Create a SIF in Luxembourg
Updated on Wednesday 31st May 2017
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With a stable economy and an attractive taxation system, Luxembourg became the top European market for the registration of an investment fund. Foreign investors who are interested in how to start a fund in Luxembourg should know that the procedure may vary depending on the vehicle chosen for registration. One of the ways to invest in this jurisdiction is by opening a specialized investment fund (SIF), which is addressed to the investors with a high degree of knowledge in the field.
SIF law in Luxembourg
A SIF vehicle follows the regulations applicable under the Law of 12 July 2013 which introduced the Alternative Investment Fund Managers Directive on the local market. The legislation amended the previous regulation, the Law of 13 February 2007.
Businessmen interested in how to start an investment fund in Luxembourg may register a SIF qualified as:
• SIFs under the general provisions applicable for such vehicles;
• SIFs which qualify as alternative investment funds.
Legal forms for SIFs in Luxembourg
A SIF in Luxembourg may set up under one of the following vehicles:
• investment company with variable capital (SICAV);
• investment company with fixed capital (SICAF);
• common fund.
The SIF is addressed to qualified investors, which can be represented by specific categories of investors:
• institutional investors;
• professional investors;
• well-informed investors.
At the same time, qualified investors may start a hedge fund in Luxembourg, as this type of fund is available for the same category of businessmen.
The vehicles may be registered under the next legal entities:
• public limited company;
• limited liability company;
• partnership limited by shares;
• cooperative established as a public limited company.
Registration requirements for SIFs in Luxembourg
An advantage of the SIF structure refers to the fact that the investors may set up compartments within the fund, through which they can carry out multiple investment strategies at the same time. A compulsory requirement when registering a SIF in Luxembourg refers to the capital, which has to be of minimum EUR 1,250,000 in net assets.
The capital can be deposited in a period of 12 months since the registration; during the incorporation procedure the investors are required to pay only 5% of this sum.
Businessmen are invited to contact our team of affiliates in Luxembourg for more details on the registration of a specialized investment fund.