The costs provided are for the licensing - one off costs.

Some notes:

New Company Set up - will not be required

Running Expenses - accounting, audit, tax fees - it all depends on the volume, complexity and services you will need from us. 

It could be from as little as Euro 3,000 + VAT to Euro 20k (if we are doing bookkeeping etc).

==> Let's break the engagement down in two parts: 

a) Licensing - Quotation Provided

b) Maintenance - Fees are variable and must be discussed in detail to provide a fee quote. 

If you want us to provide you with a fee quote from now for the maintenance costs, you must send us the below information to assess work required:

- Greek Financial Statements - latest available

- Accounting Services:

• Will it be needed?
• Volume of transactions per month?
• Number of bank statements?
• Currencies used?

- Payroll Services:

• Number of employees
• Their gross salaries
• Any exemptions

• Back office support needed?
• Office address needed
• Directorship services needed? With CII qualifications?

Next Steps

Upon receipt of these fees we will provide you with our maintenance fees.

Thank you Client, 

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Client Response:

Hi Kyriakos,

Draft 2023 accounts attached.

Given our discussions, the plan is for our current staff to handle the day to day accounting function and to provide an end of year set of figures for you to compile the year end accounts and to submit those to the Cypriot authorities. Do the accounts need to be audited given the size of the business? Yes they will reguire - somewhere in the region of Euro 4,500 +VAT. Please confirm process we’ve suggested is acceptable to the authorities and your cost for putting together the accounts for audit. 

Payroll, we currently have 5 staff in the Athens office but that might increase to 6 by the end of the year. All staff are currently based in Greece but we may have non Greek EU staff in the future. If the Company will be employing greek staff --> you will have a Greek banch there. The Cyprus entity should also employe local staff as it will be regulated. This means local payroll fees from our end and monthly payments to Cyprus local Social Securities and PAYE. As we discussed in the Teams meeting, we want to avoid having a branch office and would look to have a representative office with the staff employed from Cyprus. We are aware of a couple of other Cypriot brokers who operate on this basis so trust there would be no issue. Please provide payroll costs on this basis. 

We don’t need any back-office support, we will need a Cyprus office address and given our discussions, I believe we’ll need 2 x Cypriot Directors, given your advice that there needs to be a majority of Cypriots on the Board.   

Let me know if you need anything else. Ideally you should be renting an independent office and hire some local staff - to increase the substance of your company. Again this can be discussed further. This was not mentioned in our Teams meeting despite us advising you of how we plan to operate the business. Please advise whether we can proceed on the basis we have discussed, i.e. with no independent office and local staff. 

Regards,
Client

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CYAUSE Response: 

Hi Client,

Given our discussions, the plan is for our current staff to handle the day to day accounting function and to provide an end of year set of figures for you to compile the year end accounts and to submit those to the Cypriot authorities. Do the accounts need to be audited given the size of the business?  Yes they will reguire - somewhere in the region of Euro 4,500 + VAT.  Please confirm process we’ve suggested is acceptable to the authorities and your cost for putting together the accounts for audit. Having your own team to work on the account is up to the firm - there is no regulatory issue --> suggested approach is acceptable. Is the audit done by you or a separate firm? The audit will be performed by our firm. If accounting work is needed to prepare a set of financial statements and make some year end accounting work this will be charged separately at a fee - we can not know now how much this can cost as it dependents on the quality of your team! For budget you can say Euro 3k + VAT. 

Payroll, we currently have 5 staff in the Athens office but that might increase to 6 by the end of the year. All staff are currently based in Greece but we may have non Greek EU staff in the future. If the company will be employing greek staff --> you will have a Greek banch there. The Cyprus entity should also employe local staff as it will be regulated. This means local payroll fees from our end and montlhy payments to Cyprus local Social Securities and PAYE. As we discussed in the Teams meeting, we want to avoid having a branch office and would look to have a representative office with the staff employed from Cyprus. We are aware of a couple of other Cypriot brokers who operate on this basis so trust there would be no issue. Please provide payroll costs on this basis. Very good. Payroll costs as per link here - indicative. We will finalise the fees once we discuss salaries and the process in detail. 

We don’t need any back-office support, we will need a Cyprus office address and given our discussions, I believe we’ll need 2 x Cypriot Directors, given your advice that there needs to be a majority of Cypriots on the Board.   Noted. The fees for the local directors will be provided  / discussed closer to the finalisation of the project - as we need to ascertain some details with you beforehand.  Please advise what you need so we can firm up the costs in advance of our meetings in Athens next week. We can have an entity or an individual who has passed the CII exams. Have you passed these exams?  - apologies - i do not recall this information. Please specify what the requirement will be as we will need to locate the individual and agree the fees with him beforehand. As far as the company acting as a director is concerned the fees could be in the region of Euro 800 - 1k per month. Again we will finalise the offer once we have a complete list of services needed. 

Let me know if you need anything else. Ideally you should be renting an independent office and hire some local staff - to increase the substance of your company. Again this can be discussed further. This was not mentioned in our Teams meeting despite us advising you of how we plan to operate the business. Please advise whether we can proceed on the basis we have discussed, i.e. with no independent office and local staff. In our call you said you will consider hiring local staff. You can operate as per your suggestion but it is not the ideal set up. We always advice for more substance as more is always better in this cases. Then it is up to the client to decide.

Regards