REALWorld Law

Corporate vehicles

Compliance costs

How much does corporate and accounting compliance cost for each type of corporate vehicle used to invest in real estate?

Angola

Angola

Corporate and accounting compliance costs are not relevant and may vary depending on the accounting firm in charge of same.

The new Private Investment Law does not set forth that the filing of a private investment project must be done simultaneously with a Technical, Economic, and Financial Feasibility Study (Feasibility Study). The new Private Investment Law established two different regimes of Private Investment, one is the Prior Declaration Regime and the other is the Special Regime for specific sectors. In the Prior Declaration Regime the foreign investor can go directly to Guiché Único da Empresa (GUE) to incorporate the company and GUE until now are not asking for this study. The Regulation of the law (Presidential Decree no. 250/18 of 30 October 2018) does not require this document to proceed with the process in AIPEX. The only required financial document is the document proving the existence of funds or other forms of realization of the private investment project. Commercial companies through which private investment projects that have benefits and facilities under the private investment law are implemented must submit a tax return, referring to the respective investment, separate from the other economic activities that they carry out.

Australia

Australia

A proprietary company has to pay an annual review fee (currently AUD249) to the Australian Securities and Investments Commission (ASIC). There will be other costs, such as preparing annual financial statements, taxation returns and keeping ASIC informed of any changes to the company’s structure and officeholders. The fees payable in respect of the preparation of financial statements and tax returns will be affected by the nature and scale of the company’s activities.

A public company has to pay an annual review fee (currently AUD1,176) to ASIC. As with a proprietary company there will be other costs, which will be affected by the nature and scale of the company’s activities.

A registered foreign company has to pay a fee of AUD1,169 to lodge with ASIC either an annual return or a statement to verify financial statements (as applicable) and will incur other costs depending on the nature and scale of its activities.

There are no filing fees or reporting requirements associated with a general partnership or a limited liability partnership (beyond usual income tax compliance obligations).

There are no filing or registration fees for a discretionary trust or for a unit trust. Accounting and tax return preparation fees will depend on the nature of the activities of the trust.

Belgium

Belgium

Preliminary remark: As a result of the contemplated new company code that will be introduced (as well as less severe rules), the compliance costs may be slightly different after the entry into effect of this new company code. Note that there is not yet a set date of entry into force.

Closed limited liability company (besloten vennootschap met beperkte aansprakelijkheid, BVBA/société privée à responsabilité limitee, SPRL)

A minimum of €2,000, as well as the cost of auditors: €10,000 to €20,000 (although this is only required when certain thresholds are exceeded).

Limited liability company (naamloze vennootschap, NV/société anonyme, SA)

A minimum of €2,500, as well as the cost of external auditors: €10–15,000.

B-REIT

There is no fixed cost: it depends on the size of the fund and the type of real estate invested in. The annual fee to be paid to the FSMA (Financial Services and Markets Authority) depends on the net assets of the fund.

Bosnia-Herzegovina

Bosnia-Herzegovina

Limited liability companies and joint-stock companies

Management and accounting costs depend on the size of the company, its business activities and the number of employees.

Unlimited partnerships and limited partnerships

Management and accounting costs depend on the size of the partnership, its business activities and the number of employees. 

Canada

Canada

Depends on jurisdiction of registration. Costs for BC only shown below (government filing fees only):

  • British Columbia Corporation or Unlimited Liability Corporation – CA$45 annual report
  • British Columbia General Partnership – N/A
  • British Columbia Limited Partnership – N/A
  • British Columbia Limited Liability Partnership – CA$45 annual report
China

China

Compliance costs vary depending on the complexity of the corporate structure.

Croatia

Croatia

Limited liability company (društvo s ograničenom odgovornošću – doo)

Costs depend on the size of company, its business activities and the number of employees. The minimum is likely to be HRK18,000 per annum.

Public limited liability company (dioničko društvo – dd)

Costs depend on the size of company, its business activities and the number of employees. The minimum is likely to be HRK105,000 per annum.

