Alternative Investment Funds in Cyprus

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CYSECAlternative Investment Funds
Recently the Members of Parliament of the Republic of Cyprus have passed the law of the Alternative Investment Funds of 2014. Thus, a new institutional framework governing the establishment and operation of Alternative Investment Funds in the Republic Cyprus has been created. It provides transparency and protection in the field of collective investments and brings the legislation which regulates the international collective investment schemes in accordance with European law and similar arrangements that are promoted in other EU Member States. The Cyprus Securities and Exchange Commission will be a single regulator for all types of Investment Funds in Cyprus.
Cyprus Investment Firms, or CIFs
Eltoma Corporate Services also offers comprehensive solutions for the creation of EU-regulated Cyprus-domiciled financial services companies (Cyprus 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 of 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). 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 minimizing costs, outsourcing solutions, renting premises in Cyprus, recruitment of skilled professionals to fill in the required positions. Our contact e-mail for license-related questions: The AIF law that was passed, along with the existing legislation of the Alternative Investment Fund Managers Directive (AIFMD) as well as the Undertakings in Collective Investment in Transferable Securities (UCITS IV) creates an attractive and competitive environment for the further enhancement and development of the fund industry of Cyprus, which now can accommodate all types of funds. There are a lot of advantages offered to International Asset Managers and Investors such as: EU passport, re-domiciliation, competitive costs, high quality of services as well as confidence and adequate protection for investors. For more information on the Investment Funds of Cyprus and its advantages please visit our website.