Developing a legal and tax structure for the establishment of an investment fund in Kazakhstan

The economic environment is developing quite dynamically both in the world as a whole and in Kazakhstan. In such conditions effective means of capital management are required, and creation of an investment fund in Kazakhstan from this point of view justifies itself to the fullest extent. Such a fund is a legal entity having the form of a joint stock company, which attracts financial resources by issuing its own shares and publicly placing them in order to invest the attracted money in securities.

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What is an investment fund and why create it?

An investment fund is a special type of company created to attract investments. It unites the funds of numerous owners of capital in order to diversify their investments. Investors acquire shares in it, thus becoming shareholders or shareholders. The funds raised are invested in securities, such as bonds or stocks.

Due to this, the fund receives income – it can be both dividends and interest payments on securities, the value of which increases. If the fund's assets grow in value, depositors receive income.

The emergence of such organizations in all countries with developed financial markets is due to the growing number of small shareholders who need to be served appropriately. Existing and newly created investment companies in Kazakhstan complement the system of bank accounts accumulating consumer savings.

By creating an investment fund in Kazakhstan, several goals can be achieved

accumulate investors' assets, distributing income received as a result of transactions evenly among their shares;
invest financial resources in a variety of economic instruments, which reduces the degree of risks.;
reduce the costs associated with transactions on the securities exchange.

Owners of financial assets are willing to invest in such funds, given that investors themselves do not have to analyze securities and plan transactions themselves – it is enough to purchase a share. In addition, the tax structure of the investment fund assumes certain tax breaks for investors.

What types of investment funds exist in Kazakhstan

When thinking about how to open an investment fund, it is necessary to take into account that they can exist in various forms:

Mutual Investment Fund

A mutual investment fund does not involve the creation of a legal entity and is a package of assets that the management company manages in accordance with the interests of shareholders. Investment professionals make decisions about how to deal with assets in order to earn income from them. The investor who bought the share is a co-owner of the assets, and his share is proportional to the invested amount.

Limited Liability Partnership

A limited liability partnership (limited partnership fund) involves the participation of partners of two statuses – managing and having limited rights. The former manages the fund, and from a legal point of view, his actions impose certain obligations on the entire partnership as a whole, and his responsibility for the obligations of the partnership is unlimited. The responsibility of a partner with limited rights extends exclusively to his contribution, his actions do not create any legal obligations and rights for the partnership, and he does not participate in management.

Companies with segregated cells

Companies with segregated cells (segregated portfolio company) separate the liabilities and assets of different series or classes of shares from each other. Due to this structure, the investor uses only assets related to the portfolio in which he is involved, being protected from losses of other groups or classes of stocks.

These differences determine the regulation of investment funds and their activities.

Основные этапы регистрации инвестиционного фонда

In accordance with the requirements of the legislation, the registration of an investment fund includes the following stages::

creation of internal documentation, including the charter, rules of work and regulations;
approving it;
conclusion of an agreement with a management company;
transfer of the finished package of documents to government agencies;
opening of bank accounts, including transit and personal current accounts;
depositing assets;
registration of shares with the opening of a personal account for each depositor.
Next, a report is compiled on the completion of the formation of the fund.

What are the requirements for investment funds?

According to the legislation of the Republic of Kazakhstan, any investment fund has a number of requirements:

Its founders or shareholders should not be legal entities registered in offshore zones.
A joint-stock investment fund does not have the right to create subsidiaries, issue or place any financial instruments other than ordinary shares.
Accounting and storage of the property of such an organization intended for investment is carried out by the custodian according to the custodial agreement.

Affiliated management companies, auditing organizations and appraisers who have concluded relevant agreements with a joint-stock investment fund are not allowed.

How Law Consult Group helps with foundation creation

The Law Consult Group company provides comprehensive legal support for investment funds, starting from their creation. Experienced specialists will help you do everything you need.

By contacting the pros, we will help:

develop a tax and legal structure;
prepare all required documents;
interact with regulators.

Create an investment fund in Kazakhstan

The services provided also include consultations related to further management and maintenance of Due Diligence and KYC.

Create an investment fund in Kazakhstan in any of the possible legal forms with the assistance of the Law Consult Group, and the economic benefits will be obvious.

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