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:

Investment services:

  1. Reception and transmission of orders in relation to one or more financial instruments.
  2. Execution of orders on behalf of clients.
  3. Dealing with own account.
  4. Portfolio management.
  5. Investment advice.

Ancillary Services

  1. Safekeeping and administration of financial instruments for the account of clients, including custodianship and related services such as cash/collateral management.
  2. 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.
  3. Advice to undertakings on capital structure, industrial strategy and related matters and advice and services relating to mergers and the purchase of undertakings.
  4. Foreign exchange services where these are connected to the provision of investment services.
  5. 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.

Application procedure:

The following main documents will be prepared:

  1. Application form in the name of the company with detailed information.
  2. Application form in the name of Shareholders with supporting documents such as passport copies, non-criminal record certificates, non-bankruptcy certificate.
  3. Organisational structure of the company.
  4. Organisational structure of the group (if any).
  5. Business plan.
  6. 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.

Take the next step, we are here to help.

Register a Cyprus company.
Open a Cyprus bank account.

  Resources:

The UK Persons of Significant Control Register & its impact on companies

The UK Persons of Significant Control Register & its impact on companies

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Cyprus implements the Hague Convention, legally recognising Trusts as a type of Equitable Law

Cyprus implements the Hague Convention, legally recognising Trusts as a type of Equitable Law

This year, the Republic of Cyprus ratified The Hague Conventions’ definition of the legislation applicable to trusts and furthering the regulations surrounding their recognition. Cyprus common law now recognises trusts as a unique legal institution under equity.

SINGAPORE: the regulation of digital currencies & whats to come

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The Monetary Authority of Singapore has released its plans to further control and regulate the current elusive virtual currency market and intermediaries that facilitate their online trade in Singapore. The anonymity surrounding so-called crypto currencies such as bitcoin raises questions over potential money laundering & terrorist financing risks.

How to incorporate a company in Cyprus with the required documentation

How to incorporate a company in Cyprus with the required documentation

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ACRA release new initiatives for Singapore Filing Agents

ACRA release new initiatives for Singapore Filing Agents

ACRA have released new guidelines introduced to update the current system, bringing it transparently in line with other jurisdictions; going forward, businesses will be offered a copy of their business profile and the amount of information available for public use will increase substantially.

The servicing of documents to a Cyprus company & failure to act

The servicing of documents to a Cyprus company & failure to act

A Creditor may apply to court for the issuance of a liquidation order against a company that does not comply with a demand notice to pay any outstanding debts. The notice of demand is served to the registered office of the company, who then has 21 days to pay the fine; failure to do so may result in the liquidation of the company deemed unable to pay its debts by the creditor who can apply to legally dissolve the company.

Gibraltar companies now have to disclose full Beneficial Ownership details to Central Register

Gibraltar companies now have to disclose full Beneficial Ownership details to Central Register

Gibraltar is working to implement all EU legislation relating to the 4th Anti Money Laundering Directive into national law, in addition to the current EU legislation on financial supervision and direct taxation, and to this affect, the Government of Gibraltar have established a Central Register of Beneficial Ownership that will be effective from June 26th 2017.

European Commission publishes tax avoidance disclosure directive

European Commission publishes tax avoidance disclosure directive

The EC (European Commission) has published its draft legislation compelling financial service providers or intermediaries to disclose any international tax planning schemes they have encouraged, enabled or assisted in any way.