Set up a SICAR in LuxembourgUpdated on Monday 14th November 2016
based on 2 reviews
The Luxembourg investment company in risk capital (société d'investissement en capital à risqué, SICAR) is regulated by the Law for collective investment schemes, enabled in June 2004. The SICAR company was created for private equity and venture capital investment. The Law was amended in 2008, when the Government introduced the option of setting up SICARs in Luxembourg, as umbrella companies with multiple sub-funds and as limited partnerships with variable capital.
SICARs are usually used for raising private equity or venture capital and are allowed to list their shares on the Stock Exchange only under certain conditions. Investments in a Luxembourg SICAR company are required to meet two criteria:
- they must be high risk,
- they will be used to develop the company the SICAR invested in.
The legislation allows for the second condition to be satisfied in different ways, such as modernization or restructuring, hence one of the greatest advantages of setting up a SICAR in Luxembourg is flexibility.
Forms of SICARs in Luxembourg
The Luxembourg SICAR can be incorporated under five legal forms:
- partnership limited by shares (société en commandite par actions, SCA),
- limited partnership (société en commandite simple, SCS),
- private limited liability company (société à responsabilité limitée, Sàrl),
- public limited company (société anonyme, SA),
- cooperative company organized as a public limited company (société cooperative organisée sous forme de société anonyme, SCoSA).
We invite investors to find out more details on the SICAR in Luxembourg from the video presented below:
Both corporate entities and individuals are allowed to open a SICAR in Luxembourg.
Requirements to register a SICAR in Luxembourg
There are no requirements related to the maximum number of shareholders a SICAR in Luxembourg may have. The minimum share capital required to set up a SICAR in Luxembourg is one million euros which must be deposited within 12 months from the authorization. The company must have a registered address in Luxembourg and its name must end in the acronym SICAR.
The Luxembourg SICAR must be authorized by the Supervisory Authority for the Financial Sector (CSSF). The SICAR will be required to draft a prospectus and an annual report at the end of each financial year which will be audited by an independent qualified auditor.