If we briefly describe the financial environment of Luxembourg, we can say about it that this country was one of the founders of the European Union and today is one of the generally recognized financial centers. Located in the heart of Europe, this small state has invaluable experience in dealing with complex financial instruments and quick accessibility for direct contact with government agencies. Considering that local investment fundingsegment is largest in Europe and the second largest in the world, it makes sense to consider this jurisdiction to register an investment fund in Luxembourg (IF).
Starting to conduct commercial operations in this area is a very difficult task, requiring skill, professional experience and significant costs. If you do not have this or do not want to waste time, then look at fund in Luxembourg for sale with a license and an established structure.
Key Points about Funds in Luxembourg
The Specialized Investment Fund (SIF) is a regulated, flexible and financially efficient investment fund for an internationally qualified investor base. Investments in SIFs are made to well-informed investors, which include corporate investors, professional investors and investors who certify in writing that they are a well-informed investor and who:
- invest at least 125,000 EUR or
- after being assessed by a credit institution, investment firm or management company, confirmed their ability to understand the risks associated with investing in SIF.
There are currently no restrictions on eligible SIF assets, but such funds are subject to the principle of risk sharing. SIFs are not subject to provisions relating to investment or borrowing rules. The SIF may exist in the form of an underlying common fund (FCP) or variable capital investment company (SICAV) or fixed capital (SICAF) structure. These various structures can be created as a single fund or as several projects structure consisting of several establishments, each of which has a different portfolio of assets and liabilities.
The net assets of specialized investment funds must be at least EUR 1,250,000. This minimum must be reached within twelve months of the issuance of the foundation’s authorization. Unless otherwise provided, SIF assets shall be measured at fair value. SIFs must have appropriate risk management systems in place to measure, manage and control the risks associated with positions and their contribution to the overall risk profile of the portfolio.
The shareholders of IF can be three types of depositors:
- well informed.
After a year of operation of the fund and no later than, the property of your investment fund must be brought to the level of 1,250,000 euros. In the case of an IF with variable capital, you must distribute all its shares by subscription. At the same time, only 5% of fixed assets are contributed in cash or property.
Quite flexible rules for the repurchase and issue of shares or shares, as well as a serious attitude to confidentiality in the jurisdiction, are an attractive factor in order to open fund in Luxembourg. Separately, it should be noted if you decide to open a fund in Luxembourg, the abbreviation SIF must be present in the name of your company.
Distinctive License Excellences
- Internationally recognized industry;
- Authoritative regulatory environment due to its accessibility, knowledge and regulatory responsiveness;
- Stability of the political, economic and social environment, as well as a stable legal environment;
- Favorable tax environment;
- Attractive jurisdiction for corporate investors; as well as
- Luxembourg investment funds enjoy the benefits of a product passport, allowing them to place subscriptions to investors in EU and the European Economic Area.
Requirements for Investment Facilities in Luxembourg
SIF’s own assets must be at least EUR 1,250,000, and this amount must be reached within the first 12 months after the investment fund is licensed. The SIF does not require a resident director and a physical office in Luxembourg. In particular, there are no requirements related to the minimum required number of commercial persons. If you decide to create fund in Luxembourg, it must contain:
- asset custodian;
You also need auditors.