Key Features

An Undertaking for Collective Investment in Transferable Securities (UCITS) is an investment fund that meets the criteria laid down by EU Directives to be eligible for sale in EU Member States. The UCITS may be set up as a single fund or as an umbrella fund with multiple compartments. The constitutional documents must expressly provide for that possibility and the prospectus must describe the investment policy of each compartment.

The net assets of an FCP may not be less than EUR 1,250,000. This minimum must be reached within a period of six months following its authorisation. The minimum capital of a self-managed SICAV/SICAF may not be less than EUR 300,000 at the date of authorisation. The capital of any SICAV/ SICAF must reach EUR 1,250,000 within a period of six months following its authorisation.

Legal Requirements

Requirements

Description

General

  • Corporate  vehicle permitted

Common Fund (FCP), Investment Company-variable capital (SICAV),  Investment Company-fixed capital (SICAF), Limited partnership

  • Local physical office required

No

Share capital or equivalent

  • Minimum subscription

EUR 125,000

  • Minimum investors

None

Directors

  • Minimum number

1

  • Corporate directorship allowed

Yes

  • Local director required

No

Service Providers Required

  • Custodian

Yes

  • Fund manager/Investment manager

Yes (local for FCP)

  • Fund administrator

Yes (Local)

  • Auditors

Yes

Tax Treatment

A SIF is tax exempt in Luxembourg with the exception of the registration duty, which is fixed and does not vary with the number of compartments, and an annual subscription tax. There is no stamp duty in Luxembourg on the issuance or transfer of shares or units.

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;
  • Attractive jurisdiction for institutional investors; and
  • Luxembourg investment funds benefit from a product passport, enabling them to be marketed to investors in the European Union (EU) and European Economic Area (EEA).

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