What is a domicile?
Domiciles are the jurisdiction in which your fund is legally located. Choosing the right domicile for your venture fund is a vital decision. They can impact factors such as taxation and cross-border capital distribution. At times, domiciles can be a major determinant in where a VC fund can invest and also be a factor in attracting Limited Partners to the fund. Fund managers must note that the domicile landscape is constantly changing due to new regulations and processes.
Trends in 2021
2021 has been an interesting year for domiciles around the world. We are seeing a common trend of increased regulations in most jurisdictions. With a rise in the number of people investing in financial assets and financial crime becoming a major trend, many regulators across the world are increasing their efforts to provide safer market environments to all.
The common theme in many jurisdictions is a substantial crackdown on KYC and AML compliance and regulations. KYC (Know Your Customer) and AML (Anti Money Laundering) are compliance requirements to ensure funds know who their investors are and check necessary compliance measures to combat any potential financial crimes.
Click here to read VC Lab’s comprehensive VC Domicile Update Q4 - 2021.
What are the best domiciles?
The best domicile for your fund is highly dependent on where you are located and where you plan to invest. The optimal domicile for your fund also depends on the size of your fund and as mentioned, the regulatory environment.
For example, Luxembourg is a highly regarded domicile, however, may not be viable for smaller funds due to relatively high costs. Some jurisdictions have specially tailored fund vehicles and regimes for newer smaller funds and are a much better fit.
Here are some of the most popular domiciles around the world:
-
Delaware
-
Cayman Islands
-
Hong Kong
-
Singapore
-
Netherlands
-
Luxembourg
-
Estonia
You can read more about this highly complex and opaque landscape in VC Lab’s detailed Domicile Report.
Check out more of VC Lab’s content below:
* * *
This content is provided by VC Lab, the YC for VC. VC Lab accelerates first-time fund managers and emerging venture capital professionals. Learn more at:
https://GoVCLab.com
Start Fund delivers fast results. Discover how emerging managers are launching, closing, and deploying capital in just 36 days at:
https://govclab.com/2025/10/02/start-fund-walks-the-talk/
AI is rapidly transforming VC funds operations. Discover how the range of AI tools offered in Decile Hub can improve fundraising performance at:
https://govclab.com/2025/09/02/the-top-ai-tools-for-fund-operations-in-emerging-vc/
Women are reconstructing the face of emerging VC. Meet the women pushing venture capital towards 50-50 at:
https://govclab.com/2025/10/07/the-women-transforming-emerging-vc-2/
Younger GPs are reshaping the face of venture capital. Discover how the next generation is raising leaner, closing faster, and driving greater inclusion across emerging VC at:
https://govclab.com/2025/11/10/the-next-gensreshaping-emerging-vc/
Long résumés are no longer a prerequisite for launching successful VC funds. Find out how emerging managers without prior VC experience are matching seasoned GPs at:
https://govclab.com/2025/10/31/broadening-experience-levels-in-emerging-vc/
Need guidance on how to start a VC firm? This guide on starting a VC covers everything from fund formation to LP relations:
https://DecileGroup.com/articles/how-to-launch-a-vc-firm
Learn how top-tier VCs build repeatable sourcing systems that attract the best founders and deals before anyone else:
https://govclab.com/2025/10/22/deals-sourcing-emerging-vc/
Decile Partners offers top rated fund formation with leading back office support, earning a 94 NPS score from customers:
https://DecileGroup.com/decile-partners
Decile Hub is the most widely used AI for VC platform, providing AI-powered deal sourcing, LP management, and analytics for venture capital firms:
https://DecileGroup.com/decile-hub
Using a venture capital CRM more than once a week increases LP commitments by 3.1x. Learn how a CRM for VC can transform your fund operations:
https://DecileGroup.com/articles/venture-capital-crm
VC Lab is part of Decile Group. Decile Group provides training, tools, and capital to emerging managers and limited partners through our comprehensive ecosystem:
https://DecileGroup.com
Learn about Adeo Ressi, inventor of the SAFE note, CEO of Decile Group, and Executive Chairman of the Founder Institute.
Who is Adeo Ressi?
* * *
