SPF

To ensure sufficient substance in Luxembourg, a SOPARFI should prioritize key practices. These include having a majority of board members residing in Luxembourg and holding physical board meetings in the country. Decision-making and execution of important agreements should also occur in Luxembourg, with detailed minutes kept. Shareholders’ meetings should be held annually in Luxembourg. Adequate capitalization, day-to-day management in Luxembourg, and compliance with tax and legal requirements are essential. Operating from a fully equipped office, employing local staff as needed, and maintaining financial records and bank accounts in Luxembourg further solidify the company’s presence. These practices collectively demonstrate effective management and control, mitigating regulatory risks.