Top Countries to Set Up a SICAV
Updated on Monday 26th November 2018
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The SICAV (investment company with variable capital) is an open-ended investment vehicle which is characteristic to European markets. The capital invested in the SICAV structure depends on the number of investors associated within the fund and the structure can be set up under different business forms, depending on the country in which the investment company is registered. The top investment destinations suitable for the registration of a SICAV are Luxembourg, Malta and Ireland and the main characteristics of the structures registered in these countries are presented below.
Register a SICAV in Luxembourg
The SICAV structure in Luxembourg may be set up as one of the following:
• collective investment of transferable securities funds (UCITS);
• specialized investment funds (SIFs).
The SICAV has as a main purpose the investment of the company’s share capital into securities and other similar liquid financial investments. Those who are interested in setting up an investment fund in Luxembourg as a SICAV should know that there are no restrictions on the types of investors registering this type of fund, but in the situation in which the SICAV is set up as a SIF, only qualified investors will be eligible.
Register a SICAV in Malta
Registering a SICAV can be a suitable option for those setting up a hedge fund startup in Malta as this vehicle is the most popular structure chosen by businessmen. The legal understanding of the Maltese SICAV is similar with the one available in Luxembourg.
For example, the fund will be registered as an open-ended structure that invests in securities. However, the investors of a SICAV may also perform investment activities related to movable and immovable property.
Setting up an investment fund as a SICAV in Ireland
Most of the investors setting up a SICAV in Ireland will register the investment vehicle as a UCITS fund. UCITS in Ireland can be set up as single fund or umbrella fund. In practice, most of the investors prefer to register the SICAV as an umbrella fund, as it can offer the opportunity of carrying multiple investment strategies at the same time.
Investors who are interested in how to start a fund are invited to contact our team of affiliates for in-depth assistance on the legislation regulating the SICAV structure in the above mentioned jurisdictions.