Фото: Registration of a corporate investment fund (CIF)

Head of International Corporate Law and Fintech Practice

A specialist in the practice of migration and corporate law, he also specializes in legal support for business in EU countries.

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Registration of a corporate investment fund (CIF)

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СIF is one of the species institutes common investment (CII) - institutions that can accumulate funds from investors and invest them in different assets, as a result, what stock receives income that is distributed among him participants.

Investment funds exist in Ukraine already more than 20 years and during almost everything this time they were considered exclusively from the point vision of their attractiveness to potential investors.

Venture СIF very interesting tool for business after all from allows to structure-property, finance activity, optimize tax load, and attract investors.

СIF assets include:

  • monetary funds (including currency);
  • real estate;
  • trademarks;
  • banking metals;
  • corporate rights and valuable papers;
  • debt obligation.

Recently, more and more businesses in Ukraine have begun to understand the advantages that СIF provides in the structure of a group of companies.

Advantages of СIF:

  • accumulation funds;
  • granting loan funds  within corporate structures;
  • effective tax planning;
  • involvement of CII in financing models;
  • structuring and protecting corporate rights and assets.

Registration СIF takes place according to a rather complex and lengthy procedure, which includes not only registration in the EDR, but also such specific actions as the registration of two issues of shares (the first - for distribution among the founders, the second - for sale for the purpose of attracting joint investment funds), registration of the fund's regulations and entering information about it into the Unified State Register of Joint Investment Institutions.

The general term of registration СIFU is approximately 5-6 months.

The complex of services for the creation of a СIF includes:

  • Recommendations regarding the optimal model of the application of СIF in the structure of business.
  • Granting consultations at the planning stage of the CIF, determination of its type, type, period of activity, determination of the circle of founders of the CIF, formation of its authorized capital, etc.
  • Escort everyone stages establishment СIF, defined legislation.
  • Software interaction between the founders of the fund and the СIF itself, with the NKCPFR, NSU, state registrars, participants СIF, etc.
  • Carrying out meetings of founders and participants of СIF ( acceptance of the decision on the establishment of the СIF, on the first and second output shares, approval of the СIF charter, and introduction to its changes).
  • Development projects statute, regulation, and issue prospectus СIF shares.
  • Preparation of project documents required for submission to the NKCPFR for registration actions at all stages of establishment of СIF and support procedures such as registration.
  • The software interacts with NGOs, including regarding issue codifications, issuer account opening, global deposit certificates, and others.
  • Escort private placement procedures shares among founders and conclusion contracts buying and selling with participants СIF.
  • Escort state registration СIF as a legal entity and changes to its charter in connection with a change in the size of the authorized capital.

As a guarantee of success, the creation of a CIF is a clear observance of the order of passing certain procedures in the process of its creation and its high-quality support.

The tax Code of Ukraine assumes that any income from activities of the Institute of International Studies ( Institute common investment ) is exempted from taxation income tax. The majority of legal persons in the general taxation system must tax their income at the rate of 18%, and the income of the CII is exempt from taxation.

Therefore, if the received income of the fund remains in circulation and is not paid to investors, then no taxes need to be paid. Only the payment of dividends is subject to taxation. At the same time, the tax rate will be significantly lower.

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Head of International Corporate Law and Fintech Practice

A specialist in the practice of migration and corporate law, he also specializes in legal support for business in EU countries.

Contact now
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