set up a sicaf in luxembourg
TRANSCRIPT
Set up a SICAF in Luxembourg
A presentation brought to you by StartLuxembourgFund.com
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SICAF – definition
The SICAF in Luxembourg represents a legal structure which stands for an investment company with fixed capital.
In order to set up a SICAF (Société d’Investissement à Capital Fixe), the investor will need to observe the requirements for capital, structuring and fund management.
Luxembourg is a leading destination for worldwide investors and fund managers, as it provides numerous investment structures.
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The characteristics of a SICAF
The investment company is one of the basic structures to form an undertaking for collective investments in Luxembourg.
An entrepreneur can open an investment company with fixed capital, also known as a SICAF.
This investment company can take the form of several business entities.
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SICAF – legal entities A SICAF structure in Luxembourg can take the following forms:
• public limited company;
• limited liability company;
• partnership limited by shares;
• co-operative.
Our team of financial experts in Luxembourg can offer more details on the legal entities available here.
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SICAF – registration requirements A SICAF structure can be registered as an individual fund.
At the same time, the investors can set up a SICAF as an umbrella fund, which is a structure that allows the registration of several sub-funds that can carry out different investment strategies and policies.
The SICAF will need a capital of 1,250,000 euro that must be fully deposited within six months from the authorization.
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SICAF – receive approval from the CSSF
The Luxembourg financial supervisory authority (CSSF) is the main regulator for investment funds in the country.
The SICAF must also be verified by the CSSF.
The SICAF will need to obtain an approval from the CSSF before being able to commence any activities.
The commission will approve the fund’s constitutive documents, its management strategy and its directors.
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Taxation of a SICAF >>The distribution of dividends in a SICAF must be done in such a way that it will not decrease the assets to an amount less than half of the fund’s liabilities to its creditors.
The fund will also need to comply with annual accountancy and financial reporting requirements.
Our team of financial consultants can provide more details related to this subject.
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>> Taxation of a SICAF
The SICAF in Luxembourg is exempt from paying several taxes, mentioned below:
• income tax;
• net wealth tax;
• value added tax.
In particular cases, the provisions of the double taxation treaties signed by Luxembourg can apply to such structures.
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Other types of funds
Foreign investors have also the possibility of setting up similar structures, such as the SICAV, which refers to an investment company with variable capital.
Those who want to invest on the equity market can register a SICAR, an investment company in risk capital.
The SICAR in Luxembourg can be registered under several legal structures.
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Consultancy Service in Luxembourg
Luxembourg is a top market for securitization vehicles.
Please contact our team of financial representatives for more details on the securitization legislation applicable in Luxembourg.
Our experts can also provide in-depth information on the main purposes for which an investment fund can be set up here.
Thank you for your attention!
For more information please contact us at:
(+44)203-287 0408 (for international clients)
www.startluxembourgfund.com
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