UCI Structures in LuxembourgUpdated on Thursday 09th June 2016
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Investors who want to set up their business operations in Luxembourg can also open a fund here. There are several structures, available for different types of investment fields, as well as for different types of investors. A type of fund which can be opened in Luxembourg is the undertakings for collective investments (UCI). Our team of financial specialists can provide an in-depth presentation on the structures of UCIs, their main purposes and the ways in which businessmen can capitalize their investments through this type of funds. At the same time, our consultants can also explain the main stipulations under which UCIs can be established in Luxembourg.
The main characteristics of UCIs in Luxembourg
Undertakings for collective investments refers to collective investments which require capital from multiple investors. The UCI has to follow a certain investment policy on which the investors can agree upon.
In some cases, the shares of UCIs can also be distributed to the general public. It is important to know that Luxembourg represents the first location (at a worldwide level) for the establishment of UCIs; our team of financial specialists can offer more details on the distributions of the UCIs’ shares.
Legal structures for a UCI in Luxembourg
The main legal framework under which UCI can function in Luxembourg is the Part II Law, which regulates the legal structures of UCIs, their activities, the main regulatory bodies and many others.
UCIs can be set up under the following structures:
• FCP - common funds;
• SICAV – open-ended investment company;
• SICAR – close-ended investment company.
The common fund is not established under a legal personality and thus, this type of fund must be regulated by a management company.
In the situation of funds established as SICAR/SICAV, the investors can set up the following entities:
• public limited company (SA);
• private limited company (SARL);
• partnership limited by shares (SCA);
• limited partnership (SCS);
• special limited partnership (SCSp).
The SCSp was introduced in the local legislation in July 2013, under the rules of the Alternative Investment Fund Managers Law.
Investors who need further information on the structures under which undertakings for collective investments can be set up in Luxembourg can contact our team of financial experts for assistance.