The Grand Duchy of Luxembourg is inhabited in the centre of Europe and is deemed to be the significant trading and commercial centre of the world economy. One of the foremost reasons for that is the positive tax and corporate law of Luxembourg. Special tax rates have drawn a lot of foreign businesses in the form of investment funds, insurance/ security companies, and also ships. Lately, there has been a increasing importance for businessmen throughout the world in registering their business in Luxembourg for the obvious tax benefits.

Overview

Timeframe: up to 4 months

Minimum capital requirements: Management businesses must have a minimum capital of 1090000 Pound. Plus additional own funds determined as a percentage of the assets under management. Self-management companies have a minimum capital provision of 260000.00 pounds.

UCITS are created for retail investors, and benefit from the European Passport, allowing them to be easily marketable everywhere in the EU nations with a least of customs.

The European passport provides a UCITS to be marketed to all kinds of investors and recorded for distribution in all EU Member States. The point that a UCITS is no longer bound to obey a permission process in each market has considerably stimulated the method of propelling a UCITS and reduce associated costs. Although the Minimum capital requirement of EUR 1.25 Mio has to be attained within six months following approval.

Notable features

General information

Company structure

  • Investment Administrator as the initiators of the fund
  • Two Conducting Persons that live in Luxembourg must be employed
  • A Custodian for property protection, fund, and provider administration
  • An Administrator for operational assistance

Taxation

  • exempt to Income tax
  • not subject to withholding tax on profits and capital increases
  • exempt to Net wealth tax
  • VAT exemption on administration services

Registered office – Not needed

Registered agent -Not needed

Secretary – Not needed

Accounting and Audit obligations

  • Annual audit
  • Semi-annual recording

Company name

  • Language: Any
  • Letters: From the Roman alphabet
  • Limited any name that is same or similar to an existing company
  • Names that are misleading or deceitful are banned
  • Offensive names are prohibited
Procedure

In order to receive a license, the following actions will be carried out:

  • Collecting required documents in the agreed form
  • Developing Application for Administrative Approval
  • Bank account opening

Following up and observing your submission until Regulator endorsement and disclosure on the Commission de Surveillance du Secteur Financier (CSSF) website and the Luxembourg endorsed gazette (Le Memorial)

Tab Title

In order to receive License, kindly present the following documents:

  • Details of all intended Directors, with all providing the following:
  • – Copy of passport
  • – CV
  • – Declaration of trust
  • – Extract from criminal records
  • Duly completed application form

Other papers requested by the Authority, such as the following:

  • – Prospectus
  • – The Risk Management Process
  • – The Business Plan