Forex License in Cyprus in 2019
Forex license is becoming popular in a number of countries for doing business, including in some CIScountries. When planning the provision of brokerage services in Europe, it is recommended to issue a license in Cyprus. This jurisdiction specializes in registration of broker licenses, permits are issued to organizations that are planning to operate in the European Union.
Features of registering an organization and creating a bank account
The first stage of obtaining a permit for activity is the registration of a company. When creating an investment company in Cyprus (CIF), it is important that it has authorization, as well as a CySec license. This company specializes in providing investment services. Brokers and dealers can be referred to this category. The organization is governed by the Commission of Jurisdiction. Banking and insurance activities are governed by other laws.
Differences of the Cyprus investment firms are that they can conduct activities forex - dealer. Their activities are governed by the law on the provision of investment services, as well as regulated markets.
According it, its scope includes services and activities related to investments in financial instruments. The latter include securities, shares in enterprises, options, futures, some derivative contracts, financial contracts, etc.
The second stage is opening a bank account. It is necessary for the placement of share capital after registering the company. Subsequently, you will need to get a certificate confirming the availability of funds in the account, this document is required for a license. The smallest amount of capital is 125,000 € as a broker, for the creator of the market capital must be at least 725,000 € - it must be permanently in the bank account.
Collection of documents for obtaining a license
An initial application will be required at CySEC. After that, it is necessary to collect the required documentation - a package of papers includes data on the organizational structure of the company, a business plan, a guide to internal procedures, to counter money laundering.
What documents need to collect:
• Business plan;
• Forecast for finance for three years;
• Information about each shareholder and director, employees, confirmation of no criminal record, bankruptcy.
In order to meet all the requirements, it will be necessary to appoint employees and coordinate candidates with the regulator. Under the terms, the organization should be managed by a four-member Board of Directors, two of whom must be residents of Cyprus.
CySec usually makes a decision within six months after the application is submitted. If you need a forex license in Cyprus, please contact our specialists in IT-OFFSHORE. We will provide advice and help find answers to your questions.