Mutual & Private Hedge Fund.
A fund is a tax efficient legal entity that allows the pooling of investments using sophisticated tools like bonds (with ISIN). A fund can be based on an IBC, a CSL or a PCC and is run by a registered fund administrator.
A Mutual Fund is an investment vehicle made up of a pool of money collected from many investors for the purpose of investing. It is one of the most popular methods of investing throughout the world because it diversifies the risk among the investors.
A Private Fund is a kind of Mutual Fund which is not open for subscription to everybody. The number of Investors are restricted and the details of the investors are not required to be made public.
The main features of Private Funds:
- No more than 50 investors
- Private business connection
- Aimed at the professional advisor looking to gather together a consortium of investors
- Prohibits any invitation to the public to subscribe the shares
- No minimum or maximum investment required
- Allows the issuance of bonds with registered International Securities Identification Number (ISIN)
Seychelles Mutual Fund
The Seychelles Mutual Fund & Hedge Fund Act offers an excellent and tax effective structure for the fund business through offshore investing. A Mutual Fund in the Seychelles can be constituted as a company, trust or a partnership.
The most common structure for investment in mutual funds is the International Business Company (IBC), or the Protected Cell Company (PCC).
Significant features of Seychelles Mutual Funds:
- Seychelles licensed funds are exempted from taxes on total fund’s income. They are also exempt from withholding tax and stamp duty.
- Seychelles mutual fund law also allows Umbrella funds to operate (i.e. a fund that invests in a range of different fund or sub-funds).
- A broad range of fund vehicle options are available to choose from, for example IBC (International Business Company, CSL (Special License Company), Trust, and PCC (Protected Cell Company).
- A Mutual fund in the Seychelles can be administered in the Seychelles by a Seychelles Licensed fund administrator or outside of the Seychelles by an approved foreign administrator.
- Accounts for mutual funds can be prepared overseas and audited by approved overseas auditors.
