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 |
|
|
Public/private limited company, Limited partnership |
|
Yes |
|
Share capital or equivalent |
|
|
· Minimum paid-up capital |
EUR 125,000 (plus 0.02% of excess, if portfolio exceeds EUR 250 million) |
|
Directors |
|
|
2 |
|
No |
|
Yes |
|
Shareholder |
|
|
1 |
|
Yes |
|
No |
|
Service Providers Required |
|
|
Yes |
|
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