The Domicile Report provides a comprehensive analysis of the factors influencing the choice of legal domicile for venture capital funds. It examines the impact of regulatory environments, tax implications, and investor preferences on domicile decisions. The report also highlights the trends in global venture capital, including the rise of emerging markets and the strategic considerations for fund domicile in these new contexts. Factors Influencing Domicile Choice: Key considerations include tax optimization, investor location, investment destinations, setup and maintenance costs, formation timing, and fund marketing regulations. Jurisdictional Preferences: Popular domiciles vary by region, with Delaware, Luxembourg, and Singapore being prominent choices. Each region has its own preferred jurisdictions based on regulatory and tax considerations. Cost and Complexity: For first-time fund managers, costs and time associated with fund formation are significant. Legal and tax advice, while essential, can be costly. A hybrid approach, where fund components are domiciled in different jurisdictions, may offer tax efficiency. Regulatory and Compliance Considerations: Regulatory regimes affect investor engagement and fundraising. Compliance with securities laws and physical presence requirements is crucial. Resources and Guidance: Utilize available resources, such as free templates and guides from law firms and venture capital associations, to assist with fund formation and structuring.

VC Lab’s knowledge hub is one of our best trusted resources to learn about VC. Selecting the right domicile is a strategic decision for VC funds that can affect operational efficiency, regulatory compliance, and investor appeal 2.