Fund in Luxembourg

Published:
February 26, 2024
licensed image

Because of its privileged location in central part of Europe and widely-extensive expertise in field of financial tools and mechanisms, this duchy remains in demand among entrepreneurs wishing to establish funding structures locally. Commonly-choosing status of the center in EU and second most-considered essential on global level after USA is because of well-developed regulative basis; it provides a high-leveled protection of capital-holder interests and flexibility in resolving various issues.

Our specialists are ready to offer you qualified assistance in launching a fund in any jurisdiction. On our service you can also familiarize yourself with current offers for the sale of similar structures and choose the most appropriate and optimal variant for commercial needs and goals.

To set up a fund in Luxembourg: features of launching, regulations and functioning

Such organizations are popular among entrepreneurs in jurisdiction because they may be aimed at both a broad audience and a limited number of private placement capital-holders. Regulation of such projects is carried out by local Commission (CSSF).

To create this commercial project, you need to go through next-mentioned stages of general launching process.

  1. Registration of local firms.
  2. Opening an account at a local bank.
  3. Contribution of authorized capital.
  4. Hiring all employees.
  5. Development of an investment strategy and other policies, as well as drawing up an investment agreement.
  6. Submitting an application to the regulator for launching.
  7. Establishment of a funding structure.

Creating investment fund in Luxembourg possesses a plenty of advantages for entrepreneurs:

  • politician and economical steadiness;
  • transparent and understandable taxation;
  • high-leveled protection of rights and interests of capital-holders;
  • attractiveness for corporate entrepreneurs due to authority of duchy;
  • developed legal environment.

Capital-holders interested in this area may also bear in mind investment fund in UAE. This market-space is in essential demand in the commercial environment due to its exceptional status as a reliable business field.

The premium status of duchy and image of investment funding structures registered here open up wide opportunities for activities within EU and EEA, as well as for cooperation with major international banks.

Special attention should be paid to tax aspects in a given jurisdiction. In fact, specialized funding structures are exempt from taxation, with exception of fixed-set launching and subscription fees, which amounts to 0.05% of net-value of all fund-assets. During transactions for issue or transfer of shares, stamp duty is not charged.

There’re different categories of locally-registered funds, but Specialized ones (SIF) have become particularly popular among entrepreneurs. It is characterized by a flexible approach to supervision and demonstrates high financial efficiency.

Investing in SIF is admissible to various capital-holders who meet one of the following conditions.

  1. Be ready to hold at least 125 000 EUR.
  2. Can confirm their understanding of all risks associated with investmenting mechanisms.

Since 2016, a law has come into force locally that allows entrepreneurs to create a new type – alternative reserve fund.

If you’re interested in creating such Luxembourg structure, our team is ready to offer a full spectrum of legal services, starting with consultation and ending with realization of process of creating funds in this duchy.

Unique business-opportunities in Luxembourg

  1. Favorable geographical location facilitating strategical interactions with other regions.
  2. An open economy with a high degree of competitiveness.
  3. Appealingly tax-environment promoting financial steadiness.
  4. Diverse financial sector providing ample investment opportunities.
  5. A strong legal and regulative basis providing a secure business-environment.
  6. Easy access to strategical decision makers.
  7. A skilled, multilingual work-force capable of effectively completing a variety of tasks.
  8. Developed infrastructure ensuring the efficient functioning of enterprises.
  9. Favorable investing climate conducive to successful business-progress.
  10. Support for researching-activities and development, stimulating innovative development.
  11. High standard of living, providing comfortable conditions for living and working.

Our specialists guarantee resolution of all legal issues and support at all stages. To contact our managers and begin the process of opening a fund, use special form presented on the website.

