Opening an investment fund in Cyprus: AIF-LNP, AIF-UNP, RAIF
Registration of an investment fund in Cyprus in 2020 is quite advantageous, as the jurisdiction has relatively low tax rates and the climate for business development is favorable. The country is popular for businesspeople from CIS countries, the USA and India. In the jurisdiction it is possible to apply for a permit to develop investment activities in the EU.
Features of opening funds in Cyprus
Over the past few years, Cyprus has become a European fund centre. The performance of assets under management has an upward trend. Several types of funds can be opened in the country.
Main categories are:
- UCITS - collective investments are considered a base;
- AIF - such firms have a certain capital indicator, but the value can be variable. This group includes partnerships, whose liability is limited;
- RAIF - a type of AIF that has no authorization requirements.
According to the laws of the state. It is possible to open a fund with an unlimited or limited number of persons, it is possible to obtain a special authorization for forex, which is valid in all countries of the European Union.
Nuances of opening AIF-LNP
Registration of an AIF-LNP investment fund in Cyprus is only possible if a number of requirements are met. Such funds are limited in number and can only be sold to experienced investors.
There is a limit on the number of investors - there must be 50 persons. This must be maintained regardless of the firm's growth. If the organization is considered a partnership or LLC, the company must be managed by the Board of Directors and General Partner. The investment may be managed by a company that has the appropriate license.
Formation of the AIF-UNP fund
Opening an investment fund in Cyprus AIF-UNP is quite profitable. One of the advantages of the opening is the possibility of selling to any person. There are no requirements for the professional level of the buyer. It is possible to create a fund based on shares. There are no restrictions on the AIF-UNP.
The number of persons in the fund is not limited - it is possible to attract any number of investors. There are requirements for the management - a Board of Directors or General Partner is necessary to have. It is possible to attract a management firm. There is also a need to appoint a depositary with a license.
Main characteristics of RAIF fund
Registration of such a fund implies the creation of a separate legal entity in the territory of the country. It is necessary to enter the registry of the Commission, but it is not required to obtain a license in a mandatory manner.
The main feature of the registered fund is that its sale is possible only to experienced investors. The fund may be created in any form. It is also possible to open an investment fund in Cyprus RAIF both open and closed. There are no limits on the number of units. To learn more about the nuances of fund creation, please contact our specialists at IT-OFFSHORE.
Plus the opening of a fund in Cyprus is a flat rate of return of 12.5%. There is a tax exemption on dividend income. The country has double tax treaties with several countries. The cost of incorporating and operating a company is relatively cheap.