Create a Cyprus Investment Firm - CIF for financial istruments

INVESTMENT FIRM FORMATION

Cyprus is increasingly becoming an international hub in the Mediterranean for Investment and currency exchange companies as several hundred types of investment firms set up their premises locally and trade internationally taking advantage of the Cyprus relaxed regulatory environment, low tax regime and low set up costs.

CYAUSE Audit Services assists clients in setting up a Cyprus Investment Firm, (hereinafter referred to as “CIF”). The company can provide Financial services anywhere in the world including portfolio management and brokerage.

We also have a dedicated committed team which perform compliance assistance work to some of the larger players in Cyprus. For more information please contact Mr Tramountanellis Kyriakos at: kt@cyprusaccountants.com.cy.

The unique advantages are of setting up an investment firm in Cyprus are:

• Tax Free Income generated by trading of securities
• No VAT application
• 12.5% Corporation Tax on other (non-securities trade) income generated
• Simplified procedures a CIF dealing on own account
• Simple set up procedures

SERVICES OF AN INVESTMENT (CIF) COMPANY

Investment Services

1. Portfolio management
2. Investment advice
3. Reception and transmission of orders in relation to one or more financial instruments
4. Execution of orders on behalf of clients
5. Dealing on own account
6. Underwriting of financial instruments and/or placing of financial instruments on a firm commitment basis

Auxiliary Services

1. Safekeeping and administration of financial instruments, including custodianship and related services
2. Granting credits or loans to one or more financial instruments, where the firm granting the credit or loan is involved in the transaction
3. Advice to undertakings on capital structure, industrial strategy and on services relating to mergers and the purchase of undertakings
4. Foreign exchange services where these are connected to the provision of investment services
5. Investment research and financial analysis or other forms
6. Services related to underwriting

Registration time: Application process normally takes around 6 – 8 months.

WHY IS CYPRUS ATTRACTIVE FOR INVESTMENT (C.I.F) COMPANIES

• Tax Free Dividends Received and Paid
• Low Set Up Costs and availability of High Quality Personnel
• Lowest Tax Rate in the EU at 12.5% Corporation Tax
• No Withholding Taxes

Other tax considerations

• Group Loss Relief (Cyprus companies only)
• Full Exemption from Tax on Disposal of Subsidiary
• No Tax on Disposal of shares or Liquidation of Cyprus Holding Company

These are achieved through

• Cyprus’s extensive Double Tax Treaty Network 
• EU Parent Subsidiary Directive 
• Part of EU and Euro zone - Cyprus features on the white list of the Organization for Economic Co-operation and Development (O.E.C.D)