PROFEL LTD is a firm specializing in the establishment, registration, and administration of companies in international jurisdictions and in the provision of professional services for the achievement of a successful business profile with optimal profitability.

Language Selection

EnglishRussian
Investment Firm Licensing in Cyprus PDF Print E-mail

Why a CySEC MiFID license?

The Markets in Financial Instruments Directive's (MiFID) objective is to create an integrated financial market that effectively protects investors and safeguards the efficiency and integrity of the overall market for investment services and activities.

  • · EU Regulation: An Investment Firm licensed by the Cyprus Securities and Exchange Commission (CySEC) falls under MiFID, the harmonized regulatory regime for investment services across the 30 European Economic Area member?countries. As such, it receives a license valid across the EU. Cyprus Investment Firms fall also under the scope of sound Anti?Money Laundering laws.
  • · EU Single Passport: Enables authorized investment firms to provide their services freely across borders by harmonizing national rules for investment services. An Investment Firm licensed by the CySEC can offer investment services, establish representative offices or establish fully?operational branches in any desired location within the EU without any additional requirements from that (host) EU State, whilst being supervised from CySEC directly.
  • · Low Capital Requirements: Firms are required to maintain capital requirements ranging from EUR 80.000 to EUR 1.000.000 as minimum capital requirement, depending on the investment services to be offered
  • · Low Operating and Licensing Costs: Compared to other EU countries, Cyprus offers one of the most competitive operating and licensing cost packages for Investment Firms.
  • · Favorable Tax Regime: Cyprus benefits from a low corporate tax regime and an impressive range of double taxation treaties with more than 40 countries. Tax advantages to Cyprus Investment Firms:

o             Corporate tax is only 10%

o             Profits from disposal of securities are tax?free

o             No tax on payment of dividend to non?residents

  • · Strong Economy & Financial System: Cyprus offers macroeconomic stability with successful economic performances such as high growth rate, low inflation and low unemployment rates. Banking, accounting, and legal services are extremely efficient and are few of the strong points of the local economy.
  • · Favorable Business Environment: Cyprus due to its location and with its highly skilled multilingual labor available at rates of pay that are generally lower than those of industrialized countries, is becoming an international hub towards the European markets.
  • · Freedom from Exchange Controls: Profits, interest and dividends, capital gains and any gains arising from disposal of shares in such investments can be freely remitted overseas without any limitation.
  • · Advanced Telecommunications: Cyprus has invested heavily in the development of the telecommunications sector and is included today among the most developed countries in the world in this respect. A number of companies provide today modern telecommunication products and solutions.
  • · Global market credibility & penetration: provides a solid basis for a mutual recognition regime between EU Member States and third countries, securing thereby a robust and comprehensive framework to ensure high levels of investor protection. There is therefore a clear opportunity to seek competitive advantage by driving new value propositions in order to exploit new markets, instruments and geographies.

What PROFEL can do:

We undertake the preparation and submitting of applications for CySEC MiFID licensing and provide post-submission support leading up to the granting of the license, which authorizes companies to provide investment services in accordance to applicable EU laws and regulations.

Services include:

  • · Consulting on investment services to be included in the application as well as on the design of the investment firm structure.
  • · Completion of the Application Form and checklists to be submitted to the regulator.
  • · Preparation of the required Internal Operations Manual according to EU regulations.
  • · Preparation of the Business Plan and financial projections.
  • · Preparation of the applicant’s Money Laundering Manual.
  • · Assistance in the preparation of the company shareholder, director and senior management Questionnaires.
  • · Application follow-up during the process of assessment by the regulator.
  • · Assistance in company personnel appointments (senior management & service providers).

Overall timeline estimates:

  • · Preparation of application and submission: 1 month (this timing depends to a great extent on the responsiveness of the client to provide the documentation required to be filed with the Application)
  • · Final CySEC decision on granting the license: Estimate of up to 6 months from date of submission (this is solely dependent and at the discretion of CySEC)