Cayman Islands Funds

Benefits of setting up a fund in the Cayman Islands

  • One of the most popular jurisdictions for offshore funds, with an estimate of 70% of the world’s funds being domiciled in the Cayman Islands
  • Wide range of investment fund types available to suit a variety of investors
  • Top tier professional infrastructure with top industry professionals in the corporate and financial services industry
  • Stable economic and political climate
  • Highly advantageous tax regime with no corporation, capital gains, income, profits, or withholding tax
  • Well regulated jurisdiction with a long and successful track history
  • Straightforward and flexible fund administration requirements

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Interested in starting a fund on the Cayman Islands? Contact us here:

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Set up a fund in the Cayman Islands!

Cayman Islands have been the leading offshore jurisdictions for investment funds for many years. 

The jurisdiction’s regulatory and legal framework for investment funds have made the Caymans one of the most approachable and effective options for setting up an offshore fund, providing its investors a highly advantageous tax regime, a stable political, socioeconomical and fiscal climate. Most importantly, the Cayman Islands offer its investors a variety of available fund products. 

Types of funds

Registered Fund

Registered Funds in Cayman Islands are set for a minimum investment of US$100.000 or interests listed on a recognised stock exchange. The fund must appoint an Operator who is typically a Director, a Trustee or a General Partner.

Administered Funds

Administered Funds must have a CIMA-licensed mutual fund administrator providing its principal office. The regulatory responsibility for the administered fund which has more than 15 investors and which is not a licenced or regulated mutual fund, is placed largely in the hands of a licensed Mutual Fund Administrator. 

Licensed Mutual Fund

Licensed Funds in the Cayman Islands are mutual fund operating in and from the Cayman Islands. Such funds must have a licence unless a licensed mutual fund administrator is providing its principal office. 

Our fund services

Looking to set up an offshore fund? Our expert fund advisors will guide you through the whole process – from choosing which jurisdiction is best for you, to obtaining your fund licence and day-to-day management.

Our services include: 

  • Advice and assistance in setting up your offshore fund
  • On-going support, from day-to-day administration to assistance with corporate, legal and tax matters
  • Fund accounting and valuation
  • Risk management and compliance services
  • Domiciliation and office rental (if required)
  • Audit services

Key Features of Cayman Funds

Cayman Islands Funds are regulated by the Mutual Funds Law (MFL), which gives the Cayman Islands Monetary Authority the responsibility to regulate certain categories of funds operating in and from the Cayman Islands. The categories of funds regulated under the MFL are listed below.

1) Private funds with a maximum of 15 investors and the majority of investors can appoint and remove fund operator(s), and

2) Closed-ended funds such as private equity funds and certain overseas funds

Choose from a Registered Fund, a Licensed Mutual Fund or an Administered Fund. 

The Cayman Islands have no direct taxes of any kind. There are no corporation, capital gains, income, profits, or withholding tax. 

The vehicles commonly used for operating mutual funds are the exempted company, the segregated portfolio company, the unit trust and the exempted limited partnership. 

Cayman Funds, regulated under the MFL, will generally be required to appoint the following functionaries:

  • Investment manager
  • Directors
  • Administrator
  • Custodian
  • Auditor

Get in touch!

We offer expert support throughout the whole process.

From choosing the right jurisdiction for you, to day-to-day administration and annual management of the fund.

Contact us today for an initial complimentary consultation and find out how we can help you achieve your investment goals!