The Indian investment funds industry has known a great development in the past years, attracting investors from all over the world. The hedge fund is one of the most appreciated types of investment vehicles under which various trading strategies can be employed in order to obtain substantial financial benefits.
How to open a hedge fund in India? Below, our company formation experts in India explain the main laws and licensing requirements for a structure. We are also at your service if you want to create such a structure.
In India, hedge funds can be registered as Alternative Investment Funds (AIFs) with the following characteristics:
If you want to start a hedge fund in India and need more information on what the procedure entails, you can request it from our local advisors. We can also guide you on how to form a company in India in any other industry.
If you are interested in how to open a hedge fund in India, you should know that you need to respect the following laws:
Both sets of laws fall under the governance of the Securities and Exchange Board of India (SEBI).
The Board enables those who want to open a hedge fund in India to use the following legal entities for registration:
Should you decide on setting up such an investment fund in India, please get in touch with our consultants for details on the regulatory framework you need to comply with.
Those who want to start a hedge fund in India need to consider various aspects, as they should know that here there are several categories of investors, as well as types of funds.
There are 3 categories of foreign investors, namely Foreign Investment Institutions (FII), foreign individuals, and non-resident Indians. Hedge funds are divided into domestic, offshore, and funds of funds.
In order to open a hedge fund in India, investors must prepare a set of documents which can consist in:
The prospectus must be created no matter the structure of the Indian hedge fund.
Our company registration agents in India can help you draft the necessary paperwork related to starting a hedge fund.
Working with an accountant in India grants you access to a thorough understanding of accounting requirements, thus better services. Inaccurate accounting can lead to financial losses. Although numerous accounting technologies have been created throughout the years, human force cannot be substituted, which is why many companies still rely on accountants and specialists in other fields.
Opening a hedge fund in India also comes with responsibilities, among which one of the most important is paying taxes on the income generated. Here are the main aspects when it comes to the taxation of a fund:
If you are interested in how to open a hedge fund in India and need advice, please contact us.