Top Offshore Fund Locations
Businessmen can find at fundworld.org valuable information on the investment activities that can be developed in numerous, reputable financial jurisdictions around the world. Our articles provide reliable data, which is updated on a constant basis in accordance with the newest legal modifications imposed in a given country. Here, investors can benefit from professional advice on how to set up an investment fund, but also information on the types of funds that can be registered in a given jurisdiction.
You can discover in our investment magazine information on the legal framework regulating the types of investment funds that can be incorporated in various countries. For instance, our articles present the types of vehicles that can be incorporated in European countries, but you can also find out the necessary steps for starting an investment fund in well-known jurisdictions such as Hong Kong, the Cayman Islands or Singapore.
|Types of investment funds||Mutual funds, exchange traded funds, real estate funds, alternative investment funds, collective investment funds, and hedge funds|
Recommended offshore investment destinations
|The Cayman Islands, the British Virgin Islands, the Bahamas, Bermuda, Mauritius, Cyprus, Guernsey, Jersey|
Recommended onshore investment destinations
|Luxembourg, the Netherlands, the UAE, Ireland, Liechtenstein|
|Most appreciated investment countries in Europe|| |
Luxembourg, Liechtenstein, Ireland, the Netherlands, Cyprus, Malta, etc.
|Most appreciated investment countries in Asia||Singapore, Hong Kong|
|Possibilities for hedge fund startups||Most jurisdictions allow hedge fund startups to be created|
|Countries to set up cryptocurrency hedge funds in|| |
Luxembourg, Malta, Ireland, Liechtenstein, Singapore, Cyprus, Switzerland are among the top jurisdiction for cryptocurrency hedge funds
|The most employed corporate structures for investment funds||Companies with fixed capital (SICAF), companies with variable capital (SICAV), joint stock corporations|
|The most employed non-corporate structures for investment funds||Limited partnerships and associations are used in most juridictions, fund for joint account (FGR) which can be used in the Netherlands|
|Options to launch ICOs||Switzerland, Cyprus, Hong Kong, and Singapore are among the top jurisdictions for ICOs|
|Investment fund manager requirements||Most hedge fund managers are required to be licensed according to the rules of the countries they work in. They have the obligation to protect the assets of the investors and report to them on a regulated basis|
|Types of investors accepted to participate in funds||Professional and non-professional investors are accepted by most jurisdictions|
|Taxation of hedge funds||Hedge funds are usually taxed under specific laws, depending on the country they are registered in|
|Methods of promoting hedge funds||Publishing in investment magazines, Social Media posts, through websites, participation in networking events and conferences|
|How to choose an investment destination||Legislation, flexibility, taxation and access to a profitable market are among the reasons to rely on for a hedge fund startup|
The purpose of our magazine is to present all the information that is necessary for starting an investment fund in a preferred investment destination. Here, those interested in opening a hedge fund startup or another type of vehicle can find the relevant information that can help them in making a decision with regards to the best investment destination they should select. Our specialists can guide investors in the process of selecting a specific type of fund and those wanting to know more on how to start an investment fund can easily rely on our team.
Based on the available capital and the investment strategies investors will want to employ when opening a fund, our team can help with professional advice and will recommend a specific type of fund that is available for registration in a certain jurisdiction. Considering that a hedge fund startup is one of the most common ways to enter the financial sector, our editors will offer information on this type of fund on a current basis.
Those who are interested in how to start a hedge fund will find here details on the legislation regulating this type of vehicle, the taxation system applicable by the financial institutions, the minimum legal requirements imposed to the fund’s founders and other relevant data. We have presented at length the legal system in countries such as Malta or Luxembourg and we invite you to read our articles referring to these jurisdictions.
What types of funds can investors set up?
- • mutual fund – a type of vehicle that is used for investing money in financial instruments such as stocks or bonds;
- • exchange traded fund – it represents a vehicle similar with the mutual fund, with the difference that the financial instruments of the fund are valued during the entire transaction day on the stock market, unlike the mutual fund;
- • real estate investment trust – a type of vehicle that is generally used for investments related to the real estate sector;
- • hedge fund – it represents one of the most common types of fund, due to the fact that it can perform investments in any financial sector.
What are the most recommended investment destinations?
Investors generally prefer to open an investment fund in reputable jurisdictions, that have a highly developed financial market, but all the jurisdictions presented in our investment magazine are suitable for investment purposes. The decision of selecting a given country is influenced by numerous factors.
For example, important aspects refer to the following: the investors’ proximity to the country in which they’d like to invest, the basic conditions for investing in a hedge fund startup or in another type of vehicle, the tax benefits investors can obtain (numerous countries offer a wide range of tax exemptions and deductions), the bureaucracy level, the social situation of the country or its political condition and other similar factors.
Those who are interested in how to start an investment fund must know that the legal requirements can vary from a country to another. This can also happen at a European level (including at the level of the European Union). In the case of businessmen interested in investing in Europe, Ireland and Luxembourg represent the top investment destinations.
Luxembourg is one of the most developed global financial hubs, having an economy that is based on financial services. Besides this, the country has a very long tradition in the investment sector, being the first European country that set up an investment vehicle. On the other hand, Ireland provides one of the most developed business environments at a European level, having an investment-oriented legislation and an attractive taxation system.
Why start an investment fund in Asia?
In Asia, Hong Kong stands out as a top investment destination, as it represents the leading financial market in the Greater China Region. This country is generally selected as a destination for starting an investment fund due to the fact that both local and foreign investors can benefit from a set of tax deductions and exemptions. A tax benefit is given by the fact that the management services offered by a fund manager to an investment fund may be exempted from taxation in certain situations prescribed by the national law.
