Best jurisdiction to create many investing entities LTD

[harington]

Hello

Me and my business partner would like to offer investment opportunities for wealthy investors as a limited company in low tax or no tax country. Minimum capital required for our clients would be 100 000 USD. Investor will be board member, so actually he will never relinquish his money to us.

We also have Panama foundation, which we can use.

From research we know that for example in British Virgin Islands we can set up a limited company, where the investor is a board member. In this way, it is not investment fund, but normal business partnership. Our commission from investment profits would be paid as a salary.

We are looking for best jurisdiction to create many LTDs (one per investor). We don’t have required licenses to form official investment fund, so we are looking for alternative solutions.

Could you please point me to relevant agents or advisors who are competent in this matter?

Thank you in advance,
Best regards,

 

[John Andrews]

Maybe a protected cell company? Not sure where would you get an account for it though...

 

[Perry8]

From research we know that for example in British Virgin Islands we can set up a limited company, where the investor is a board member. In this way, it is not investment fund, but normal business partnership. Our commission from investment profits would be paid as a salary.

We are looking for best jurisdiction to create many LTDs (one per investor). We don’t have required licenses to form official investment fund, so we are looking for alternative solutions.

You can do this in several jurisdictions. The discussion here is the "lower threshold" of an investment company/fund that needs to be licensed. In BVI this is legal. But there you can also open a unregistered (privat) fund with less than 50 investors.

This can also be achived in jurisdictions like Cayman Islands, Belize, Seychelles, to name a few.

BVI company formations typically takes around 48 hours and is slightly (but not much) more expensive than he cheapest options (Belize and Seychelles). I do however think it is a better option.

Banking is always the most difficult part, but you should be able to get a bank account or an EMI for a company like this.

 

[CaptK]

Hello

Me and my business partner would like to offer investment opportunities for wealthy investors as a limited company in low tax or no tax country. Minimum capital required for our clients would be 100 000 USD. Investor will be board member, so actually he will never relinquish his money to us.

We also have Panama foundation, which we can use.

From research we know that for example in British Virgin Islands we can set up a limited company, where the investor is a board member. In this way, it is not investment fund, but normal business partnership. Our commission from investment profits would be paid as a salary.

We are looking for best jurisdiction to create many LTDs (one per investor). We don’t have required licenses to form official investment fund, so we are looking for alternative solutions.

Could you please point me to relevant agents or advisors who are competent in this matter?

Thank you in advance,
Best regards,

Now it depends on where all parties live and all your nationalities.

For instance an LLP would be perfect for your needs if no one lives in the UK.

You could set up a Fund for sophisticated Investors in any of the offshore jurisdictions then it comes down to cost.

BVI, Cayman, Barbados, Panama, Belize, Bermuda, Seychelles, Mauritius, Guernsey, Gibraltar, Jersey, IOM.

That's a roughly in the order of ease and cost to open.

I personally would go BVI with a Cayman management company as the owner.

 

[harington]

Now it depends on where all parties live and all your nationalities.

For instance an LLP would be perfect for your needs if no one lives in the UK.

You could set up a Fund for sophisticated Investors in any of the offshore jurisdictions then it comes down to cost.

BVI, Cayman, Barbados, Panama, Belize, Bermuda, Seychelles, Mauritius, Guernsey, Gibraltar, Jersey, IOM.

That's a roughly in the order of ease and cost to open.

I personally would go BVI with a Cayman management company as the owner.

Thank you! How LLP in UK will be perfect if no one lives in UK?

I think investors would not put money in non-regulated jurisdictions...

 

[CaptK]

It's then a partnership between the 3 of you. The partnership agree states that the investor is the money and you are the muscle. It will also dictate the split of profits and secure everyone's position in the partnership.

Profits are paid directly to partners as per their agreement and they can elect where they are to be taxed.

So if they are not UK resident then they are not due for UK Tax. If they are a company in a low tax country then they can mitigate the tax they pay.