Outcome of the Application
In assesing the application, the exchange commission will base its decision on a number of parameters, which are summarised as follows:
- Company has adequate initial capital.
- Company has suitable shareholders who are able to finance and support the business.
- Whether suitable persons will effectively direct the business.
- Company's key employees are suitable.
- Head office has been established in Cyprus.
- Company is a member of investors compensation fund.
- Company has adequate organizational procedures in place.
The following table elaborates on key points that the commission is evaluating in making their decision for granting the license.
The Board of Directors must demonstrate that it has sufficient expertise so as to exercise constructive influence over management and business strategy and must be deemed fit to ensure the sound and prudent running of the company. Their reliability, experience, and professional skill and diligence will be evaluated.
The Board should be comprised, at a minimum, of two experienced executives who are capable of fulfilling their duties. They should both be accessible and available to appear before the Commission with reasonable notice.
The company should be able to demonstrate that it has installed the appropriate controls and safeguarding arrangements for protecting electronic data processing and has adequate structures and mechanisms in place in order to guarantee the protection of investors‘ assets and eliminate any conflict of interest that may arise between the company, its employees and clients’ interests.
The company should be able to demonstrate that it has successfully established a physical presence in Cyprus. This entails establishing and subsequently operating a full-fledged office with the appropriate telecommunications network, hardware and software needed, staffed with employees on a full time basis as described in the applicant's organizational chart.
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.
Inward re-domiciliation: changes to the Singapore Companies Act allowing foreign firms to re-domicile to Singapore
In order to ensure that the regulatory regime of Singapore continues to be robust, relevant and in line with international norms, on the 30th of March 2017, the Companies (Amendment) Act 2017 of Singapore was gazetted. Among the number of amendments to the Companies Act, the provisions for the inward re-domiliation regime are arguably the most important in further boosting Singapore’s character as a business hub.
Inward re-domiciliation: Key changes to the Singapore Companies Act make company relocation to Singapore easier than ever
Last March, the Singapore Government amended the Singapore Companies Act 2017 which introduced an inward re-domicile (or relocation) regime in an effort to boost Singapore’s attractiveness as a business hub.
Cryptocurrencies: technical and legal overview
In this article, we will try to succinctly describe the technical and legal characteristics of Cryptocurrencies. The understanding of Cryptocurrencies is crucial for today’s modern payment services and investment opportunities around the world. We have seen the increasing importance that this topic has acquired in the last few months and the rise of the price of the most popular type of Cryptocurrency, the Bitcoin, from $0.06 cents of a dollar in 2010 to $5,518.85 by the 25th of October, 2017.
The Belize IBC Amendment Act 2017: 3 notable changes for businesses
Belize has amended its International Business Companies Act. These changes were to maintain its financial services industry in the increasingly regulated international market & meet the OECD white list requirements.
Cryptocurrency & ICOs as securities & virtual commodities as per Hong Kong law
The Hong Kong Securities and Futures Commission has remarked upon the growth and popularity of Initial Coin Offerings (ICOs) for raising money not only in Hong Kong but other Asian countries. This article confirms and explains how digital tokens that are offered or sold may be defined as "securities" and as such are therefore governed by the relevant securities legislation of Hong Kong.
New licensing regulations for Trusts & Service Providers in Hong Kong
As per new regulations, all Hong Kong businesses providing Trustee Services, including Corporate Service Providers will not be able to operate without a valid trading license after March the 1st 2018. The new scheme is designed to better regulate individuals carrying out services within the financial sphere in Hong Kong and will be overseen and administered by the Hong Kong Companies Registry.
The terms of Hong Kong's new register of significant controllers and what it means for companies
As per new legislation, from March 1st 2018, every company incorporated in Hong Kong will be required to keep and maintain a register of all persons who have significant control of the company. The record must be updated as required and kept at the registered company address, even if there are no persons of significant control.