BVI OFFSHORE MUTUAL FUNDS

British Virgin Islands is the global leader in registration of offshore mutual funds. More than 3000 mutual funds are currently registered in the BVI, with the total of over 100 billion US dollars under management. The popularity of the BVI as the prime location for offshore mutual funds grows by the day, as investment professionals increasingly recognize the benefits of this tax haven jurisdiction. Fidelity Corporate Services Ltd can provide a comprehensive incorporation and licensing services package to establish a private, professional or public mutual fund in the BVI, or to register a fund management company in the BVI.

Establishment and Licensing of a BVI Mutual Fund

For establishment of a BVI professional, private or public mutual fund, we offer a comprehensive, "turn-key" solution. This contains a complete set of services necessary in order to create, launch and run the fund!

Normally, the following services are necessary during the various stages of the establishment of a new BVI mutual fund:

  • Drafting the special Memorandum and Articles of Association for the Fund.
  • Provision of the Registered Agent and Registered Office for the Fund.
  • Incorporation of the Fund company as a BVI Business Company.
  • Payment of standard Government fees at incorporation of the Fund company.
  • Drafting of First Minutes, appointment of directors and primary corporate documents.
  • Obtaining duplicate Certificate of Incorporation (required for licensing purposes).
  • Drafting of the Offering Memorandum.
  • Drafting of the Management and Administration contracts.
  • Legal review of all corporate and contractual documents by a BVI-based legal counsel.
  • Drafting of the licence Application for recognition as Professional or Private Fund.
  • Submission of the licence Application along with the accompanying documents.
  • Payment of Mutual fund Application fee and Recognition fee to BVI FSC.
  • Follow-up with the licence Application and liaison with the Financial Services Commission.
  • Appointment of one corporate director to the Fund.
  • Appointment of administrator (annual administration fees to be negotiated separately).
  • Assistance with appointment of custodian and opening of a custodial account.
  • Assistance with appointment of auditor (audit fees not included).
  • Assistance with appointment of banker and opening of bank account.
  • Assistance with appointment of broker and opening of brokerage account.
  • Obtaining CUSIP/ISIN number (if necessary).

Fund administration. Professional, BVI-based fund administration services can be integrated into the fund set-up, provided by an independent Fund Administrator, as required by the BVI Mutual Funds Act 1996. Fund administration fees typically range between 0.12% and 0.20% of net assets, subject to a minimum of $18`000, per annum. The actual rates of administration fees depend on a number of factors, such as the type and complexity of the fund and its assets, complexity and frequency of the calculation and reporting, number of shareholders, share classes and series, sources involved at value calculations, and other similar factors. Exact quotation of the administration fees is available as soon as these variables are known.