In the Asian region, Hong Kong provides some of the most attractive conditions for opening an investment fund, but Asia is also the home of a global financial hub, Singapore, a leading economy in finance and banking. This country benefits from excellent credentials provided by international credit rating agencies.
In the Asian region, those interested in how to start an investment fund have numerous options when referring to the types of vehicles provided by the local legislation. The basic distinction available for funds registered here is given by the limitations imposed to the investors with regards to the issuance of shares. In this case, funds can be set up as closed-ended funds (where the investors have a limited amount of shares that they can issue) or open-ended funds (there aren’t any limitations).
Based on the investment activity the funds can perform in the Asian region, the legislation stipulates the following types of funds: hedge fund startups, master-feeder funds, real estate funds, unit trusts, infrastructure funds, limited partnerships, private equity funds, real estate funds, venture capital funds and segregated portfolio companies. To register as a segregated portfolio company in the Caymans, any exempted company may submit an application to the Registrar of Companies. The Memorandum and articles of association, notice to the Registrar of Companies, and a list of the names of each newly constituted segregated portfolio are among the documents that need to be drafted in order to create such a company. Our specialists in the Caymans can assist with its creation.
Other options are also available. When we refer to the costs associated with starting an investment fund, it is important to know that Singapore provides better conditions compared to Hong Kong, but Hong Kong represents a better market for hedge fund startups.
We also invite our readers to verify our blog section, where one can discover various news on the investment law, types of funds, legal modifications and so on, that can take place over time in the jurisdictions included in our website. Those who want to invest in a specific country presented in our investment magazine are invited to address to our partners, who can provide professional advice.
What is the value of investment funds in Europe?
- • in the 3rd quarter of 2019, the shares issued by investment funds in Europe stood at EUR 12,537 billion;
- • this represented an increase compared to the 2nd quarter of 2019, up by EUR 446 billion, as revealed by the data gathered by the European Central Bank;
- • the shares issued by European funds operating as exchange traded funds had a value of EUR 781 billion;
- • compared to the 2nd quarter of 2019, this marked an increase of EUR 47 billion;
- • in the case of European money market funds, the total value was of EUR 1,247 billion (measured as outstanding amount of shares) in the 3rd quarter of 2019;
- • this also marked an increase compared to the 2nd quarter (up by EUR 92 billion).
What are the factors in choosing a suitable investment jurisdiction?
The selection of an investment destination relies on analyzing a set of factors and deciding which is the most suitable to the current situation of the investors, but also on the investment opportunities that can appear in a given country. One of the most important aspects that should influence this refers to the general conditions available in that country and the basic capital investment.
Investors must also check what the basic criteria they should fulfill with the purpose of starting an investment fund are, but also the documents they should submit, the licenses that must be obtained or the number of procedures that are involved in the registration of their investment fund.
In certain countries, it is legally required to obtain an authorization for performing an investment activity and this can vary based on the type of fund selected for registration, but also on the nationality of the investor. Additional factors that influence the decision are related to the tax requirements the fund must meet throughout a financial year, the personal taxation of the fund’s investors, the tax benefits or the tax exemptions and so on.
When deciding on an investment destination, it is best to make a comparative analysis of the countries the investor would like to invest in; here, our specialists can easily help out. The decision should also be influenced by the applicable legislation in the field, these being basic aspects one should take into consideration when selecting a certain market.
Why start a fund in an offshore jurisdiction?
Investors also have the possibility of investing in offshore jurisdictions, such as the Cayman Islands or the British Virgin Islands. As offshore jurisdictions, these regions are known for the fact that they offer some of the most attractive tax conditions investors can benefit from. The tax system available in offshore jurisdictions provides the largest set of tax exemptions that can be offered for business purposes and it can’t be usually found in other countries.
Offshore jurisdictions also benefit from tax neutrality, a term which defines the fact that an investment fund will be taxed only once, in the country where it was set up. The procedure on how to start an investment fund in an offshore jurisdiction is much simpler compared to other countries.
It generally involves only few steps, which can be completed in a fast manner. Persons who work in governmental institutions set up in offshore jurisdictions have a high level of expertise in their respective field of activity, an aspect that increases the efficiency of starting a fund in any of these regions.
What are the advantages of hedge funds?
- • hedge funds have a high level of flexibility, in the sense that they can be used for investing in a wide range of assets;
- • they can employ various investment strategies that are based on a rapid return on investment;
- • when investing in a hedge fund startup, investors benefit from attractive disclosure regulations;
- • they can also have a high level of transparency and they can be set up by specific types of investors, who have an in-depth knowledge in the investment field;
- • as a general rule, hedge funds can be incorporated only by accredited or qualified investors;
- • there are numerous types of hedge funds that can be registered, such as macro hedge funds or equity hedge funds.
We also invite you to watch a video below:
What are the alternative investment funds?
Numerous jurisdictions around the world provide the possibility of opening an alternative investment fund (AIF). AIFs refer to a broader category of funds, including hedge fund startups. They can be used for the purpose of investing in real estate projects and they are defined by investments in commodities, venture capital or tangible assets. The procedure on how to start a fund as an AIF will vary based on the country where the fund will be set up and we invite you to address to our partners for in-depth information on this subject.
With a large network of partners, who are prepared to provide legal assistance in the registration of a hedge fund startup or of any other type of fund, we can easily represent investors in the process of opening a fund in any of the countries presented in our investment magazine.
Businessmen who want to open a fund in the Netherlands can address to our Dutch partners, but we can also help investors in starting a fund in countries such as UAE, Luxembourg or Switzerland. We invite you to address to our team for any matter related to the incorporation of an investment fund.
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