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TOP 6 Best Jurisdictions for Asset Management License

Published:
May 30, 2023

Organizations whose main activity is to take at their disposal and control the funds of investors are subject to licensing. The global market strives for active mass interaction and integration, so opening a company abroad and obtaining an asset management license gives entrepreneurs the official right to accept capital for management-activities from investors from other countries. However, a number of conditions must be met in order for this to remain within the law.

It’s exactly the official permission that makes it possible to accept funds under control from third parties and invest them in various investment projects. The purpose of such investments is to make a profit and distribute it among the project participants who gave their funds for investment. This is done on pre-agreed terms. Directions for investment can be any: private operations, foreign exchange markets, crypto funds, real estate, securities, and so on. Below we will look at the TOP 6 jurisdictions for asset management license.

Singapore

Stable political situation and legal framework of Singapore determines that this jurisdiction is one of the best spaces for setting up an asset management business-structure and undisputed leader of Asian market. Singapore is ready to offer entrepreneurs interested in investment activities a favorable tax regime, a reputation as a reliable world-class center, as well as many additional privileges and benefits.

Firms established and incorporated in the jurisdiction and having a permanent physical local office can become the owner of an asset management license in Singapore. Additionally, they must also demonstrate full meeting with following criteria:

  • high vocational competence of persons taking key positions in the company;
  • suitability and compliance of all employees and heads with the standards set out in the IAS;
  • the presence of basic capital in the amount designated by the regulator;
  • having well-designed and effective mechanisms in place to comply with all MAS regulations;
  • efficient structure and procedures for risk monitoring;
  • mandatory internal and independent audits on an annual basis.

Lithuania

Organizations whose tasks are related to the management of funds, established and registered in Lithuania, have the official right to manage investments received from persons from other EU countries. This jurisdiction has the status of one of the leading in the EU in investment management for the following reasons:

  • commercial-oriented regulation;
  • fast, clear and completely transparent process of obtaining licenses;
  • well-adjusted and debugged infrastructure of the financial market;
  • a huge number of experts who can be hired as specialists;
  • company’s heads shouldn’t reside in the territory of the jurisdiction;
  • comprehensive support for newly created organizations.

Czech Republic

The Czech Republic is also one of the most prestigious European countries with a loyal and welcoming regulatory environment for wealth management businesses. This jurisdiction has undeniable advantages, in particular the following.

  1. Czech management organizations and the funds that they can create are intended only for qualified investors, which ensures a high level of trust and security.
  2. The minimum investment amount is much lower – 40,000 euros. This circumstance greatly contributes to attracting investors.
  3. Citizens of any country can be directors and founders of an asset management firm. Additionally, this paragraph should mention the lack of requirements for vocational skills and education of managers.
  4. Lack of separate standard norms for initial capital for such firms. It can be as little as 1 EUR.
  5. The cost of registering a managing organization is one of the lowest in the world. The registration period is only 1 month.

Switzerland

Switzerland has the status of one of the most reliable and prestigious jurisdictions in the world for the establishment of commercial structures. This is due to its stability in the global arena, strict internal regulation and honesty of interaction with the regulator. The main criteria for opening a management firm in the space are the following:

  • the presence of an officially registered office-premises locally;
  • confirmation of the stay of the administrative persons of such a company in the country;
  • the management of the management company must have two qualified persons;
  • availability of a properly developed internal organization, as well as mechanisms and procedures for controlling and monitoring risks;
  • the initial capital must be fully paid up and amount to 100,000 francs;
  • the presence of an insurance policy in respect of vocational liability;
  • company must provide its customers with adequate financial guarantees.

Luxembourg

Jurisdiction is one of the most dynamic and actively developing in Europe in terms of investment business-project. The starting capital for management firms is EUR 1,250,000. This also includes additional equity, which is calculated and classified as a percentage of the assets under their management.

Luxembourg is also quite advantageous in terms of taxation. There is no income tax in the jurisdiction, as well as a tax levy on dividends and capital increases. In addition, companies are also exempt from paying VAT on services classified as asset management.

Caymans Islands

This jurisdiction is classified as offshore, which gives entrepreneurs certain advantages in terms of taxation. The procedure for establishing an asset management firm in country is quite simple and understandable, in addition, the jurisdiction sets fairly loyal requirements.

  1. Establishment of a commercial structure in the jurisdiction.
  2. Opening a local bank account.
  3. The minimum starting capital should be 100 thousand dollars.
  4. Availability of a local office, officially approved agent and secretary.

The jurisdictions listed above are the most attractive and beneficial for setting up an asset management company. Our specialists are ready to provide you with comprehensive support in the creation and licensing of such a structure. We have an extensive list of shelf companies for sale. Contact us right now, and in the shortest possible time you will be able to become the owner of an effective commercial project.

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