Cayman Licensed Fund

Section 5 (1) of the Mutual Funds Law in the Cayman Islands sets out guidelines for the registration of Licensed Funds in the Cayman Islands.

Key Features

The distinctive difference between a licensed fund and a registered/ administered fund is that the fund itself has to obtain a license in order to operate. Therefore, each of the directors, shareholders and senior management need to be approved by CIMA. Consequently, CIMA checks and verifies all the references, employment and residential history of each applicant before issuing approval.

Legal Requirements

Requirements	Description
General
Corporate  vehicle permitted	Company, Unit Trust or Partnership
Application fee	USD 370
Annual license fee	USD 4,700
Local physical office required	No
Share capital or equivalent
·         Minimum subscription	None
·         Minimum investors	None
Directors
Minimum number	2
Corporate directorship allowed	Yes
Local director required	No
Service Providers Required
Custodian	No
Fund manager/Investment manager	Yes (from anywhere)
Fund administrator	Yes (from anywhere)
Auditors	Yes
Legal Advisers	No

Tax Treatment

Tax neutrality: no capital gains, income, profits, corporation or withholding taxes

Duration to Set Up

About 3 months

Distinctive Benefits of Licence

• No Minimum subscription
• There is no requirement to have a custodian, prime broker or Cayman Islands resident director.
• The investment manager can be located anywhere and is not required to be licensed or registered.
• There are no exchange control regulations in the Cayman Islands.

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