Eternity Law International News Forex broker license in Cyprus

Forex broker license in Cyprus

Published:
October 8, 2020

As a member of the EU, today’s country is completely compliant with the EU Markets in Financial Instruments Directive (MiFID).

There are two types of licenses that apply for forex broker license in Cyprus and usually the companies are known as CIF – Cyprus Investment Company:

  • Standard license – approx. 125,000.00 EUR, the broker can keep clients’ money, but cannot trade for his own account;
  • Full license – requires approx. EUR 730,000.00 – the broker can perform transactions on his own account (market maker);

Depending on the type of license, additional fees may vary.

As an additional advantage, all CIF companies have the right to a passport, that is, to open offices in other EU countries without the need to obtain a local license.

General information

Company structure

  • Only one shareholder (can also be a legal entity, without citizenship restrictions)
  • 2 executive and 2 non-executive directors. There are demands for their stability
  • Details of beneficial owners – disclosed to authorities
  • Information about shareholders is part of publicly available documents
  • Information about directors – Part of publicly available documents

Taxation

  • Low corporate tax (12.5%)
  • 0% corporate income tax
  • The lowest VAT rate is 19%
  • No dividend tax
  • A wide network of agreements on the avoidance of double taxation
  • Access to EU directives and VAT registration in the EU
  • Accounting demands – mandatory regular accounting and provision of audited reporting

A registered office is mandatory

Local employees – Needed (3 or more)

The company name

The company name must end with “LIMITED” (no other suffixes are allowed) and must be approved by the Registrar of Companies.

N.B.

  • Limited links for company name: state, national, or local government name.
  • Any name that suggests illegal activity or implies royal or government patronage is prohibited.
  • The Registrar may reject any name which he considers undesirable or contrary to the public interest.
  • The company name must be identical or similar to the name of an existing company.
  • In the event that a foreign language is used for the company name, the Registrar may request a translation to ensure compliance with the above restrictions.

Businesses for sale in Cyprus

Cyprus ready-made forex company for sale

Europe, Cyprus

As a member of the EU, today’s country is completely compliant with the EU Markets in Financial Instruments Directive (MiFID). There are two types of licenses that apply for forex broker license in Cyprus and usually the companies are known as CIF – Cyprus Investment Company: Depending on the type of license, additional fees may…

Licensed Cyprus STP Firm for Sale

Europe, Cyprus

As a member of the EU, today’s country is completely compliant with the EU Markets in Financial Instruments Directive (MiFID). There are two types of licenses that apply for forex broker license in Cyprus and usually the companies are known as CIF – Cyprus Investment Company: Depending on the type of license, additional fees may…

Ready-made company with bank account in Cyprus for sale

Europe, Cyprus

As a member of the EU, today’s country is completely compliant with the EU Markets in Financial Instruments Directive (MiFID). There are two types of licenses that apply for forex broker license in Cyprus and usually the companies are known as CIF – Cyprus Investment Company: Depending on the type of license, additional fees may…

Basic requirements

According to the current legislation, Cyprus Forex License (CySEc) allows only registered legal entities that have fulfilled all the demands to log in and obtain a forex license Cyprus. Considering the basic conditions, the CIF must:

  • fulfill the demands for the minimum authorized capital – from 125 thousand EUR for STP, from 730 thousand EUR for Market Making;
  • to appoint a person with the status of a professional investor to the position of director;
  • purchase a full-fledged office with at least four directors;
  • collect a complete list of documents related to the brokerage business or activity as a trader;
  • agree with the regulatory body on the candidacies of key personnel in relation to reputation;
  • submit a business plan with a financial forecast for at least 3 years of activity;
  • develop and agree with the regulator manuals for operation, risk management and AML;
  • appoint external and internal (Cypriot) auditors;
  • identify the risks of managers and specialists in relation to compliance;
  • submit personal data of all directors and shareholders;
  • prepare certificates of no criminal records for each director (two executive and two non-executive), as well as for each shareholder of a country investment company.

The process of obtaining a Cyprus Forex License

On the one hand, the Cypriot regulator sets rather strict demands for investment companies, on the other hand, it is quite loyal in comparison with some other states, where the work of individual brokers and market creators is regulated by very strict rules and regulations.

If we divide the procedure for obtaining licenses for brokers in country into stages, we will highlight the following:

  1. registration of a country investment firm (CIF);
  2. registration of a corporate bank account with capital deposit;
  3. collection and submission of necessary documents to Cyprus (CySEc) Forex License;
  4. obtaining a license within 6 months from the date of submission of documents if all mandatory and additional demands are met.

