Open Private Funds in Gibraltar

Its status within the European Union and the taxation system have transformed Gibraltar into one of the preferred destinations of qualified and non-qualified investors for establishing investment funds. There are three main types of investment funds one can set up in Gibraltar:

• -          experienced investor funds;
• -          UCITS funds;
• -          private funds.

The last category, private funds, are among the most popular in Gibraltar.

Our company registration agents in Gibraltar can offer more information on the legislation related to opening investment funds in this country.

The main characteristics of private funds in Gibraltar

Gibraltar private funds are regulated by the Collective Investment Schemes (CIS) Act and are defined as private investment schemes which are not allowed to be listed in the Stock Exchange. The number of investors or participants to a private investment fund in Gibraltar is limited to 50.

Private funds are also regulated by the Companies Act which provides for the establishment of the structures used to set up the fund. Our local representatives can assist foreign investors who want to open a company for investment purposes in Gibraltar.

Opening a private fund in Gibraltar

The following requirements must be complied with when establishing a private fund in Gibraltar:

• -          the fund must have a minimum of 2 directors;
• -          the fund must have a prospectus which provide for the internal regulations, the strategy and the risks incurred;
• -          the fund must issue ordinary and preference shares.

A Gibraltar private fund may take the form of an open-ended or closed-ended investment fund. Also, a private fund is not subject to the approval of the Financial Services Commission (FSC) in Gibraltar.

Why set up a Gibraltar private fund?

The main reasons foreign investors open private funds in Gibraltar are:

• -          the procedure is quite simple, as the fund does not require approval from the FSC;
• -          it involves low creation and maintenance costs;
• -          it benefits from low taxes;
• -          it is not subject to audit or custodian requirements.

For full information on the advantages of opening a private fund, please contact our Gibraltar company formation consultants. You can also rely on us if you want to open a company in Gibraltar.