The British Virgin Islands is a jurisdiction that offers a number of advantages for the registration of mutual funds. These types of funds are funded by a large number of investors and are professionally managed. The financial vehicles are used to invest in a large number of securities, stocks, and bonds.
The low or zero taxes, the flexibility of the structure and the low regulation level are among the top reasons why foreign investors choose to domicile mutual funds in BVI.
The advantages of BVI mutual funds are presented in this article by our team of BVI company incorporation experts. For more detailed information, investors can reach out to our team.
General advantages for BVI-based mutual funds
The British Virgin Islands are a popular offshore jurisdiction mainly because of the tax advantages for companies incorporate here. However, the overall business and regulatory regime, not only the taxation regime, is an attractive one.
Below we highlight the main advantages of BVI mutual funds:
- • Capital gains taxation: the fund is subject to a zero tax policy on capital gains and dividend income.
- • Income tax: moreover, there is no tax on the income and profit, as per the tax policies in the British Virgin Islands.
- • Low or no other fees: the policies allow for minimum or zero taxes and fees on the commission income earned by fund managers.
- • Operational flexibility: the International Business Company is a flexible business structure and investors also have a degree of operational flexibility for structuring the portfolio.
- • Regulatory regime: the regulatory regime is advantageous and it also provides for low administrative costs for the fund.
Investors in BVI should be aware of the applicable taxes in their country of origin for income received from the offshore fund. For this purpose, it is advisable to seek professional tax advice.
A mutual fund in the British Virgin Islands is incorporated as a BVI Business Company. The BVI company formation process is a simple one and can be fully assisted by one of our specialists. We can help investors draft the documents needed to register the funds and handle all of the subsequent steps for the legal functioning of the fund.
Issues to take into consideration when opening a mutual fund in BVI:
- Structuring: the fund can be registered as a partnership, a business company, unit trust, allowing for a high degree of flexibility.
- Management: fund have licensed managers, administrators and professionals and BVI funds can outsource the necessary support functions.
- Legislation: the BVI Mutual Funds Act is the principal source of legislation for the industry, together with supporting laws and regulations.
- Regulation: the BVI Financial Services Commission regulates the offshore financial sector and received the fund applications.
- Licensing: the licensing of fund managers and administrators is mandatory and it is also performed by the Financial Services Commission.
Our team of BVI company incorporation agents offers complete services for the creation of mutual funds. We can assist investors during all of the stages, as well as intervene as needed at a particular stage. We can provide assistance with the following:
- – prepare the fund documentation such as the Articles of Association and other documents;
- – provide registered office and registered agent services;
- – follow through with the Government fee requirements and submissions;
- – apply for a fund manager license with the Financial Services Commission;
- – pay for the needed registration fees and follow through with other needed payments;
- – appoint the administrator, auditor, and other relevant parties.
Apart from assistance for obtaining the mutual fund license, our team can also help with services related to obtaining the fund manager license in BVI. For this purpose, we can guide fund managers on the needed documents for their application and the general requirements for the “fit and proper test” that needs to be passed by these professionals.
This is not an exhaustive list of our services. For more information on mutual fund creation, as well as complete details on British Virgin Islands company formation, investors can reach out to our team.
The British Virgin Islands are a popular jurisdiction for fund domiciliation:
- – there are more than 3,000 funds registered in the BVI;
- – more than 100 billion USD is under management in these funds;
- – an increase in the number of new companies in 2018, in Q4 by more than 4,40%;
Investors who wish to know more about the advantages of the BVI mutual funds can contact our BVI company formation agents.