Having an appealing business climate and a legislation that sustains the investments in varied forms make Croatia a great destination for business for international and also local entrepreneurs. Opening an investment fund is not a difficult process, but it is advisable to respect the Act on Open-ended Investment Funds with Public Offering and the Alternative Investment Funds Act in Croatia. Our company formation agents in Croatia can assist you in opening an investment fund in Croatia and can take care of the formalities involved in matters of documents, licenses, approvals, etc.
UCITS or Undertakings Collective Investment in Transferable Shares are open-ended investment funds that can issue shares as long as there are calls on the market in Croatia. This kind of investment fund can be established by one or more investors or entrepreneurs where collective assets are invested and raised through public offering of units. The Croatian Financial Services Supervisory Agency or Hanfa is the supervisory body in charge of the ways the investment funds are established and developed in the country. Management companies in Croatia or legal persons can deal with the activities of UCITS in Croatia, mentioning that a written business cooperation agreement is needed in this case. The following information about UCITS might be useful for entrepreneurs wanting to establish such an investment fund in Croatia:
If you need support for opening an investment fund like UCITS in Croatia, feel free to talk to one of our company formation specialists in Croatia.
Yes, AIFs are available in Croatia and can be created by an investment fund manager with the purpose of raising capital through private and public offerings. This capital can be invested in all sorts of assets, with exclusive advantages to unit holders of the AIF. The Alternative Investment Funds can be opened in agreement with the Act on Open-Ended Investment Funds with Public Offering. The legislation of investment funds in Croatia might be complex, but it is good to know that the EU regulations and directives are applicable in this country. It is recommended to have the support of a specialist in company formation in Croatia and ask any question about how you can open an investment fund.
The Croatian Financial Services Supervisory Agency or Hanfa as it is known in Croatia has concrete and complex activities concerning the investment funds available in this country. This is the regulatory body that oversees the ways in which the investment funds are registered, the activities on the stock exchange and the operations of management companies, investment advisors and brokers. The same authority that was established in 2005 respects the Act on Open-ended Investment Funds with Public Offering and the Alternative Investment Funds Act in Croatia, two important sets of laws under which the investment funds are established in Croatia. UCITS and AIFs are important investment funds which can be established in Croatia, in respect with the above-mentioned regulations and laws. The support of our company formation agents in Croatia is recommended for opening an investment fund in Croatia. Below you can find information, statistics and facts about investments and business in Croatia:
The open-ended investment funds are the preferred types of investment funds for international entrepreneurs looking to generate profits and benefit from a solid and respected business climate. The following types of investment funds are at the disposal of those who want to do business in Croatia:
Mutual funds are at the disposal of investors who want to diversify their portfolios using the following types of investment funds:
For complete details about how you can open an investment fund in Croatia, please feel free to get in touch with one of our company formation representatives in Croatia.
The taxation of the above-mentioned funds involves the withholding tax applicable on dividends and profit shares at a rate of 12%. Also, the corporate income tax of 18% or 12% rate is applicable to close-ended and open-ended investment funds established as public limited liability companies in Croatia. As for the taxation of capital gains on the sale of shares in a close-ended real estate investment, this involves a tax rate of 12%.
In the case of domestic corporate investors in Croatia, the corporate income tax of 12% is applicable to profits not exceeding EUR 395,400. We remind that Croatia signed a series of double taxation agreements with numerous countries, therefore, the avoidance of paying taxes twice and having tax exemptions are possible and applicable. Feel free to talk to one of our experts in company formation in Croatia and find out more about how you can open an investment fund or about how you can start a business in Croatia. Also, one of our local accountants can tell you more about the taxation of investment funds and also about the tax minimization methods if needed.
The mutual funds in Croatia and anywhere in the world work under certain established principles when it comes to payable fees. For instance, the annual operating fees are called expense ratio which is calculated based on the administrative costs and management fee. These are normally established at the time the investment fund is created by local or foreign investors in Croatia. When purchasing or selling funds in Croatia, the stockholder fee comes in the form of commission, redemption fees or sales charges. Also, early withdrawals or selling might come with penalties and other fees.
There are many reasons to make investments in Croatia and set up varied investment funds, in many cases, the business environment, and taxation will play a major role. Below you can find some information and statistics about the business and the investments in Croatia:
The Alternative Investment Funds Act and the Act on Open-Ended Investment Funds with Public Offering are two important legal frameworks that control the activity and the scope of investment funds registered in Croatia by domestic and international entrepreneurs. The management of investment funds in Croatia can be handled by different types of companies that can control alternative investment funds if such companies are registered in Croatia. UCITS or the Undertakings Collective Investment in Transferable Shares are the preferred investment funds in Croatia.
The answer is quite simple and because there is a multitude of investment opportunities in Croatia in sectors like tourism, agriculture, IT and telecommunication, import and export, automotive, manufacturing, and many more. The attraction to the banking sector is quite visible, as there are numerous foreign banks that have branches and subsidiaries in Croatia, sustaining the financial sector in a large percentage. Being a competitive and appealing market, Croatia is open for business at any time and in any sector, letting international players benefit from tolerant legislation when it comes to investment funds in this country.
We invite you to contact our team of company formation agents in Croatia and find out more about how you can open an investment fund, and about how you can start a business in this state. Feel free to ask for complete information, prices and details about the needed company formation services in Croatia.