Public partnership (javno trgovačko društvo – jtd) and Limited partnership (komanditno društvo – kd)

Costs depend on the size of partnership, its business activities and the number of employees. The minimum is likely to be HRK12,000 per annum.

Closed end real estate investment fund (zatvoreni investicijski fond s javnom ponudom za ulaganje u nekretnine)

The costs of compliance depend on the charges agreed with external advisors but normally costs can be expected to be comparable to, or lower than, those in other European jurisdictions.

Czech Republic

Czech Republic

Limited liability company (společnost s ručením omezeným – s.r.o.)

Management and accounting costs depend on the size of the company and the scope of its activities.

Joint stock company (akciová společnost – a.s.)

Approximately CZK100,000, although the costs depend on the size of the company and the scope of its activities.

Unlimited partnership (veřejná obchodní společnost – v.o.s.) and limited partnership (komanditní společnost – k.s.)

Management and accounting costs depend on the size of the entity and the scope of its activities.

Denmark

Denmark

Partnership (Interessentskab)

There are no mandatory corporate compliance costs connected with the operation of a partnership. Costs for accounting compliance, for a simple organisation, will normally be between DKK 25,000 to 35,000 annually.

Public limited company (Aktieselskab)

Compliance costs between DKK10,000 and 25,000 annually for a simple small company.

Private limited company (Anpartsselskab)

Compliance costs between DKK 10,000 and 25,000 annually for a simple small company.

 

Limited partnership (Kommanditselskab)

Annual accounting compliance costs between DKK10,000 and 25,000 for a simple limited partnership.

Limited partnership company (Partnerselskab)

Compliance costs between DKK10,000 and 25,000 annually for a simple small company.

France

France

SCI (société civile immobilière) – real estate civil company

€12,000

SNC (société en nom collectif) - commercial partnership

€12,000 plus the cost of statutory auditors (€10,000/20,000), although the latter are only required when two of the following three thresholds relating to capital, turnover and the number of employees are exceeded:

  • The total value of the assets on the balance sheet is €1,550,000 or more
  • The turnover (exclusive of tax) is €3,100,000 or more
  • The average number of employees is 50 or more

SARL (société à responsabilité limitée) – limited liability company

€12,000 plus the cost of statutory auditors (€10,000/20,000), although the latter are only required when two of the following three thresholds, relating to capital, turnover and the number of employees, are exceeded:

  • The total value of the assets on the balance sheet is €1,550,000 or more
  • The turnover (exclusive of tax) is €3,100,000 or more
  • The average number of employees is 50 or more

SA (société anonyme) – stock corporation

€20,000 plus the cost of statutory auditors (€20,000/25,000).

SAS (société par action simplifiée) – simplified stock corporation

€20,000 plus the cost of statutory auditors (€20,000/25,000) if applicable.

SCPI (société civile de placement immobilier) – real estate civil investment company

€12,000 plus the cost of internal auditors (€10,000/20,000).

SIIC (société d’investissement immobilier cotée) – listed real estate investment company

€20,000 plus the cost of statutory auditors (€20,000/25,000).

Germany

Germany

Gesellschaft mit beschränkter Haftung (GmbH) – limited liability company

€12,000 plus the cost of external auditors, which is likely to amount to between approximately €10,000 and €20,000. Auditors are only required when certain thresholds relating to the balance sheet total, turnover and number of employees are exceeded.

Aktiengesellschaft (AG) – stock corporation

€20,000 plus the cost of external auditors, which usually ranges between €10,000 and €15,000.

Real estate investment trust (REIT)

€20,000 plus the cost of external auditors, which is around €10,000 to €15,000.

Immobilien Sondervermögen – real estate fund

€20,000 plus the cost of external auditors, which is around €10,000 to €15,000.

Kommanditgesellschaft (KG) – limited partnership

€10,000.

Hong Kong

Hong Kong

Companies

All Hong Kong companies incorporated under the Companies Ordinance are required to file an annual return with the Companies Registry once a year. For private companies, the annual return should be made up to the anniversary date of the registration of the company in Hong Kong and filed with the Companies Registry within 42 days of that date, together with a filing fee. For public companies or companies limited by guarantee, the annual return should be filed within 42 days of the company's return date, ie six months (for public companies) or nine months (for companies limited by guarantee) after the end of the accounting reference period (ie the period by reference to which the company's annual financial statements are to be prepared) of the company.

