Funds in Luxembourg
Luxembourg offers a great range of tools to investors and founders giving the possibility to get high profits while keeping their assets safe. Funds – regulated and non-regulated formation structures prevail on the territory of the dukedom. They give the opportunity for everyone to correctly and easily dispose of personal assets at the appropriate level of confidentiality and protection of their funds. Funds in Luxembourg is the SIF-format structure with its specification and used to take individual decisions with a wide functionality. CSSF, the financial sector operating throughout the principality, is responsible for the governmental supervision.
The investment component of the government is quite complex and confusing; it requires specificity and branching. Funds allow incorporation, adoption of any legal formation, pursuing the objective and a lot more. That is why it is so important to assign professional to create the Fund who are familiar with all the process details and are willing to do it in the shortest possible time. The experts employed by the Private Financial Services will provide comprehensive support and assistance with the help to choose the fund, they will contribute to arrange all formalities in paperwork, and will keep the client’s funds safe. We guarantee best results and we know how it works.
Funds in Luxembourg – their variations and structure
Funds of specialized formation are clearly focused on individual decisions, and this helps to distinguishe them against UCITS structures with their private or public relevance. Among all available forms, the majority of experts give preference to SIF that may be created by both individuals and investors, providing that they prove their competence. This structure is complex; its uniform format is allowed, or the “umbrella” branching. The benefits of the local financial sector mainly consist of its flexibility and option of smooth selection of the best form of the fund for personal use and needs. SIF is able to represent:
- a fund of general purpose;
- an investment company with the variable or fixed capital;
- A unit with closed/hidden structure, and so forth.
The Luxembourg Fund is able to take investments as various assets, both within the state and outside it; in this term, minor limitations are absent. Private funds, art objects and other things, including wine collections, are allowed to deposit. It is important to meet diversification requirements – the asset size should not exceed 30% of the capital as a whole. The following should be distinguished among other rules:
- The initial contribution size up to 125000 Euro;
- Identification of the address, goal, names and locations of the Directorate is mandatory;
- Authorization by the CSSF Commission is required;
- There is a demand in a local management company, banking facility for deposits and certified auditor to verify annual accountings;
- A year after permission documentation, the size of assets should exceed 1.25 million Euro;
- Monaco will be determined as the place of registration of the central administration and main office;
- The abbreviation SIF is mandatory in the title.
Responsibility for operations is limited within the stated damage. Delegation of certain functions is possible to non-residents of the state. Funds in Luxembourg will be formed as follows:
- Limited partnerships and JSC – capital from 31000 Euro and more;
- LLC – at least 12,500 Euro;
- Cooperative communities – no requirements for the lowest investment.
All SIF are exempt of profit tax and are not included in the European Directive on interest rates. A single-time fee is equal to 0.01% for the whole year. The sum of net assets is accepted as the basis for calculation. Registration required a lump sum of 1250 Euro plus 75 Euro. When alienating personal shares within 6 months since the date of purchase, domestic tax rates apply to investors. Reporting is mandatory – the annual report includes the balance sheet filed with the tax inventory, explanations and proft/loss bills.
If you wish to register a fund in Luxembourg, please contact our fund specialists.