SICAV/SICAF Investment Fund in Luxembourg

The SICAV Investment Fund (Société d’Investissement à Capital Variable) possesses its own legal personality. It is formed in the form of a Public Limited Company (PLC., Corp./SA). Its share capital is variable and the value of which at any time matches the value of the net assets of all the sub-funds.

The SICAF Investment Fund (Société d’Investissement à Capital Fixe) is also a legal form having legal personality and whose capital is fixed. The SICAF operates either as an open or closed Fund.

SICAV and SICAF Investment Funds in Luxembourg are subject to the approval of, supervision of and monitoring by Luxembourg's Financial Market Authority (CSSF).

SICAV and SICAF Investment Funds which are domiciled in Luxembourg are exempt from corporate income tax, capital gains tax and withholding tax. The said Funds are liable only to Tax d'Abonnement (subscription tax) at a rate of 0.05% on the Fund's net assets.

The Funds are required to produce regular reports. It is required that the accounts and annual reports of the said Funds be examined by a licensed auditor.

A SICAV and SICAF must appoint a depositary bank which has its registered office in Luxembourg. The depositary bank shall supervise the Fund assets and ensure that shares are issued and redeemed in compliance with the statutory provisions. Moreover, it shall ensure that the income and/or profits is/are used in accordance with the articles of association.

The managers and advisers of the said Funds require a licence from Luxembourg's Financial Market Authority (CSSF). Notwithstanding this, there exist no restrictions on the nationality of the person or the company managing or advising the said Funds.

If a SICAV and SICAF in Luxembourg are formed as UCITS (Undertaking for the Collective Investment of Transferable Securities) funds, no restrictions apply as to who may be an investor. In contrast, Specialised Investment Funds (SIF) are reserved for "qualified investors" only.

 

LEGAL NOTICE|SITEMAP

COMPANIES

Companies

INFO-HOTLINE

00352-250345

OUR TEAM

  • LAWYERS
  • TAX CONSULTANTS
  • AUDITORS

AND AN EFFICIENT BACK-OFFICE

LUXEMBOURG NEWS

Exemption of risk management services from value-added tax (VAT)

On November 7th, 2013, Luxembourg's tax authority issued a Circular Letter on the scope of the value-added tax (VAT) exemption for the management of Investment Funds.