Setup of tiny offshore hedge fund?

Discussion in 'Professional Trading' started by Scorbles, Nov 4, 2007.

  1. Scorbles


    Hi All,

    I have been a successful trader for a few years and am about to move offshore (for both lifestyle and tax reasons). Since I have been trading a number of people have asked me about managing money for them. I would now like to set something up but I am wondering what my best option is. This would be starting very small (about $1mm of friends and family money). What are my options? I am really just interested in keeping costs down and providing my friends and family some option to invest with me. I want the fund to be setup offshore (all my investors will be non-US residents). Any advice? Any ballpark on what setup costs will be an annual upkeep costs? Will admin become daunting for a one-man operation?

    Thanks very much.
  2. Most third world countries have and relatively easy and cheap registration process.

    First and second world countries have a very complicated registering process, some even more than the US.

    So check your local laws, maybe registering is easier than you think.

    Then you need your clients to sign a contract, so you will not be held responsible for ANYTHING.
    Usually the contract form is also registered.
  3. If all of your clients will be non-US you dont need to register with the SEC at all.
    Just open an corporate account with your broker using your -registered- company name.
  4. Be sure that the country you're located in doesn't have an extradition treaty with the country where your investors are from.