One of the ways in which foreign investors can set up their business operations in Czech Republic
is through an investment fund
. The Czech legislation
provides many options in this sense, with investment vehicles
addressed to various types of investors
. The Czech regulations
referring to the investment funds
set up here have incorporated most of the directives imposed by the European Union (EU), as the country is a member state of the Community. Our team of lawyers in Czech Republic
can offer legal assistance for the registration of an investment fund
, in accordance with the investment plans
of the businessmen.
Investment fund legislation in Czech Republic
Those who want to start a business in Czech Republic
through an investment fund
should analyse the legislation applicable by the local authorities. According to the Act on Collective Investments
, foreign investment companies
are allowed to perform investment activities
in Czech Republic
as long as they are incorporated in one of the member states of the EU. Furthermore, they should provide information on their registered office and should be the owners of a license which allows them to carry their activities; our team of attorneys in Czech Republic
can offer more details in this sense.
Types of investment funds in Czech Republic
Although the investment market in Czech Republic is not as developed compared to other European states, in 2014 there were registered more than 1,200 foreign investment funds. As a general rule, the applicable legislation distinguishes between open-ended funds and closed-ended funds, a characteristic which refer to the limitations imposed to for the issuance of shares.
Investors can set up an investment vehicle registered under one of the following legal entities:
• mutual funds;
• trust funds;
• joint stock companies;
• investment company with variable capital;
• limited partnership;
• limited liability company;
• European company.
Taxation of an investment fund in Czech Republic
The taxation level
of an investment fund set up in Czech Republic
differs from the taxation system
applicable to commercial companies
. Thus, an investment fund
which is listed on a stock market situated in the EU, will be taxed in Czech Republic
for its income with a rate of 5%. Furthermore, pension funds
are fully exempted from paying the tax on income.
Investors interested in receiving more details referring to the registration of an investment fund
in this country can address to our Czech law firm