Types of Investment Funds in Czech Republic
Types of Investment Funds in Czech RepublicUpdated on Saturday 24th September 2016
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The fund market available in Czech Republic follows the rules and regulations imposed by the European Union. Although this field is not very developed in Czech Republic, the introduction of the alternative investment fund managers (AIFM) directive can have positive effects on the Czech investment market, as the regulations prescribes more attractive investment policies which are available for both local and foreign investors, who can be residents of the European Union (EU) or of a country outside the Community. Our team of lawyers in Czech Republic can offer an in-depth presentation on the main types of investment funds which are available on this market.
Investment funds in Czech Republic – legal entities
According to the Czech legislation, which is comprised of national laws, EU’s directives and regulations inspired by the national laws of the EU member states that are very well developed in terms of fund domiciliation, the investment funds registered here can be set up under one of the following legal forms:
• mutual funds;
• trust funds;
• joint-stock company;
• investment company with variable capital;
• limited partnership;
• limited liability company;
• European society.
Requirements for the registration of a Czech investment fund
In order to set up a company registered as an investment fund, the investors will have to provide a minimum capital of EUR 1,25 million. The investment funds have to be approved by the Czech National Bank (CNB), which is the main regulatory body established for this type of vehicles, but only in certain conditions. Still, the managers of the fund, regardless of its type, have to receive an approval from the above mentioned institution and our attorneys in Czech Republic can offer more details on the application requirements.
Information referring to the statute of an investment fund in Czech Republic can be found in the Decree of 24th of July 2013, issued by the CNB, which stipulates what types of information should be provided on the investment fund and on its managers, as well as on the investment strategies carried out under the respective vehicle.
Businessmen interested in further details on the Czech investment funds are invited to contact our law firm in Czech Republic for legal assistance or advice.
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