Nikita Veremeev
08.08.2025 | 6 min read
Updated: 08.08.2025
In a world where global investment flows exceed 100 trillion dollars annually and competition for capital becomes increasingly fierce, choosing the right jurisdiction and fund structure determines not only profitability but also business sustainability. According to the European Fund and Asset Management Association, over the past five years, the share of alternative investment funds in the EU has grown by more than 30%, with Czech Republic gaining a special place due to the flexibility and transparency of its legal instruments.
ZISIF §15 is a special type of alternative investment fund in the Czech Republic, regulated by the Czech Act on Investment Companies and Investment Funds (Zákon o investičních společnostech a investičních fondech, 240/2013 Sb.). Unlike classical structures, ZISIF §15 provides investors and managers with maximum freedom in choosing an investment strategy, corporate structure, and types of assets. The key feature is the ability to work with both qualified and a limited number of non-qualified investors (up to 20), which makes the fund attractive for family and corporate capital as well as for collective investment in the Czech Republic.
COREDO practice confirms: registering a fund in the Czech Republic using the ZISIF §15 model allows for the implementation of investment projects with minimal capital requirements, flexible corporate management structuring (via s.r.o. or a joint-stock company), and effective protection of the interests of beneficiaries and founders. It is important to note that the activities of such funds are supervised by the Czech National Bank (ČNB), which ensures a high level of trust from international investors.
Advantages and Limitations of ZISIF §15 for International Business
Why has ZISIF §15 become the choice for many international companies and family offices? In practice, the COREDO team has implemented dozens of projects where the key advantages have been:
- Flexibility in choosing an investment strategy: allowed to invest in a wide range of assets, including securities, real estate, startups, cryptocurrencies, and even unconventional instruments.
- Minimal regulatory barriers: no minimum capital requirements, no mandatory license for a management company (subject to the limit on the number of investors and assets up to 100,000,000 EUR).
- Scalability: the fund structure allows for the attraction of new investors (up to 20 non-qualified or unlimited number of qualified), as well as integration into international holding structures.
- Simplicity of corporate management: founders can use s.r.o. or a joint-stock company, retaining control over the fund and profit distribution.
- Reduced administrative burden: simplified reporting and compliance requirements compared to traditional collective investment funds.
On the other hand, there are limitations that are important to consider when strategic planning:
- Investment limit: the total volume of assets should not exceed 100,000,000 EUR.
- Minimum investment threshold for qualified investors: 125,000 EUR.
- Limitations on the number of non-qualified investors: no more than 20.
- No public offer: the fund cannot offer its shares or units to an unlimited number of people.
A COREDO implemented case for a family office demonstrated: with the proper structuring of a ZISIF §15 fund, capital can be managed effectively, tax risks minimized, and asset continuity between generations ensured.
Comparison of ZISIF §15 and Other Investment Funds (FKI, SICAV, EU and Asia Structures)
Choosing a fund structure is a strategic decision that affects the tax burden, level of compliance, and scalability opportunities. For clarity, I will provide a comparative table:
| Criterion | ZISIF §15 (Czech Republic) | FKI (Czech Republic) | SICAV (EU) | Analogues in Asia |
|---|---|---|---|---|
| Minimum capital | None (or minimal) | 1,250,000 EUR | 1,250,000 EUR | From 100,000 USD |
| Type of investors | Qualified/up to 20 non-qualified | Only qualified | Qualified/public | Depends on jurisdiction |
| Regulator | ČNB | ČNB | EU regulators | Asian country regulators |
| AML/compliance | Simplified requirements | Strict requirements | Strict requirements | Varies |
| Registration timeline | 2-4 months | 3-6 months | 3-6 months | From 1 month |
| Creation cost | From 109,000 CZK | Higher | Higher | Relatively lower |
| Scalability opportunities | Medium | High | High | Medium/high |
The EU market traditionally imposes high licensing requirements for investment funds, especially in the FKI and SICAV segments. However, ZISIF §15 stands out for its quick launch potential, low initial costs, and flexible corporate structure. A solution developed by COREDO for an international startup fund allowed the client to complete registration and begin attracting investments in 3 months, which would have been impossible with the classic FKI structure.
