ALTERNATIVE INVESTMENT FUNDS IN CYPRUS
The enactment of the Alternative Investment Funds Law of 2014 (“AIF Law”) marked the beginning of a new era and strong opportunities for Cyprus in the fund industry.
LEGAL FORMS OF ALTERNATIVE INVESTMENT FUNDS
An alternative investment fund may be set up as a common fund, as fixed or variable capital Investment or limited partnership.
THE CATEGORIES OF AIFs
CYPRUS AS AN ALTERNATIVE FUND JURISDICTION
Cyprus based funds and their investors can benefit from:
An attractive tax environment
Low set up and maintenance costs when compared to other European jurisdictions
Modernised and adaptive legal and regulatory framework
Respectable EU jurisdiction
THE FUTURE OF FUNDS IN CYPRUS
The transformation of the investment funds regime in Cyprus in combination with the island’s regional position, attractive tax environment and professional service sector has made Cyprus an alternative jurisdiction for the setting up of funds. The new upcoming changes to the legislation and the continuous efforts of the Regulator and professionals can only result in developing this sector further.
HOW KINANIS LLC CAN ASSIST
Assistance in structuring of schemes and licensing application
Consulting in legal, tax and accounting matters
Corporate and secretarial services
Kinanis LLC, a law and consulting firm, is one of the leading business law firms in Cyprus. The firm has been advising international investors and private clients on all aspects of law, tax and accounting for over 33 years. We are an innovative multidisciplinary firm providing a full range of services combining law and accounting with the extensive expertise to ensure that our clients will obtain the best possible spherical advice.
This publication has been prepared as a general guide and for information purposes only. It is not a substitution for professional advice. One must not rely on it without receiving independent advice based on the particular facts of his/her own case. No responsibility can be accepted by the authors or the publishers for any loss occasioned by acting or refraining from acting on the basis of this publication.
Lawyers’ Limited Company
12 Egypt Street, 1097, Nicosia
P.O. Box 22303, 1520 Nicosia, Cyprus
Tel: + 357 22 55 88 88 – Fax: + 357 22 66 25 00
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AIFs with unlimited number of persons
May be formed in any of the legal forms mentioned above
May be marketed to professional and/or well-informed investors or retail investors
Have freely transferable shares
Subject to minimum share capital requirements of €125.000 or €300.000 if self-managed and over the asset thresholds
Must appoint a depository
May be self-managed or externally managed by an AIFM, a UCITS management company, or a licensed Cyprus Investment Firm
AIFs with limited number of persons
May be formed as fixed/variable capital company or limited liability partnership
May be marketed to professional and/or well-informed investors only
No minimum share capital requirements
May be exempted from appointing a depository
Has portfolio of assets under the Alternative Investment Fund Managers Directive (“AIFMD”) threshold (EUR 100mln leveraged or EUR 500mln unleveraged)
May be self-managed or externally managed only by a UCITS management company, a licensed Cyprus Investment Firm or a company incorporated for the sole purpose of managing the AIF whose suitability is examined by the Cyprus Securities and Exchange Commission