Cayman Islands investment fund: a passive income and the asset security

Cayman Islands investment fund: a passive income and the asset security

Any business requires a careful analysis and planning. This helps to achieve a highest results and increase profits. In addition, there are such legal forms of entrepreneurship, that can generate passive income or help preserve your assets. Registering an investment fund is one of these types of businesses.

If you want to establish an investment fund, you must choose a jurisdiction, where it will be most profitable and promising. Turning to our company, you will receive expert assistance in this and other related matters. After analyzing a situation and taking into account all your wishes, goals and opportunities, we will advise the state, in which you can arrange a business. It is profitable to register an investment fund in the Cayman Islands.

Cayman Islands is considered a tax haven. A huge number of entrepreneurs annually register a company in the Caymans. If we talk about investment funds, then more than 50% of all existing hedge funds currently registered in the Cayman Islands.

Why is this state attractive to foreign businessmen:
  • a quick company registration;
  • no requirements for an authorized capital;
  • the ability to not pay taxes for 30 years (a partnership does not pay taxes for 50 years);
  • a minimum reporting.

A mutual fund is registered in the form of a Limited Liability Company. This saves money on organization and management. In addition, registering an umbrella fund in the Cayman Islands is popular (when there are subsidiaries in other countries, mainly with low taxation). If you want to establish umbrella funds in the Caymans,we will suggest you consider the list of countries, that are most suitable for registering a subsidiary.

How to set up a fund in the Cayman Islands:
  • registering a partnership in the Caymans;
  • registering an LLC in the Caymans;
  • establishing a mutual trust in the Cayman Islands.

These types of businesses cannot conduct transactions with residents of the state, but can conduct transactions with other registered companies in the Cayman Islands.

How are funds classified in the Cayman Islands?

According to the Law of this jurisdiction, there are different types of funds, including:

  • exempted;
  • established as an administered structure;
  • established as a regulated structure;
  • organizations, that require licensing.

There is another type of mutual investment funds in the Cayman Islands, that does not fall under these rules: a registration of excluded funds in the Caymans.

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If you wish to establish a regulated fund in the Caymans, you must:
  • to coordinate with the Cayman Financial Management the criteria and policies of the fund (a MOA and other documents);
  • to describe in detail a structure of the company and confirm this documented;
  • to document the recruitment of audit and administration employees;
  • to provide a registration certificate;
  • to confirm a payment of state duty and registered capital;
  • to confirm the trustworthiness of the founders.
In addition, employees must be qualified, experienced and trustworthy.

If you want to establish the exempted fund in the Cayman Islands, you should know, that this form is a most popular, since there is no need to coordinate the activities of the fund with government agencies. A minimum registration time, low costs for registration and maintaining at the same time all the functions of a mutual investment fund are also advantages of this type.

Nuances:
  • a number of founders is no more than 15;
  • investors have a right to vote by majority vote to appoint a fund operator or to deprive him of management rights;
  • a status of documents is controlled by a licensed lawyer.
Mandatory registration funds in the Caymans:
  • An administered fund in the Cayman Islands. A main feature is the need to appoint a local resident as an administrator. In addition, the resident must have the appropriate license. There are no requirements for a number of investors or the size of the invested assets.
  • A regulated fund in the Cayman Islands. The amount of the capital, that the investor acquires, is not less than $100 000.
  • Cayman Islands licensed fund. Managers and founders manage investments, after passing a security check.
What is needed to order a service “registering a fund in the Caymans remotely”?

Contact our company at the contacts, indicated on the website, and we will help you:

For more details regarding the registration of the fund in the Cayman Islands or in other jurisdictions, check with our specialists.

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