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

Key Features

A public fund is a mutual fund whose offering of fund interests may be made to a large number of investors or to persons other than experienced investors (licensed entities), those who have a private or business connection to the fund or to a class of persons who are not limited in such a way as to make the offering of fund interests available to persons who are professional investors within the meaning of the SIBA.

In addition to satisfying the requirements for recognition by the SIBA, public funds will be required to satisfy the requirements of the Public Funds Code, 2010 (Public Funds Code), specifically those relating to publication of a prospectus which must be approved by and signed on behalf of the fund’s directors.

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

None

  • 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

  • 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