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Registration of offshore investment fund

2018-11-28

Fund is a form of business organization. Its main difference is that it has no owners, such as a corporation. The purpose of the organization - making a profit.

The functioning of the fund is governed by the laws of the country at the place of registration. At the same time, the investment policy of this organization has practically no regulation, in connection with this, some participants invest in various instruments for making profit in the future. In this regard, often the funds are opened in offshore jurisdictions.

Types and structure of offshore funds

The most common classification of funds is their division into open and closed organizations. The difference is in the way the fund is created. The first type of organizations does not limit the number of depositors, the second type issues a limited number of units that can be sold on the exchange.

There are other classifications of funds. They are divided into the following types:
• Private;
• Corporate;
• Charity;
• Special.

Funds may differ depending on what legal form they were created on - a partnership, a company or a share trust. Often funds are created in the form of a company. Moreover, creating it offshore means that it is subject to tax exemption.

The structure of the funds includes the board of directors, as well as the governing board, administrator, depository, auditor, and investment advisor.

The purpose of private foundations and the advantages of their creation

The main goals of creating and using private offshore funds are the ability to manage and protect assets, plan the distribution of property, engage in charitable activities and minimize the amount of tax payments.

Features of funds:
• The property can transfer any assets;
• The Foundation is an independent legal entity. a person who may be engaged in the purchase / sale of real estate, open accounts offshore, and also enter into various contracts with other legal entities;
• Fund revenues that are registered in some jurisdictions (for example, in Panama, Nevis) will not be taxed;
• Information about the beneficiaries of a private foundation - non-public information;
• Founders can be one or more individuals, both individuals and legal;
• Guaranteed privacy in offshore zones.

One of the important advantages of a private offshore fund - there is no need to submit a report on the activities of the organization. In addition, property transferred to private funds will not be taxed.