ESTABLISHMENT OF AN INVESTMENT FUND, ASSET MANAGEMENT COMPANY

ESTABLISHMENT OF AN INVESTMENT FUND, ASSET MANAGEMENT COMPANY

One of the options for a profitable business is an offshore investment fund, for example, in Panama, Jersey, Seychelles, etc.

The laws in different jurisdictions differ, just like the requirements for obtaining licenses, the amount of authorized capital, etc.

The concept of an investment fund

An investment fund is an organization that pools money and uses it for a specific purpose. The founders of an investment fund are usually legal or natural persons who are not responsible for the money in the fund. The fund itself also owes nothing to investors.

Assets are managed by professional managers who seek to invest in the most profitable enterprises related to real estate, company shares, venture capital funds, precious metals, oil, electronics, etc.

Based on the results of investment activities, the fund shares profits with investors, making investing in itself profitable for investors.

The purpose of opening an investment fund

Funds are divided into open and closed, and also investment corporations. The main goal of creating such an organization is to reduce the tax burden, protect funds and increase money.

Positive qualities of offshore investment funds:

1. Low taxes.
2. Opportunity to attract investors.
3. Entering the markets of foreign funds.
4. Fewer limits on currency turnover.

Also a plus in protecting assets from encroachment by competitors.

Countries for opening investment funds

To register a fund, you can apply to one of the countries where taxes are low. Offshore jurisdictions are ideal: Guernsey, Panama, Jersey, Bahamas, Belize, Bermuda, Caymans, etc.

Also, good countries to look at: are the Czech Republic, Portugal, Cyprus, Luxembourg, and Great Britain. To understand in which country it is better to open an investment fund, contact experienced lawyers.

Business promotion abroad

Speaking about the promotion of the fund, you need to take into account that you will have to advertise the organization, get acquainted with influential people, and acquire important connections.

The creation of an investment fund is similar to the registration of a licensed company, for example, a bank and an insurance company. But the order and requirements can be very different.

Registration of an investment fund

This organization is registered as an ordinary company. Depending on the type of investment fund, it is necessary to obtain the approval of the regulator and consent to the fact that certain persons occupy leadership positions, for example, director, auditor, and administrator. Sometimes operators need to obtain a license and comply with certain legal requirements.

Next, you need to wait for the decision of the regulator and obtain a license, after which you can start a business.

The investment fund concerns investors, so it will be strictly regulated by the state. Offshore regulation is less strict, but a number of requirements are still present. There may also be requirements for the professionalism of the fund’s staff to ensure its reliability.

Fund management

Depending on the direction of investment, the fund distributes profits and this creates a certain investment structure for the enterprise.

Consider the infrastructure of the fund:

• Fund management company. She manages the organization and invests in certain objects, such as real estate.
• Personnel who calculate the net asset value and conduct purchase and sale transactions.
• prime broker. It is necessary for the conclusion of transactions in the stock market.
• depository bank. Needed to save company shares. A custodian may also be needed to receive and pay out the invested funds.
• The regulator is needed to control the fund and obtain a license.

The cost of creating, registering and licensing a fund varies widely and depends on the jurisdiction, ambitions, goals, investment objects, investment amounts. Landmark – $ 20,000 – $ 100,000 , at least.