Hedge funds in 2023
Known also as alternative investments, hedge funds and private equity have received rapid growth recently and are drawing mounting interest from all sectors. Many new investment opportunities are beginning to surface as emerging markets become stronger, especially those in little known areas such as Eastern Europe and South Asia. Healy Consultants help to capitalize on these opportunities by providing specialized knowledge in an extensive range of financial services, other alternative vehicle structures and strategies, and the regulatory issues involved.
Hedge funds services include:
- Fund setup;
- Calculation of net asset value;
- Financial administration;
- Tax record keeping;
- Hedge funds servicing.
Tax haven hedge funds Jersey British Virgin Islands Cayman Islands Total hedge funds incorporation costs US$22,470 US$23,950 US$48,120 Subsequent renewal costs US$10,700 US$11,710 US$15,651 Types of fund • Unclassified Fund
• Expert Fund
• Unregulated Eligible Investor Fund• Professional Fund
• Private Fund
• Public Fund• Licensed Fund
• Administered Fund
• Registered Fund
• Exempt FundHow long to incorporate a hedge fund? 24 hours 24 hours 24 hours How long to launch the hedge fund? • 12 weeks for Unclassified
and Expert Funds
• 4 weeks for Unregulated Funds• 8 weeks for Public Funds
• 4 weeks for others• 12 weeks for Licensed Funds
• 4 weeks for othersDo you visit the country for hedge fund incorporation? No No No Minimum investment • Unclassified Funds: none
• Expert Fund: US$100,000 or “Expert Investors”
• Unregulated Eligible Investor Fund:
US$1,000,000 or “Eligible Investors”• Professional Fund: US$100,000
• Private Fund: none
• Public Fund: none• Licensed Fund: none
• Administered Fund: none
• Registered Fund: US$100,000
• Exempt Fund: noneRegulatory Authority Jersey Financial Services Commission (JFSC) BVI Financial Services Commission ("FSC") Cayman Islands Monetary Authority ("CIMA") Incorporation subject to Government approval? No unless is a “collective investment fund” Open-ended vehicles: yes
Close-end vehicles: noOpen-ended vehicles: yes, but exceptions.
Close-end vehicles: noLocal registered address required? Yes Yes Yes Local directors required? Yes No No Resident registered agent required? No Yes No Resident manager required? Yes No No Legal considerations Minimum number of directors required? • Unclassified and Expert Fund: 2
• Unregulated Eligible Investor Fund: not regulated2 2 Minimum number of resident directors required? • Unclassified and Expert Fund: 2
• Unregulated Eligible Investor Fund: not regulated0 0 Corporate directors allowed? Yes Yes, except for public funds Yes Individual directors allowed? Yes Yes Yes Minimum number of managers required? • Unclassified Fund: 2
• Expert Fund: 1
• Unregulated Eligible Investor Fund: not regulated0 0 Resident manager required? • Unclassified Fund: 2
• Expert Fund: 0
• Unregulated Eligible Investor Fund: not regulated0 0 Must the managers have a license? • Unclassified Fund: no
• Expert Fund: yes
• Unregulated Eligible Investor Fund: not regulatedYes No Minimum number of representative required? 0 1 0 Minimum number of resident representative required? 0 1 0 Public register of shareholders and directors Yes No No Tax and accounting considerations Corporate tax payable 0 0 0 Audited financial statements Yes Yes Yes Local audit firm required? No No Yes Annual tax return to be submitted Yes Yes Yes Access to how many double tax treaties 31 2 0 Withholding tax payable 0 0 0 Can the hedge fund hire expatriate staff in the country? Yes Yes Yes Logistic considerations Can invoice/sign sales contracts with local clients No No No Can rent office premises in the country No No No Employment visa fees US$3,950 US$3,950 US$3,950 Average monthly salary in Hedge Funds US$75,000 US$75,000 US$75,000 English spoken rate 94.6% 75% 95% Literacy rate (%) - 98% 99% Computer literacy rate (%) 48.6% 46.9% 70.6% GDP per capita US$57,000 US$42,300 US$43,800 Population (in million) 95,732 31,912 53,737 Unemployment rate 1.7% 8.7% 4% Inflation rate (2013) 3.7% 2.2% 1.2% Estimate of engagement costs Healy Consultants engagement fees US$19,200 US$19,200 US$5,500 Company secretary and legal registered office fees US$2,700 US$2,700 US$2,9,50 Estimate of Government registration fees US$570 + US$1,624
(applicable only to unclassified
and Expert Funds)For Professional and Private Funds
• under 50,000 shares: US$2,050
• above 50,000 shares: US$2,800US$944 Estimate of total outgoings in Year 1 US$22,470 US$23,950 US$48,120 Estimate of costs (pdf) View invoice PDF View invoice PDF View invoice PDF Offshore hedge funds Singapore Luxembourg Australia Summary at a Glance Total hedge funds incorporation costs (excl. Government fees) US$46,700 US$23,550 US$23,550 Subsequent renewal costs US$16,450 US$10,700 US$10,338 Types of fund • Registered Fund Management Companies (FMCs)
• Licensed Accredited/Institutional FMCs
• Licensed Retail FMCs• UCITS – Part I of 2002 (N/A)
• UCIs – Part II of 2002 law
• SIF Law → Hedge funds• Managed Investment Schemes
