In the encrypted digital currency industry, in order to avoid the essence of illegal fundraising, many ICO projects will choose to register offshore funds abroad, and then donate funds to individuals from the funds. So what is an offshore fund? What are the procedures for registering an offshore fund?

Offshore funds generally refer to funds registered outside the host country. Incorporation is usually in the British Virgin Islands, Bahamas, Bermuda, Cayman Islands, the Isle of Man, Dublin and Luxembourg ) and other regions and countries. Choose to register offshore funds in these areas, usually because the supervision of funds in these areas is relatively loose, and at the same time, the local government exempts the fund from taxation of non-local income. In addition, some places also allow offshore funds to register Global Public Offering.

At present, there are more than 6,000 funds of various types in the Cayman Islands. As a rising star, the British Virgin Islands has registered more than 3,400 regulated funds since it opened the offshore fund market in 1998. At present, there are more than 1,600 registered collective investment schemes in Bermuda. It should be noted that the above figures do not include the huge number of funds that can enjoy regulatory exemption under local laws. It can be seen that registering offshore funds in offshore islands has become one of the first choices for many funds.

According to the difference in the place of registration of the fund issuing company and the denomination currency, offshore funds can be divided into two types. One is issued and raised by foreign fund companies, introduced by investment consulting companies established in China, and purchased by domestic investors. Such funds are registered overseas. There is also a fund that is issued and raised by domestic fund companies to invest overseas.

Registering an offshore fund usually requires the following procedures:

1. Selection and investigation of investment projects;

2. Selection of Fund Manager and Administrator;

3. Ask a local licensed consultant to write legal documents and register to establish a fund;

4. Open Cash Account and Investment Account;

5. Investors invest in Cash Account;

6. Fund managers conduct due diligence KYC;

7. The fund manager issues an instruction to allow the fund manager to transfer capital into the Invest Account;

8. Broker operation;

9. Fund management, including administration, accounting, finance, net worth calculation NAV, etc., usually monthly or quarterly.