FREQUENTLY ASKED QUESTIONS
Top Queries
A Special Limited Partnership (SCSp) is a flexible legal structure under Luxembourg law, primarily used for investment funds. It allows for a clear distinction between limited partners (investors) and general partners (fund managers). Investors benefit from limited liability, with their liability limited to their contributions. The SCSp structure also provides tax transparency, meaning that taxation occurs at the investor level rather than the partnership level, ensuring favorable tax treatment for international investors.
The SCSp offers several advantages, including tax transparency, flexible management structure, and the ability to tailor the partnership agreement to meet the needs of investors. Luxembourg’s stable and investor-friendly regulatory framework enhances the credibility of the fund. Additionally, Luxembourg's extensive network of double-tax treaties provides access to a global investor base, while the jurisdiction offers strong privacy protections and regulatory compliance.
HF Quarters provides end-to-end services for the setup and management of SCSp structures, including drafting the partnership agreement, incorporation, legal and regulatory compliance, KYC/AML processes, fund administration, and ongoing reporting. They ensure that the SCSp is fully compliant with Luxembourg regulations and EU laws, helping clients navigate the complex regulatory environment and manage fund operations efficiently.
HF Quarters takes a proactive approach to ensure compliance with KYC (Know Your Customer) and AML (Anti-Money Laundering) regulations. They manage the KYC process by verifying the identity of all investors and their source of funds. HF Quarters also ensures that the SCSp complies with Luxembourg’s regulatory requirements, including filing necessary reports with the CSSF (Commission de Surveillance du Secteur Financier) and other relevant authorities.
In an SCSp, the General Partner (GP) is responsible for managing the day-to-day operations of the fund. HF Quarters can act as the GP or work with the appointed GP to oversee fund strategy, operations, and compliance. As the GP, HF Quarters ensures that the fund adheres to its investment strategy, complies with all legal requirements, and communicates regularly with limited partners (investors).
HF Quarters ensures tax compliance by adhering to Luxembourg’s tax laws and regulations. As an SCSp is a tax-transparent entity, the fund itself is not taxed; instead, taxes are paid at the investor level. HF Quarters provides investors with necessary tax documentation and reports to ensure compliance with local tax authorities, especially when investors are based in different jurisdictions.
Fees for setting up an SCSp with HF Quarters include one-time charges for fund incorporation, legal documentation, compliance setup, and registration with Luxembourg authorities. Ongoing fees cover administration services, including accounting, reporting, and compliance monitoring. These fees vary based on the complexity of the fund, the number of investors, and specific services required.
The incorporation of an SCSp with HF Quarters involves several key steps:
- Drafting and reviewing the partnership agreement based on investor needs.
- Submitting incorporation documents to the Luxembourg authorities.
- Registering the SCSp with the Luxembourg Trade and Companies Register.
- Opening a bank account for the SCSp.
- Ensuring compliance with local tax and regulatory frameworks.
HF Quarters guides clients through each step to ensure a smooth and efficient incorporation process.
HF Quarters ensures transparent and timely communication with investors. Regular reports are provided on fund performance, financial statements, and compliance updates. The firm also manages investor inquiries and communicates any significant changes to the fund’s strategy or regulatory requirements. These reports and updates are crucial for maintaining trust and ensuring that investors are well-informed.
HF Quarters specializes in working with international clients by providing tailored solutions that meet the needs of global investors. They ensure that the SCSp structure is compatible with various tax jurisdictions and regulatory frameworks. HF Quarters also offers multi-language support, ensuring clear communication with international investors, and leveraging Luxembourg's network of tax treaties to optimize investment structuring.