Related insights

How to Spot Undervalued Real Estate Markets Abroad in 2025

The never-ending wave of globalization, together with the progression of digital tools changing the living and investing styles for people, ensures the international real estate market will remain a wide playing ground for both established and emerging markets—especially the undervalued ones. That means that by 2025, growth and yield investors will start looking at ignored…

Read more 06.08.2025

Crypto Legalization in the EU: How MiCA Is Changing the Game for Licensed Providers

Nowadays, MiCA has taken a major step in creating a harmonized set of rules for crypto-assets across the EU. It can be recalled that for years, each member state developed its own laws regarding the competence to regulate virtual currencies. This has all been quite messy. At this time, there is one structure for the…

Read more 05.08.2025

International Financial Entities (IFEs)

The region of Puerto Rico has become a center for those who want to acquire businesses for sale to operate globally. These are organizations called International Financial Institutions (IFIs). They are special financial companies that are based in Puerto Rico but mainly do business outside the island. They were created under a 2012 statute. IFEs…

Read more 04.08.2025

Puerto Rico Offshore Company

Puerto Rico has become a popular place for international business people looking to reduce their taxes while staying connected to the U.S. It’s a U.S. territory, but it has its own special tax rules that are different from the mainland. Because it’s close to Florida and has easy access to U.S. financial markets, Puerto Rico…

Read more 04.08.2025

Why Choose a Puerto Rico Offshore Bank Account for Business?

Sometimes, in order for a business to truly grow globally, it needs something more than standard banking tools. And that’s where Puerto Rico comes into play – a place that combines the stability of the US with the flexibility of an offshore jurisdiction. Whether you’re looking at new markets or businesses for sale, or even…

Read more 04.08.2025

Crypto in Latin America: Evolving from Digital Assets to Cross-Border Payout Solutions

Digital currencies once seemed like just an attempt to invest money in something unstable and questionable. In the mass consciousness, they were associated with high risks, speculation and techno-enthusiasts. But for Latin America, things have changed dramatically. In a region where financial stability has always been fragile, cryptocurrency has received a second lease of life…

Read more 04.08.2025

Gambling Laws and Regulations Romania 2025

The Gambling Laws and Regulations Romania 2025 reflect a highly structured and meticulously managed market. Romania has cemented its position as a primary destination for gaming companies in Eastern Europe. All industry activities fall under the jurisdiction of the National Gambling Office (ONJN), the sole government body tasked with this oversight. The foundational legal document…

Read more 04.08.2025

How to Start a Neobank in 2025: The Ultimate Step-by-Step Guide

It could turn out to be quite the gold mine if you land your neobank by 2025, what with traditional banks crossing over the internet. In the technical sense, neobanks are better positioned to unlock niche markets and attract the underprivileged people because of their mobile-native user experiences, reduced operational costs, and modern tech stacks….

Read more 29.07.2025

What is AUSTRAC?

For any business operating within Australia’s economic sphere, the importance of AUSTRAC and its role is not just something to be aware of, it’s essential. But what is AUSTRAC? The AUSTRAC is the country’s financial intelligence unit (FIU) and its financial regulator for anti-money laundering and terrorism financing. Its primary role is to preserve the…

Read more 28.07.2025

Buying a Business: The Complete Guide to a Successful Purchase

Buying a going concern may be one of the best ways an entrepreneur can break into a new enterprise or broaden an already existing portfolio. In contrast to new ventures, going concern acquisitions come with already existing clientele, an already tested product or service with an adequate market, and operating systems. Comfortable though the way…

Read more 22.07.2025

How to Start a Bank: Complete Guide to Launch (2025)

In 2025, all new banks for sale will have to be step-changed, whether they are digital-only, challenger, regional, or otherwise. Regulatory planning, setting up infrastructure, and minimum capital are some of what will matter most together with a customer-centric strategy. The Banking Charter Masterclass: A 2-Day Practical Workshop That Will Guide You from An Interest…

Read more 22.07.2025

How to Assess the Value of a Hotel Business Before Buying

Looking for attractive hotels for sale is just the top of the iceberg. The most necessary thing is not to find a hotel, but to correctly assess what is behind the price tag in the offer. Investing in the hotel business is not only about the location and furniture. Everything matters here: how the facility…

Read more 22.07.2025