Investors who are searching for a suitable market to register an investment fund are advised to choose Luxembourg, which provides the perfect conditions for this type of activities. At a European level, Luxembourg is the top centre for the domiciliation of investment vehicles. One of the main reasons to register an investment fund in this country refers to its long tradition in the financial industry and investors should know that the first investment fund was incorporated here, in 1959. Our team of financial experts can provide assistance to those who need further information on the types of investment vehicles available here, as well as on the legislation applicable to them.
Legal framework available for alternative investment funds in Luxembourg
Investors who want to register an investment company with variable capital (SICAV) or one with fixed capital (SICAF) should know that the main difference established between the two entities refers to the limitations imposed to the shareholders in terms of issuance of shares.
Furthermore, they can also register undertakings for collective investments in transferable securities (UCITS), regulated by the Part I of the 2002 Law.
The Part II of the same legislation provides the legal framework regulating the undertakings for collective investment (UCI).
In order to register an investment fund in Luxembourg, it is necessary to receive an authorization issued by the Commission for the Supervision of the Financial Sector (CSSF). The institution also monitors the activity of the investment funds registered here and investors are also required to pay an annual fee at the CSSF, established in accordance with the number of compartments in the fund and our team of financial consultants can offer assistance for the registration procedure.
Types of investors eligible in Luxembourg
The legislation prescribed by the local authorities stipulates the types of investors which are eligible on this market. In accordance with the type of the investment vehicle, the applicable law stipulates the following investors:
• retail investors;
• qualified investors;
• institutional investors;
• professional investors.
Foreign businessmen interested in setting up an investment fund in Luxembourg are invited to contact our team of financial agents for advice.