Valsen Corporate

Cayman Islands Administered Fund

  • Section 5 (1) of the Mutual Funds Law in the Cayman Islands sets out guidelines for the registration of Administered Funds in the Cayman Islands.
  • Key Features
    The distinctive difference between an administered fund and a registered fund is that there is a statutory obligation upon the administrator to conduct due diligence on the promoter and investment manager so that they can give an undertaking to CIMA. An administered fund must therefore appoint a fully licensed Cayman Islands fund administrator (as principal office), who must confirm to CIMA that the promoter has a sound reputation, relevant experience and that the fund will be operated in a proper manner.

    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

    More than 15 investors

    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 (CIMA-licensed)
    • 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
    • No Minimum subscription
    • No preapproval required, the registration form (MF2/MF2A) is simply submitted to CIMA together with the offering document, auditors consent letter, the administrators consent letter – there is no waiting period as the fund can offer its shares for sale on the day it files with CIMA.
    • The auditor must be a Cayman Islands approved auditor although the audit work does not require to be conducted in the Cayman Islands. It is normal for a foreign audit firm to do the actual audit and for the Cayman Islands office to do a signoff. However a Cayman Islands auditor’s consent letter is required for the CIMA registration.
    • There is no requirement to have a custodian, prime broker or Cayman Islands resident director.
    • The investment manager can be located anywhere and is not required to be licensed or registered.
    • Tax neutrality: no capital gains, income, profits, corporation or withholding taxes
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