Some of the advantages of Cypriot Investment Firms (CIF) are:
● Corporate tax rate at 12.5%
● No capital gains tax on the disposal of securities
● No withholding tax on the payment of dividents to non-resident shareholders
● Double tax treaties with almost 50 countries
● A Cyprus Investment Firm can offer services in any country of the European Union and several other countries.
Below is a list of investment and ancillary activities which are regulated in Cyprus and require a license from CySEC.
● Receiving and transmitting orders on behalf of an investor relating to financial instruments;
● Execution of orders on behalf of clients/investors;
● Dealing on own account;
● Managing investment portfolios;
● Offering advice in regards to investments;
● Underwriting in regards to financial instruments and/or placing of financial instruments on a firm commitment basis;
● Placing of financial instruments without a firm commitment basis;
● Operating a Multilateral Trading Facility.
● Administration and safekeeping of financial instruments on behalf of clients;.
● Granting loans or credits to financial instruments where the firm granting the loan or credit is involved in the transaction;
● Advising in relation to undertakings on industrial strategy, capital structure and other relevant matters;
● Advising or offering services in regards to mergers and acquisitions;
● Offering foreign exchange services which are related to the provision of investment services;
● Offering services which are related to underwriting;
● Conducting research related to investments and financial analysis or other services of similar nature which are related to transactions in financial instruments;
Depending on the nature of the services offered a CIF must have an initial capital which could be as low as €40.000 or as high as €1.000.000. Dealing on own account, underwriting of financial instruments, placing of financial instruments with or without a firm commitment basis and operation of a Multilateral Trading Facility all require a minimum capital of €1.000.000. Our firm can advise as to what capital would be required depending on the business plan of the company which intends to offer investment and /or ancillary services.
● Offering advice in regards to all aspects of the process of setting up a CIF and the operation of the CIF after the license has been obtained.
● Preparing the application to obtain the license from CySEC and managing all relevant steps until the license is granted.
● Preparing or assisting in the preparation of the business plan.
● Advising on the organisational requirements for a CIF and preparing or assisting in the preparation of the internal regulations of the CIF.
● Designing or assisting in designing the departmental structure of the CIF so it will comply with the relevant legislation