The regulatory authority that grants the authorization of a Cyprus Investment Firm (CIF) is the Cyprus Securities and Exchange Commission (CySec) and the legal framework for the registration and operation of a CIF is the Cyprus Investment Firms Act of 2002.
A CIF can provide services and activities within Cyprus and abroad.
The services that can be provided by a CIF are investment services and ancillary services.
Factors that attract investors to register a CIF:
Low Taxes in Cyprus
- CIF is a registered company in Cyprus with a corporate tax on net profits of 12.5%, one of the lowest rates within Europe.
- Tax exemption on dividend income.
- Dividends, interest and royalties that are paid to non-resident shareholders have no withholding tax.
- The CIF’s clients can also benefit from zero taxation on income from capital gains.
- Cyprus has double taxation treaties with more that 50 countries.
Registration of a CIF grants access to 450 million citizens of the European market and the permission to operate representative offices in any other European Union member state.
Also by obtaining a license from CySec the CIF can have access with both European and Asian clients, if the company is Asian.
Low Costs of setting up a CIF and its on-going operation
Cyprus’ jurisdiction offers a very a low cost for setting up a CIF with the engagement of all professional bodies.
Also the costs operation of a CIF is considered 30-50% lower that other jurisdictions.
To obtain a license from CySec for the provision of investment and ancillary services is much faster than in other countries of EU.
The whole procedure from the registration of a company within the Cyprus Company Registrar and until the final approval by CySec takes about 6-8 months.