Open a SICAV in LuxembourgUpdated on Friday 25th November 2016
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Investors can open a SICAV (Société d’Investissement à Capital Variable) in Luxembourg, if they want to set up an investment company with variable capital. This is done by opening a limited company that will have a share capital equal to its net assets. The SICAV is one type of Luxemburg investment fund (UCI), but those interested in other investment vehicles can explore more options in Luxembourg.
The Grand Duchy of Luxembourg is a leading investment fund center in Europe. If you want to open a collective or specialized investment fund here, our experts can help you.
The characteristics of the SICAV
The SICAV is subject to the Fund Law in Luxembourg (the 2002 Law and/or the SIF Law of 2007), but also the Luxembourg Commercial Company Law because of its structure as a commercial company. This fund can either be managed by a designated fund management company or it can be a self-managed investment company, provided that the individuals running it qualify for this position.
Sub-funds may be created after a SICAV is operational, but each one must have a different investment policy. This fund structure does not need any formalities for increase and decrease in capital. The minimum capital requirement for such a fund is 1,250,000 euros which must be deposited within the first six months after the fund has received approval for functioning.
More details referring to the SICAV in Luxembourg are available in the video below:
SICAV taxation, approval and supervision
Funds in Luxembourg will need to observe the generally accepted accounting principles for annual and semi-annual reports. Any SICAV is supervised by the CSSF (Commission du Surveillance du Secteur Financier) and will have to fulfil its reporting requirements to this institution. Also, the CSSF will need to approve the constitutive documents of the fund, its directors, the management regulations and other issues before the fund is created.
Funds in Luxembourg are exempt from the income tax. The SICAV can also benefit from certain double tax treaties, although this can be limited, if the other country does not have practical experience with the same financial instrument. No VAT applies for SICAVs in Luxembourg.
For more information about SICAVs in Luxembourg and how they are regulated, please contact our experts.