A Specialized Investment Fund in Luxembourg
) is a main investment fund
mechanism used for all types of alternative investment funds
s), like real estate funds, private equity funds, hedge funds, and many more.
Specialized Investment Funds have turn out to be more popular and are generally used by investment fund executives in Luxembourg.
The important features of a SIF in Luxembourg
A Specialized Investment Fund needs to have an active portfolio management and one of its most significant aspects is that you can invest in any category of assets.
Because a SIF
delivers a low level of security for investors, these kinds of funds
are usually suggested for institutional and specialised investors
, also known as sophisticated investors.
Other characteristics of a Specialized Investment Fund are:
• no restrictions for the author or sponsor;
• particular fund or umbrella structure;
• no taxes on capital gains, income and profits;
• limited requests for detailed documentation.
Accessible categories of SIFs in Luxembourg
The Luxembourg Special Investment Fund
can take numerous legal forms like the common fund, FCP
– fonds commun de placement, and the investment company, SICAV
– Société d’investissement à capital variable, or SICAF
– Société d’investissement à capital fixe.
SICAV and SICAF businesses may also take other forms, like:
• private limited liability company (Sàrl)
• cooperative in the form of a public limited company (SCoSA)
• public limited company (SA)
• partnership limited by shares (SCA)
With respect to registration requirements, the Luxembourg SIF Law
does not necessitate a minimum or a maximum number of investors
On the other hand, the shareholders are mandatory to subscribe a minimum share capital of EUR1,250,000. Only 5% of the capital must be deposited upon the listing of the Luxembourg SIF.
Taxation of SIFs in Luxembourg
s benefit from a very profitable tax system
. Investment funds
merged under the SIF
Law are necessary to pay a yearly subscription fee of 0.01% of their net asset price. Management services offered to SIFs
are excepted from paying the VAT in Luxembourg
Moreover, foreign investors establishing a SIF in Luxembourg can also benefit from the state’s prolonged network of double taxation treaties.
For extra information about establishing a SIF in Luxembourg
you can contact
our company formation specialists
in the country.