Considering opening an investment fund in the BVI in 2024? Absolutely! Learn why in this article: The BVI economy has become one of the most prosperous in the Caribbean, owing to the formation of international business companies. The formation of international business companies has been crucial to the country’s economic, financial, and social growth.
Furthermore, the British Virgin Islands has now become the second largest financial center for regulated investment funds. In this article, we will delve into the reasons behind this remarkable success.
What are the types of investment funds in the BVI?
There are five categories of funds in the British Virgen Islands.
A. Public Fund
It is a mutual fund, which is not a private fund or professional fund. Consequently, this type of fund can offer investment to the general public. Additionally, these funds are highly regulated.
B. Private Fund
Private Funds are open-end funds with no more than 50 investors, and all the investors subscribe to the fund on demand. This means that investors’ invitations are made on a private basis. Additionally, there is no minimum investment required for this type of fund.
C. Incubator Fund
The minimum investment is 20.000$ and the maximum number of investors allowed is 20. Thus, this type of fund is suitable for managers to quickly set up a cost-efficiently fund. The maximum AUM is $20M.
D. Professional Fund
Regarded as the most popular regulated funds, they resemble private funds with one significant difference. Indeed, they can be offered only to professional investors. Furthermore, investors must meet a minimum investment requirement of $100,000.
C. Approved Fund
It’s a hybrid type between private and incubator funds. For this type of fund, the number of investors is limited to 20 with a maximum AUM of 100M.
What structure to use for an investment funds in the BVI?
We highly recommend using a company limited by shares; alternatively, you can form an investment fund as a Trust, an SPC (Segregated Portfolio Company), and/or as a limited partnership.
What are the main advantage of opening an investment funds in the BVI?
- English law forms the basis of a stable legal system.
- Tax exemption benefits accrue from the obtained benefits.
- The economic jurisdiction adheres to and complies with international financial laws.The economic jurisdiction adheres to and complies with international financial laws.
- Structuring an investment fund is simple.
- A variety of types is available to suit any fund goal.
- The possibility exists to comply with European directives (AIFMD).
- Incorporation and maintenance costs are lower compared to other jurisdictions such as Luxembourg and Estonia.
- FSC (Financial Service Commission) is considered the friendliest regulator for fund managers.
To learn more about investment funds, click here.
