SICAR Table

 SICAR
Practical use-Private equity and venture capital
transactions.
- Indirect real estate investments
Applicable legislationLaw of 15 June 2004 (“SICAR Law”)
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
- SCA
- SCS
- SCoSA
Segregated compartmentsYes
Capital requirementsEUR 1,000,000 to be reached within
12 months from the approval by the
Luxembourg regulator.
Net asset value (NAV) calculation and redemption policyNot required.
Corporate income taxGeneral 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 taxNo subscription tax.
Wealth taxNo wealth tax.
Withholding tax on dividends / interests and capital gainsNot subject to withholding tax except
if EU Savings Directive applies.
Benefit from double tax treaty networkYes (only if the SICAR is set up as a
corporate entity, except SCS)
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.
Authorisation and supervision by the CSSFYes
Possibility of listingYes, but difficult in practice.
European passportNo, 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