Section 5 (1) of the Mutual Funds Law in the Cayman Islands sets out guidelines for the registration of Licensed Funds in the Cayman Islands.

Key Features

The distinctive difference between a licensed fund and a registered/ administered fund is that the fund itself has to obtain a license in order to operate. Therefore, each of the directors, shareholders and senior management need to be approved by CIMA. Consequently, CIMA checks and verifies all the references, employment and residential history of each applicant before issuing approval.

Legal Requirements

Requirements

Description

General

  • Corporate¬† vehicle permitted

Company, Unit Trust or Partnership

  • Application fee

USD 370

  • Annual license fee

USD 4,700

  • 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

No

  • Fund manager/Investment manager

Yes (from anywhere)

  • Fund administrator

Yes (from anywhere)

  • Auditors

Yes

  • Legal Advisers

No

Tax Treatment

Tax neutrality: no capital gains, income, profits, corporation or withholding taxes

Duration to Set Up

About 3 months

Distinctive Benefits of Licence

  1. No Minimum subscription
  2. There is no requirement to have a custodian, prime broker or Cayman Islands resident director.
  3. The investment manager can be located anywhere and is not required to be licensed or registered.
  4. There are no exchange control regulations in the Cayman Islands.

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