The principal legislation pertaining to funds in the British Virgin Islands (BVI) is the Securities and Investment Business Act (SIBA).

Key Features

The approved fund is designed for smaller strategies and friends and family funds and has a higher net asset value threshold and no limit to the length of time if may qualify as an approved fund.  It also differs from the incubator fund in requiring an administrator.  Key differentiating criteria from other fund types include:

  • The total number of investors is limited to 20.
  • Net assets of the fund must not exceed US$100,000,000 or its equivalent in any other currency.
  • The approved fund must have an administrator, but it is not required to have a manager or custodian.
  • No audit required.

Legal Requirements

Requirements

Description

General

  • Corporate  vehicle permitted

International Business Company (IBC), Partnership or Unit Trust

  • Local physical office required

No

Share capital or equivalent

  • Minimum subscription

USD 20,000

  • Limit to investors

Maximum of 20

Directors

  • Minimum number

2

  • Corporate directorship allowed

Yes

  • Local director required

No

Service Providers Required

  • Custodian

No

  • Fund manager/Investment manager

No

  • Fund administrator

Yes

  • Auditors

No

  • Legal Advisers

Yes

Tax Treatment

Mutual Funds are tax exempt

Duration to Set Up

About 3 months

Distinctive Benefits of Licence

  • Tax exemption of Mutual Funds;
  • A recognized and respected legal system supported by English common law, modern local legislation and a well-developed court system, including a dedicated commercial division;
  • No regulatory restrictions on investment policies or strategies or on performance and other fee arrangements;
  • No requirement to appoint local directors or local functionaries;
  • Various types of fund structures including, single class funds, multi-class funds and master-feeder funds are facilitated;
  • Statutory segregated portfolio ring-fencing; and
  • Amendment of constitutional documents may be made by shareholders or directors where so authorized.

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