Applicable legislationLaw of 15 June 2004 (“SICAR Law”)
Authorisation and supervision by the CSSFYes
Qualification as an AIFYes, unless exempt. It is exempt if it does not raise capital from a number of investors, with a view to investing it in accordance with a defined investment policy for the benefit of those investors
Exemption from AIFMD full regime under lighter regime (AIFMD registration regime)Possible.
Eligible investorsWell-informed investors
Eligible assetsRestricted to investments in securities representing risk capital. According to the CSSF Circular 06/241, investment in risk capital is to be understood as the direct or indirect contribution of assets to entities in view of their launch, their development or their listing on a stock exchange. The SICAR is not allowed to invest directly in real estate (except for its own use or through its participations).
Risk diversification requirementsNo risk diversification requirements.
Legal Form- SA
- Sàrl
- SCSp

The entities may be open-ended or closed-ended.
Umbrella structureYes.
Capital requirementsEUR 1,000,000 to be reached no later than 12 months following the auhorisation by the CSSF.
Required Luxembourg service providersDepositary bank or professional of the financial sector providing depositary services, subject to conditions.
- Administrative agent.
- Registrar and Transfer Agent.
- Approved statutory auditor.
Possibility of listingYes, but difficult in practice.
European passportNo, unless it falls under the scope of the full AIFMD regime.
Net asset value (NAV) calculation and redemption policyNot required.
Overall income tax (corporate income tax and municipal business tax)General aggregate rate: 24.94%.

In certain cases, reduced corporate income tax rates may apply. Income derived from transferable securities (e.g. dividends received and capital gains realised on the sale of shares) is exempt.Income on cash held for the purpose of a future investment is also exempt (for one year).
Subscription taxNo subscription tax.
Wealth taxNo wealth tax.
Withholding tax on dividends / interests and capital gainsNot subject to withholding tax.
Benefit from double tax treaty networkYes in case the SICAR is set-up as a corporate entity (except if set-up under the form of a SCS/SCSp).
Benefit from the EU Parent Subsidiary DirectiveIn principle yes, but certain jurisdictions where the target companies are located may challenge the application of the directive.
Thin capitalization rules (debt-to-equity ratio)No debt-to-equity ratio.
Practical usePrivate equity and venture capital transactions.