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