For a private company, the filing fee for the annual return if delivered within 42 days of the relevant date is HK$105 (HK$140 for a public company; HK$105 for a company limited by guarantee). If filed after 42 days, the filing fee will rise incrementally to a maximum of HK$4,800 for a public company and HK$3480 for a private company limited by share capital or guarantee depending on the number of days of delay. Although private companies are required to prepare audited accounts, they need not submit them to the Companies Registry.

Public companies (but not private companies) are required to submit their accounts together with their annual return to the Companies Registry.

Other recurring costs include maintaining the company secretarial function and a registered office, holding annual general meetings and producing annual accounts if and when required.

Branches of a foreign corporation

All non-Hong Kong companies registered under the Companies Ordinance are required to file an annual return with the Companies Registry once a year. The annual return should be made up to the anniversary date of the registration of the company in Hong Kong and filed with the Companies Registry within 42 days of that date, together with the filing fee. The filing fee for the annual return if delivered within 42 days of the relevant date is HK$180. If filed after 42 days, the filing fee will rise incrementally to a maximum of HK$4,800 depending on the number of days of delay. A certified true copy of the latest published accounts for a period of at least 12 months should generally accompany the annual return.

Partnerships

The recurring costs of producing annual accounts for the partnership should be taken into consideration.

Limited partnerships must also file any changes to their registered particulars with the Companies Registry within seven days. It costs HK$26 to register a statement of changes to the particulars of a limited partnership. Additional costs will be payable for changes in the sums contributed by any (new) limited partner (HK$8 for every HK$1,000 or part of HK$1,000 contributed by any (new) limited partner).

Trusts

A trust usually incurs annual administration costs, the amount of which will depend on the nature and activities of the trust. In the case of unit trusts, annual management fees and any performance-related fees may also need to be paid to the management company. Unit trusts authorized by SFC must also pay an annual fee to the Commission. The amount of this annual fee varies depending on the nature of the unit trust fund, for instance, the fee for a single fund is HK$6,000.

Hungary

Hungary

This depends on the circumstances. Any corporate changes submitted to the Court of Registration are subject to stamp duty (usually HUF15,000 but HUF40,000 in the case of capital increase/decrease of a private company limited by shares) and a publication fee (HUF3,000). Legal fees and additional costs, such as notarial fees, translation costs etc, may also be incurred.

The accounting costs are subject to agreement between the entity and its accountancy firm. An auditor may also be required.

Ireland

Ireland

Company

This varies depending on the company and its level of activity. Accounting costs include bimonthly/annual VAT returns, an annual tax return and annual financial statements. Accounts must also be audited annually by independent statutory auditors, although there are some exemptions (eg small companies meeting at least two of the following three conditions: a turnover of less than €12 million, a balance sheet total of less than €6 million and less than 50 employees may be entitled to avail of an exemption from the requirement to file an auditor’s report).

The directors of companies with a balance sheet total exceeding €12.5 million and turnover exceeding €25 million must prepare a statement acknowledging their responsibility for securing the company’s compliance with certain prescribed obligations under company law and tax law. The directors must also report on whether the company has taken certain actions, including the preparation of a “compliance policy statement”, or explain the reasons for not doing so. In addition, the directors of large companies (ie companies meeting at least two of the following three conditions: a turnover of greater than €20 million, a balance sheet total of greater than €10 million or more than 250 employees) and public limited companies are required to establish a committee or report on the reasons for not doing so. The audit committee is responsible for matters such as the monitoring of the effectiveness of the company’s systems of internal control and monitoring the company’s statutory audit.

Every company, regardless of its corporate type, is required to prepare and submit to the CRO an annual return made up to a date six months after the date of incorporation. Thereafter an annual return must be submitted each year and financial statements in the appropriate format must be attached to this annual return. Failure to file an annual return within the prescribed timeframe will result in the imposition of a late filing penalty and may result in the company being struck-off.

