Unregulated SCS/SCSp Table

 Unregulated SCS/SCSp
Practical usePrivate equity, venture capital, real estate investments and any other alternative investments.
Applicable legislationLaw of 10 August 1915 ("Company Law")
Eligible investorsUnrestricted.
Eligible assetsUnrestricted.
Risk diversification requirementsNo risk diversifation requirements.
Legal Form- SCS
- SCSp
Segregated compartmentsNo
Capital requirementsNo minimum capital requirement.
Net asset value (NAV) calculation and redemption policyNot required.
Corporate income taxNo corporate income tax applicable.
Municipal busines tax of 6.75% applicable in very limited circumstances, namely in case the SCS
/SCSp (i) carries out a commercial activity or (ii) is deemed to carry out a commercial activity. A SCS/SCSp is deemed to carry out a commercial activity if its general partner is a Luxembourg public or private limilted liability company holding at least 5% of the partnership interests.
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 networkNo
Benefit from the EU Parent Subsidiary DirectiveNo
Authorisation and supervision by the CSSFNo
Possibility of listingNo, unless it falls under the scope of the full AIFMD regime.
European passportNon-AIF, unless activities fall within the scop of article 1 (39) of the AIFM Law.
Thin capitalization rules (debt-to-equity ratio)No debt-to-equity ratio.
Required Luxembourg service providersFor SCS:
- Alternative Investment Fund Manager (if the SCS/SCSp qualifies as an AIF).
- No requirement to appoint a depositary (except if the SCS/SCSp qualifies as an AIF and is managed by a duly authorised AIFM).