Website design By BotEap.comForeign exchange (Forex) trading is an innovative type of business that brings together buyers and sellers from all over the world, regardless of time and place. In other words, sellers and buyers transact currencies immediately. Cyprus is considered an attractive location for the Forex market. Attractive regulatory and tax schemes along with low cost of operation and high-quality financial, accounting and legal services motivate international Forex companies to set up their trading activities in Cyprus. In addition, the legislation of Cyprus is harmonized with the EU Directives, since Cyprus is a full member of the European Union. Precisely, as a member state of the EU, Cyprus is fully harmonized with the EU Financial Instruments Market Directive.

Website design By BotEap.comHowever, it should be underlined that a Forex company must be licensed by the Cyprus Securities and Exchange Commission (CySEC) in order to start trading and offer its services in Cyprus. Forex companies belong to the category of Cyprus investment companies. Consequently, Forex companies must comply with the provisions of Law 144(I)/2007.

Website design By BotEap.comApplication procedure:

Website design By BotEap.comA main requirement is that the Applicant must be a Cyprus company, with a specially drafted Memorandum and Articles of Association. In addition, the Company must be based in Cyprus.

Website design By BotEap.comCriteria for the granting of a license:

Website design By BotEap.com1. Submit all corporate documents such as certificate of incorporation, certificate of directors/secretary, shareholders, memorandum and articles of association, etc., along with the Cyprus Investment Company Application Form (Form 144 -03-01).

Website design By BotEap.com2. Submit a three-year business plan, internal procedures manual and anti-money laundering procedures and know your customers (KYC).

Website design By BotEap.com3. CySEC will decide within six months after receiving the application and supporting documents.

Website design By BotEap.comMain requirements:

• Website design By BotEap.comThe Company’s Memorandum must clearly indicate the nature of its business activities.
• Website design By BotEap.comThe Applicant must meet the minimum capital requirements.
• Website design By BotEap.comAt least one director is a permanent resident of the Republic of Cyprus and conforms to the CySEC criteria, ie directors must be persons of good repute and sufficient experience.
• Website design By BotEap.comThe company needs to have an office in Cyprus.
• Website design By BotEap.comThe company is obliged to develop internal control mechanisms, procedures and policies.
• Website design By BotEap.comCySEC must be satisfied that the company has internal procedures in place to avoid a potential conflict of interest with its clients.

Website design By BotEap.comApplication fee:

Website design By BotEap.comIn accordance with the provisions of Part I of Directive DI144-2007-04 of 2011 and Directive DI144-2007-04A of 2012, the Applicant must pay the corresponding fee.

Website design By BotEap.comThe fee to pay is 3,000 euros increased by:

Website design By BotEap.comA. 1,000 euros for the investment service of sections 1, 5 and 7 of Title I, Annex III of the Law;

Website design By BotEap.comb. 1,500 euros for the investment service of section 2 and 4 of Title I, Annex III of the Law;

Website design By BotEap.comagainst 2,000 euros per investment service/activity of sections 3 and 6 of Title I, Annex III of the Law;

Website design By BotEap.comd. 10,000 euros for investment activity 8 of Title I, Annex III, of the Law;

Website design By BotEap.commy. 500 euros for complementary service of Title II of Annex III of the Law;

Website design By BotEap.comReporting and Compliance Requirements: Finally, it should be noted that investment firms licensed by CySEC have an ongoing duty to report to CySEC. In addition, they are required to comply with anti-money laundering regulations and develop “Know Your Customer” procedures.