Set Up a SICAF in LuxembourgUpdated on Tuesday 20th December 2016
The investment company with fixed capital is one of the available legal structures for opening an investment fund in Luxembourg. In order to set up a SICAF (Société d’Investissement à Capital Fixe), the investor needs to observe the requirements for capital, structuring and fund management.
Having a wide range of available structures for investment and specialized investment vehicles, Luxembourg is a leading destination for worldwide investors and fund managers.
Our experts can help you set up a SICAF or a SICAV and also manage any other funds or sub-funds.
The characteristics of SICAF in Luxembourg
The investment company is one of the basic structures to form an undertaking for collective investments in Luxembourg. For this purpose, the investor can open an investment company with fixed capital, also known as a SICAF. It can be formed as a public limited company, a limited liability company, partnership limited by shares or co-operative.
Both the SICAF and the SICAV can be formed as individual funds or as part of an umbrella fund that has a number of sub-funds. The SICAF will need a capital of 1,250,000 euro that must be fully deposited within six months from the authorization.
Below, businessmen can watch a short presentation on the aspects related to the Luxembourg SICAF.
Taxation and supervision for funds in Luxembourg
The Luxembourg financial supervisory authority (CSSF) is the main regulator for investment funds in the country. Any fund, including SICAFs, will need to obtain its approval before being able to commence any activities. The commission will approve the fund’s constitutive documents, its management strategy and even its directors.
The distribution of dividends in a SICAF must be done in such a way that it will not decrease the assets to an amount less than half of the fund’s liabilities to its creditors. The fund will also need to comply with annual accountancy and financial reporting requirements. Our financial experts in Luxembourg can help you manage your fund in such a way that it complies with the accepted accounting and reporting principles.
The SICAF in Luxembourg is exempt from the income tax, the net wealth tax or the value added tax. While some double tax treaties can apply, Luxembourg has certain restrictions when it comes to double taxation for investment funds in other countries. Our experts can tell you which double tax treaties apply in case of SICAFs.
Contact our legal specialists in Luxembourg to set up your SICAF and open a registered office for your fund in Luxembourg.