Optimizing investment opportunities by registering a fund in the Czech Republic

by Vladyslav Zaporozhchenko, Co-Founder at International Fintech Business

In the era of economic globalization and the constant search for new investment opportunities, registering an investment fund in the Czech Republic is becoming an increasingly attractive solution for many investors and individuals. This is especially true for those who seek not only to protect their assets but also to look for new opportunities for growth, especially among representatives of Eastern European countries and emerging markets.

This is due to the fact that in the Czech Republic, a citizen of any other country can be a manager of an investment fund, there is no minimum capital requirement, a low minimum investment threshold starting at EUR 40,000, which is lower than in other EU countries (from EUR 120,000), the fund’s income tax is 5%, and there is no double taxation due to agreements with different countries.

As a result, in 2023, investment funds in the Czech Republic reached a record net asset value of CZK 1,211.4 billion, an increase of 31.1% compared to the previous year. An analysis of the structure of investments in these funds shows strategic diversification among three main asset classes managed by 828 active funds in the Czech Republic. Bonds account for a significant portion (22.5%) of the total value of net assets, followed by equities (48.5%). The remaining 36.5% fall under the category of “other assets”, which includes fixed investments and deposits.

This flexibility in strategic asset allocation allows the fund managers to tailor their investment profiles, contributing to a more diversified approach to the market. This diversification strategy not only reduces risk but also satisfies a wider range of investors’ risk tolerance.

The war in Ukraine and the crisis in the Middle East have had a negative impact on the global economy and financial markets, and the Czech Republic is no exception. Overall, however, the impact on the Czech investment market has been relatively limited. This is partly due to the resilience of the Czech economy and the diversification of Czech funds’ investment portfolios. The procedure for registering an investment fund in the Czech Republic can be complex and time-consuming. It involves careful preparation of documents in accordance with strict legal requirements and close cooperation with regulatory authorities, in particular the Czech National Bank (ČNB). Mistakes during registration may result in a delay or even refusal to issue a license.

Benefits of working with an investment fund registration consultant:

• Saving time and money: The consultant will help you choose the optimal fund structure that meets your goals. They will prepare and review all documents in Czech, ensuring they meet the requirements of the regulator. The consultant will represent your interests before the ČNB, speeding up the process of obtaining a license.
• Minimizing risks: An experienced consultant has in-depth knowledge of Czech investment fund legislation. They will help you avoid mistakes that may lead to a delay or refusal to issue a license. The consultant will accompany you at all stages of registration, providing expertsupport.

Cooperation with an investment fund registration consultant is a guarantee of saving time and money, as well as minimizing risks during the registration of a fund in the Czech Republic.

International Fintech Business (IFB)

International Fintech Business (IFB) is a UK-based consultancy specializing in providing legal services for obtaining financial licenses in the Czech Republic, including investment fund licenses. The company has a team of experienced lawyers and consultants with in-depth knowledge of Czech investment fund legislation and the regulatory requirements of the ČNB. IFB offers a wide range of services covering all stages of fund registration, from initial consultation to obtaining a license and further support, and also provides an opportunity to purchase an existing fund in a short time.

Benefits of working with IFB:

Experience: IFB has been successfully supporting the registration of investment funds for clients from different countries since 2017, and its client portfolio includes, among others, companies such as Barclays and HSBC.

Comprehensive approach: The company offers a full range of fund registration services, including legal advice, preparation of documents, and support in interacting with the Czech regulatory authorities.

Efficiency: IFB works efficiently and effectively, helping clients to obtain an investment fund management license in the shortest possible time.

Competitive prices: IFB offers competitive prices for its services, providing clients with excellent value for money.

IFB understands that each client has unique needs and objectives. The company offers flexible solutions and personalized support at every stage of the registration process. IFB is always ready to answer your questions and provide expert advice.

For example, the IFB team has recently developed a customized support program for one of its clients, who had a complex fund structure. Thanks to IFB’s flexible approach, the fund successfully passed registration and obtained a license.

By contacting IFB, you can be sure that you will receive qualified assistance and expert support during the registration of an investment fund in the Czech Republic.