investment fund creation in estonia

Investment Fund Creation in Estonia: A Guide for non-Residents /e-Residents

Starting an investment fund can be a daunting task, but with the right resources and information, it can be an achievable goal. For e-Residents, the process is made easier by the digital infrastructure and favorable business environment of Estonia. In this blog post, we will explore why Estonia is an excellent place for investment fund creation and how e-Residents can take advantage of it.

What is e-Residency, and Why Choose Estonia for Investment Fund Creation?

First, let’s define e-Residency. It is a program launched by the Estonian government in 2014, enabling entrepreneurs to establish and manage a location-independent business entirely online. With e-Residency, entrepreneurs can open and operate a business in Estonia remotely and access a range of digital services, including signing and verifying documents, conducting online banking, and filing taxes. This program makes Estonia an attractive destination for entrepreneurs looking to start a business from anywhere in the world, including investment funds.

Want to know more about e-Residency or set up a legal entity in Estonia?

Estonia’s Benefits for Investment Fund Creation

Estonia’s investment fund creation process is straightforward and streamlined, making it an attractive location for e-Resident investors. Estonia’s corporate tax rate is one of the lowest in the EU, with a flat rate of 20% on distributed profits. Estonia’s business-friendly policies and regulatory environment also make it an attractive option for those looking to start an investment fund.

Estonia is part of the EU and has access to the European Union’s single market, providing access to over 500 million customers. The country has a well-developed digital infrastructure and a favorable reputation for tech and innovation, making it an ideal location for a fund that is looking to leverage technology to streamline processes and reduce costs.

When starting an investment fund in Estonia with Silva Hunt, you will become a part of the Silva Hunt community. This community consists of experienced entrepreneurs and investors who regularly meet at mastermind events to share their knowledge and insights. Being a part of this community can provide valuable networking opportunities and access to expertise that can be beneficial for your investment fund. Along with the benefits of Estonia’s streamlined investment fund creation process, low corporate tax rates, and favorable regulatory environment, joining the Silva Hunt community can give you an added advantage in achieving success with your investment fund.

Requirements and Regulations for Investment Funds in Estonia

Estonia has a well-regulated investment fund industry, with various regulatory requirements depending on the type of investment fund you want to create. There are two main types of funds in Estonia: UCITS and AIFs. UCITS are subject to more stringent regulation, making them more suitable for retail investors, while AIFs are more flexible and generally aimed at professional investors.

  • UCITS (Undertakings for Collective Investment in Transferable Securities) are investment funds that comply with EU regulations and are authorized to market and distribute their shares across the EU. UCITS funds are subject to strict investment rules and must comply with rigorous disclosure requirements.
  • AIFs (Alternative Investment Funds) are investment funds that do not comply with UCITS regulations. AIFs can invest in a wide range of assets, including real estate, private equity, and hedge funds. AIFs are subject to less strict investment rules than UCITS funds, but they must comply with certain disclosure and reporting requirements

We can help you navigate the regulatory requirements and ensure that your investment fund complies with all applicable laws and regulations.

Creating an Investment Fund in Estonia: step-by-step

To create an investment fund in Estonia as an e-Resident, you will need to go through several steps. Silva Hunt together with our partner, as a fund structuring and administration service, can help you navigate the process. As an e-Resident, you can do this from anywhere in the world.

Here’s what the process typically looks like:

  • 1. Register your company

    You will need to register your investment fund company in Estonia. Make sure to prepare all the necessary documents needed for the submission of the application.

  • 2. Obtain the necessary licenses and permits

    Depending on the type of investment fund you wish to create, you may need to obtain certain licenses and permits from the Estonian Financial Supervisory Authority and Financial Intelligence Unit.

  • 3. Open a bank account

    Once your company is registered and licensed, you can open a bank account in Estonia.

  • 4. Set up Investment fund structure

    Set up the legal structure of your investment fund, including drafting the fund rules, managing shareholder agreements, and ensuring compliance with Estonian and EU regulations.

  • 5. Launch the investment fund

    Once everything is in place, you can launch your investment fund and start accepting investors.

Important to note, that if you aim to create an investment fund in Estonia as an e-Resident, the process can take up to 12 months or more. In addition, you need to hire employees, take care of compliance, accounting, audits and all the legal issues.

Don’t want to do it all by yourself?

Need a SHORTCUT to get the fund set up faster?

Don’t worry, we at Silva Hunt have the necessary knowledge and partners to get your investment fund SET UP IN MERE DAYS. Get in touch to get started!

SHORTCUT to get the fund set up faster:

Setting up and managing an investment fund can be complex and take more than a year, particularly if you are unfamiliar with the regulatory requirements and processes involved. That’s why many e-Resident investors choose to use a fund structuring and administration service by Silva Hunt and partners.

We help you set up and manage your investment fund in days and provide you with following services:

  • Company registration and licensing
  • Assistance with bank account opening
  • Legal and tax advice
  • Fund structuring and drafting of fund rules
  • Compliance monitoring and reporting
  • Investor onboarding and communication

So you can save time, reduce your administrative burden, and focus on growing your investment fund!

Starting an investment fund in Estonia as an e-Resident is a great way to take advantage of Estonia’s favorable business environment, attractive tax system, and well-developed digital infrastructure. By partnering with us, you can benefit from their expertise and experience in setting up and managing investment funds in Estonia.

Interested in creating an investment fund in Estonia? Our team of experts and partners can help you navigate the process and ensure that you comply with all legal requirements.

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