Fund Managers fall under the scope of the Luxembourg Law relating to undertaking for collective investment and the CSSF Regulations which set out the general authorisation and requirements in Luxembourg.

Key Features

A Fund Manager / Management company manages collective investment schemes in Luxembourg. Management includes portfolio management, administration and distribution. It is mandatory for a Fund to have a Fund Manager.

Legal Requirements

Requirements

Description

General

  • Corporate  vehicle permitted

Public/private limited company, Limited partnership

  • Local physical office required

Yes

Share capital or equivalent

  • Minimum paid-up capital

EUR 125,000 (plus 0.02% of excess, if portfolio exceeds EUR 250 million)

Directors

  • Minimum number

2

  • Corporate directorship allowed

No

  • Local director required

Yes

Shareholder

  • Minimum number

1

  • Corporate shareholders allowed

Yes

  • Local  shareholders required

No

Service Providers Required

  • Company secretary

Yes

  • Auditors

Yes

Tax Treatment

  • Resident companies are subject to tax on their worldwide income while non-resident companies are subject to tax only on their Luxembourg sourced income.
  • Corporate income tax of 21% for companies whose taxable income exceeds EUR 15,000 whereas 20% if taxable income does not exceed EUR 15,000.

Duration to Set Up

About 6 months

Distinctive Benefits of Licence

  • Internationally recognised investment fund industry;
  • Reputable regulatory environment owing to its accessibility, knowledge and responsiveness of the regulator;
  • Political, economic and social environment’s stability as well as stable legal environment;
  • Favourable tax environment; and
  • Attractive jurisdiction for institutional investors.

The Valsen Advantage

  • End to end comprehensive service
  • Speedy and efficient service
  • Expert advice on structuring options
  • Dedicated ongoing compliance support
  • Extensive network pool of service providers