Luxembourg

Undertakings for Collective Investment in Transferable Securities (UCITS) License.

overview

Luxembourg

Luxembourg is one of the most dynamic global investment fund centres in Europe.

Luxembourg’s success can be attributed to favorable and well-defined legislation, political stability, the encouragement to foreign investment, and the huge pool of multilingual professionals.

UCITS are designed for retail investors, and benefit from the “European Passport”, enabling them to be freely marketable throughout the EU countries with a minimum of formalities.

The “European Passport” allows a UCITS to be sold to all types of investors and registered for distribution in all EU Member States.

Without the need for authorization in every single market, the process of launching a UCITS has been accelerated considerably, while its costs have reduced greatly.

The Minimum capital requirement of EUR 1.25 Mio has to be reached within six months following approval.

The strong regulation of UCITS and the resulting high level of investor protection have made them popular with supervisory authorities and retail investors all over the world.

Luxembourg UCITS is now very popular and has conquered a large market share in a number of Asian and Latin American countries.

  • Time Frame: Up to 4 Months
  • Taxation: Exempt to Income Tax, Net Wealth Tax, Withholding Tax on Dividends and Capital Gains.
  • License: Undertakings for Collective Investment in Transferable Securities (UCITS) License

For each Director, Shareholder and Ultimate Beneficial Owner:

  • Duly completed Questionnaire Form
  • Notarized / Certified True Copy of Passport
  • Notarized / Certified True Copy of Bank Statement
  • Detailed CV dated and signed by the applicant
  • Declaration of honor
  • Extract from criminal records


Others:

  • Prospectus
  • The Risk Management Process
  • The Business Plan
Company Structure:
  • 1 Investment Manager as the Initiators of the Fund
  • 2 Conducting Persons that reside in Luxembourg must be appointed
  • 1 Custodian for Asset Safekeeping, Fund and Provider Supervision
  • 1 Administrator for Operational Support

Taxation:
  • No Income tax
  • No Withholding Tax on Dividends and Capital Gains
  • No Net Wealth Tax
  • No Value-Added Tax (VAT) on Management Services

Accounting requirements:
  • Annual Audit
  • Twice a year Reporting

Others:
  • Registered Office – Not required
  • Registered Agent – Not required
  • Secretary – Not required
Legal Framework:
  • The Law of 19 December 2010 on undertakings for collective investment (the UCI Law)
  • The Law of 15 June 2004 on the investment company in risk capital (the SICAR Law)
  • The Law of 13 February 2007 on specialized investment funds (the SIF Law)

Regulatory Authority: Commission de Surveillance du Secteur Financier (CSSF, the Financial Sector Supervisory Commission)

Time Frame: Up to 4 Months

Minimum Paid-Up Capital:
  • EUR 1,250,000 for Management Companies, plus additional own funds calculated as a percentage of the assets under management.
  • EUR 300,000.00 for Self-Management Companies.
  1. Compile and prepare all the application forms and documents in the prescribed form.

  2. We will assist you in drafting the Prospectus, Risk Management Process and Detailed Business Plan.

  3. Submit the application to the Financial Sector Supervisory Commission of Luxembourg (CSSF).

  4. Open a bank account for deposit of initial capital and operational purposes.

  5. We will liaise with CSSF on follow-up actions, and submit additional documents that are requested.

  6. Once the license is approved, it will be published on the website of CSSF and Le Memorial (Official Gazette of the Grand Duchy of Luxembourg).
FREE CONSULTATION:​
experience on your own

Let's have a cuppa!​​

Eager to know more? Get in touch with us.​