Starting Alternative Investment Fund in Estonia
Our lawyers will help you to establish a small alternative investment fund ("AIF" - limited partnership) correctly and obtain the necessary registration at the Estonian Financial Supervision Authority ("FSA").
Why start AIF in Estonia
Estonia has implemented attractive legislation for closed-end collective private equity and venture capital similar to investment schemes in the UK and Luxembour, whereas establishment costs are considerably lower.
How to start AIF
Register a General Partner (a legal person, ltd, for instance) in Estonia. Apply for a confirmation from the FSA that the General Partner or the fund management company has been properly registered or authorised as an alternative investment fund manager. General Partner submits an application to the Estonian Commercial Register to establish the AIF.
Less strict requirements to publish the identity of its limited partners (investors) and the amount of the investments made by each investor. Considerably lower cost of establishment compared to the UK and Luxembourg. Relatively fast registration process – around 5-20 working days for the AIF, up to 2 months if the General Partner registers its activities at the FSA.
The Estonian AIF structure includes all best elements of the VC fund framework in popular investment funds jurisdictions to enable investors and fund managers to set up and manage VC funds at a low cost. A small fund manager does not need a license, except when managing public limited fund or common fund, but nevertheless the fund manager needs to register its activities with the Financial Supervision Authority.