Registration of ZISIF §15 Fund in the Czech Republic
Legal and Organizational Requirements for Fund Registration
Registering a fund in the Czech Republic using the ZISIF §15 model begins with choosing the optimal corporate structure. In practice, a limited liability company (s.r.o.) or joint-stock company is most commonly used. This approach ensures management flexibility, transparency of beneficial ownership, and limitation of founder liability.
Key stages:
- Preparation of founding documents, including the charter, internal regulations, andagreements between founders.
- Determination of ownership structure and share distribution, considering the requirements for beneficial ownership and fiduciary management.
- Appointment of a director and, if necessary, an asset management company in the Czech Republic.
- Opening of a corporate account in a Czech or European bank.
A project implemented by the COREDO team for a holding with Asian and European investors showed: proper structuring at the registration stage significantly reduces the risks of further disputes among participants and simplifies passing compliance procedures.
Documents for ZISIF §15 Fund Registration and Interaction with the Czech National Bank
To submit an application to the Czech National Bank (ČNB), a comprehensive set of documents is required, including:
- Founding documents (charter, founding agreement).
- A detailed business plan of the investment fund with a description of the investment strategy, target assets, and profitability scenarios for PRIIPs.
- List of founders and beneficiaries with confirmation of sources of funds and ownership structure.
- KID (Key Information Document): a key information document mandatory for PRIIPs Regulation compliance.
- Documents confirming the qualifications of the management company or director.
- Protocol on the issuance of fund shares (in the case of a joint-stock structure) or share distribution (for s.r.o.).
The COREDO team accompanies clients at all stages of interaction with ČNB, including document preparation, negotiations, and explanation of specific aspects of the public offer of investment funds.
Timeline and Cost of Registration, Process Stages
The registration period for a ZISIF §15 fund typically ranges from 2 to 4 months, provided that documents are prepared correctly and there is proactive interaction with the regulator. The cost of full legal support depends on the complexity of the structure, number of founders, and specifics of the investment strategy, but as COREDO’s experience shows, initial costs are notably lower compared to the establishment of classical collective investment funds.
Process stages:
- Preparation and agreement on the corporate structure (1-2 weeks).
- Collection and processing of documents, preparation of the business plan and KID (2-4 weeks).
- Submission of the application and documents to ČNB, interaction with the regulator (4-8 weeks).
- Obtaining the permit and registration documents, fund launch.
In one of COREDO’s recent cases for a European technology holding, the entire process—from concept to obtaining ČNB permission—took 11 weeks, which became a critical competitive advantage for the client.
Thus, registering a ZISIF §15 investment fund in the Czech Republic requires a comprehensive approach to legal and organizational preparation, allowing for an efficient transition to the formation and implementation of the fund’s investment strategy.
Investment Strategy of ZISIF §15
Investment Strategy Requirements and Permitted Assets
ZISIF §15 provides broad opportunities for crafting an individual investment strategy. The law allows the inclusion in the portfolio of:
- Traditional financial instruments (stocks, bonds, derivatives).
- Real estate and infrastructure projects.
- Startups, venture investments, and innovative companies.
- Cryptocurrencies and digital assets (subject to AML compliance).
- Family and corporate capital, which is particularly relevant for inheritance structuring and family asset management.
In one of COREDO’s projects for a family capital fund in the Czech Republic, the investment strategy combined investments in Czech real estate, EU startups, and digital assets, allowing risk diversification and stable ROI.
Organization of Fund Management and Collective Investments
Asset management in the EU requires not only professional expertise but also strict adherence to fiduciary management standards. In a ZISIF §15 structure, it is possible to appoint an asset management company in the Czech Republic or for the fund director to manage independently. It is essential to ensure process transparency, regular reporting to investors, and compliance with all collective investment requirements in the Czech Republic.
The COREDO team recommends integrating modern automation tools, platforms for portfolio monitoring, digital solutions for AML reporting, and risk management. This approach has proven effective in a case with an international fund where digitization reduced administrative expenses by 30% and increased transparency for investors.
Performance Metrics and ROI: How to Evaluate Fund Results
Evaluating the effectiveness of a fund is built on several key metrics:
- ROI (Return on Investment), a key indicator for investors reflecting investment profitability.
- Profitability scenarios for PRIIPs: modeling various portfolio development scenarios and their impact on final profitability.
- Comparing profitability with similar funds in the EU and Asia, allowing investors to make informed decisions about capital diversification.
