SGF Group Luxembourg - Page #19 - English version

Legal framework

- Legal

Why incorporate in Luxembourg ?

The international exposure of SGF Group, made us evolve in a continuously changing fiscal and legal environment where national law is bound to coexist together with international treaties, directives and recommendations. As a result, SGF Group is spending a reasonable amount of its time to ensure a permanent legal follow-up in order to defend the interests of their customers.

Luxembourg

The Société de Participation Financière (Soparfi) has become over a decade the most commonly used structure for holding equity and is the preferred solution by large European and American industrial and commercial conglomerates. By applying Luxembourg local legislation and European law simultaneously, as well as by responding to international treaties preventing double taxation, the Soparfi has become a very attractive tool for cross border investors.

The Holding regulated by the law of 1929 is exempted of corporate tax in Luxembourg. As a consequence, it is not eligible for benefiting of international treaties but the structure is still frequently used with countries for which multilateral conventions are non-existent, or within the framework of inheritance planning.

The Sociétés d'Investissement à Capital Variable (SICAV) as well as the Fonds Commun de Placement (FCP) are investment funds that are registered and supervised by the Commission of Surveillance of the Financial sector (CSSF) and are well accepted by private and corporate investors seeking to find a customised solution.

The practice of ruling (preliminary fiscal agreement) is a specialty of Luxembourg and is enormously appreciated by foreign investors who are looking for flexible solutions with a high level of legal protection that would be inconceivable in their country of origin.

International

Trusts, Foundations, Off-shore investment funds, as well as other forms of qualified foreign incorporation have been made accessible to the customers of SGF Group via its international network that has been built progressively over the past years. Our clients are constantly being offered the best tailor made solutions.

Whatever jurisdiction is involved, SGF will ensure that the directives and recommendations issued by organisations such as the OECD and the GAFI (Groupe d'Action Financière) are respected.

The profession of SGF Group requires thorough control of the origin of funds being transferred on behalf of the companies for which we assume management responsibility. Internal procedures are being strictly followed in order to guarantee full security to our customer base.