Hedge funds in 2022

hedge fundsKnown 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 Fund
    How 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 others
    Do 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: none
    Regulatory 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: no
    Open-ended vehicles: yes, but exceptions.
    Close-end vehicles: no
    Local 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 regulated
    2 2
    Minimum number of resident directors required? • Unclassified and Expert Fund: 2
    • Unregulated Eligible Investor Fund: not regulated
    0 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 regulated
    0 0
    Resident manager required? • Unclassified Fund: 2
    • Expert Fund: 0
    • Unregulated Eligible Investor Fund: not regulated
    0 0
    Must the managers have a license? • Unclassified Fund: no
    • Expert Fund: yes
    • Unregulated Eligible Investor Fund: not regulated
    Yes 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$2,800
    US$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 Unregistered
    How 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 trusts
    Mauritius
    (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 fund
    How 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$100,000
    vary
    Regulatory Authority Financial Market Authority (FMA) Financial Services Commission (FSC) Securities Commission of the Bahamas (SCB)
    Required to have local office premises Yes Yes Yes
    Required to hire local employees No No No
    Local registered address required? Yes Yes Yes
    Local directors required? Yes Yes No
    Resident custodian required? No Yes Yes
    Resident manager required? No Yes Yes
    Legal considerations
    Minimum number of directors required? 1 2 2, subject to changes
    Minimum number of resident directors required? 1 2 No
    Corporate directors allowed? No Yes Yes
    Individual directors allowed? Yes Yes Yes
    Resident manager required? 0 1, subject to exceptions Yes, subject to exceptions
    Must the managers have a license? Yes Yes Yes
    Minimum number of representative required? 1 2, one custodian and one local administrator 1 custodian
    Minimum number of resident representative required? 1 1, the manager. Subject to exceptions No
    Public register of shareholders and directors Yes - -
    Tax and accounting considerations
    Corporate tax payable 28% 3 No
    Audited financial statements Yes Yes Yes
    Local audit firm required? No Yes No
    Annual tax return to be submitted Yes Yes Yes
    Access to how many double tax treaties 38 38 30
    Withholding tax payable Yes Resident or non-resident investors in a resident fund: No
    Non-resident investing in a resident fund: 15%
    None
    Can the hedge fund hire expatriate staff in the country? Yes Yes Yes
    Logistic considerations
    Can invoice/sign sales contracts with local clients No No No
    Can rent office premises in the country Yes Yes Yes
    Employment visa fees (US$) 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

Contact us

For additional information on our hedge funds services, please contact our in-house country expert, Mr. Seth Ochieng, directly:
Director of Client Engagements - Seth
  • Mr. Seth Ochieng
  • Director of Client Engagements
  • Contact me!