In COREDO practice, both traditional financial metrics and modern risk analysis tools are used, enabling clients to receive an objective view of the fund’s effectiveness.
Compliance and AML for ZISIF §15
AML and Compliance Procedures: Identification, Screening, Documentation
Adherence to anti-money laundering legislation (AML) and compliance is an integral part of managing any investment fund in the Czech Republic. For ZISIF §15, simplified but mandatory procedures apply:
- Identification and screening of investors, including verification of sources of funds and beneficial ownership.
- Maintaining AML reports for the fund, documentation storage, and regular data updates.
- Preparation and updating of KID (Key Information Document) in accordance with PRIIPs Regulation requirements.
- Implementation of internal policies for income legalization and prevention of terrorism financing.
COREDO solutions in AML consulting enable automation of a significant portion of procedures, minimizing the human factor and reducing the risk of regulatory sanctions.
Reporting, Audit, and Interaction with the Regulator
ZISIF §15 is obliged to maintain regular reporting to the Czech National Bank, including:
- Financial reporting according to established standards.
- Reports on asset movements and investment activities.
- Audit opinions (upon reaching certain asset thresholds).
- Prompt information to the regulator regarding significant changes in the fund structure or investor composition.
COREDO’s practice shows: timely and correct reporting significantly reduces the likelihood of inspections and facilitates fund scaling.
Compliance with PRIIPs Regulation and OtherEuropean Requirements
To enter the international market and attract investors from the EU, the fund must comply with the requirements of PRIIPs Regulation, including the preparation of KID, disclosure of all risks and profitability scenarios, and ensuring transparency of the investment strategy.
COREDO supports clients at all stages – from initial documentation preparation to fund integration into international tax structures, which is critically important for long-term success.
Moving to the next aspects – exit strategies and ZISIF §15 integration, allows for comprehensive fund support throughout all stages of its activity.
Exit Strategies and Integration of ZISIF §15
Exit Strategies for Investors and Founders
An investor’s exit from a ZISIF §15 fund can be realized through the sale of a share, buyout of shares by the fund, or transfer of rights to third parties. It is important to pre-determine the mechanisms for share valuation, exit timelines and conditions, as well as tax implications for the investor and the fund.
The COREDO team recommends including clear exit strategy provisions in corporate documentation, which helps avoid conflicts and ensure predictability for all participants.
Scaling the Fund: Attracting New Investors and Expanding Geography
ZISIF §15 offers opportunities for scaling by attracting new qualified investors and expanding the geographical scope of activities. However, it is important to consider limitations on the number of non-qualified investors and asset limits.
In practice, COREDO has implemented scenarios where a fund, upon reaching the asset limit, transformed into a more complex structure (e.g., FKI) while maintaining management and asset continuity.
Integration of the Fund into International Holding and Tax Structures
ZISIF §15 can be integrated into international holding structures to optimize taxation, protect assets, and increase investment attractiveness. It is important to consider the features of international tax planning, requirements for beneficial ownership, and controlled foreign company (CFC) rules in the investors’ countries of residence.
COREDO assists clients with all stages of integration, developing individual scenarios considering the specifics of the EU and Asia, as well as local regulatory requirements.
Conclusions and Recommendations for Business
- Practical Steps for Registration: clear planning, document preparation, and professional support at all stages are the key to successfully launching a fund.
- Legal Support for Investment Funds: COREDO’s experience shows that comprehensive support minimizes risks and accelerates interaction processes with regulators.
- Risk Minimization: implementation of modern compliance and AML solutions, reporting automation, and transparent corporate structure.
- Reliable AML Compliance: regular investor screening, documentation updates, and integration of digital tools.
- Comprehensive business support: from jurisdiction selection to scaling and investor exit.
- Saving Time and Resources: process optimization, reduced administrative burden, and automation of fund management.
- Best Practices in Collective Investment Management: transparency, regular reporting, and flexible investment strategy.
- Innovative Risk Management Approaches: asset diversification, digital solutions, and integration into international structures.
If you are looking for a strategic partner for creating and managing an alternative investment fund in the Czech Republic, COREDO’s experience and expertise in international consulting can help achieve even the most ambitious goals—from registering a ZISIF §15 fund to integrating into global holding structures.