Foreign investors interested in opening a fund in Ireland can choose to invest their financial assets in several legal structures, available under the Irish legislation. Each type of fund offers a different set of advantages and obligations; it is important to know that certain funds can only be established in specific business domains. Businessmen who want to establish an Irish fund can receive assistance on this matter from our team of company formation in Ireland.
Types of funds in Ireland
According to the Irish legislation, investment funds can be established under several legal structures, which can be further divided in Undertakings for Collective Investments in Transferable Securities (UCITS) and non-UCITS (also referred as Alternative Investment Funds).
The video below offers a short presentation on the Irish investment funds:
Foreign investors can open one of the following investment funds:
•UCITS, which provide a means for cross-border distribution of investment schemes available in the European Union; the UCITS can be established as a single fund or as a fund with multiple compartments, each one with a different investment policy;
•Exchange Traded Funds (ETF) are acting as a stock exchange entity; an important aspect is that ETFs set up in Ireland represent approximately 50% of the total ETFs in the European Union (EU);
•Money Market Funds (MMF) are useful for short-term financial instruments which are highly liquid; Ireland is the most representative market in the EU for the MMF domicile;
•Alternative Investment Funds (AIF) were introduced in 2013 and they can be further sub-categorized as Qualifying Investor AIF – available for professional investors, and Retail Investor AIF – available for retail industry.
The first decision an investor should take is related to the structure of the fund, which can be established as UCITS or as AIF. After this, our specialists can assist with the establishment of a certain type of legal structure, chosen in accordance with the investment plans of the investor.
In order to conduct financial activities through a fund in Ireland, it is compulsory to obtain an approval from the Central Bank, which is the main regulatory body for the investment structures.
Funds in Ireland have to be managed by a management company and, in accordance with the fund structure (UCITS or AIFs), the registration procedure will require the completion of a different process.
Paul Sheridan is one of our company formation specialists. He can help you establish your company in Ireland fast and easy.
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