This episode is also available as a blog post: https://10leaves.ae/publications/luxembourg/luxembourg-specialised-investment-fund-sif
Advantages of setting up a SIF in Luxembourg
The following are the advantages of setting up a SIF in Luxembourg:
- Can be established as a SICAV or SICAF. These can be established as public limited companies (SA), Private limited company (SARL), limited partnerships, special limited partnerships (SLP) or partnerships limited by shares (SCA).
- Can be setup as a contractual fund (FCP) with no legal personality and managed by a management company.
- Can be setup as an Umbrella Fund as well, with multiple compartments
- Asset protection – The SIF has to appoint an eligible custodian, that has to be present in Luxembourg, either directly or through a branch office.
- Supervision – The SIF is supervised directly by the CSSF. In case the SICAR falls under the purview of the AIFMD, then it has to appoint a regulated AIFM, which adds an additional layer of regulation and protection for the investors.
- Tax attractiveness – The SIF is exempt from most Luxembourg taxes. There is a 0.01% tax on the net asset value of the fund.
