Funds Formation in the British Virgin Islands
Funds in the BVI may be incorporated as business companies or formed as partnerships or unit trusts.
Segregated Portfolio Companies (SPC)
Funds can be incorporated as an SPC. With an SPC, any asset linked to a particular portfolio held as a separate fund for that segregated portfolio, will not form part of the general assets of the SPC and will not be available to meet the liabilities of any other segregated portfolio. Once established, a segregated portfolio company constitutes a single legal entity; each segregated portfolio does not. The SPC can issue shares and declare dividends on its own account, as well as with respect to each individual segregated portfolio. As such, the SPC is a particularly useful vehicle for multi-class or umbrella funds which wish to offer different investment strategies to investors.
Unit Trusts
Unit trusts are suitable for a variety of investment structures, including the stand-alone trust and the umbrella trust. When properly structured, a unit trust is exempt from BVI income tax, estate tax, inheritance tax, succession tax, gift tax, or any other duty.
Counsel for BVI Investment Funds
Our lawyers advise on fund formation and structuring in the British Virgin Islands, including constitutional and contractual documentation, incorporation, registered office and administration services, regulation and compliance, as well as restructuring, liquidation, insolvency and winding up of funds.
With offices in the major international financial centres of Hong Kong, London and Singapore, we are more than able to provide you with our responsive legal services. We are also well equipped to service the Middle East North Africa market, with lawyers who have thorough expertise and understanding of the region.