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Set up Trust Funds in Czech Republic

Set up Trust Funds in Czech Republic

The trust funds have recently been introduced in Czech Republic. The Czech authorities have updated their legislation in this sense, which became applicable from the beginning of 2014. Trust funds are addressed to both natural persons and legal entities and they can be used to manage various assets or properties. Our Czech lawyers can offer legal assistance on the main usages of a trust fund and can provide more information on the registration procedure. 

Czech trust funds – legal aspects

The trust funds in Czech Republic became available in 2014, following a regulation approved by the local government in 2013. At that moment, the respective Bill proposed to introduce on the local market the following: 

• joint stock company with variable capital;

• limited partnership with investment certificates; 

trust funds

The founder of a trust, also referred to as a settlor, transfers his or her property in the respective entity, which is further on managed by a trustee. The trustee must represent the best interest of the founder

However, the Czech legislation prescribes that the trust, the founder and the trustee can be represented by the same person and our lawyers in Czech Republic can offer more details referring to this provision. 

trust fund in Czech Republic does not have a legal entity, as it is constituted through the founder’s assets to manage those respective assets, which can be addressed to a private or a public interest. 

Trusts for corporate purposes in Czech Republic   

Businessmen who are interested in company formation in Czech Republic must also know that a trust can be incorporated to represent various business purposes, such as: 

• corporate restructuration; 

• international projects set up for financial purposes;

• part of employees incentive scheme; 

acquiring a company

At the same time, the trust in Czech Republic can be set up for investment purposes, as it can be registered as a collective investment vehicle

We invite foreign entrepreneurs to contact our law firm in Czech Republic for in-depth information on the trust funds registration