Investment operations of hedge funds are covered by strict licensing in most countries. Only if this condition is met, the company receives permission to cooperate and cooperate with professional investors. Each jurisdiction has its own rules and procedures regarding how to get investment fund license. It is worth noting even in absence of a requirement to obtain an official document, funds may be subject to a more complex and challenging registering procedure.
Having an appropriate license is a guarantee for potential partners of fund being under control of regulative bodies, and its activities do not violate jurisdiction laws demonstrating honesty and openness.
Offshores to buy investment fund
Particularly, Cayman Islands are very popular among offshore jurisdictions for getting investment licence. State has an excellent reputation on the world stage and is not listed in any list of banned or sanctioned countries. However, not so long ago, the Islands were included in the list of states with increased levels of risk, which in the future may somewhat complicate the interaction of fund structures with EU institutions.
One of the advantages of establishing a Caymanah foundation is that there is no obligation to the director or founder to have a domicile in the jurisdiction. The following types of funds are available on the Islands:
- open being under regulation;
- closed – such firms aren’t covered by general control of regulative bodies;
- private enterprises.
Next-mentioned points are put forward for funds on the Caymans:
- presence in the company of 1 shareholder and 2 directors. There is no mandatory residency condition for these persons;
- an audit of the financial statements is mandatory.
Fund structures in the Caymans are entitled to be exempted from obtaining official permission, proving company’s activities are carried out in favor of shareholders, and the minimum check is 100 thousand dollars.
Other popular offshore sites to buy investment license include the following:
- British Virgin Islands: excellent reputation, easy registration and no residency requirements;
- Bahamas: confidentiality and anonymity, no tax fees, simple registration and the number of shareholders and directors of only 1 person is allowed.
European hedge funds
In the EU, any activity related to finance must be licensed. This rule also applies in Malta, where local conditions strongly support the development of such structures, in particular, opening up opportunities to attract additional investors, introduce innovative fiscal vehicles and invest in securities projects. Funding firms in Malta are divided into 3 categories depending on the potential investor.
- An experienced capital owner is a person who has the appropriate qualifications and has significant experience in a given market.
- Qualified investor – a person who has a net worth of more than 750 thousand euros, or belongs to an association, whose total resources exceed the specified amount.
- And the third category – investors with personal capital exceeding 7.5 million euros.
Do you need help registering a fund in chosen state? Contact us, and we will not only help you in this matter, but also offer a ready investment fund for sale with licenses. Our experts will accompany and support you at each stage of the transaction, making every effort to successfully start your commercial project.
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