Open a SOPARFI in Luxembourg

Updated on Friday 04th August 2017

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One of the ways to start an investment fund in Luxembourg is by registering a financial holding company (SOPARFI). Businessmen who are interested in how to start a fund in Luxembourg or an investment company can set up a SOPARFI for specific business purposes, such as performing investments in other companies, which can be registered in this country or elsewhere. At the same time, the SOPARFI company can perform acquisition or management activities in other companies, but it can also enter commercial activities following the regulations prescribed in the articles of association of this business form. 

Registration requirements for the SOPARFI in Luxembourg  

Investors interested in how to start an investment fund in Luxembourg or another type of vehicle are required to register the legal entity following the provisions applicable for the respective structure. In the case of a SOPARFI, it is necessary to draw the company’s articles of association with a public notary in Luxembourg. Further on, the company’s statutory documents will be submitted with the Trade and Companies Register
The SOPARFI can be registered both by natural persons or legal entities, who may reside in Luxembourg or in another country. 
Although the legal entity acts as a holding company, it will be taxed following the regulations provided by the Luxembourg’s Law on Commercial Companies. Investors should also know that a SOPARFI in Luxembourg benefits from the Parent – Subsidiary Directive established by the European Union, thus being able to reduce the level of taxation

Legal entities for SOPARFI in Luxembourg  

Any company or investment fund opened here is registered through a legal entity prescribed by the country’s legislation, a procedure which is also applicable for those interested in opening a hedge fund startup
In the case of a SOPARFI, the legal entities under which the company can be registered are the following: 
public limited company;
limited liability company;
partnership limited by shares
As mentioned above, the SOPARFI may also enter into commercial activities. If this is the case, the investors are required to obtain a consent on the respective activities prior to starting the business operations. The consent will be provided by the Ministry of Small and Medium-Sized Businesses
Investors are invited to contact our team of affliates in Luxembourg for more details on the SOPARFI company. Our partners can offer in-depth advice on the tax regulations applicable to this business structure.