Setting an offshore hedge fund helps the investor with tax benefits and low cost. You can set up it up in good time and with help of a number of agencies available in the Cayman Islands.
How to launch a hedge fund? And how much does it cost? And how long will it take?
Well you can read the rest of this blog to know about the Cayman Islands hedge fund. As far as cost is concerned, it may cost you between $10,000 to $25,000 to set up a hedge fund. in Cayman islands. Time may vary and will depend on how quickly you can submit the required documents.
There are a number of experienced consultants available for the job and you can hire them for the job at a reasonable fee.
The advantage of setting up the fund in the Cayman Islands is not just the climate. It is the tax structure here with which you will be pleased. There is no income tax, property tax and you can repatriate the money when you want. There are no restrictions on that. This makes it a very suitable choice.
You have to obtain a license to set up the fund, and there are government formalities involved. You will also need to involve a bank. Before you go to the Cayman Islands, do not forget to take a letter of introduction along with your credit store from your banker. It can save you a lot of problems there. Government officials are friendly there and the exhaustive information is available at concerned web sites of the Cayman Islands’ government.
It is very important to set up a lean, smart and faithful team to manage the hedge fund. The NAV (Net Asset Value) of the hedge fund should increase to provide a good return to investors. So team members should be both knowledgeable and efficient. The Cayman Islands do have a stock exchange and internet with good speed to trade in the most stock markets of the world. So managing your funds will be easy.
Returns on the funds will depend on how well are international markets performing and on how efficient your fund manager is. Getting good people to manage your funds is therefore required. Anybody who needs to work in the Cayman Islands does need a work permit. So once you setup your company there you can apply for work permit for your staff who are going to work in the Cayman Islands.
You will need to hire an advocate familiar with the Cayman Island laws unless you are an advocate yourself and understand the Cayman Islands laws. A lot of work on your behalf can be done by these advocates and you can save a lot of trouble and your time by employing one of them.
With very friendly tax structure and no restrictions on sending money back to your home country, it is one of the most promising and profitable places to set hedge funds. Its political stability and peace loving populations along with its location proximity with North America, it remains a well-exploited location and also one of the most promising ones for setting up new hedge funds.