Set up a Czech Trust

Investors interested in setting up a trust in the Czech Republic must respect the applicable laws and also solicit representation for all the formalities involved. Our team of agents for setting up a company in Czech Republic can offer in-depth assistance on the main requirements for registering a trust fund. 

Main parties of a Czech trust 

According to the legislation applicable in Czech Republic, a trust is a vehicle through which its founder (who has the quality of a settlor) transfers a part of his or her property to be administered by another party. 

Investors who want to start the legal procedure of company formation in Czech Republic as a trust will need to sign an agreement, which will represent the main statutory document of the respective entity. It is also important to know that a trust does not have a legal personality and that it can be employed for public or private purposes. At the same time, the trust can be incorporated by legal entities. Our Czech team of company formation can offer comprehensive assistance on the registration aspects.  The main parties entering a Czech trust are the following:

• the founder  –  the person who started the trust;
• the trustee – the person  who has received the right to manage the trust’s assets;
• the beneficiary -the person or persons who will benefit from the trust. 

Purpose of the trust in the Czech Republic  

A trust in Czech Republic may be registered for specific purposes. Businessmen who are interested in starting the procedure of company registration in Czech Republic for this type of vehicle may set it up for the following types of activities: 

• commercial interests (such as investments in the Czech Republic);
• private interests (created for the benefit of a person);
• public interests (the trust may be set up for funding social, medical, or sports-related events). 

What to keep in mind when setting up a Czech trust

If you are interested in setting up a trust in the Czech Republic, you should consider the following:

• the Statute is the document based on which a Czech trust can be formed. It must contain information about beneficiaries, purposes, assets, etc.;
• a Czech trust only comes into force if it is notarized. We can put you in touch with our local partners once the trust agreement is concluded.
• once signed by the notary, the Czech trust must be registered with the Public Trust Register. Thus, the document in question is perfectly legal.
• Czech trusts are required to have a Taxpayer Identification Number (TIN).
• the transfer of assets is only carried out after registering and obtaining a TIN for the Czech trust in question.

With these things in mind, all that remains is to talk to our Czech agents to find out all the details about setting up a trust. We can guide you from the legal point of view from the beginning to the end to ensure that the trust is correctly registered.

Trusts for public benefits in the Czech Republic

A trust in the Czech Republic can be registered for public benefit purposes. Setting up this kind of trust is similar to a Czech foundation and can be an appropriate choice for persons involved in charitable & social projects. Such a trust is flexible and allows the founder to implement the rules.

You can find out more about this type of trust that can be registered in the Czech Republic from our specialists.

What is the duration of a Czech trust?

Founders of a trust in the Czech Republic have the option to set a time limit or a fixed period of up to 30 years, during which the objectives must be achieved. However, in most cases, Czech trusts are set up for an unlimited period. To better understand the duration of a trust in the Czech Republic, it is best to inform yourself and seek specialized legal assistance, as we offer at our firm.

Statistical data about Czech trust funds

Here is some data about trust funds in the Czech Republic:

• the latest report shows that there were around 4,000 trust funds in the Czech Republic in 2023.
• the most popular trust funds are those offered with the help of banks in Prague. 10 of these offer trust fund management services in the capital city.

Businessmen are invited to contact our team of consultants in company formation in the Czech Republic, who can provide in-depth advice on the main legal stipulations related to the trust fund.