An investment company is a legal entity whose scope of business is the collective investment.
Collective investment of and investment company is based on:
- Creation and management of mutual funds, or
- Management of investment funds under the management contract.
The investment company must have a permission of the Czech National Bank (CNB), the firm contains designation "investment company". The CNB shall grant authorization only to such a JSC which, among other things, issues only registered shares, whose headquarters and real seat is in the Czech Republic, which submits a business plan and design of the organizational structure of the investment company, has paid up share capital.
Investment company may not issue bonds. An investment company may manage assets in a mutual fund or other investment company or property of an investment fund, which has not concluded a management contract.