The Investment Funds Act governs the exclusion, exemption and authorisation of investment funds and contains certain requirements for the formation of investment funds, their operation and the offering of shares, units or interests of investment funds. The Bermuda Monetary Authority (BMA) is the principal body responsible for the regulation of investment funds.

Key Features

A fund will qualify for classification as an administered fund if its administrator is licensed under the IF Act and:

  1. pursuant to its constitution and prospectus it requires participants to invest a minimum of $50,000 in the fund; or
  2. it is listed on a stock exchange recognized by the Authority for this purpose.

Legal Requirements

Requirements

Description

General

  • Corporate¬† vehicle permitted

Company, Unit trust, Limited partnership

  • Local physical office required

No

Share capital or equivalent

  • Minimum subscription

USD 50,000

  • Minimum investors

None

Directors

  • Minimum number

2

  • Corporate directorship allowed

Yes

  • Local director required

No

Service Providers Required

  • Custodian

Yes

  • Fund manager/Investment manager

Yes

  • Fund administrator

Yes

  • Auditors

Yes

Tax Treatment

Bermuda investment funds are not subject to any tax, as there are no Bermuda corporation, profit, withholding, capital gains or income taxes applicable to an investment fund or to its share or unit holders or partners which are not resident in Bermuda.

Duration to Set Up

3 months

Distinctive Benefits of Licence

  • Low setup costs
  • Quick and easy regulatory notification process
  • No investment restrictions
  • Favourable tax environment

The Valsen Advantage

  • End to end comprehensive service
  • Speedy and efficient service
  • Expert advice on structuring options
  • Dedicated ongoing compliance support
  • Extensive network pool of service providers