Collective investment vehicle

Costs vary considerably depending on the size and type of CIS, the number of holdings, the number of investors, dealing frequency etc.

Limited partnership

Costs vary depending on the level of activity of the limited partnership and whether it is required to file accounts.

Real Estate Investment Trust

The compliance costs for a REIT will vary depending on the level of activity, the number of properties held, the exchange on which its securities are listed, the number of shareholders etc.

Italy

Italy

Società a responsabilità limitata (Srl) and società a responsabilità limitata semplificata (Srls)

Although auditors are only required when certain thresholds (relating to eg turnover and the number of employees) are exceeded, the total corporate and accounting costs for an Srl are normally around €12,000 plus the cost of internal and external auditors. Srls usually avoid having auditors in order to save compliance costs.

Società per azioni (SpA)

The annual corporate and accounting costs for an SpA are approximately €20,000 plus the costs of internal auditors (between €10,000 and €15,000) and external auditors (€10,000 or 15,000).

Japan

Japan

TMK

Corporate and accounting compliance costs for a TMK vary depending on the extent and number of the properties held and the complexity of the structure (for example, if it involves trust arrangement).  It is therefore not possible to give a single figure.  Audited accounts are statutorily required.

GK (for TK-GK)

Corporate and accounting compliance costs for a GK (for TK-GK) vary depending on the extent and number of the properties held and the complexity of the structure (for example, in relation to profit sharing and expenses).  It is therefore not possible to give a single figure.  Audited accounts are not statutorily required but are often required to satisfy the information requirements of investors.

GK (for Real Estate Specified Joint Enterprise using TK-GK)

Corporate and accounting compliance costs for a GK (for Real Estate Specified Joint Enterprise using TK-GK) vary depending on the extent and number of the properties held and the complexity of the structure (for example, in relation to profit sharing and expenses).  It is therefore not possible to give a single figure.  Audited accounts are not statutorily required if entrusting business relating to real estate transactions and solicitation of TK investment to licensed real estate specified joint enterprise operators but are often required to satisfy the information requirements of investors.

Investment Corporation (for J-REIT)

Corporate and accounting compliance costs for an investment corporation (for J-REIT) vary depending on the extent and number of the properties held and the complexity of the structure (for example, if it involves trust arrangement).  It is therefore not possible to give a single figure.  Audited accounts are statutorily required.

Netherlands

Netherlands

Limited liability company (B.V.)

€10,000 to €20,000

Public limited company (N.V.)

€10,000 to €20,000

Fiscal investment vehicle (Fiscale Beleggings Instelling)

At least €12,000 to €20,000

Limited Partnership (Commanditaire Vennootschap)

€10,000

Nigeria

Nigeria

Private Limited Liability Company

Compliance costs will include mandatory requirements to file annual returns, audited accounts, tax returns and general changes at the company registry from time to time, and to maintain a company secretary.

Public Limited Liability Company

Compliance costs will include mandatory requirements to file annual returns, audited accounts, tax returns and general changes at the company registry from time to time, and to maintain a company secretary. In addition to this, public companies will incur costs relating to corporate governance reports, annual reports and quarterly reporting of financial statements to the SEC.

Real Estate Investment Trusts and Companies

Compliance costs will depend of the size of the fund, the level of activity and whether the fund is listed. Compliance costs for REICOs will include mandatory SEC requirements to file a valuation report every two years and quarterly report on the performance of the scheme. In addition to this, compliance costs for REITS will include filing a mandatory rating report every two years, and a half-year trustees’ report to SEC. Costs relating to the compliance with any applicable listing rules also need to be factored in.

Norway

Norway

Aksjeselskap/AS (private limited company)

A limited liability company is subject to the Norwegian regulations relating to accounting and auditing. Each financial year (normally the calendar year), the company must complete and submit annual financial reports and tax returns.

If the company conducts business subject to VAT, a form detailing the sales/turnover must also be submitted to the tax collection office every two months.

Annual costs amount to a minimum of approximately NOK 35,000. The costs are likely to be lower if the company has resolved (where that is permissible) not to audit the annual accounts.

