27/09/2021

Limited Partnership Funds and Cayman Fund Investment

2 min read

The Limited Partnership Fund regime is introduced to attract private investment funds (including venture capital and private equity funds) to set up and register in HK, with the goal to enhance the position of HK as a premier international asset and wealth management center. Limited Partnership Funds are popular among HK investors for good reasons. In the following, a number of reminders regarding the details of Limited Partnership Funds in HK are given. First, according to the Limited Partnership Fund Ordinance, a few records must be kept at the registered office of the LPF or any other place in HK made known to the Registrar of Companies. To name but a few, the audited financial statements, a register of partners, documents and records of each transaction carried out by the LPF. Second, in order to apply for deregistration of a LPF, at least its assets do not include any immovable property situate in HK.

The Cayman Islands are one of the most popular tax havens in the world as there is no corporate tax, and no income tax, property taxes, capital gains taxes, payroll taxes, withholding taxes, are imposed on residents. This makes it perfect for multinational corporations to base subsidiary entities in order to shield incomes from taxation. Cayman fund investment can be very profitable but it is also necessary for businessmen to obtain legal advices from consultation services. Aside from professional legal advices, a helpful Cayman fund investment consultation can also offer advices on the ways to cope with the socio-economic environment in a more responsive way.