Eternity Law International News The requirements for registering and getting permission to open a small alternative investment fund

The requirements for registering and getting permission to open a small alternative investment fund

Published:
September 4, 2022

Alternatives are becoming core in the investors` portfolios. One of them is a mutual fund called a small alternative investment fund (further mentioned as SAIF). This collectively pooled private financial tool gathers the investors` funds aiming to contribute the gathered mutual funds in line with the predetermined investment policies drawn up for the sake of the benefit of the investors. Below you will find the main requirements for a small alternative investment fund.

Requirements for a small alternative investment fund: key considerations 

  • A set of obligations for opening an investment fund covers the formation of the company itself, which normally takes 5 working days. It is essential to take into account that at this stage of registration, you should have at least 2 board members in your fund.
  • This is followed by getting official permission to register this fund from the financial regulatory organ of the country – for instance, in Estonia, this is the Estonian Financial Supervision Authority, in the United Kingdom – this is Financial Conduct Authority. Generally, since the receipt of an application, the applicant will receive a reply from the regulator within 60 days. The time necessary for application processing, however, is contingent on how fast the obligations are complied with by the applicant.
  • Apart from authorization permitting fund registration, the company should ensure efficient counteraction to the illegal circulation of funds and the contribution of money to terrorist activities. For this purpose, it is obligatory to acquire an additional fund manager’s license issued by the Financial Intelligence Unit, which also takes about 2 months. Under this license, a SAIF has the possibility of attracting private clients as well.
  • The last step is entering the data of the fund itself into the Commercial Register, this is a hassle-free procedure taking only up to 5 working days.

Official papers necessary for the fund formation

The official papers that are to be prepared along with the application for opening are the following:

  • Partnership Deed;
  • Original Deed of Trust;
  • Certificate Confirming Registration;
  • Copy of the Placement Memorandum;
  • Contacts and other details of the company;
  • Memorandum and the Articles of Association.
  • Data of the senior management and shareholders;
  • Company office address and other data of the Registered Office;
  • Other information in the respect of the intended activity of the business.

The benefits of establishing an investment fund

  • The formation of a SAIF is highly beneficial for its ability to attract retail clients in the absence of public offers.
  • The complete procedure of registering a fund normally requires approximately two months. (As mentioned above, the time taken for registration is contingent on how quickly the requirements for investment fund are complied with by the applicant)
  • After registering and receiving a permit to open a SAIF, investors obtain a right to safely manage stocks, currencies, bonds, virtual currencies, real property, and other financial assets that will be placed in their portfolios to bring more profit.
  • Also, investors with such permission will be able to contribute assets in venture capital, as a SAIF can be easily tailored to certain projects, which can be used as an efficient instrument to pool capital from other investors.
  • There is no obligation that investors in SAIFs should be solely professionals or citizens of one country, these financial tools allow to invest for everybody.
  • The last but not least benefit of opening a fund is privacy. When an individual is authorized to open and operate a small fund, all data of both investors and the volume of their contributions will be completely confidential.

If you have any questions of requirements for a small alternative investment fund, contact us. Our experts have a huge expertise in buying and selling businesses, as well as licensing.

Also, you can view new offers in the categories “Ready-made companies”, “Banks for sale” and “Licenses for sale”.

You could be interested

Company Formation and Incorporation Options in Brazil in 2023

This jurisdiction is quite popular and has a reputation as a reliable commercial platform among foreign businesspersons. To register a business in Brazil is a rather laborious process in terms of accounting for and compliance with certain rules prescribed by the local regulator and set by government agencies. However, the establishment of enterprise in this...

Banking license in Labuan for sale

If you are looking for new business opportunities abroad, we recommend you considering not only countries but also their regions. For example, the Labuan region in Malaysia. Labuan is a federal territory with an independent tax and business law systems. It is situate between Malaysia, the Sultanate of Brunei and the Philippines, so you will...

Company registration in Canada

The Canadian jurisdiction is attractive to foreign investors in that it has created the most flexible conditions for registering companies and has not introduced prohibitions on cooperation with representatives of other countries. Today, a particularly popular commercial area in Canada is the online business. The country is completely open for creating and selling Internet startups,...

Stages of developing a payment system

A payment system is a set of technical procedures through which users of this system can make transactions to transfer funds between legal entities or individuals. The main function of any of these systems is the circulation and transfer of monetary resources. Having your own payment system will allow you to create the most comfortable...

What is Cyprus Investment Firms structure?

If you have ever faced with question “What is CIF structure?”  you know that they have special organizational structure and features that make them different from another companies and individually described. In this article, we would like to get you acquainted with Cyprus distinctive traits. What is CIF (Cyprus Investment Firms) structure? First of all...

Registration of an investment fund

Registration of an investment fund is an urgent issue for commercial entrepreneurs who want to invest their capital. WHOM IS THE INVESTMENT FUND USED FOR? Funds are created for profitable investment of currency. They combine the financial resources of several investors to form a single capital, which will help attract new partners and increase total...
Fill the blank:

Zurich

Dreikonigstrasse, 31A, Stockerhof

Kyiv

Baseina street, 7

London

Grosvenor Gardens, 52

New York

1178 Broadway, 3rd Floor #3353 New York, NY 10001

Vilnius

Gediminas Avenue, 44A

Tallinn

Kesklinna linnaosa, Tuukri 19

Edinburgh

Lochrin Square, 1

Nicosia

Jacovides Tower, 5 floor

Riga

Esplanade, 7 floor

Hong Kong

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

Singapore

Level 42, Suntec Tower Three, 8 Temasek Boulevard

Sydney

20 Martin Place

Porto

2609 Avenida da Boavista

Tbilisi

Revaz Tabukashvili Str., N 45, area N 7