Registration of CIF (corporate investment fund), MIF (mutual investment fund) in Ukraine

Registration of an investment fund in Ukraine became possible after the adoption of the law on the activities of joint investment institutions. At the same time, mutual investment funds appeared. Today, such organizations are extremely popular both among the population and among company employees. This is a simple and convenient way to increase your own income and receive passive income, without the need to make additional investments.

Mutual and corporate investment funds have their own registration and operation features, which you must know about before registering such an organization. Registration of mutual funds and CIFs is associated with a number of difficulties, and is often delayed due to the applicant’s failure to comply with legal requirements and the need to eliminate deficiencies. Therefore, if you want to register a mutual or corporate investment fund, it is better to trust the specialists. Zigma company is a mutual fund registration company at competitive prices.

What is a corporate investment fund?

A corporate investment fund (CIF) is a legal entity that can engage in a single type of activity - joint investment. Registration of a CIF is possible only in the form of a joint stock company. A corporate investment fund, according to the laws of Ukraine, is considered a financial organization, therefore its activities are carried out on the basis of a license issued by the National Securities and Stock Market Commission.

A corporate investment fund cannot exist as an independent organization. Therefore, an important condition for registering a CIF is the conclusion of an agreement with an asset management company (AMC). In fact, all actions carried out by a corporate investment fund are carried out only with the approval of the AMC.

A CIF participant is a person who purchased the fund’s securities. A participant in a corporate investment fund has the right to participate in the management of the organization, receives the right to vote when making any decisions, and nominate representatives who will take part in the General Meeting. The participant also has the right to receive profit from the activities of the CIF and take part in the distribution of dividends (if he is a holder of securities of the CIF registered as a closed joint-stock company).

Registration of a CIF begins with the creation of a legal entity. The company is registered according to the same rules as any other joint stock company. The founding board of the CIF can include both individuals and legal entities and individual entrepreneurs. However, there is one important requirement here - only a legal entity whose share of state ownership does not exceed 25% can act as a founder.

Restrictions on individuals joining the founding board may only apply to venture capital or qualifying CIFs. An individual can join the founding board of a venture fund only when purchasing securities of a corporate investment fund in the amount of at least 1,500 minimum salaries. An individual can join a qualifying CIF upon purchasing securities worth at least 100 minimum wages.

How to register a mutual investment fund?

The main difference between a mutual investment fund and a corporate one is that the mutual fund is not an independent legal entity. It is created as a separate division, or more precisely, it represents a set of assets that are under trust management in the AMC. Accordingly, only an AMC can register a mutual investment fund, and you will have to either create your own organization or negotiate with a third party.

Registration of mutual funds includes the following steps:

• Conducting the constituent meeting, making the appropriate decision and drawing up the minutes;
• Preparation of regulations for the functioning of a mutual investment fund;
• Contacting the state registrar, submitting an application and a package of registration documents. The registrar is obliged to carefully study and approve the regulations, as well as issue the appropriate certificate of the mutual fund;
• Concluding agreements for servicing a mutual fund with the depository, auditor, custodian of assets, as well as with the underwriter (if necessary);
• Preparation of a project for issuing own securities of a mutual fund, approval of this project by the AMC;
• Submitting a draft securities issue to the state registrar and receiving a corresponding certificate from it;
• Assignment of an international number to mutual fund securities.

Current legislation establishes the minimum amount of assets that must be managed by a mutual investment fund. It is equal to the amount of 1250 minimum wages, and the founders of the mutual fund are required to form it no later than 180 days from the date the registrar issues a certificate of state registration of the mutual fund.

Zigma – reliable assistance in registering investment funds.

The Zigma Law Firm offers individuals and legal entities services of state registration of mutual and corporate investment funds. Corporate law is one of the main areas in which Zigma lawyers specialize. Specialists know about all the features of Ukrainian legislation regarding mutual funds and mutual funds, and will do everything possible to ensure that the state registration procedure goes as quickly as possible.

Zigma company offers clients the following services:

• State registration of CIF, mutual investment fund;
• Assistance in holding the constituent meeting;
• Search for asset management companies;
• Concluding agreements with the depository, auditor, and underwriter;
• Assistance in the formation of investment fund assets;
• Obtaining a license for the National Securities and Stock Market Commission, etc.

Zigma will carry out all the necessary procedures required to form the fund. By trusting us, you will receive a ready-made mutual fund and CIF at competitive prices.

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• Sale of ready-made CIFs, mutual funds.
• Registration of AMC (Asset Management Companies).
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• Sales of credit unions.