Start a Hedge Fund in Jersey

Updated on Friday 27th July 2018

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Jersey is one of the most reputable destinations for setting up a hedge fund startup, being known as a top international financial center, which benefits from more than 12,500 finance specialists and highly skilled fund experts, considering that it has a population of approximately 90,000 persons. It is important to know that Jersey has attracted, over the years, numerous investors performing investments through hedge funds, private equity or real estate funds
 

Why register a hedge fund in Jersey?  
 

This jurisdiction provides a set of competitive advantages and investors who are interested in how to start a fund in this country must know that the legislation available here protects the interests of a wide category of businessmen, including institutional and sophisticated investors, as well as of those who register investment funds with a minimum investment level. Amongst the main advantages of registering a fund here, we mention the following:
 
  • low taxation scheme – the funds registered in Jersey are taxed only for their income, as there are no capital gains taxes, inheritance of wealth taxes;
  • as a general rule, corporate entities are exempt from paying the corporate tax, but this can be imposed at the rate of 10% in the case of specific financial activities, as it is the case of banks or investment managers;
  • Jersey funds can be easily marketed in the European Union through the AIFMD regulation;
  • the jurisdiction benefits from a strong credit rating, being included in the A++ category. 
     

Rules of law for Jersey hedge funds 
 

Investment vehicles operating as hedge funds are regulated under several rules of law. For example, vehicles operating as public funds are regulated under the Collective Investment Funds Law 1988, while the prospectuses of certified funds fall under the regulations of the Collective Investment Funds Order 2012
 
Obtaining an approval for performing investment activities on the local market depends on whether the fund is set up as public or as a private entity and if it is set up as a closed-ended or open-ended structure, and the approval will be provided by the Jersey Financial Services Commission. Foreign businessmen are invited to contact our team of affiliates in Jersey for in-depth information on the requirements available for the authorization of a hedge fund operating here.