareholders, the right to issue and sell shares, the directors of the company and many others. In a SICAV structure, the shareholders can issue two types of shares:
• founder shares – the subscribers to this type of shares are the founders of the company;
• investment shares – available for the investors.
In a SICAV structure, the company’s share capital will need to be registered at the Czech commercial register. Also, investors can establish sub-funds (also referred to as umbrella - funds), which will provide to the managers the opportunity to run several different investment policies at the same time.
It is important to know that the sub-funds of a fund in Czech Republic are not to be registered with the Commercial Register.
Businessmen are invited to contact our law firm in Czech Republic for legal assistance referring to the incorporation of an investment company with variable capital.