Austria is known for its financial industry which is one of the most developed economic sectors in the country. One of the best examples is the banking sector, as numerous Austrian banks have expanded in many other European countries through branch offices and which are some of the most important contributors to the country’s Gross Domestic Product. Another profitable segment of the financial industry is the investment funds sector in Austria which also renders good profits to professional investors.
Our company formation consultants in Austria can offer more information on the types of investment funds available in this country.
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Legislation related to investment funds in Austria
In order to set up an investment fund in Austria, one must comply with the following laws apart from the Commercial Law:
- – the Investment Funds Act which was last amended in 2011;
- – the Undertakings for Collective Investment in Transferable Securities (UCITS) Law;
- – the Alternative Investment Manager Act (AIFM) Act;
- – the Banking Law.
Additionally, Austria has also integrated all EU directives related to the establishment and management of investment funds in its national legislation.
Our company registration agents in Austria can offer more information on these regulations.
Registering an investment fund in Austria
As mentioned above, one of the main laws related to the creation of Austrian investment funds is the Commercial Code which provides for the structures used for the registration of the vehicle used to set up the fund. The Company Act provides for limited liability companies, stock corporations and limited partnerships to be used for establishing investment funds in Austria.
The type of structure depends on the type of Austrian fund the investor wants to create. The investor must also take into account the share capital required by the Banking Act to set up the fund. Once these requisites are complied with, the licensing phase of the investment can start. The license is issued based on the prospectus filed with the Financial Markets Supervisory Authority (FMA) in Austria.
The investment funds you can choose in Austria
There are three main investment funds in Austria, an entrepreneur can consider, such as:
• bond funds;
• stock funds;
• mixed funds.
Persons who want to set up an investment fund in Austria may direct their attention to the domestic investment funds which can comprise securities, liquid financial investments, investment fund shares and money market instruments. With respect to providers of dividends for a particular period of time, the guaranty funds are subject to an obligation imposed by the guarantor. From varied types of investment funds, businessmen can choose in accordance to their interests, a matter where our Austrian specialists in company formation can help. We remind that the company formation in Austria is a simplified process which can be entirely explained by our consultants.
What are exchange traded funds in Austria?
The exchange traded funds (ETFs) in Austria are traded on a stock exchange in form of equities or fund shares and are preferred by foreign investors. The ETFs are also known as index stocks because they are a basket of securities or stocks which indicates the structure of an index, where the returns will pretty much be subject to the price trend. These are also important investments funds chosen by entrepreneurs, due to the stable and reliable stock exchange in Austria.
No matter the type of investment fund you would like to add to your portfolio, a proper understanding of the legislation and requirements in such field are mandatory for each investor, whether he/she has experience or not.
For full information on the requirements to create an investment fund, please contact us. Our Austrian company formation agents can assist with the company registration process.
If you are interested in other matters, such as taxation in Austria, our team can also answer tax-related questions. With the help of our accountants in Austria you can better understand the applicable accounting principles, and the conditions for preparing the financial statements (in EUR) each year. For detailed information about the applicable laws and regulations, please reach out to our team.