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Special Purpose Acquisition Companies
Updated on Wednesday 04th October 2023 Rate this article
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Would you like to register a SPAC in Luxembourg? One of our specialists can tell you what are the conditions for establishing this structure and what are the most important steps in this regard. You can benefit from the support offered by our company formation agents in Luxembourg and at the same time read in the following lines information about what the establishment of a Special Purpose Acquisition Company in Luxembourg entails.
What are the characteristics of a SPAC in Luxembourg?
Special Purpose Acquisition Company or SPAC is a type of investment company created specifically to raise capital to buy existing and active companies on the market. Here are some of the most important features of SPACs in Luxembourg:
- • SPAC represents an asset category that is attracting attention from the international investment community.
- • SPACs comply with the provisions of the European Securities and Markets Authority (ESMA)'s Public Statement.
- • SPACs maintain the protection of the investors and safeguard market integrity, these being priorities.
- • The sponsor who establishes a SPAC in Luxembourg is interested in raising capital from investors during an IPO (Initial Public Offering) process to buy a company.
Interested in company formation in Luxembourg? Feel free to discuss all aspects with one of our local representatives.
How to register a SPAC in Luxembourg?
SPACs in Luxembourg are established taking into account the legislation imposed for such structures by the European Union. In this approach, a document called a prospectus is drawn up, which goes to the supervisory financial institutions in Luxembourg for approval. There is also a need for passporting notifications for admissions to trading on EU-controlled markets. It is good to specify here that the public limited liability company is the optimal structure for SPACs in Luxembourg, but you can also opt for the European Company, limited stock partnership. Here are other important details:
- SPACs in Luxembourg can have either a one-tier board or a two-tier board;
- SPACs can issue unique classes of shares for the sponsor and the public shares;
- the SPAC management in Luxembourg must be responsible and act in the best interest of the company;
- SPACs in Luxembourg must also report periodically and implement internal control and risk management.
- EUR 30,000 represents the minimum share capital for the establishment of a SPAC in Luxembourg.
We remind you that you can benefit from support if you want to open a company in Luxembourg and collaborate with our specialists. We can explain to you the conditions for establishing a SPAC in Luxembourg. And you can also rely on us if you are looking for a team of accountants in Luxembourg.
How to list a SPAC at LuxSE
LuxSE is the stock exchange in Luxembourg and the place where companies are listed on the market. It is one of the most important exchange markets in the world. To be able to list the SPAC at LuxSE, you must consider the following aspects:
- • The listing is made in compliance with the general conditions of the European Securities and Markets Authority (ESMA)'s Public Statement.
- • Funds raised by SPACs must be placed in an escrow account with a controlled financial institution.
- • Considering these aspects, you can get in touch with our specialists to familiarize yourself with the LuxSE listing conditions for SPACs in Luxembourg. You can always count on us if you want to open a company in Luxembourg.
Moreover, you can discover some statistical data about the Luxembourg economy to know the market before opening a company in this country:
- • Luxembourg was ranked 4th in terms of inward FDI stock, in 2021, after USA, China, and the Netherlands.
- • After a minor drop of around 0.8% in 2020, the economic development in Luxembourg recovered to 5.1% in 2021.
- • The unemployment rate in Luxembourg reduced to 4.6% in 2022.
You may contact our company formation specialists if you would like to set up a SPAC in Luxembourg. We can easily manage the formalities and procedures involved.
Meet us in Luxembourg
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 +352 671 533 922. Alternatively you can incorporate your company without traveling to Luxembourg.
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Read more testimonialsVlad Cuc, Director of BridgeWest www.bridgewest.eu