Valsen Corporate

British Virgin Islands Professional Fund License

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

Key Features
According to the SIBA. a professional fund is one which shall only be issued to “professional investors” and the initial investment of each investor in the fund (other than “exempted investors”) shall not be less than USD 100,000 or its equivalent in any other currency for all investors other than exempted investors.
A professional investor is a person:

  • Whose ordinary business involves, whether for that person’s own account or the account of others, the acquisition or disposal of property of the same kind as the property or a substantial part of the property of the fund; or
  • Who has signed a declaration that he, whether individually or jointly with his spouse, has net worth in excess of USD 1,000,000 or its equivalent in any other currency and he consents to being treated as a professional investor.

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 100,000
  • 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
  • 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