Registration of an Alternative Investment Fund Pursuant to §15, Law č. 240/2013 Sb

In the Czech Republic, an Alternative Investment Fund (AIF) is a company organised for the purpose of attracting and collectively investing funds from private investors. Such a fund offers investors the opportunity to invest their money in various assets, including investment instruments such as stocks, bonds, derivatives, commodities (such as oil and gold), real estate, crypto assets, collectibles, and more. The investment of capital is conducted in accordance with a pre-selected strategy tailored to the interests of investors.

An alternative investment fund presents an opportunity to diversify your investment portfolio and potentially earn additional profits.

ADVANTAGES OF REGISTERING AN ALTERNATIVE INVESTMENT FUND IN THE CZECH REPUBLIC

An Alternative Investment Fund (AIF) is among the most convenient collective investment options. Registering an AIF in the Czech Republic offers numerous advantages, including:

• relative ease of registration;
• ample opportunities for investment and profit;
• greater flexibility compared to traditional investment funds, allowing for the independent determination of operational features;
• the ability to attract funds from both qualified investors and a certain number of unqualified investors.

STEPS AND DOCUMENTS REQUIRED TO OPEN AN ALTERNATIVE INVESTMENT FUND

Step 1 – Registering a company in the Czech Republic

• scans of 2 identity cards of the director/founder — passport and ID/driver’s licence (both sides);
• confirmation of the director/founder’s address (not older than 3 months);
• a signed power of attorney and affidavit from the director/founder;
• certificate of good conduct of the director (not older than 3 months);
• description of activities, including the investment strategy of the fund.

Timeframe: approximately 2 weeks from receipt of all required documents.

Stage 2 – Application for an alternative investment fund licence with the Central Bank of the Czech Republic

• completed application;
• corporate documents;
• documents of the director/founder of the fund;
• an offer, which can take the form of an investment agreement, statute, or a general description of an investment strategy. This offer should include:
  • a brief description of the main categories of assets in which the fund plans to invest (limited to 2-3 lines of text in A4 format);
  • details about the industry, geographic or other market sectors, or specific asset classes targeted by the investment strategy (e.g., a specific index, agricultural commodities, industrial warehouses, a particular cryptocurrency, etc.);
  • information about the borrowing policy or the use of leverage, including the type and volume of borrowing, as well as the types and purposes of derivatives used (limited to 2-3 lines of text in A4 format).

A more detailed document can also be attached to the application, providing a comprehensive description of the fund’s activities. This document can be valuable for establishing further investor relations.

Timeframe: 1-2 months. Note: the timeframe depends on the speed of information exchange between us and the workload of the regulator.

For further clarification and to offer a more comprehensive understanding of any questions or concerns, we are always available to arrange a personal consultation.