Opening a fund in the BVI starts with selecting the type of fund, followed by incorporation and registration with the relevant authorities. Our team that can assist with BVI company incorporation can also provide guidance on how to open a fund in the Virgin Islands.
| Quick Facts | |
|---|---|
| Governing Law | The Private Investment Funds Regulations, the Securities and Investment Business Act and other relevant regulations |
| Other relevant laws | Anti-Money Laundering and Combatting the Financing of Terrorism laws |
| Assistance with fund incorporation in the BVI | Our local team of experts in company formation in BVI can provide guidance and assistance for fund creation. |
| Fund registration in the BVI | As per the regulations set forth by the Financial Services Commission (FSC) |
| Types of funds | Private investment funds, professional funds, incubator funds, foreign funds, public funds. |
| Private investment funds in the BVI | Used for collecting and pooling investor funds for collective investment and diversification. |
| Private investment fund legal forms | Company, partnership, unit trust in most cases |
| Private investment fund maximum number of investors | 50 |
| Qualifications for fund investors in the BVI | In some cases, adequate written confirmation is provided that they are professional investors. |
| Documents submitted to the FSC for fund registration | Legal entity certificate of incorporation, the register of directors (for companies), the fund term sheet, the fund valuation policy, etc. |
| Persons of interest for the fund in the BVI | Depending on the chosen business form: the directors, general partner or trustee; |
| Appointed persons for the BVI private fund | Can be an individual or company |
| Qualifications for the appointed persons | Must show relevant experience and expertise for the position. |
| Financial statements for the private fund | Prepared as per the governing auditing standards |
| BVI investment fund registration fee | Can start at $700 for the application fee for the private investment fund |
Table of Contents
What are the main steps for those opening a fund in the BVI?
An essential step for fund creation is selecting a fund regime that suits the investor’s needs. We briefly outline the options available in the British Virgin Islands below:
- The private investment fund;
- The professional fund;
- The incubator or approved fund;
- The foreign fund;
- The public fund.
A fund in the BVI can be a company, a partnership, a unit trust, or other entity type that has been registered and organized under the laws of the BVI (or other country) that will collect and pool investors’ funds, for collective investment purposes.
To open a fund in the Virgin Islands, founders can rely on our assistance when they open a company in the BVI.
Once the entity that will be used as an investment fund is formed, our team will assist with meeting the following compliance requirements:
- Having an appointed representative;
- Providing the offering document (if applicable) or the term sheet;
- Issuing the fund valuating policy;
- Meeting the requirements for the relevant persons in the fund, depending on the chosen business form.
The appointed person is the one in charge of the management and the valuation of the fund property and its safekeeping. This person must be licensed accordingly.
What are the main laws governing funds in the Virgin Islands?
As a general rule, those opening a fund in the BVI who will set up a private investment fund will observe the Private Investment Fund Regulations 2019.
Some of the conditions for private investment funds in the BVI make it mandatory for investors in such funds to provide written proof of their capabilities as professional investors.
Other types of funds can be subject to other laws, such as the Mutual Funds (Amendment) Regulations, 2019. Some general laws and guidelines that apply to BVI funds also include:
- The Securities and Investment Business (Amendments) Act, 2019;
- The Anti-money Laundering Regulations, 2019;
- The Financial Services (Miscellaneous Exemptions) (Amendment) Regulations, 2019.
Our lawyers in BVI can offer more details on these laws and their amendments if you are interested in opening a fund in the BVI.
What are some of the costs associated with opening a fund in the BVI?
The Financial Services Commission imposes several fees when it comes to private investment funds. We list some of these below, however, investors should keep in mind that these are not the only fees associated with fund creation and they can be subject to change:
- The application fee for registering the fund can be $700;
- The annual fee is usually $1,000;
- The fee to extend the statement submission term is $500.
How can your team assist?
Whether you want to open a company in the BVI or set up a private fund, our local agents can provide ongoing assistance throughout the relevant incorporation steps.
When investors open a fund in the BVI, they must observe the private investment fund regulations, as briefly outlined in this article. These regulations, along with other relevant BVI laws and circulars or notices issued by the Financial Services Commission, can be explained by our team.
In addition to offering support throughout the stages required when opening a fund in the BVI, our team can also provide ongoing assistance for those interested in preparing audit or financial statements, as will be required throughout the lifetime of the fund. This service is offered in collaboration with our accountants in the BVI.
Our team can help you set up a fund in the BVI. Contact our BVI company formation agents for more information on how we assist foreign investors.