How to open a cryptocurrency investment fund in offshore
Despite the ups and downs, cryptocurrency remains a profitable asset, and many investors believe in it long-term growth. Not surprisingly, many fund managers have included it in their strategy or decided to open a cryptocurrency investment fund in offshore.
What you should know about cryptocurrency investment funds
A cryptocurrency investment fund is a project which can be profitable if you work with it correctly. The manager usually receives a 2% commission for managing all assets, and the investor may also be charged 20% of the annual profit. If there is no profit, the fund still takes its 2% commission.
To open your own cryptocurrency investment fund and work with large assets, you have to find wealthy investors. Success will depend on your strategy, persuasive skills, and money management. Also, you will need to advertise the crypto fund, invest entrusted assets, and show results to build a good reputation.
How to open an investment fund
When you have an effective strategy, that will persuade investors to allocate money, you can start registration.
- Create a business plan with a description and analysis of the market and detailed financial information.
- Determine the type of company. Investment funds are often registered as LLP or LLC, where the manager is the main partner, and the investors are the partners with limited liability. This company type will help protect your assets if the crypto fund declares bankruptcy.
- Determine whether the fund will be open or closed. In the first case, shares can be sold directly to investors in unlimited quantities. A closed crypto fund is usually unregulated. It has a fixed capital and a strictly defined number of shares offered by the company. They cannot repurchase or issue shares on demand.
- Create an investment agreement coordinated with an attorney. It should specify the fee structure. For example, the standard is a management fee of 2% and an annual performance fee of 20%, but it's not an unshakable rule. Also, the agreement should specify the minimum deposit from the investor and the period in which the fund will conduct the income distribution.
- Assemble a team. In addition to a lawyer, you will need a crypto-broker who will offer primary brokerage services. An auditor is also a must-have and this employee will track all records to carry weight in negotiations with potential investors. You also need to hire an administrator to handle the day-to-day tasks of keeping the crypto business running smoothly.
- Develop a user-friendly and client-oriented website.
- Create a marketing strategy and find investors.
To save on taxes, it is better to open a crypto fund in an offshore jurisdiction. Recommended options for this purpose are as follows:
- Cayman Islands;
When everything is ready, collect the documents that are required for registration in a certain offshore. Oour specialists will gladly help you with that. In addition, you may need to obtain a license, registration with the Securities Commission and other authorities depending on the jurisdiction. Once the company is registered, you should open a brokerage account.
Finally, you will be able to gather a sufficient number of investors, launch the project, and start trading.
How to open a crypto fund in offshore
To quickly open a cryptocurrency investment fund in offshore, contact IT-OFFSHORE experts.