Cyprus, due to its strategic geographical location, is a significant international financial center attracting investors and entrepreneurs from all over the world. This is due to a stable economic environment, attractive tax policies and a harmonized regulatory framework that meets international standards. This jurisdiction provides many investment opportunities, including the establishment of an investment fund Cyprus, making it one of the preferred jurisdictions for asset management.
Our company provides comprehensive services for the creation and management of investment funds in Cyprus. We help investors and entrepreneurs from all over the world make the most of all the advantages of the Cyprus jurisdiction, as well as obtain an investment fund license in any country.
Cyprus investment regulations
Cyprus stands out due to its combination of tax incentives, effective regulation and opportunities to enter European Union (EU) markets. These factors make Cyprus an excellent choice for forming and administering an investment fund. The system of legal regulation of investment funds in Cyprus consists of local and European legislation. Let’s consider the main legislative acts.
- EU Alternative Investment Fund Management Directive (AIFMD): introduces standard requirements for licensing, risk management, liquidity management, asset valuation, as well as transparency and information responsibilities to investors.
- EU Markets in Financial Instruments Directive (MiFID II): regulates the provision of investment services in financial instruments and transactions in financial markets, improving transparency, investor protection and competition between trading venues.
- Cyprus International Collective Investment Schemes (ICIS) Law: sets out the rules and procedures for the formation and operation of international collective investment funds in Cyprus, including licensing, management and reporting.
Benefits of Cyprus investment funds
Cyprus fund setup gives the entrepreneur the following privileges.
- Preferential Cyprus investment fund taxation: it offers one of the lowest corporate tax rates in the EU (12.5%), international double tax treaties with more than 60 countries, and exemption from tax on profits from the sale of shares, bonds and interests in investment funds.
- Strategic location: the jurisdiction is located at the crossroads between Europe, Asia and Africa, which facilitates access to various markets and provides opportunities for diversification of investments.
- High level of confidentiality: Local legal and regulatory frameworks provide a high level of confidentiality for investors and investment fund managers.
Cyprus fund registration: main types of Cypriot investment funds
The main categories of investment funds in the Cyprus market include:
- AIF – alternative investment funds;
- UCITS – organizations for collective investment in securities;
- RAIFs are registered alternative investment funds.
Alternative Investment Funds (AIF)
Investment funds in Cyprus are collective pools of investment funds that offer investors the opportunity to invest in a variety of portfolios. They are classified into:
- funds with unlimited number of investment participants (AIFUNP): these funds can be established as legal entities with limited liability, partnerships or trusts. They are open to investment by a wide range of people without setting a limit on the number of investors and minimum capital;
- funds with a limited number of investment participants (AIFLNP): these funds can attract up to 75 investors, often used for investment by a limited number of people, such as family funds or private investors.
Undertakings for collective investment in securities (UCITS)
UCITS are highly regulated investment funds designed for private investors. They provide access to diversified portfolios of securities, including stocks, bonds and derivatives. UCITS are subject to strict regulatory regulation and oversight by CySEC.
Registered Alternative Investment Funds (RAIFs)
RA Cyprus investment funds are distinguished by a simplified regulatory procedure. They are exempt from the obligation of direct licensing and control by CySEC, which allows them to quickly achieve the goals of investment projects. RAIFs are managed by licensed AIFM managers, ensuring a high standard of management.
Our company is a leading advisory and legal provider specializing in starting a fund in Cyprus. Our mission is to help investors and entrepreneurs from all over the world create sustainable and profitable investment structures in one of the most attractive jurisdictions in Europe. We offer comprehensive registration services for all types of investment funds, including AIFs, UCITS and RAIFs. We also have ready-made businesses, in particular, we can offer an alternative investment fund in the Czech Republic for sale and much more. Our specialists will help you choose the most suitable structure, prepare the necessary documentation and ensure full compliance with the requirements of Cypriot legislation.
Legal and financial requirements
When registering and implementing Cyprus fund management, there are a number of requirements aimed at ensuring transparency and protecting the interests of investors.
- Licensing: Obtaining a license from CySEC is mandatory for all investment funds. The licensing procedure includes the preparation of a business plan, legal documentation and evidence of qualifications of administrative and management personnel.
- Asset management: the management company must be licensed by CySEC, have experience and reputation, as well as a clear organizational structure with defined lines of responsibility.
- Documentation: To successfully incorporate a fund, it is necessary to submit a full set of documents to CySEC, including the articles of association, business plan, information prospectus and agreements with third parties.
In terms of Cyprus fund administration, this country offers a variety of types of investment funds with unique characteristics and benefits. Depending on their objectives, preferences and chosen strategy, investors can choose between AIFs, UCITS and RAIFs, making Cyprus one of the most attractive jurisdictions for creating and managing investment funds.
Our company has extensive experience in the field of registration and licensing of investment funds and specializes in supporting investors and entrepreneurs in creating and managing investment funds in Cyprus. We provide expert advice and comprehensive assistance at all stages of fund creation, ensuring compliance with all legal and regulatory requirements.
We will also provide you with comprehensive support in registering an investment fund in SVG, in Belgium, Germany, Portugal and other countries. If you have any questions or require further information about setting up an investment fund in Cyprus, please contact our company. Our specialists are ready to provide qualified assistance and provide all the necessary support.