Question Offshore Invest Structure

[Sir Gelato]

Hi everybody, here's the deal.
I'm looking if it would be possible to create an offshore or onshore company that can allow me to manage client funds without having any licenses (like forex, investment vehicles, etc etc.)

The structure is very simple if It's possible, a customer, business or personal; transfers funds and my company, with a previous agreement signed from the client, manages the funds.

¿Could be the setup possible? I've been thinking on some kind of escrow or trust setup.

Thanks a lot in advance, glad to have a community to share doubts...

Take care...

 

[topleaders]

Very risky strategy. It is better to do it legal with license. Poland have great EMI license and also in Poland from 2021 there will be 0% corporate tax.

That's not quite true, it's proposed 0 tax if the profits are reinvested, and you will need to pay them anyways once the profits are distributed.

Same like Estonia have now

 

[tacokai]

Thank you for clarification @topleaders I see the guy got banned already. He spammed the forum with his Poland crap that wasn't true at all.

Could be the setup possible? I've been thinking on some kind of escrow or trust setup.

where would you set this up? which country.

 

[topleaders]

What do you guys think about equity crowdfunding for that purpose?

For example, my company can issue up to 50 000 shares, and I can raise money from investors by offering them 100 shares for $10k as a guarantee. They become shareholders and I operate as a hedge fund and once I make money, I can buy back those shares by paying out seed money plus interests (minus management fee). Investor gives 10k, he gets 100 shares and after a year if I made 50% profit on the portfolio, he can get sell those shares back for 15k(minus performance fee)

Would that work and has anyone made something similar?

 

[bobbydoyle]

What do you guys think about equity crowdfunding for that purpose?

For example, my company can issue up to 50 000 shares, and I can raise money from investors by offering them 100 shares for $10k as a guarantee. They become shareholders and I operate as a hedge fund and once I make money, I can buy back those shares by paying out seed money plus interests (minus management fee). Investor gives 10k, he gets 100 shares and after a year if I made 50% profit on the portfolio, he can get sell those shares back for 15k(minus performance fee)

Would that work and has anyone made something similar?

What you're describing is an open-ended investment fund. You're issuing equity interests, and redeeming them on demand at NAV.

 

[pesto]

What you're describing is an open-ended investment fund. You're issuing equity interests, and redeeming them on demand at NAV.

mind to share some more information about it?

 

[bobbydoyle]

mind to share some more information about it?

An open-ended investment fund is a type of collective investment scheme (i.e. a mutual fund or hedge fund), that redeems an investor's shares at NAV on demand.

Per the Nevis International Mutual Funds Ordinance:

“mutual fund” or “fund” means a company incorporated, a partnership formed, a unit trust organized or other similar body formed or organized under the laws of Nevis or of any other country or jurisdiction which (a) collects and pools investor funds for the purpose of collective investment, and (b) issues shares (as herein defined) that entitle the holder to receive or demand or within a specified period after demand an account computed by reference to the value of a proportionate interest in the whole or in a part of the net assets of the company, the partnership the unit trust or other similar body, as the case may be.

An open-ended fund refers to an investor's to redeem their shares at NAV. Most mutual funds fall inside this category.

A close-ended fund refers to a fund where the capital is held permanently by the company, or over a fixed period, such as in the case of a private equity or venture capital fund, where shares cannot be redeemed at NAV. Either they are redeemed by the company at some agreed upon date, or they are floated on a stock exchange.