Insurance Brokers License: Common FAQs

FAQs - Cyprus insurance Agents / Brokers License

Timeframe

How long does it take to obtain the insurance brokers or agents license?

• Simple structure / set up - Cyprus Company owned by individual shareholders
• Typically it takes between 3 - 6 months from the day we submit your licensing application.
• Complex structure / set up - Cyprus Company is owned by an overseas group

If however the structure is not simple, and for instance a group will apply for the licensing instead of a stand alone Cyprus Company (common practise), the complexities of the group will most likely increase the timeframe by additionally 3 months. This is because of the extra AML, KYC and checks that will have to be performed by the local regulator and the service provider. In addition, from experience, the collection of data and KYC information when dealing with groups tends to be a slow process.

2. Physical Office
Is a physical office needed?

In Cyprus you can use your home address as your business address.

In addition, following our numerous correspondence with the local regulator and to our surprise, the requirement for a physical office is rather captured by the local tax requirements instead of the actual registration / licensing process. Therefore this issue is covered and mitigated easily.

In the event that an address is needed firms like CYAUSE Audit Services Ltd and Regus can offer cheap solutions. If a local director is used his / her residential address can be used.

3. Directors and Insurance Credentials
Can overseas directors be the directors of the company and get the license?

The answer is yes.

The applicant company (see process explanation below) ideally should will have to have at least one of its local directors with the required credentials (at the time of this article they must have passed as minimum the CII, IF1 and IF2). In the event that the local director does not have the necessary credentials, overseas directors with the required credentials can be included in the composition of the company in order to fill in this licensing requirement.

As long as at least one director of the applicant company has the credentials this licensing requirement is covered. This director can be local or overseas.

4. Fees
An enquiry without the request for fees would not be realistic!

Our fees for the entire application including all correspondence with all parties and gathering of information as well as our advisory on the matter is Euro 8,000 + VAT (from Euro 10,500 + VAT). This is the cost for the actual application.

The company formation and addition of local directors must also be accounted for as well as the creation of a local bank account if this is needed.

This information can be obtained from our website main page by clicking here.

5. The process
The most important question is off course the process. What should the client expect?

The process can be easily described in the following steps:

• Sign the engagement letter with our firm
• We receive 50% deposit to comment the work.
• We will create for you the Cyprus Company (which is the applicant for the licensing) and bank account if this is required by you.
• During the creation of the Cyprus Company we will be requesting from you the application information together with our KYC and AML records.
• We will be working in parallel to create the company and have all the application documents ready so that as soon as the company is created we will apply for your insurance brokers / agents license.
• The process will entail some communication with all parties (client, our team and the regulator) to cover all enquiries and ensure smooth process.
• License will be issued within 3 months for the time of the application.
• Once your license is issued you can apply for pass-porting to specific countries.
• During the year we will be performing for you the statutory requirements of your Cyprus Company; accounting, payroll, tax and audit services.

6. Compliance matters
What are the requirements of the regulator for our newly regulated entity?

The regulatory compliance requirements for the insurance agents / brokers license are very light as this type of license in Cyprus is consider simple. As such the regulator requires the Cyprus company to have turnover and activity and to comply with the local requirements imposed on Cyprus companies; have their financial statements and tax returns filed on time and to conduct audits as required.

There is no other formal requirements, although form time to time the regulator may request a simple confirmation statement.

7. Costs for Passporting
We would like to obtain a Cyprus insurance brokers license in order to passport to Europe. Is this an expensive process? What are the costs involved?

Passporting to Europe via Cyprus couldn't be easier and cheaper.

Passporting Costs: Included in our application

Passporting costs are included in our application. The disbursements for such costs are appr. Euro 50 per country (at the time this article was written). In practise, after you get your license you will simply inform our local regulator via email the EU countries of interest to you and you will receive a positive response with a small fee.

8. Costs for maintaining your Cyprus Insurance Brokers / Agents license

What about regulators fees, accounting, audit and tax costs. What will the maintenance of this company be costing me?
Following the creation and successful licensing the maintenance costs of your company would be the accounting, payroll, audit and tax fees. These fees depend on the volume, complexity and risk to the service provider. From experience all these fees can not exceed Euro 3,000 + VAT unless the company employees several employees here in Cyprus with significant local operations. In this circumstance, the cost will be determined by the local service provider who must understand the volume and complexity as well as the scope of work required of them prior to the calculation of this annual recurring fees.

How much should I budget as total costs?

• Application Cost: Euro 8,000 + VAT
• Company Creation Cost: Euro 950 + disbursements + VAT
• Passporting Costs: Included in our application +disbursements
• Accounting, Audit & Tax: Euro 2,500 - Euro 3,000 + VAT for a small operation

Insurance Brokers / Agents Coverage:

Article Format: We have written extensive articles on the topic:
1. INSURANCE BROKERS CYPRUS APPLICATION - EU Passporting via Cyprus

2. Video: Cyprus Insurance Agent & Insurance Brokers Cyprus Licensing - EU Pass-Porting Made Easy

3. Video: Cyprus Insurance Licensing - How to get your insurance agents or brokers license in Cyprus

Website: Visit our website for a complete guide and explanation: https://cyprusaccountants.com.cy/

Disclaimer: The information provided in this article is for general informational purposes only and should not be construed as legal or tax advice. Please consult with a professional tax advisor for advice on your specific situation.

CYAUSE AUDIT SERVICES

About Us

CYAUSE Audit Services is a regulated audit and assurance firm with offices in Nicosia and Limassol. Our firm specialises in the licensing and audit of local insurance agents / brokers and insurance companies. We have been engaged to perform the audit of the largest insurance company in Cyprus successfully and we have helped tens of non European insurance brokers and agents to use Cyprus as a vehicle to passport through Europe.

During 2015 we have been awarded by I.C.P.A.C and the A.C.C.A (local and international association of Chartered Certified Accountants) for the Quality of our Audit Services and our Office's Procedures.

Being a Truly International Audit & Assurance firm, we have associates from all over the world and we are constantly looking for new associates to expand our network further. At present, CYAUSE Audit Services operates internationally as Accace Circle, a co-created business community of like-minded BPO providers and advisors who deliver outstanding services with elevated customer experience.

Our network covers almost 40 jurisdictions with over 2,000 professionals, it supports more than 10,000 customers, mostly mid-size and international Fortune 500 companies from various sectors, and processes at least 170,000 payslips globally.

CYAUSE Audit Services Ltd is also a member of the 3E Accounting Network, an international accounting network which originates from Hong Kong and has more than 80 members from all over the world and BKR International, an American Association with coverage in the entire world.

Contact Us

If you would like us to assist you with your investment firm or fund please contact us at enquiries@cyprusaccountants.com.cy or call us at +357 22 336 309.

Learn More about Cyprus Corporate Environment

Information about CYAUSE Audit Services and the Cyprus Corporate & Tax System can be obtained from our Website or our YouTube channel which provides valuable information about the Corporate & Tax Environment of Cyprus.