The Investment Funds Act governs the exclusion, exemption and authorisation of investment funds and contains certain requirements for the formation of investment funds, their operation and the offering of shares, units or interests of investment funds. The Bermuda Monetary Authority (BMA) is the principal body responsible for the regulation of investment funds.
Key Features
A fund will qualify for classification as an administered fund if its administrator is licensed under the IF Act and:
- pursuant to its constitution and prospectus it requires participants to invest a minimum of $50,000 in the fund; or
- it is listed on a stock exchange recognized by the Authority for this purpose.
Legal Requirements
|
Requirements |
Description |
|
General |
|
|
Company, Unit trust, Limited partnership |
|
No |
|
Share capital or equivalent |
|
|
· Minimum subscription |
USD 50,000 |
|
· Minimum investors |
None |
|
Directors |
|
|
2 |
|
Yes |
|
No |
|
Service Providers Required |
|
|
Yes |
|
Yes |
|
Yes |
|
Yes |
Tax Treatment
Bermuda investment funds are not subject to any tax, as there are no Bermuda corporation, profit, withholding, capital gains or income taxes applicable to an investment fund or to its share or unit holders or partners which are not resident in Bermuda.
Duration to Set Up
3 months
Distinctive Benefits of Licence
- Low setup costs
- Quick and easy regulatory notification process
- No investment restrictions
- Favourable tax environment
The Valsen Advantage
- End to end comprehensive service
- Speedy and efficient service
- Expert advice on structuring options
- Dedicated ongoing compliance support
- Extensive network pool of service providers