Legal assistance in licensing, including Forex STP and Market Maker, will guarantee that the applicant’s package of documents is fully compliant with the legislation of Cyprus, as well as that the activities of the company correspond to the existing requirements of the regulator.
Licensing of financial activity in Cyprus is conducted by the Cyprus Securities and Exchange Commission since 2001.
Since 2004, Cyprus has been a member of the European Union and allows a company licensed to broker in Cyprus to certify (activities in the territory of the EU Member State upon notification) its services in the EU territory, and Iceland, Norway and Liechtenstein. In 2012, CySEC became the first regulator to regulate binary options as a financial instrument.
Advantages of obtaining a brokerage license in Cyprus
- Cyprus is a member of the EU. Obtaining a license allows you to conduct financial activities in all territories of the European Economic Area (in accordance with the EU Directive of 2004 “On the markets of financial instruments” (MIFID));
- One of the lowest income taxes in the EU – 12.5% (transactions in the territory of Cyprus) and 0% (transactions outside the country).
- Cyprus legislation on financial regulation is brought in line with EU directives and includes a number of harmonized and confirmed requirements to licensees. Legally regulated binary options and Forex;
- For foreign employees of the company, there is no income tax;
- Relatively fast and inexpensive procedure for obtaining a license Forex broker.
Legislation regulating brokering activities in Cyprus: EU Directive 2004 “On Markets for Financial Instruments” (MIFID), Cyprus Investment Services and Activities and Regulated Markets Law of 2007.
Licensing Procedure for Brokering Activities in Cyprus
| Requirement | Details |
|---|---|
| 1. Company Headquarters | The investment company’s headquarters must be located in Cyprus, and its principal operations need to be conducted within the state’s territory. |
| 2. Financial Contributions | The company must provide the relevant contribution through the Central Bank of Cyprus. The final amount depends on the scope of services provided. Additionally, a payment for membership in the Association of International Investment Firms of Cyprus (ACIIF) is required. |
| 3. Bank Certificate | A certificate from the bank confirming the availability of an account is required for obtaining the Cyprus broker license. |
| 4. Staff Requirements | The company must include specialists in anti-fraud and anti-money laundering, a risk manager, and an internal auditor, as well as a Board of Directors, secretary, accountant, and heads of various departments. Some posts can be combined, but qualifications for director positions are necessary. |
| 5. Business Plan | A comprehensive business plan for the company must be prepared. |
| 6. Financial Plan | A three-year financial plan for the company is required. |
| 7. Anti-Fraud Policies | The brokerage company must prepare a Policy on Fraud and Money Laundering as well as a KYC Policy (“Know Your Customer”). |
| 8. Criminal Record Certificates | A certificate of absence of a criminal record is required for each employee in a management position. |
| 9. Bankruptcy Status | Information about the absence of bankruptcy status for each employee in a management position is necessary. |
| 10. Authorized Capital | CySEC must confirm that the applicant company has the authorized capital. The amount is at the discretion of services provided:
|
The CySEC should issue a decision within 6 months from the date of submission of the application, provided that all documents are duly submitted. The licensing procedure should not take longer than 4 months.
Regulated United Europe provides the full range of legal services for brokerage license obtaining in Cyprus, including registration of the company, preparation, translation, and certification of the package of documents, negotiations with representatives of CySEC, and consulting of the client at all stages of licensing. The cost of implementing your project depends on the offered services and is clarified and agreed with lawyers of our company in the course of preliminary analysis of your project.
RUE customer support team
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CONTACT US
At the moment, the main services of our company are legal and compliance solutions for FinTech projects. Our offices are located in Vilnius, Prague, and Warsaw. The legal team can assist with legal analysis, project structuring, and legal regulation.
Registration number: 08620563
Anno: 21.10.2019
Phone: +420 775 524 175
Email: [email protected]
Address: Na Perštýně 342/1, Staré Město, 110 00 Prague
Registration number: 304377400
Anno: 30.08.2016
Phone: +370 6949 5456
Email: [email protected]
Address: Lvovo g. 25 – 702, 7th floor, Vilnius,
09320, Lithuania
Sp. z o.o
Registration number: 38421992700000
Anno: 28.08.2019
Email: [email protected]
Address: Twarda 18, 15th floor, Warsaw, 00-824, Poland
Europe OÜ
Registration number: 14153440
Anno: 16.11.2016
Phone: +372 56 966 260
Email: [email protected]
Address: Laeva 2, Tallinn, 10111, Estonia
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