The Cyprus Investment Firm
Published Date: 30 April 2015
The provision of investment and ancillary services in Cyprus is governed by the Law 144(I)/2007 on the Provision of Investment Services, Exercise of Investment Activities, the Operation of Regulated Markets and Other Related Matters (the “Law”).
The Law came into force on 1st November 2007 repealing and replacing the old Investment Firms Law of 2002 and implementing the provisions of the Markets in Financial Instruments Directive (“MiFID”) into the domestic law. The Law has undergone various amendments with the most recent ones taking place in 2014.
The implementation of this new legal framework and its continuous harmonization with European Directives along with a favorable tax treatment makes Cyprus an attractive place for establishing an investment firm (“IF”) offering investors and businesses a “single passport” to provide investment services across the European Union (“EU”).
With this report we shall briefly explain the main features of the Law and present some of the requirements to set up a Cyprus Investment Firm (“CIF”).
B. THE SCOPE OF APPLICATION OF THE LAW
The Law regulates the provision of investments and ancillary services, as well as the performance of investment activities, as these will be identified further below in Chapter III, on a professional basis in the Republic of Cyprus (the "Republic") including:
any provision or offer for the provision of investment and ancillary services, made from a place outside the Republic to persons within, or resident or domiciled in the Republic, provided the above provision or offer reaches such persons when they are within or resident or domiciled in the Republic or whether the relevant transaction is concluded within the Republic;
any provision or offer for the provision of investment and ancillary services, which comes from inside the Republic or from a person within, resident or domiciled in the Republic, to persons that are within, resident or domiciled in the Republic or outside the Republic;
any provision or offer for the provision of investment and ancillary services, that comes from a person that is within, resident or domiciled within the Republic and acts or purports to be acting in the capacity of an employee or in another capacity, on behalf of a third person who is outside the Republic, to persons that are within resident or domiciled in the Republic or outside the Republic...
refers to the service mark through which Kinanis LLC of Cyprus, Kinanis Fiduciaries Limited of Malta and their affiliated
companies are conducting business, each of which is a separate legal entity.