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Regulatory criteria for investment funds in Luxembourg

Establishing an investment company in Luxembourg (taxed unregulated firm), such an organization is not subject to strict regulation until it offers its securities to the public and qualifies as an AIF. If you want to become the owner of such a business or develop another commercial structure, then the Eli Deal service can offer you one or another profitable business for sale, which may be an excellent start for your successful path.

Highlights of foundations in Luxembourg

Creation of investment structure there has many benefits for businesspersons:

  • stability in politics and economics;
  • transparent and understandable taxation;
  • a sufficiently high protection level of rights and interests;
  • attractiveness for corporate executives due to authority of this state;
  • well-functioning legal environment.

The high reputation of the jurisdiction provides many opportunities for working in the EU and the European Economic Area, as well as for cooperation with major international banks. Taxes there deserve special mention. In fact, specialized investment establishments are not subject to taxation. The exceptions are:

  • fixed registration fee;
  • subscription tax in the amount of 0.05% of the net value of all investment fund assets.

Stamp duty is not levied on transactions involving the issue or transfer of shares and interests.

Why open an investment fund in Luxembourg?

Grand Duchy of Luxembourg is a small country compared to its larger and more powerful neighbors: France, Germany and Belgium. It has a high concentration of expats, foreign employees and foreign investors. Three national languages also facilitate the multinational climate, to which English has been added as widely used in commercial sector. Financial field is the most representative of Luxembourg’s gross domestic product (GDP), as it contributes a quarter of total GDP to inner economy.

What are advantages of umbrella funds in Luxembourg?

Umbrella fund determines that within a single entity created for the fund, investors will be able to register more branches, which can act as independent structures, with different strategies and sales markets. For example, an umbrella fund is also possible to SIFs, and following several conditions, part of fund may be invested in other parts of the same facility. Another advantage is that branches can be open or closed and they can issue an unlimited number of classes of shares.

The process of acquiring this business in Luxembourg is a rather complex and nuanced procedure. For achieving the maximum result and save your time and money, the Eli Deal service offers its services for the sale of businesses of a different orientation. Our team of specialists will advise you and provide you with comprehensive support at any stage of the transaction. You will be in good professional hands.

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