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Cayman Investment Funds

Sep 14, 2018

The Cayman Islands is an enormous international financial center and a leading hub for international investments. This status of the Cayman Islands is due to its compliant and effective laws, easily accessible professional service providers, and high reputation amid stakeholders.

Besides all this the Cayman Islands has no capital gains, income, profits, corporation or withholding taxes neither on the investment fund nor its investors. It is essential for investors in the Cayman Islands business, prior to making an investment, to seek advice on the applicable taxes and legislation of the countries where they are tax residents. In this case Offshorelicense will become your reliable advisor and help to choose the most appropriate Cayman fund.

What is an “Investment Fund”? The principle legislation in the Cayman Islands concerning open-ended investment funds is the Mutual Funds Law (MFL). A mutual fund is any company, trust or partnership either incorporated or established in the Cayman Islands, or if outside the Cayman Islands, managed from the Cayman Islands, which issues equity interest redeemable or re-purchasable at the option of the investor, the purpose of which is the pooling of investors' funds with the aim of investment risk diversification and enabling investors to receive profits or gains from investments.

As you may know, Cayman investment funds may be incorporated as a Cayman exempted companies, exempted limited partnerships or exempted unit trusts and, contingent on their attributes, could be subject to regulation by the Cayman Islands Monetary Authority (CIMA).

Open-ended investment funds are known as “mutual funds” under the Cayman Islands MFL and, save for exempted funds, are regulated by CIMA.

Closed ended funds are not determined under the MFL; nevertheless, CIMA has recommended that closed ended funds are those that have ‘no regular redemption date, redemptions in limited circumstances or extensive lock-up periods’. Consequently, funds with these attributes are not regulated in the Cayman Islands.

Despite that, Cayman Islands organizations that are incorporated as closed ended funds must have a registered office in the Cayman Islands supplied by a regulated organization and, in case they have a segregated advisor or manager which is itself a Cayman Islands entity, that entity should be subject to regulation or exemption under the Securities Investment Business Law (SIBL).

If you are interested in incorporating Investment fund or obtaining a license that allow you to conduct forex activities in the Cayman Islands, please CLICK HERE to complete the form.

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We will be happy to provide a quote and overview of the process. We leverage on our experience in the forex industry and corporate services, to deliver a smooth and efficient application process.

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