How to Start
We will need the following to initiate the formation of your own closed-end fund:
1. Preferred name choices for the registered name of the Fund.
2. Copy of photo ID from at least one director (typically the fund manager).
3. Copy of photo ID from at least one initial shareholder (can be the same person/entity acting as director).
4. Proof of address for the director(s) and shareholder(s) in the form of a copy of recent utility bill.
5. Reference letter from banker, accountant, lawyer or other professional for initial shareholder(s) and director(s). If you are an existing client of our firm our in-house attorney could be able to provide this reference letter.
6. Payment of 50% of the Fund formation fees. The remaining balance is due after our firm provides proof of successful registration. You will receive a Pro-forma invoice specifying what you are paying for shortly after submitting your order. Payment can be made by bank wire transfer or by Credit Card (signed authorization required).
If the residential address of a director/shareholder is stated in the reference letter (5) the proof of address (4) is not required. The words "Fund" or "Mutual" cannot be included in the registered company name of a closed-end fund since they are restricted to Mutual Funds which are subject to additional license and supervisory requirements.
The standard closed-end fund would have 50,000 shares, the maximum number allowed to qualify for the lowest annual government renewal fee of USD 350.00. The shares would be divided in 10 non-redeemable Class A voting shares (the management control of the company, typically held by the Fund Manager) and 49,990 redeemable Class B non-voting shares (the investment units to be sold to the investors).
The fund must have a minimum of one director and one initial shareholder. The director and initial shareholder can be the same person/entity. All fund documentation come in English, duly notarized and legalized with Apostille. Our fund package also includes a professionally drafted and legally compliant Private Offering Memorandum (Prospectus). This essential document outlines the legal structure of the fund, the risks associated with different investment strategies and other important disclosures. The document can easily be edited to incorporate information about your specific investment strategies and terms.
The closed-end fund is not subject to any taxation or reporting requirements in BVI on its worldwide income.
Click here to visit Banking4Bankers.com where you can access information about other fund management options and how to start your own international bank.
