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.
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:
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.
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.