Cyprus Investment Firm
Eltoma offers comprehensive solutions for the creation of EU-regulated Cyprus-domiciled financial services companies (Cypriot Investment Firms, hereinafter referred to as “CIF”). Such CIFs are licensed to provide brokerage and portfolio management services in the EU and third countries. The major benefit in the creation of a CIF is that income derived from the transactions in financial instruments is not taxed, since there is no capital gains tax in Cyprus. Another advantage of CIF is low corporate tax (12.5%). An investment firm which is involved in proprietary trading activities (dealing on own account) can also benefit from simplified account opening procedure when establishing counterparty relationships with global investment houses. The process of setting up an account with a reputable counterparty normally takes several days and the provision of copy of CIF license will in most cases be sufficient to start trading activities (no disclosure of Shareholders, provision of certified corporate documents will be required).
Download a comprehensive PDF on Cyprus Investment Firm - that covers the benefits and requirements for setting up CySEC regulated entity.
A Cyprus regulated investment firm can provide one or more of the following services:
- Reception and transmission of orders in relation to one or more financial instruments.
- Execution of orders on behalf of clients.
- Dealing with own account.
- Portfolio management.
- Investment advice.
- Safekeeping and administration of financial instruments for the account of clients, including custodianship and related services such as cash/collateral management.
- Granting credits or loans to an investor to allow him to carry out a transaction in one or more financial instruments, where the firm granting the credit or loan is involved in the transaction.
- Advice to undertakings on capital structure, industrial strategy and related matters and advice and services relating to mergers and the purchase of undertakings.
- Foreign exchange services where these are connected to the provision of investment services.
- Investment research and financial analysis or other forms of general recommendation relating to transactions in financial instruments.
Estimated registration time:
The application process normally takes around 6-8 months. 2 months should be given for preparation and submission of documents to the Cyprus Securities and Exchange Commission (“CySEC”). CySEC will review the application and grant license within 4 to 6 months period.
The following main documents will be prepared:
- Application form in the name of the company with detailed information.
- Application form in the name of Shareholders with supporting documents such as passport copies, non-criminal record certificates, non-bankruptcy certificate.
- Organisational structure of the company.
- Organisational structure of the group (if any).
- Business plan.
- Internal procedures manual.
Internal procedures manual is 50-60 pages documents which describes internal policies of the company. It is prepared in accordance with MiFID regulations (Markets in Financial Instruments Directive) and takes into consideration various policies such as conflict of interest policy, best execution policy, risk management policy, business continuity policy, etc.
The business plan is a 30-40 page document which describes company’s strategy, organisational structure, and includes financial projections for the next 3 years of operation of the company based on 3 case scenarios (optimistic, pessimistic, expected results).
Our Firm will prepare full set of documents for our clients.
Apart from obtaining CySEC license, company should also employ certified professionals for positions of a Dealer, Broker, Portfolio Manager. These persons should hold certificates of Cyprus Ministry of Finance for provision of investment services.
We work with professional partners who have experience in obtaining licenses and have a full understanding of operation of CIF, gained through practical experience. Our services include not only preparation of application package for license, but full support in the set up of business activities such as advice on minimising costs, outsourcing solutions, renting premises in Cyprus, recruitment of skilled professionals to fill in the required positions.
Feel free to contact us for more information or support
Cyprus Regulatory Update: Shell Company Definition & Exceptions
The Central Bank of Cyprus has released new guidance for all credit institutions on the island, refining the definition for shell companies and subsidiary entities; coming into effect from November 2018, which are detailed as follows:
Singapore Variable Capital Company VCC: New Features & Benefits
The introduction of the VCC is a significant positive for the Singapore funds industry. Its aim is to retain Singapore as an attractive business destination and to keep investors wishing to domicile locally.
Consolidated Accounts for Hong Kong Companies: Subsidiary Requirements
As per Hong Kong company’s ordinance subdivision 3 section 379 subsection 1, a Company Director will have to prepare year-end financial accounts that comply with sections 380 and 383.
Challenges of Our Time: Cryptocurrencies & Their Regulation
The very concept of cryptocurrencies derives from technologies and the creation of alternatives to existing payment systems, which for the most part is caused by the negative consequences of financial crises and the injustice within the sphere of financial and legal regulation. Many people are convinced that the cryptocurrency is likely to become an alternative to the established global financial system and open new opportunities to those segments of the population and citizens of those countries that are deprived of the opportunity to work with the banking financial system.
The Tax System in Poland: Benefits & Overview
The tax system in Poland is one of the most loyal for both large and small businesses in the country. There are two levels in the system that relate not only to residents of Poland, but also to foreigners. The Polish tax system consists of administrative taxes (duties are paid directly to state bodies) and local taxes (the process is similar to the previous type). Therefore, Poland is one of the European countries with a stable economic position, whose attractive system attracts citizens from neighbouring countries to conduct business within the country. It is the Polish taxation system that is advantageous for businessmen willing to enter the international market.
The reasons of abolition of the Company Secretary in UK Private Companies
The role of Corporate Secretary can be a position in a private sector company or within the public sector organisation. In large, publicly-listed corporations, a Company Secretary is typically named a Corporate Secretary or just a Secretary. The Company Secretary is responsible for the efficient administration of a company, particularly with regards to ensuring compliance with statutory and regulatory requirements and also for ensuring that decisions of the board of directors are implemented.
The Dematerialisation of Shares in the UK: Current Update & Assessment
Business is an area that is continuously developing. An integral part of both business and economics are companies. It is possible to say that companies dictate the conditions of the market to a certain extent. Any public or private company has its own shares; a share is a security that provides a portion of ownership of the company and gives the holder the right to a part of the profits.
Current Information on the Payment of Cyprus Taxes for Pensions & Rental Income
Cyprus employees who are considered to have tax resident status, pay tax on their global income. Employees not considered to be tax resident are only charged for specific types of income that are originating from Cyprus-based sources.