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 Tier 1 Investor Visa: are the UK government checking candidates' source of wealth? Evidently not..

The Tier 1 Investor Visa: are the UK government checking candidates' source of wealth? Evidently not..

One of many legal disputes resulting from the recent infamous Kazakhstan BTA bank fraud case has shed new light on a little-known immigration scheme colloquially known as the golden visa scheme and officially called a Tier 1 Investor visa in the UK; the scheme grants investors residency in exchange for spending £2m in UK bonds or shares through a bank, with applicants eligible for to remain indefinitely, with full citizenship after five years.

EU release list of tax havens & blacklisted jurisdictions for the first time

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A beginners guide to filing capital statements in Cyprus

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The Cyprus Passport by Investment scheme: at who's expense?

The Cyprus Passport by Investment scheme: at who's expense?

Cyprus Minister of Finance Mr Harris Georgiades released a statement condemning critics of the Cyprus passport by investment programme that has seen raise over €4 billion since the launch of the scheme in 2013 which was implemented to attract foreign investment to mitigate damage in light of the banking crisis.

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Cyprus Variable Capital Companies: AIFs

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Cyprus Variable Capital Companies: Open-Type UCITS

Cyprus Variable Capital Companies: Open-Type UCITS

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Protection of Nominee Directors from IRD claims for Cyprus client companies

Legislation re Cyprus Tax Residency:

Cyprus Company Law: Responsibility of Directors for the non-payment of taxes

Cyprus Company Law: Responsibility of Directors for the non-payment of taxes

A Company Director, in a company incorporated under the laws of the Republic of Cyprus, may be found liable by the Inland Revenue or Customs & Excise with regarding tax related issues. As per the legislation, the Inland Revenue or Customs & Excise may personally prosecute the Company Directors who are involved in any taxation offence(s) or related financial matters.