Establishing a Cyprus Investment Firm (CIF)

To legally offer investment and ancillary services in Cyprus, a Cyprus Investment Firm (CIF) license from the Cyprus Securities and Exchange Commission (CySEC) is required.

The investment services

• Reception and transmission of orders on behalf of clients;
• Execution of orders on behalf of clients
• Dealing on own account
• Portfolio management
• Provision of investment advice
• Underwriting of financial instruments on/or placing of financial instruments on a firm commitment basis
• Placing of financial instruments without a firm commitment basis
• Operation of Organized Trading Facility (OTF)
• Operation of Multilateral Trading Facility (MTF)

Ancillary (non-core) services

• Safekeeping and administration of financial instruments for the account of clients, including custodianship and related services such as cash/collateral management;
• Granting of credits or loans to an investor to allow him to carry out a transaction in one or more financial instruments, where the firm granting the credit or loan is involved in the transaction;
• Advice to undertakings on capital structure, industrial strategy and related matters and advice and services relating to mergers and the purchase of undertakings;
• Foreign exchange services where these are connected with the provision of investment services;
• Investment research and financial analysis or other forms of general recommendation relating to transactions in financial instruments;
• Services related to underwriting.

Licensing Process

To obtain a CIF license, a Cyprus-based company must first be incorporated, then submit an application package to CySEC. This package includes legal documents, information on directors and shareholders, organizational structures, clean criminal records, and detailed company procedures, including AML protocols. The process involves 2-3 months of application preparation, followed by CySEC’s review, which may require additional information. If approved, a conditional license is granted, requiring the firm to meet specific conditions like securing office space, hiring employees, and establishing operational infrastructure.

Capital Requirements

EUR 150,000 : For CIFs holding clients’ money/instruments and offering services like order execution or portfolio management.
EUR 75,000 : For CIFs offering similar services but not holding clients’ money/instruments.
EUR 750,000 : For CIFs dealing on their own account or underwriting financial instruments.

Our Services

Incorporation of a Cyprus Company
Bank Account Opening
Promotion of Application to CySEC
License Application Preparation including application forms, drafting of manuals, procedures and policies
Sourcing Key Personnel
Document Review
Activation Process