The Dutch investment fund legislation provides for 5 types of funds which can be established in this country. Among these, undertakings in collective investments in transferable securities (UCITS) and alternative investment funds (AIFs) are the most common. These types of Dutch funds are regulated by the laws with the same name. Their main advantage is that they can be marketed both in the Netherlands and in other EU states.
Our company registration agents in the Netherlands can offer more information on the legislation related to UCITS funds.
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What is a Dutch UCITS fund?
The UCITS is a collective investment fund which is allowed to raise money from people and invest it in various assets. The Dutch UCITS fund is subject to various limitations related to the investments it may make. It is also subject to various diversification requisitions. The main characteristics of Dutch UCITS funds are:
- – it must invest in liquid financial instruments;
- – it must meet certain risk-spreading requirements;
- – it can be set up as an open-ended investment company;
- – the fund must be gathered from the public.
Also, the undertaking in collective investments in transferable securities fund must be administered by a professional manager or management company which has been previously approved by the Dutch Financial Supervisory Authority, the National Authority for Financial Markets.
Registration of UCITS funds in the Netherlands
The first step to set up a UCITS fund in the Netherlands is to choose the type of company best suitable for an investment fund and register it with the Trade Register. It is important to know that the Netherlands offers a wide variety of structures which can be used for investment purposes. Our Dutch company formation consultants can offer information about all the investment vehicles available for incorporation.
Once the company is registered, it must submit the following with the Dutch Authority for Financial Markets:
- – the fund’s prospectus;
- – the financial statements;
- – the company’s incorporation documents.
Foreign UCITS are also allowed to operate in the Netherlands based on a declaration which provides for their complying with all UCITS regulations.
We also invite you to watch a video on how to open a UCITS in the Netherlands:
For complete information on how to set up a UCITS, please contact our company incorporation agents in the Netherlands.