|Practical use||-Private equity and venture capital
- 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
|Capital requirements||EUR 1,000,000 to be reached within
12 months from the approval by the
|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