Foreign investors and businessmen planning to work in the EU as a separate to get Cyprus brokerage license or creator of the financial market should remember that all documents for the registration of a Cypriot investment firm and obtaining the corresponding license are submitted only in Greek or English. The translation must be notarized and legalized, which will be assisted by our Cypriot representatives.

How do I become a broker in Cyprus?

If an investment company is registered as a brokerage agent, an authorized capital of at least 125 thousand euros is required with documents confirming access to it. When opening such a company as a market creator, the minimum amount of capital is from 730 thousand euros. The company must have a full-fledged office, a Board of Directors, in which two directors are executives, the other two are non-executives. All Cypriot CIFs applying for a CySEc license cannot only provide related investment services (such firms are not subject to registration and licensing in the country). The company must be managed from the country, the position of directors can be held by professional investors.

How do I start a forex company in Cyprus?

If we divide the process for obtaining brokerage license in Cyprus into stages, we will highlight the following:
1. registration of a country investment firm (CIF);
2. registration of a corporate bank account with capital deposit;
3. collection and submission of necessary documents to CySEc;
4. Obtain Cyprus Forex License within 6 months from the date of submission of documents if all mandatory and additional demands are met.

Is forex trading legal in Cyprus?

It is quite fair to say that a Forex license in Cyprus remains the best option to discover the European Union. As in other jurisdictions, there are some difficulties with obtaining a permit document, but subject to special and additional demands, as well as the availability of a full package of documents in accordance with local laws, both companies and individual traders can obtain a Forex License.
In addition to the legal presence in any country with EU membership, the authorization and licensing of Cypriot CySEc implies an increase in the reputation of your company, which falls into the so-called “white list” – a list of official brokers published on a special resource.
So, yes, it is legal to do so, but only if it is done through a recognized.

You could be interested

Non-fungible tokens from a legal perspective

Recently,NTFs have got highly popular to become the latest digital cοllectibles in nowadays entertainment, sport, arts, and gambling sectors. NFTs are best explained as a type of virtual asset kept on a blοckchain presenting οwnership of a digitalized product. The main characteristic that differentiates NFTs from other tokens is that it denotes a unique, non-replaceable, and non-replicable...

Gibraltar gaming license obtaining

Gibraltar is a region of the United Kingdom. Since it is a very advantageous place in Europe, local laws and limitations are set up to ensure that gaming operators keep Gibraltar’s high level of repute while doing their trade and benefiting from taxes advantages. Some beneficial sides of Gambling licenses in Gibraltar make them very...

Betting license in Cyprus

Cyprus is one of the largest business centers in the world. Many of the most powerful Gaming operators are concentrated here. The legislation of the jurisdiction offers attractive conditions regarding the tax regime, in particular, in some cases, the tax levy on dividends is 0 for non-tax residents. In addition, the commercial market in Cyprus...

Legal Due Diligence

As a rule, a legal audit or Due diligence is ordered by an investor. Less often it is done by the startup itself. Legal DD is a verification of title documents of a company, in which all existing assets of a given enterprise are subject to verification. The purpose of Legal DD is to study assets, risks...

Financial brokerage firms in Lithuania

Investment enterprises are legal entities on an ongoing basis being engaged in the provision of any specific or complex investment services to third parties and/or carry out investment transactions. Financial brokerage firms in Lithuania rely on an excellently developed infrastructure of a modern type in their activities, and also enjoy the privilege of minimal operating...

Open a bank account in Switzerland

Switzerland is one of the largest financial centers in the world and traditionally reliable and prestigious jurisdiction for opening foreign accounts. The country has strict legislation to ensure the stability of the banking system, and bank secrecy is enshrined in law. Confidentiality and service are in the first place. Therefore, an account in a Swiss bank...
Fill the blank:

Zurich

Dreikonigstrasse, 31A, Stockerhof

Kyiv

Baseina street, 7

London

Grosvenor Gardens, 52

Edinburgh

Lochrin Square, 1

Nicosia

Jacovides Tower, 5 floor

Tallinn

Kesklinna linnaosa, Tuukri 19

Riga

Esplanade, 7 floor

Vilnius

Gediminas Avenue, 44A

New York

New Rochelle, Huguenot St, 175

Sydney

20 Martin Place

Singapore

3 Fraser Street, #08 DUO Tower

Hong Kong

18 Harbour Road, 35/F, Central Plaza, Wanchai

Porto

2609 Avenida da Boavista

Tbilisi

Revaz Tabukashvili Str., N 45, area N 7