Eternity Law International News How to get investment fund license

How to get investment fund license

September 9, 2022

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.

  1. An experienced capital owner is a person who has the appropriate qualifications and has significant experience in a given market.
  2. 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.
  3. 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.

Please contact us to get more information.

You can see our current offers in the categories “Cryptocoins and licensing of cryptocurrency operations”, “Ready-made companies”, “Banks for sale” and “Licenses for sale”.

You could be interested

Cryptocurrency - a currency of the future

It is difficult to meet a person today who would not have heard of such a product as a cryptocurrency. Interest in this mysterious phenomenon is growing, and in addition is giving birth to various myths, misconceptions and misunderstandings. Discussions about the economic essence and the legal component of the Cryptocurrency are growing every day...

Company registration in China

Non-residents can register a company in China in the form of a representative office of a foreign firm or as a local organization with joint or fully foreign capital. If an entrepreneur is focused on full-fledged income turnover, the first type will not be a suitable option. The freedom of representation is significantly limited, they...

Company registration in Australia in 2023

Company registration in Australia is a rather simple procedure. To form a new presence or expand an already existing business within this market, it is essential to meet the set of legit terms and conditions which we will consider below. Given that it is Oceania’s largest country; it is a good place for business startups....

Changes in the regulation of the Vanuatu forex license

In connection with the changes made to licensing in Vanuatu. The following changes must be implemented to obtain a forex broker license / renew a forex broker license in Vanuatu: APPLICATIONS FOR FINANCIAL LICENSES FOR VANUATU All applications for a Principal License must be submitted with an application for a Representative License. It is no...


By the number of users of Bitcoin Ukraine is in the TOP-10 countries of the world, despite this, to establish a company for the development of crypto business and properly build financial flows is quite difficult, since the legal status of electronic currency has not yet been determined. The only document on the basis of...

Ukrainian Parliament adopted a law on the legalization of virtual assets

On February 17, 2022, the Verkhovna Rada of Ukraine re-adopted a law designed to set a legal framework for the digital asset market. The decision was supported by 272 deputies. The draft law No. 3637 “On Virtual Assets” was adopted at the first reading in December 2020 and at the second – on September 8,...
Fill the blank:


Dreikonigstrasse, 31A, Stockerhof


Baseina street, 7


Grosvenor Gardens, 52


Lochrin Square, 1


Jacovides Tower, 5 floor


Kesklinna linnaosa, Tuukri 19


Esplanade, 7 floor


Gediminas Avenue, 44A

New York

New Rochelle, Huguenot St, 175


20 Martin Place


3 Fraser Street, #08 DUO Tower

Hong Kong

18 Harbour Road, 35/F, Central Plaza, Wanchai


2609 Avenida da Boavista


Revaz Tabukashvili Str., N 45, area N 7