SICAR Table
| SICAR | |
|---|---|
| Practical use | -Private equity and venture capital transactions. - Indirect real estate investments |
| Applicable legislation | Law of 15 June 2004 (“SICAR Law”) |
| Eligible investors | Well-informed investors |
| Eligible assets | Restricted 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 requirements | No risk diversification requirements. |
| Legal Form | - SA - Sàrl - SCA - SCS - SCoSA |
| Segregated compartments | Yes |
| Capital requirements | EUR 1,000,000 to be reached within 12 months from the approval by the Luxembourg regulator. |
| Net asset value (NAV) calculation and redemption policy | Not required. |
| Corporate income tax | General aggregate ate: 24.94% Income derived from transferable securities (e.g. dividends received and capital gains realized 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 tax | No subscription tax. |
| Wealth tax | No wealth tax. |
| Withholding tax on dividends / interests and capital gains | Not subject to withholding tax except if EU Savings Directive applies. |
| Benefit from double tax treaty network | Yes (only if the SICAR is set up as a corporate entity, except SCS) |
| Benefit from the EU Parent Subsidiary Directive | In principle yes, but certain jurisdictions where the target companies are located may challenge the application of the directive. |
| Authorisation and supervision by the CSSF | Yes |
| Possibility of listing | Yes, but difficult in practice. |
| European passport | No, unless it falls under the scope of the full AIFMD regime. |
| Thin capitalization rules (debt-to-equity ratio) | No debt-to-equity ratio. |
| Required Luxembourg service providers | - Depositary institution - Administrative agent - Registrar and Transfer Agent - Independent auditor |
