Brokerage License in Cyprus 2021
It is profitable to obtain a broker's license in Cyprus in 2021, however, the process is complicated. When obtaining authorization, it is important that the documentation package complies with the requirements of Cyprus legislation, which requires contacting our lawyers at IT-OFFSHORE. We can help you gather the required documents and register your company.
Advantages of registration
Since the early 2000s the licensing of financial activities in Cyprus has been carried out by the Cyprus Stock Exchange Commission. In the mid-2000s the jurisdiction became a member of the EU, due to which the company that has received a license can provide services in the territory of the European Union.
Why is it worth starting a brokerage business in Cyprus?
- The state is a member of the EU, there are opportunities to operate in the territory of the European Union;
- No need for foreigners to pay income tax;
- It is possible to obtain a brokerage license in Cyprus in 2021 quickly at a relatively low cost.
The Territory has one of the lowest income tax rates at just 10%. The legislation governing the brokerage activities within the territory is the EU Directive of 2004 (MIFID).
Requirements for obtaining a license
The office of the company which specializes in investments must be located in Cyprus. The main work must also be carried out in the territory. The firm must make a contribution through the Central Bank of Cyprus. Funds will need to be deposited with the ACIIF.
A bank statement confirming the existence of an account will be required for the issuance of a license. It is obligatory to make a plan for the development of business enterprise, as well as financial projections. Each employee must provide a certificate of no criminal record.
If you do not fulfill at least one point, there is a risk that the firm will not receive a license. Wait for the final decision should be about six months after the application, but more often the process takes about 4 months.
Stages of registration
The first and main stage is considered to be the opening of a company in Cyprus in the form of CIF. After that, it is required to set up a bank account in order to place the share capital. When the funds are deposited, a certificate proving the payment of the capital is required. This document is required for authorization.
The smallest amount of the authorized capital leaves 125 thousand euros, which is necessary to be able to function as a financial broker. The capital must be placed in an account at all times. After depositing the funds an application for a license is submitted to the CYSEC.
In addition to the application, information about the firm's organizational structure, business plan and management is required. A financial forecast for several years ahead, details of each shareholder and director are required as well.