Obtaining a license for an investment fund (UIF, ZPIF, AIF)

Published:
December 11, 2025
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Regulators are tightening their control over collective-investment vehicles in numerous jurisdictions. Although the names vary from market to market, the general pattern is the same: before a fund can begin operations, managers must complete a comprehensive authorisation process. The approval procedure for Unit Funds, Closed-End Unit Funds and Alternative Funds is usually lengthy, document-heavy and governed by strict formal rules. Market participants frequently underestimate the amount of paperwork, internal regulations, technical compliance, and audit details that are necessary. A deeper comprehension of the particulars of each fund type reduces the number of review cycles that the authorities initiate and helps prevent delays.

You can also take a look at information about how to create an investment fund in Luxembourg or UAE.

Why these structures remain relevant

It tends to be quite laborious to get a license for an investment fund, but the outcome is that the fund can operate legally, penetrate regulated markets, and gain entry to institutional counterparties. One key underpinning for this is the confidence of participants. Their data reporting, rule on asset valuation, and risk-control measures are all subject to periodic control by state bodies. 

Once authorization is received, a fund may proceed to the custodial and audit services, cross-border distribution channels, and tax arrangements of a region. In a more general sense, having to go through a formal approval process means managers have to establish a more orderly internal organization in respect to oversight, handling of assets, and disclosures. This helps reduce operational disputes and aligns the fund with modern expectations of reliability and predictability.

Features of UIF

A Unit Fund, often known as a mutual-type product in various countries, pools contributions from individuals and organizations, forming a diversified pool of assets managed by a dedicated company. Participants receive units, while the managing body directs resources toward securities, property, cash instruments or other allowed categories. Most UIFs are open-ended, meaning that participants can request redemption of their units. 

For a UIF to receive an official permit, authorities typically request:

  • Formal entry into the state’s supervisory system, with all initial documents submitted for review.
  • Adherence to key rules governing data disclosure, unit-holder protection and asset segregation.
  • Clear and periodic reporting, reflecting the condition of the asset pool and all operations conducted.
  • Sufficient paid-in capital to demonstrate that the fund can operate without cash-flow deficits from day one.
  • A detailed internal charter, describing valuation methods, governance bodies, redemption procedures, risk-control tools and decision-making mechanisms.

Features of ZPIF

A ZPIF differs in structure. Contributions are made only during the pre-determined formation period, and units are not redeemed until the end of the term. With no redemption pressure, long-horizon strategies around real estate, private enterprises, infrastructure, start-ups, and other long-term projects unsuitable for frequent cash-out events are possible.

Typical characteristics include:

  • Higher initial resource thresholds, often mandated because underlying assets tend to be less liquid and more complex.
  • Mandatory acknowledgment by the relevant supervisory authority, including submission of a detailed declaration describing the nature of the asset pool and intended sectors.
  • A limit on the number of participants, ranging from a small group to several dozen, depending on local rules.
  • A precisely defined long-term strategy, supported by forecasts, valuation methods, exit procedures and sector specifics.

Features of AIF

An AIF sits in its own category. These structures pursue non-traditional approaches — hedge-style operations, early-stage technology, digital-asset portfolios, distressed debt, mixed real-asset baskets and other higher-risk directions. Many AIFs deal exclusively with seasoned participants who understand complex strategies and can navigate volatility.

Key features often cover:

  • Formal approval by the national competent authority, when needed and also sometimes under EU-level directives, specifically laid down for AIFM.
  • Confirmation that the management company has appropriate internal systems in place, which shall entail risk mapping, conflict resolution, and valuation controls and mechanisms for due diligence.
  • Observance of strict data-protection rules, ensuring the confidentiality of participants and safe handling of confidential material.
  • Harmonization with regional standards, which includes the EU passporting rules for cross-border distribution.

How to get official permission 

  1. A legal entity is formed to operate the fund. Its founding documents must describe governance, oversight, reporting, decision-making rules and asset-handling mechanisms.
  2. Compilation of internal documentation is needed. This includes the fund’s charter, asset-allocation policy, offering materials, AML/KYC procedures, custodian agreements, depositary contracts, audit rules and valuation methodology.
  3. Authorities check whether the managing entity has sufficient paid-in capital to function without operational gaps.
  4. Send the complete application package. It normally contains biographies of key management figures, audits or statements reflecting past activity, internal manuals, risk-control policies, disclosure procedures, and other relevant materials.
  5. The regulator examines the entire structure, often issuing requests for clarifications or corrections. If certain documents fail to meet procedural criteria, the review may be extended.
  6. Upon approval, the fund gains the legal right to operate, attract contributors, deploy assets in line with its declared policy and interact with custodians, auditors and service firms.

Important considerations

  • The process of getting a license for an investment fund may take time as the regulatory bodies would also like to ensure the management body isn’t reduced to a mere shell company. 
  • Regulatory reviews now reach deeply into internal systems, including risk mapping, verification of staff qualifications, quality controls over reporting, asset-segregation mechanisms and valuation methods.
  • While some other regions call for a periodic audit, others demand a quarterly filing to meet their data requirements. There are cross-border access areas that mandate further disclosures conforming to local laws.
  • Longer-term funds also need to look at the nature of the assets chosen for liquid properties, which require very elegant valuation standards and exit planning.
  • Tax treatment is also important. Some territories may provide support with regard to the rules on withholding in offers, while other territories impose very burdensome reporting demands.

Our services

Eli Deal assists clients throughout all procedural stages related to obtaining official authorization for UIF, ZPIF and AIF structures. Our work includes:

  • Crafting fund models aligned with the client’s goals and local rules.
  • Preparing full documentation packages, including charters, policy sheets, risk-control manuals and disclosure materials.
  • Managing communication with supervisory bodies, custodians, auditors and other infrastructure partners.
  • Setting up corporate structure, accounting tools, AML/KYC systems and internal controls.
  • Providing guidance on cross-border distribution rules, EU norms and tax-benefit mechanisms.
  • Offering ongoing support after authorization: periodic reporting, renewal procedures, operational audits and document updates.

Conclusion

Obtaining a formal permit is an extensive process that requires thorough planning and complete documentation before any UIF, ZPIF or AIF can be approved. The result, however, is the ability to operate legally, attract contributors and execute strategies in a structured environment. In view of the complexities of today’s oversight practices, professional support becomes less of a choice. Eli Deal will help to minimize procedural risks and keep the managing body attuned to the rules that are evolving. In order for any group to enter into this segment, early preparation and a methodical approach will be a very critical part of long-term operational continuity.

FAQ

How to get an AIF license?

It is necessary to form a managing organization, draft the fund papers, select and appoint service providers, send materials to the regulator, undergo regulatory assessment, receive approval and launch.

How to register an investment fund?

The course of action is similar to getting an AIF permit. You need to create a managing organization, draft the fund papers, select and appoint service providers, send materials to the regulator, go through regulatory assessment, receive approval and launch.

How to qualify as an AIF?

A fund is usually classified as an AIF when it collects assets from several participants, pools these assets into a collective structure, and manages the pool according to a defined policy, operated by an external or internal manager, not regulated as a UCITS-type retail fund.

What is the minimum requirement for AIF?

Regulators anticipate that an AIF will have a management structure that is practical, with defined roles and documented protocols for routine operations, risk management, and valuation. The fund requires a clear set of rules outlining its daily operations, decision-making process, and investor entry and exit procedures. Along with simple procedures for identity verification, record-keeping, and frequent reporting, supervisors also seek independent oversight of asset custody. The fund is typically regarded as fulfilling the minimal demands for approval if these fundamental structural elements are present.

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