Cayman Registered Fund

Registered funds form the bulk of the mutual funds (90%) set up in the Cayman Islands under (Section 4(3) of the Mutual Funds Law.

Key Features

The main features of a registered fund are:

Minimum subscription US $100,000 (or equivalent currency).
The fund administrator can be located anywhere and does not require to be licensed or registered.
The auditor must be a Cayman Islands approved auditor although the audit work does not require to be conducted in the Cayman Islands.
The investment manager can be located anywhere and is not required to be licensed or registered.

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	USD 100,000
· 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

Minimum subscription US $100,000(or equivalent currency)
No preapproval required, the registration form (MF1) is simply submitted to CIMA together with the offering document, auditors consent letter, the administrators consent letter – there is no waiting period as the fund can offer its shares for sale on the day it files with CIMA.
The fund administrator can be located anywhere and does not require to be licensed or registered.
The auditor must be a Cayman Islands approved auditor although the audit work does not require to be conducted in the Cayman Islands. It is normal for a foreign audit firm to do the actual audit and for the Cayman Islands office to do a signoff. However a Cayman Islands auditor’s consent letter is required for the CIMA registration.
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.

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