This is the question regarding my anonymous private company. Does a license needs to be register for a Cyprus company if you are going to do investment business?
License for Cyprus Company
- Thread starter akshdalal
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If it is private investment no license is required. If you are going public with a investment scheme then you need to obtain a license for this business.
The government will always ask for licenses to give them an idea how they will subsidize the poor. The services sent by offshore companies will surely impact the way the government will give service to its constituents. Also, remember to never cheat on taxes if you are planning to work publicly. They will always find out.
That will not really happen because the government will always ask for a portion only. Sometimes, it will not even exceed the 20 percent mark. There are actually businesses that can help you with this. They have the connections to the administration that can help you minimize your taxes. 🙂
To get a CIF license / Financial license in Cyprus the below share capital requirements apply.
The minimum issued share capital depends on the investment services provided by the company as follows:
A company︀ that provides the investment services of Reception and Transmission of orders and or Investment Advice︁ and does not hold clients? money or/and clients? financial instruments, and which for that reason︂ may not at any time place themselves in debt with their clients, may have an︃ initial capital of at least ?80.000 or at least ?40.000 and professional indemnity insurance.
Thought it would be of interest if you consider to provide Forex Trading, 3rd party payment︄ processing and similar business.
The minimum issued share capital depends on the investment services provided by the company as follows:
- Reception and transmission of orders > EUR 200.000
- Execution of orders > EUR 200.000
- Portfolio Management > EUR 200.000
- Investment Advice > EUR 200.000
- Dealing on Own Account > EUR 1.000.000
- Underwriting of financial instruments and/or placing of financial instruments on a firm commitment basis > EUR 1.000.000
- Placing of financial instruments without a firm commitment basis > EUR 1.000.000
- Operation of Multilateral Trading Facility > EUR 1.000.000
A company︀ that provides the investment services of Reception and Transmission of orders and or Investment Advice︁ and does not hold clients? money or/and clients? financial instruments, and which for that reason︂ may not at any time place themselves in debt with their clients, may have an︃ initial capital of at least ?80.000 or at least ?40.000 and professional indemnity insurance.
Thought it would be of interest if you consider to provide Forex Trading, 3rd party payment︄ processing and similar business.
A regular legit business does not need any license, just a simple registration with the company registry in Cyprus is sufficent. Most often Financial Services like forex trading and other money transactions are requiring a license by CySec!
FX or forex (foreign exchange) trading is a relatively new type of market which investment firms world wide conduct business in. It encompasses generally an over-the-counter market where buyers and sellers conduct foreign exchange transactions.Cyprus, due to its attractive tax regime, coupled with its EU Member status, its implementation of the Markets in Financial Instruments Directive (?MiFid?), and regulatory regime has proved the perfect jurisdiction for the incorporation and operation of FX companies.Especially after the recent changes in EU directives and regulations non-EU regulated forex companies can no longer operate in the EU and/ or the euro as a currency. So, nowadays there is a︀ big trend of setting up regulated forex companies in Cyprus and Malta that in addition︁ have very favourable tax and regulatory regimes coupled with very low operating cost levels and︂ considerable financial services, legal, tax and accounting expertise and infrastructure.
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Signature Violation,︃ contact MODs
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Signature Violation,︃ contact MODs
In addition to the above the paid in share capital is much lower compared to other European countries.
Depending on the activity of the company, the capital requirements are EUR 80,000, 250,000 and 1 million.
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