- 1). Ascertain that you have sufficient start-up cash of about $500,000, a good securities lawyer, the appropriate licenses (which vary by state), familiarity with the SEC and general knowledge of corporate law. Go to the SEC site (see Resources below) and download the Investment Company Registration and Regulation Package. Thoroughly read and understand this package.
- 2). Talk to your legal counsel and determine within which state you prefer to have your investment company incorporated prior to registering it with the SEC. The state in which you incorporate your mutual fund does not necessarily have to be the state you will do business in.
- 3). Determine how you will handle all relevant compliance, marketing, distribution and investment issues that will pertain to your investment company while reviewing the SEC package.
- 4). Select a name for your investment company. Make sure it's not currently being used.
- 5). Do not register with the SEC until after your investment company has first been incorporated.
- 6). File Form N-8A (Notification of Registration) with the SEC when you are ready to register your investment company.
- 7). File the appropriate registration form (which your legal counsel will review and attest to) within three months of filing Form N-8A with the SEC:
Form N-1A (for mutual funds)
Form N-2 (for closed-end funds)
Form N-3 (for separate accounts [defined in Section 2(a)(37) of the Investment Company Act] that offer variable annuity contracts that are registered under the Investment Company Act as management investment companies)
Form N-4 (for separate accounts that offer variable annuity contracts that are registered under the Investment Company Act as unit investment trusts).
Form N-6 (for separate accounts that offer variable life insurance policies that are registered under the Investment Company Act as unit investment trusts) - 8). Put an anticipated "effective date" on the form filed in Step 7. This is the date you expect to start your investment company. The SEC general will respond to your registration prior to this date. You will need to take care of other business matters while the SEC considers your investment company registration. These other matters can include making sure you have any necessary licenses (these vary by state) and, if not, obtaining them. You cannot do business during this period.
- 9). Expect the SEC to come back and request changes in your filing, which is normal procedure. Always make sure your attorney reviews these changes before resubmitting your filing.
- 10
Register your investment company under the blue-sky laws of any states you intend to do business in, and start selling shares in your mutual fund once the SEC gives formal approval.
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