24
Tue, Dec
91 New Articles

Are You Ready to Become a Venture Capital Entity?

Czech Republic
Tools
Typography
  • Smaller Small Medium Big Bigger
  • Default Helvetica Segoe Georgia Times

If you manage an alternative fund under Section 15 of the Czech Act on Investment Companies and Investment Funds (ZISIF), you will need to comply with new legislation by 31 December 2024. Every manager will be required to amend the name of their company to include the term "venture capital entity", while the word "fund" must be removed.

What does this mean in practice?  

Changing the company name is not merely an administrative formality. It requires amending the articles of association or bylaws, which often involves working with lawyers and a notary. As the change becomes effective only upon registration in the Commercial Register, we recommend acting without delay, as notaries tend to be particularly busy at the end of the year.  

What are the risks of non-compliance?  

If the name is not amended in time, the Czech National Bank may remove you from the register or even propose the liquidation of your company through the Commercial Court.

By Lukas Tomanek, Associate, JSK, PONTES

Pontes at a Glance

PONTES the CEE lawyers is an international association of law firms rooted in the culture of cooperation and results.

Our team's distinctive competence lies in its ability to blend legal service with a level of regional insight. Knowledge is the key to our excellence: addressing trends within the practice and bringing the best minds together. PONTES firms also benefit from a schedule of cross-border training events, staff secondment and quarterly roundtables.

PONTES draws on in-depth knowledge acquired by leading international practices; a group of over 150 professionals from Austria, Bulgaria, Czech Republic, Hungary, Poland, Romania and Slovakia delivering top-flight legal services clients can rely on, with experience in a range of practices including corporate/M&A, private equity & venture capital, banking and finance, real estate, litigation and dispute resolution, contract, employment, energy and infrastructure, as well as insurance and capital markets.

For more information, please visit our website or contact at office@ponteslegal.eu