Allmennaksjeselskap/ASA (public limited company)

A limited liability company is subject to the Norwegian regulations relating to accounting and auditing. Each financial year (normally the calendar year), the company must complete and submit annual financial reports and tax returns.

If the company conducts business subject to VAT, a form detailing the sales/turnover must also be submitted to the tax collection office every two months.

Annual costs amount to a minimum of approximately NOK 50,000.

Kommandittselskap/KS (limited partnership)

A limited partnership is subject to the Norwegian regulations relating to accounting and auditing. However, an exception applies if the limited partnership’s total sales revenue is less than NOK 5,000,000, the balance sheet amount is less than NOK 20,000,000, if the average number of full time employees is less than 10 and if it has fewer than five partners, and none of the partners is a corporate body.

If the limited partnership conducts business which is subject to VAT, a form detailing the sales/turnover must be submitted to the tax collection office every two months.

Annual costs amount to a minimum of approximately NOK 40,000.

Ansvarlig selskap/ANS (general partnership with unlimited liability) and ansvarlig selskap/DA (general partnership with pro rata liability)

A general partnership is subject to the Norwegian regulations relating to accounting and auditing. However, an exemption applies if the partnership’s total sales revenue is less than NOK 5,000,000, the balance sheet amount is less than NOK 20,000,000, if the average number of full-time employees is less than 10, and if it has fewer than five partners and none of the partners is a corporate body.

If the limited partnership conducts business subject to VAT, a form detailing the sales/turnover must be submitted to the tax collection office every two months.

Annual costs amount to a minimum of approximately NOK 35,000.

Poland

Poland

Limited liability company, joint stock company, limited partnership and unlimited partnership

These depend on the size of the company, its business activities, the turnover and the number of employees.

Closed-end real estate investment fund

This depends on many factors, including the complexity of the structure, the value of the assets, etc.

A valuation of the fund's assets will be carried out by a team of at least three property appraisers, qualified to value real estate in accordance with the legal regulations on real estate management. They are appointed by the management company’s supervisory board.

A valuation of assets must be carried out one month prior to the conclusion of any agreement to acquire the assets, two years after a previous valuation, or at any time when there may have been a significant change in the value of the assets.

A revaluation of assets must also be performed at least once every six months, taking into account changes in market value.

Costs depend on the size and number of properties.

Portugal

Portugal

Sociedade por Quotas (SQ)

It is hard to estimate accountants' costs, due to the fact that companies and accountants are free to determine the terms of engagement, particularly the fees.

The basic services of an accountant should include the organization of the company’s accounts, monthly or quarterly VAT returns, yearly corporate tax returns and preparation of the annual financial statements. Accordingly, a minimum of approximately €3,000 per year should be allowed for.

In specific cases, and in particular when certain thresholds are exceeded (in relation to turnover, the number of employees and other criteria), companies must appoint a supervisory council or a chartered accountant.

Sociedade Anónima (SA)

It is hard to estimate accountants' costs, due to the fact that companies and accountants are free to determine the terms of engagement, particularly the fees.

Romania

Romania

The annual cost depends on the size of the entity, whether it is VAT registered, the nature of its business and the number of employees, but will normally start at RON 12,000.

Russia

Russia

Limited liability company (OOO) and non-public joint stock company (AO)

Changing data on the state register of legal entities costs RUB800.

Other associated costs include legal fees, notary's fees and stamp duty.

The cost of accounting and external auditors depends on the size of the company and the volume of business.

From 1 September 2014 an AO must also each year engage an independent auditor to review and confirm the correctness of its annual accounts and financial report, bearing the fee charged by the auditor.

From 1 October 2014 an AO must transfer its shareholders' registry to a professional registrar bearing the service fee charged by the registrar (the fee for transferring the registry, the annual service fee that depends on the number of shareholders, the fees for the provision of excerpts from the registry, etc).

Slovak Republic

Slovak Republic

Limited liability company

Management and accounting costs depend on the size of company and the scope of its business activities. Audited accounts are required if at least two out of the following three conditions are met: the net annual turnover exceeds €2 million; the value of all assets exceeds €1 million; and/or the average number of employees exceeds 30 in one accounting period.

