Luxembourg is a small country by size, but big one by its importance for investment industry as it is the biggest domicile for investment funds in Europe and the second preferred location for investment funds worldwide after the Cayman Islands.
It is a renowned international financial centre offering a full range of investment vehicles, regulated, indirectly regulated and unregulated. Regulated investment funds are supervised by the Commission de Surveillance du Secteur Financier (CSSF), however in this article we will be looking at unregulated ones with no CSSF supervision.
Unregulated investment vehicles
There are various types of unregulated investment vehicles in Luxembourg and are mainly governed by the Law on commercial companies, as amended, of 10 August 1915.
Types of unregulated investment vehicles:
S.A. (société anonyme – Public limited liability company), SAS (société par actions simplifiée – Simplified public limited liability company)
These are suitable for a large group (unlimited number) of shareholders/investors even they do not know each other.
S.à r.l. (société à responsabilité limitée – Private limited liability company), SCA (societé en commandite par actions – Partnership limited by shares)
These types of funds are suitable for not too many shareholders/investors and are managed by someone amongst them or by the outsider.
SNC (société en nom collectif – General partnership), SCS (société en commandite simple – Limited partnership), SCSp (société en commandite spéciale – Special limited partnership)
These are suitable for a small group (at least of two) of partners/investors who know each other and want to be managed by someone amongst them.
Planning to set up an investment fund? Want to learn more about the different investment vehicles in Luxembourg? Drop us an email (office@bensonformations.com) or give us a call (+44 20 3974 1244) at any time.
