The ICAV legislation was published by theIrish authorities in 2014, when they proposed the Irish Collective Asset-management Vehicle (ICAV) Bill. The new corporate structure was created in order to address the current needs of the investment trends. The ICAV Act was enacted in March 2015, establishing a new corporate vehicle available for both UCITS and alternative investment funds. Later on, the Central Bank of Ireland, the main regulatory framework available for investment funds, published its regulations for the incorporation of the ICAV structures. Foreign investors interested in receiving more details on how to register an ICAV can address to our team of lawyers in Ireland, who have an extensive knowledge of the applicable legislation in this sense.
The main characteristics of the Irish ICAV
An ICAV structure will not follow the legislation applicable to commercial companies, which is established and regulated under the rules of the Companies Act. The Irish ICAV is established under the ICAV Act, which prescribes the legal requirements for this type of structure.
Investors may find out more details on the Irish ICAV from the video below:
An important aspect of the ICAV legislation is that certain funds are allowed to convert into an ICAV.
For example, already registered companies with a variable capital can re-register as an ICAV. At the same time, the legislation stipulates that foreign investment companies can set up their business operations in Ireland under an ICAV, as long as the company is allowed to re-domicile here; our team of attorneys in Irelandcan offer more details on the characteristics of an ICAV.
Incorporate an ICAV in Ireland
An ICAV is registered at the Central Bank of Ireland (CIB) under the instrument of incorporation document. The incorporation should last approximately 6 weeks, but the procedure is much shorter for alternative investment funds, which can be authorized by CIB in 24 hours.
Irish ICAVs can be set up as an umbrella fund or single structures, and it is necessary to have a board of management comprised of minimum 2 directors who have received the Irish citizenship.
In terms of taxation, such funds are not required to pay the tax on income. ICAVs are also exempt from paying the tax on the company’s assets.