Joint-stock company

Management and accounting costs depend on the size of company and the scope of its business activities. A public joint-stock company's accounts must be audited. A private joint-stock company's accounts must be audited if at least two out of the following three conditions are met: the net annual turnover exceeds €2 million; the value of all assets exceeds €1 million; and/or the average number of employees exceeds 30 in one accounting period.

Unlimited partnership and limited partnership

Management and accounting costs depend on the size of partnership and the scope of business activities.

SJSC

Management and accounting costs depend on the size of company and the scope of its business activities. Audited accounts are required if at least two out of the following three conditions are met: the net annual turnover exceeds €2 million; the value of all assets exceeds €1 million; and/or the average number of employees exceeds 30 in one accounting period.

Spain

Spain

Limited liability company – sociedad de responsabilidad limitada (SL), public company – sociedad anónima (SA), limited partnership – sociedad en comandita (S.en Com. or S. Com.), partnership limited by shares – sociedad en comandita por acciones (S.Com. p. A.), general partnership – sociedad de responsabilidad colectiva.

Approximately €12,000 plus the cost of internal auditors, which amounts to approximately €10,000 to €20,000. Internal auditors are only required when certain thresholds relating to the value of assets, turnover and the number of employees are exceeded.

Real estate investment fund – fondo de inversión inmobiliario (FII)

The FII and the management company or SG must have their accounts audited. The fiscal year must coincide with the calendar year. The SG and depositaries are entitled to be paid management and deposit commissions by the fund. The SG is entitled to be paid subscription and reimbursement commission by the fund's unit holders.

Real estate investment company – sociedad de inversión inmobiliaria (SII)

An SII’s accounts must be audited and its fiscal year must coincide with the calendar year.

Real estate investment trust – sociedad anónima cotizada de inversión inmobiliaria (SOCIMI)

The annual costs can be between €30,000 and €70,000 but again this may vary depending on the characteristics of the company. The company must designate a registered advisor (asesor registrado) and a liquidity provider for the transactions with the multilateral trading system (MAB) on which the company is listed and significant disclosure of information requirements are imposed on the company and its shareholders.

Sweden

Sweden

Limited liability company

Approximately SEK25,000 or more annually for a company that is inactive apart from owning real estate and receiving rent, depending on the size of company, its turnover, the number of employees etc.

Partnership

Approximately SEK20,000 or more annually for a partnership that is inactive apart from owning real estate and receiving rent, depending on the size of partnership, its turnover, the number of employees etc. 

Thailand

Thailand

Corporate and accounting compliance costs for a limited company and a property fund will vary depending on the extent and number of the real estate assets held and the complexity of the company and fund structures.

United Arab Emirates - Abu Dhabi

United Arab Emirates - Abu Dhabi

The major accounting firms maintain a considerable presence in the UAE and are employed by many companies in relation to corporate/accounting compliance. Compliance costs vary considerably and are commensurate with the needs of each individual company.

United Arab Emirates - Dubai

United Arab Emirates - Dubai

The major accounting firms maintain a considerable presence in the UAE and are employed by many companies in relation to corporate/accounting compliance. Compliance costs vary considerably and are commensurate with the needs of each individual company.

UK - England and Wales UK - England and Wales

UK - England and Wales

Limited partnership

Corporate and accounting compliance costs for limited partnerships vary depending on the extent and number of the properties held and the complexity of the partnership (for example in relation to profit sharing and expenses). It is therefore not possible to give a single figure. Audited accounts will need to be provided for the partnership to satisfy the information requirements of investors. A limited partnership operated as a property fund will normally constitute an unregulated collective investment scheme. As such, it will need to be established, operated and eventually wound up by a Financial Conduct Authority (FCA) authorized operator, who will commonly charge both take on and administration fees. These will also vary depending on the size and complexity of the scheme.

Limited liability partnership

Corporate and accounting compliance costs vary depending on the extent and number of properties held and the complexity of the partnership (for example in relation to profit sharing and expenses). It is therefore not possible to give a single figure. If the limited liability partnership is used as a manager vehicle, additional costs may be incurred.