• Registered v UnregisteredHow long to incorporate a hedge fund? 1 week 1 week process How long to launch the hedge fund? 4 months 3 months 4 months Do you visit the country for hedge fund incorporation? No No No Minimum investment US$200,312 US$167,888 US$46,504 Regulatory Authority MAS CSSF ASIC Incorporation subject to Government approval? No No No Local registered address required? Yes Yes Yes Local directors required? Yes No No Resident registered agent required? No Yes No Resident manager/representative required? Yes No No Legal considerations Minimum number of directors required? 2 1 No Minimum number of resident directors required? 1 No for SIF No Corporate directors allowed? Yes Yes Yes Individual directors allowed? Yes Yes Yes Minimum number of managers required? 2 2 2 Resident manager required? No No No Must the managers have a license? Yes Yes Yes Minimum number of representative required? 2 1 NA Minimum number of resident representative required? 2 1 NA Public register of shareholders and directors Yes Yes Yes Tax and accounting considerations Corporate tax payable No No No Audited financial statements Yes Yes Yes Local audit firm required? No Yes No Annual tax return to be submitted Yes Yes No Access to how many double tax treaties 69 67 44 Withholding tax payable 15% 20%
(exempt for foreigners making <100,000 and UCIs)10% Can the hedge fund hire expatriate staff in the country? Yes Yes Yes Logistic considerations Can invoice/sign sales contracts with local clients Yes Yes Yes Can rent office premises in the country Yes Yes (to confirm) Yes Employment visa fees US$2,950 US$3,950 US$3,950 English spoken rate 80% 60% 100% Literacy rate 92.5% 100% 99% Computer literacy rate 94.7% 75% 90% GDP per capita US$51,709 US$57 billion US$67,036 Population 5.3 million 531,441 (<1 million) 22.86 million Unemployment rate 2.1% 5.5% 5.7% Inflation rate (2013) 1.9% 1.5% 2.2% Estimate of engagement costs Healy Consultants engagement fees US$42,000 US$18,200 US$18,200 Company secretary and legal registered office fees US$2,700 US$2,700 US$2,700 Estimate of Government registration fees US$2,000 US$2,650 US$2,650 Estimate of total outgoings in Year 1 US$46,700 US$23,550 US$23,550 Draft Hedge Fund invoice View invoice PDF View invoice PDF View invoice PDF Offshore hedge funds New Zealand
Unit trustsMauritius
(GBL1 - Global funds)Bahamas Summary at a Glance Estimate of total hedge funds set up costs US$29,150 US$21,900 US$19,900 Estimate of annual administrative costs US$11,925 US$15,475 US$11,925 Types of fund allowed • Unit trusts
• Superannuation schemes• Local funds
• Global funds• Professional fund
• Standard Fund
• Foreign fund
• SMART fundHow long to get Government license approval? 1 week 1 week 1 week How long to get Government license approval? 4 weeks 4 weeks 4 weeks How long to open a corporate bank account? 3 weeks 3 weeks 3 weeks Minimum paid up share capital US$1 US$1 US$1 Burden of regulatory compliance High Low Low Does our Client need to travel? No No No Minimum investment No • Manager: US$31,250
• Administrator: US$15,625
• Investor: US$100,000vary Regulatory Authority Financial Market Authority (FMA) Financial Services Commission (FSC) Securities Commission of the Bahamas (SCB) Required to have local office premises Yes Yes Yes Required to hire local employees No No No Local registered address required? Yes Yes Yes Local directors required? Yes Yes No Resident custodian required? No Yes Yes Resident manager required? No Yes Yes Legal considerations Minimum number of directors required? 1 2 2, subject to changes Minimum number of resident directors required? 1 2 No Corporate directors allowed? No Yes Yes Individual directors allowed? Yes Yes Yes Resident manager required? 0 1, subject to exceptions Yes, subject to exceptions Must the managers have a license? Yes Yes Yes Minimum number of representative required? 1 2, one custodian and one local administrator 1 custodian Minimum number of resident representative required? 1 1, the manager. Subject to exceptions No Public register of shareholders and directors Yes - - Tax and accounting considerations Corporate tax payable 28% 3 No Audited financial statements Yes Yes Yes Local audit firm required? No Yes No Annual tax return to be submitted Yes Yes Yes Access to how many double tax treaties 38 38 30 Withholding tax payable Yes Resident or non-resident investors in a resident fund: No
Non-resident investing in a resident fund: 15%None Can the hedge fund hire expatriate staff in the country? Yes Yes Yes Logistic considerations Can invoice/sign sales contracts with local clients No No No Can rent office premises in the country Yes Yes Yes Employment visa fees (US$) US$3,950 US$3,950 US$3,950 Average monthly salary in Hedge Funds (US$) US$75,000 US$75,000 US$75,000 English spoken rate 98% 1% 98% Literacy rate (%) 99% 89% 95.6% Computer literacy rate (%) 88% 95.6% 57% GDP per capita (US$) US$40,884 US$6,712 US$30,959 Population (in million) 4.46 1.32 0.3 Population (in million) 6.7% 8.2% 13.7% Inflation rate (2013) 1.1% 3.5% 2.5% Estimate of engagement costs Healy Consultants engagement fees US$26,450 US$19,200 US$17,200 Company secretary and legal registered office fees US$2,700 US$2,700 US$2,700 Estimate of Government registration fees US$1,875 US$4,400 US$1,875 Estimate of total outgoings in Year 1 US$31,025 US$26,300 US$21,775 Draft Hedge Fund invoice View invoice PDF View invoice PDF View invoice PDF
