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Offshore Invest Structure

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OK so Seychelles allows you to set up a collective‍ investment scheme for family and friends? That sounds good.

But what about the location of⁠ those friends? I don't think a Seychelles company can protect you from UK, US, EU,⁤ AU etc. collective investment regulations. I see that "immediate family" are listed in COBS 4.12⁣ for UK unregulated schemes, and that there are provisions for high net worth or sophisticated⁢ investors, but I don't think there's an exemption for friends.
 
If it's between friends and family then you could set up fund or even just‌ a company between you and the select few.

As you start to generate profit then‍ invest in a proper structure which could range from 20K-50K. This will then allow you⁠ to take money from investors. Different jurisdictions will have different rules. Look at Mauritius, Seychelles,⁤ UAE, Vanuatu, Cayman or BVI.
 
it doesn't matter where you incorporate︄ your company, if there is money from a US citizen then you need to follow︅ US rules. Cayman island private equity fund is one of the easiest to incorporate but︆ like I said before: You will need to follow US rules
 
I only see a workaround for USA citizens, if a US person opens a legal‌ entity offshore. it cost $1000 roughly to get a Belize or 1500 to get a‍ BVI company all-inclusive, and then the members are not individuals but the company incorporated in⁠ an offshore jurisdiction, under the law of that jurisdiction.
Any other ideas?
 
I think that actually just increase the complexity without reasons because now they⁤ will need to create a private fund company just for them (and follow US rules)⁣ and them that company is the one that is investing in yours... But I could⁢ be wrong, let's see is someone with more experience knows about it.

Others are too (especially EU), I︀ guess he means that the US is the one that is most difficult to work︁ with.
 
Other nationalities are‌ ok because the banks will accept the funds no problem. US clients you have to‍ report to uncle Sam, the bank's don't want the headache.
 
I think is doable if I have a⁢ fund in BVI and they form a company in BVI and that company is joining︀ my fund...
There are no US regulations involved because I am an LP with a︁ BVI entity, not an individual.
But that is not the most cost-efficient solution, because there︂ are costs of forming a fund and forming a company for each investor...
 
Once you set up a company in some jurisdiction that doesn't require‍ any regulation for your fund, and your bank is willing to accept funds from your⁠ investor friends, what about regulations where those friends live? I don't think "my fund is⁤ in country X which has no regulations" gets you out of deep waters with regulators⁣ if your investors are in UK, EU, AU, etc.
If each of your fund members︀ is a company owned by one of your investors, then you don't need to worry︁ about collective investment regulation in the UBO jurisdictions? That sounds interesting.
 
This is︀ a private arrangement with my own money. My country of residence can not tell me︁ what to do with my money. I could invest in an opium field in Afghanistan︂ if I wanted.

It's cross border jurisdiction and the only country that can do anything︃ is the country of incorporation and the bank.
If you take US residents funds by︄ law the bank has to keep records and inform IRS.

Alternatively call it a syndicate︅ lol.
 
You ask for troubles as soon as you take on US citizens into your business.‌ It has bee seen on all cases where banks, small and large, ignored the fact‍ they have to report by FATCA.
 
But the company from⁠ BVI or Belize is not a US citizen and I am not sure if there⁤ is any difference if it's own by Russia ln, EU, or US citizen. Ltd is⁣ entity by itself
 
I think we just disagree‍ on this.

EU has AIFMD and UK has lots of FCA issues if you sell⁠ to local customers, wherever you and your fund are based. These might not apply due⁤ to immediate family, sophisticated investors, high net worth investors, employees of the fund or 'reverse⁣ solicitation' exemption. You can be committing an offense if you sell collective investments to friends⁢ in for example the UK.

I do agree that USA is probably the most difficult︀ jurisdiction to sell to, and the most likely to take meaningful action.
 
He is fine, he cant advertise and solicit︀ for business. If someone is interested they can contact him for information. You are right︁ he can not solicit nor can he have retail clients, they all have to sophisticated︂ investors by virtue of having 100K in the bank and assets worth over 1M.

There are lot of accountants who use this loophole in the UK.
 
Let's take for example a forex⁣ broker, all of them are accepting worldwide citizens except US. Any retail person can open⁢ a brokerage account without having 100k or 1mill of net worth. Heck you can open︀ one with 0 funds. I doubt they have regulator license from all 150 world countries︁
 
Exactly my point, a⁤ lot of the Forex are based in Mauritius or Seychelles because they are regulated there.⁣ It's a lot cheaper and less headache. I have a managed fund in Mauritius closed⁢ end which I have friends and family in. I'm going through the process of registering︀ in the UAE as I can access Middle East clients as they are comfortable with︁ the jurisdiction. It's not cheap but I have passed that cost on to them and︂ they are happy because it's a jurisdiction they trust.
 
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