What does the establishing of an alternative investment company involve?

What does the establishing of an alternative investment company involve?
Marek Cieślak

Marek Cieślak

CEO CGO Finance

An alternative investment company is a form of investment that is becoming increasingly popular among investors as one of the ways to make profits. If you are thinking of starting alternative investment company, there are some steps you should take. In this article, we’ll discuss the steps and costs to prepare for when it comes to establishing an alternative investment company.

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Establishing an alternative investment company in Poland step by step

Establishing an alternative investment company (AIC) requires several steps. Below we describe a general process of establishing an AIC in Poland:

  1. Choosing a legal form. In the beginning, it is necessary to choose the legal form in which the AIC will be established. Possible options include a limited liability company (sp. z o.o.), a joint-stock company (S.A.), or a limited joint-stock partnership (S.K.A.). Depending on the legal form, investors have different levels of responsibility and different formal requirements.
  2. Registering the company. Next, you need to register the AIC in the National Court Register (Polish: KRS). For this purpose, it will be necessary to submit the company’s statute, deed of incorporation, company’s agreement, or another document regulating the rules of its operations.
  3. Share capital. The required share capital depends on the chosen legal form. In the case of a limited liability company, the minimum share capital is 5000 PLN. For a joint-stock company, it will be 100 000 PLN. For a limited joint-stock partnership it amounts to 50 000 PLN minimum.
  4. Establishing a supervisory board. The AIC should have a supervisory board. Its role is to monitor the company’s management activities and make strategic decisions.
  5. Obtaining permission from the Financial Supervision Commission (Polish KNF). If the AIC will invest in alternative financial instruments (e.g. hedge funds), obtaining permission from the KNF may be necessary.
  6. Signing investment agreements. The AIC in Poland must sign investment agreements. The agreements specify the rules for investing funds and sharing profits.

It is important to consult with experts in the field of law and finance before establishing an AIC. They will help in choosing the optimal legal form and defining investment strategy.

What are the types of companies in Poland? Which are best to set up in 2023? How to register them? Find the answers here.

How long does it take to register an alternative investment company in Poland?

The registration time of an alternative investment company depends on many factors. The company’s type, number of founders and the amount of documentation to prepare matters matter. The complexity of the registration procedures also influences it. The registration process of an AIC in Poland can take from a few weeks to several months.

In any case, before registering an AIC, it is worth familiarizing oneself with the legal regulations and organizational requirements that you must meet. Strict registration processes are necessary to ensure the proper and safe functioning of an AIC. It is also important for the protection of investors’ interests.

Do you have to pay to register an alternative investment company in Poland?

The establishment of an alternative investment company involves certain costs. Below you will find estimated costs associated with setting up an AIC:

  • Notary costs. Setting up an AIC requires creating articles of association. It must be signed before a notary. Notary costs depend on the value of the share capital and the complexity of the documents. The approximate notary costs range from several hundred to several thousand zlotys;
  • Costs of registration with the National Court Register. To register an AIC in the National Court Register, you must pay a registration fee. The cost of registering an AIC in the National Court Register is around 500 PLN.
  • Costs of legal and financial advice. Before setting up an AIC, it is worth using the services of legal and financial advisors. They will help in choosing the optimal legal form and developing an investment strategy. The costs of legal and financial advice depend on the scope of services. They are also determined by the experience and reputation of the advisors. 
  • Costs associated with maintaining an AIC. After setting up an AIC, it is necessary to remember about the costs associated with its maintenance. They include, for example, accounting, auditing services, or asset management costs. These costs depend on the size of the AIC and the type of the conducted activity.

It is worth noting that the above costs are only of approximate value. The actual costs associated with setting up an AIC may vary depending on individual needs and circumstances.

Do you need to consult your thoughts and concerns about AIC?

We invite you to contact our specialists. They will provide detailed answers to your questions. They will also advise on the appropriate legal form for AIC in your case. Our experts can help you go through all the required formalities.

Is it worth establishing an alternative investment company in Poland?

Like any decision of this kind, setting up and registering an Alternative Investment Company is worth careful consideration. It’s best to consult with entities that specialize in this type of counselling.

Here are a few factors to consider before deciding to set up an AIC:

  • Investment risk. AICs often invest in assets that are riskier than those chosen by traditional investment funds. This can lead to bigger profits, but also greater losses. Before making a decision, it is worth analyzing the risks associated with given assets. You should also consider to what extent they are compatible with your investment profile.
  • Required capital. Alternative investment companies usually require a high minimum investment capital. Sometimes it means that it is only available to wealthier investors. On the other hand, a high minimum investment amount allows focusing on long-term goals.
  • Lack of liquidity. Alternative investment companies typically have less liquid investments than traditional investment funds. This means that it may be more difficult to exit or sell assets once you decide to finish your investment. This requires a well-thought-out investment strategy and a good exit plan.
  • Potential benefits. AICs may offer benefits such as higher profits, portfolio diversity, or greater control over investments. Many of them invest in real estate, foreign markets, commodities, or private equity funds. This can bring benefits that are not available in traditional investment funds.

In summary, setting up an alternative investment company has its advantages. Nonetheless, it also requires careful consideration and analysis.

Are you looking for an accountant in Poland or a payroll services provider in Poland? Specialists from our accounting firm in Poland, Warsaw will be happy to help. If you are interested in company registration in Poland visit our dedicated landing page.

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Marek Cieślak

CEO CGO Finance