Establish a SICAF in Luxembourg
Updated on Sunday 02nd July 2017
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The SICAF in Luxembourg refers to a type of investment company that must have a fixed capital. The SICAF (investment company with fixed capital) can be incorporated following the regulations applicable for UCITS (undertakings for collective investments in trasferable securities) or under the rules of law available for SIFs (specialized investment funds). Investors interested in how to start a fund in Luxembourg as a SICAF will need to appoint a management company, as the vehicle is not considered a legal personality.
Types of business forms of SICAF in Luxembourg
The SICAF company in Luxembourg will act as an investment fund, registered under one of the following legal entities:
• public limited company;
• special limited partnership;
• limited partnership;
• partnership limited by shares;
• private limited company.
Investors who want to know more on how to start an investment fund as a SICAF vehicle may set up the fund in one of the following domains:
• security funds;
• real estate funds;
• money market funds;
• holding funds.
Incorporation requirements for SICAFs in Luxembourg
Investors may set up a wide range of investment funds in Luxembourg, including a hedge fund startup. All types of funds registered here will need to be approved on the local market by the Commission de Surveillance du Secteur Financier (CSSF).
In the case of a SICAF vehicle registered under the UCITS regulations, the fund can be approved if the company will hire the following:
• an investment manager;
• an administrator;
• a custodian;
• a legal advisor;
• a tax advisor;
• domiciliation agents;
The investment fund will be authorized on the local financial market by the CSSF, once the investors have provided a set of legal documents, including the company’s constitutive documents, at the CSSF office.
Also, the investors will need to raise a minimum share capital of EUR 1,250,000 in a period of six months since the date in which the fund was authorized by the CSSF.
The SICAFs registered under the UCITS regulations do not prescribe any type of restrictions related to the company’s investors. However, SICAFs registered under the SIF regulations may be incorporated only by qualified investors.
Businessmen are invited to address to our team of affiliates in Luxembourg for more details on the registration of a SICAF.