STRUCTURE A FUND IN THE UAE ????

Creating a fund in the United Arab Emirates (UAE) involves several legal steps that must be taken in order to establish the fund and ensure compliance with UAE laws and regulations. The specific steps and requirements will vary depending on the type of fund being created and the jurisdiction in which it will be established. Here is an overview of the general legal steps involved in creating a fund in the UAE:

1. Determine the type of fund: The first step in creating a fund in the UAE is to determine the type of fund that you would like to establish. This will depend on factors such as the investment strategy, target market, and regulatory requirements. Some common types of funds in the UAE include open-ended funds, closed-ended funds, and exchange-traded funds (ETFs).
2. Choose a jurisdiction: Once you have determined the type of fund you would like to establish, the next step is to choose a jurisdiction in which to establish it. The UAE has a number of different jurisdictions, each with its own set of laws and regulations. Some of the most popular jurisdictions for fund formation in the UAE include the Dubai International Financial Centre (DIFC) and the Abu Dhabi Global Market (ADGM).
3. Register the fund: The next step is to register the fund with the relevant regulatory authority. This will typically involve submitting an application and providing a variety of information such as the fund's investment strategy, target market, and management team. The regulatory authority will review the application and may require additional information or documentation before approving the fund.
4. Obtain a license: After the fund has been registered, the next step is to obtain a license from the relevant regulatory authority. This will typically involve submitting an application and providing information such as the fund's management team, investment strategy, and target market. The regulatory authority will review the application and may require additional information or documentation before issuing the license.
5. Appoint a custodian: Another important step in creating a fund in the UAE is to appoint a custodian. This is a third-party financial institution that holds and safeguards the fund's assets. The custodian is responsible for ensuring compliance with UAE laws and regulations and providing regular reports to the regulatory authority.
6. Establish the fund's legal structure: The next step is to establish the fund's legal structure. This will typically involve creating a legal entity, such as a limited liability company (LLC) or limited partnership (LP) that will act as the fund's management company. The legal structure will need to be registered with the relevant government authority.
7. Draft the fund's constitutional documents: After the fund's legal structure has been established, the next step is to draft the fund's constitutional documents. These documents will set out the fund's investment strategy, target market, management team, and other important details. It is important that these documents are drafted in compliance with the laws of the jurisdiction in which the fund is established.
8. Launch the fund: Once the fund has been registered, licensed, and all of the necessary documents have been prepared, the fund can be launched. This typically involves issuing shares or units to investors and listing the fund on a stock exchange or other market platform.
9. Comply with ongoing regulatory requirements: After the fund has been launched, it is important to comply with ongoing regulatory requirements, such as filing regular reports with the regulatory authority and maintaining proper records.

We at @lexyom have registered several funds for clients and the biggest takeout is whether the client knows what they really want to build or not. #legal #fund