Investment syndicate trust

Recurring costs will be incurred for auditing the accounts and maintaining the two corporate trustees. If the syndicate trust is operated so that it is not a collective investment scheme where investors take part in all the key decisions, which could affect financial return, the cost of having an operator will be saved. However, the two trustee companies are likely to require the services of an administrator. The overall costs depend on the complexity of the trust and the nature of its investments, but are generally likely to be lower than for a limited partnership.

Property unit trust

Annual administration costs will be charged to the investors in the case of a property unit trust and, as a proportion of funds invested, tend to be lower for larger property unit trusts than for smaller ones. The unit trust will also have to pay annual management fees and any performance-related fees for the manager. Administration and management fees vary depending on the type of fund.

Limited company

Recurring costs include maintaining the company secretarial function and a registered office, and the production of annual accounts where required.

Public limited company

Recurring costs include maintaining the company secretarial function and a registered office, and the production of annual accounts where required.

UK - Scotland

UK - Scotland

Limited partnership

Corporate and accounting compliance costs for limited partnerships vary depending on the extent and number of the properties held and the complexity of the partnership (for example in relation to profit sharing and expenses). It is therefore not possible to give a single figure. Audited accounts will need to be provided for the partnership to satisfy the information requirements of investors. A limited partnership operated as a property fund will normally constitute an unregulated collective investment scheme. As such, it will need to be established, operated and eventually wound up by a Financial Conduct Authority (FCA) authorized operator, who will commonly charge both take on and administration fees. These will also vary depending on the size and complexity of the scheme.

Limited liability partnership

Corporate and accounting compliance costs vary depending on the extent and number of properties held and the complexity of the partnership (for example in relation to profit sharing and expenses). It is therefore not possible to give a single figure. If the limited liability partnership is used as a manager vehicle, additional costs may be incurred.

Investment syndicate trust

Recurring costs will be incurred for auditing the accounts and maintaining the two corporate trustees. If the syndicate trust is operated so that it is not a collective investment scheme where investors take part in all the key decisions, which could affect financial return, the cost of having an operator will be saved. However, the two trustee companies are likely to require the services of an administrator. The overall costs depend on the complexity of the trust and the nature of its investments, but are generally likely to be lower than for a limited partnership.

Property unit trust

Annual administration costs will be charged to the investors in the case of a property unit trust and, as a proportion of funds invested, tend to be lower for larger property unit trusts than for smaller ones. The unit trust will also have to pay annual management fees and any performance-related fees for the manager. Administration and management fees vary depending on the type of fund.

Limited company

Recurring costs include maintaining the company secretarial function and a registered office, and the production of annual accounts, confirmation statements and the filing of other forms that may be required at Companies House.

Public limited company

Recurring costs include maintaining the company secretarial function and a registered office, and the production of annual accounts, confirmation statements and the filing of other forms that may be required at Companies House.

Ukraine

Ukraine

This depends on the fees of the professional advisors providing the service and the business activities of the company or partnership.

United States

United States

US limited partnership, US limited liability company and US general partnership

Accounting costs will depend on the number of holdings of the limited partnership or LLC, the complexity of the economics of the partnership or LLC, and whether audited financial statements will be required for the partnership or LLC.

Zimbabwe

Zimbabwe

Property unit trust

Annual administration costs are absorbed by the investors, as a proportion of funds invested. The unit trust will also have to pay annual management fees and any performance-related fees for the manager. The fees size and types of fees payable will normally differ depending on the type of fund but these may typically include bank charges and the fund’s audit fees. Renewal license fees for asset management companies by the Securities Exchange Commission is ZWD 3,000.

Limited company

Recurring costs include maintaining the company secretarial function and a registered office, and the production of annual accounts where required, including filing of annual returns of the company at the Registrar of Companies.

Public limited company

Recurring costs include maintaining the company secretarial function and a registered office, and the production of annual accounts where required, as well as presenting and publishing of audited financial records of the company. In the case of listed companies, there are attendant ongoing compliance requirements