Fund in Luxembourg

Published:
February 26, 2024
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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.

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