An attractive manner through which investors can open a company in Luxembourg
is through the Foreign Portfolio Investment (FPI)
. The FPI
designates a manner through which the businessmen can purchase various financial assets – such as bonds and shares, through which they can invest in a particular jurisdiction. Our team of company formation representatives in Luxembourg
can offer in-depth advice on the main characteristics of the FPI
Characteristics of FPI in Luxembourg
In many ways, the FPI
is very similar with foreign direct investments (FDI)
. However, the FPI
does not allow the investor to own the respective assets, as he or she does not have ownership rigths
when investing here. However, the entrepreneurs interested in company formation in Luxembourg
will be allowed to invest in various types of assets.
For example, the businessmen will be able to invest in stocks, bonds or securities.
One of the main reasons why the entrepreneurs prefer this method of investment
refers to the fact that the FPI
is a less risky procedure. It can also provide a rapid return on investment
. Our team of company formation agents in Luxembourg
can offer more details on the FPI
The usage of FPI in Luxembourg
The FPI represents a part of the country’s capital and the index is included on the country’s balance of payments.
The balance of payments represents a tool through which it is provided a clear image of the money flow from one country to the other.
One of the main advantages of FPI in Luxembourg refers to the fact that it offers a high level of liquidity. The financial assets raised through FPI are included in the Luxembourg Stock Exchange.
Investments in Luxembourg
can have a positive effect on the economy of a country and, in Luxembourg
, the FPI investments
had a total value of $ 100 million and the top FPI investors
were represented by American and German citizens.