REGISTRATION OF FOREX COMPANY IN CYPRUS

Cyprus is the leading country in the EU regulating the Forex market due to its numerous tax advantages, low set up and operational expenses along with the “passport effect” to offer services in all EU countries. It’s a well-known financial and banking centre for international investors, who wanted to take advantage of low taxes, political and economic stability, the flexibility and progressiveness of the common law system, legislation protecting privacy of information, excellent telecommunications and travel infrastructure, ideal geographic location at the crossroads of three continents, and the availability of well-trained professionals to manage their business and financial affairs. All the above make it an ideal location in the EU to set up a Forex company.

Foreign investors interested in investing in Cyprus can set up a forex company, which carries out activities on the local and international trading markets. A forex company provides assistance to other investors, by offering advice on investment opportunities in the forex market.

Forex trading companies are regulated by the Cyprus Securities and Exchange Commission (CySEC), under the CIFs and Investments Firms Law. To set up a Forex company a license is required by CYSEC and the process to obtain such a license involves several steps and conditions.

Share capital requirements vary depending on the type of investment firm and the services to be provided. Initial Share Capital for Investment Firms in Cyprus:

  • The minimum initial capital of a CIF providing Reception and Transmission, Investment Advice (no handling of client funds/instruments) is 50.000 Euro; 
  • The minimum initial capital of a CIF providing Reception and Transmission, Execution, Portfolio Management, Investment Advice is 125.000 Euro; 
  • The minimum initial capital of a CIF providing Trading and Purchase and Sale for Own Account, Underwriting, Operation of MTF is 730.000 Euro.

Experienced professionals of our Legal Team in cooperation with our external independent associates, assist our clients on the registration and operation of Investment Firms.