The SICAV Investment Fund (Société d’Investissement à Capital Variable) is a common investment company that can be set up in Luxembourg. Luxembourg investment funds can be set up as regulated and unregulated entities. The funds may target a wider public or they can be destined for a restricted group of investors under private placement.
The supervisory authority that performs the regulatory oversight is the CSSF (Commission de Surveillance du Secteur Financier).
Characteristics of a SICAV
A Luxembourg SICAV has the following characteristics:
- it may be organized as a public limited company, a European company, a limited partnership or private limited company, depending on the type of organization (either as a UCITS or a SIF);
- no formalities are required for increase and decrease in capital;
- it is an open-ended investment company with capital equal to its net assets.
Requirements for incorporation
Articles of incorporation are required for the formation of a SICAV. The CSSF authorizes the incorporation and supervises the on-going operations.
Depending on its legal form, a SICAV can be managed by a board of directors, manager(s), general partners or a board of managers.
It can have one or several shareholders and their liability is usually limited to the amount committed to the SICAV. The shares entitle shareholders to voting rights.
The minimum capital requirement for a SICAV that has no designated management company is of 300,000 EUR at the time of its authorization. The capital must reach the amount of 1,250,000 EUR within six months after the authorization (or 12 months for SIFs).
A SICAV is exempt from Luxembourg income, capital gains and withholding tax. Also, it is subject to Luxembourg commercial company law taxation.
SICAV Investment Funds domiciled in Luxembourg are liable to a subscription tax (Tax
d'Abonnement) at a rate of 0.05% on the Fund’s net assets. The Funds must issue regular reports. Also, the accounts and annual reports of these Funds must be examined by a licenses auditor.
The managers and advisors that deal with a SICAV Investment Fund must have a license form the CSSF. There are no nationality restrictions for the persons that manage these Funds.
If you want to set up a SICAV Investment Fund in Luxembourg or if you are interested in establishing another type of company, our company formation agents in Luxembourg can help you with detailed information.
Contact our specialists in company formation in Luxembourg, who have a large experience in finance and international business.
Set up an appointment with us at (+352)278 617 15. Alternatively you can incorporate your company without traveling to Luxembourg.