Obtaining brokerage license in Cyprus

Brokerage license in Cyprus

A brokerage license confirms the legality of activities and compliance with regulatory requirements, which strengthens the trust of clients and partners. The broker’s profit is mainly formed through interaction with clients — commissions, spreads, and services. This model makes the business less vulnerable to market volatility and contributes to its stability. Obtaining a license also increases customer confidence and provides access to a wide range of financial instruments. Our team will help you go through the licensing procedure and lay a solid foundation for your business development.

Why do you need a brokerage license in Cyprus?

Compliance with local and international regulations.
Increased trust of clients and partners thanks to regulatory oversight.
Ability to earn on a commission model without risking own funds like investors.
Access to financial instruments and infrastructure.
Protection of client interests by meeting standards of security and asset safety.

Why Cyprus

Low corporate tax and transparent legal framework.
EU membership and passporting of services throughout the EU.
Convenient geographic location between Europe, Asia, and Africa.
Developed infrastructure and skilled workforce.
Reputation of a reliable financial center.
Clear licensing process and favorable investment climate.

Basic regulatory requirements in Cyprus

Minimum capital: from EUR 75,000 to EUR 750,000 depending on services provided.
Local staff and directors: at least 2 executive and 2 non-executive directors, most of them Cyprus residents and compliant with CySEC standards.
Legal structure: registration of a Cypriot entity and having a physical office in Cyprus.
License fee: approximately EUR 7,000.

Minimum capital: details

Activity category	Minimum capital
Reception/transmission and execution of client orders, portfolio management, investment advice without holding client funds/instruments	EUR 75,000
Same services, but with the right to hold client funds/instruments	EUR 150,000
Dealing on own account, underwriting, operating an MTF/OTF	EUR 750,000

Liability and compliance

Violating requirements can lead to heavy fines, license revocation, or even criminal prosecution. Regulators closely monitor AML/KYC procedures and the protection of client assets and data. Ongoing monitoring of Cypriot and EU legislation is mandatory.

Document package for applying for a brokerage license in Cyprus

Certified copies of passports of founders and key persons.
Certificates of no criminal record for all key participants.
Financial statements and confirmation of income sources.
Business plan (services, strategy, 3-year forecast).
AML policies and procedures.
Bank certificates confirming paid-up share capital.

Licensing procedure in Cyprus

Preliminary analysis

Assessment of compliance, preparation of business plan and financial model
Document preparation

Collection and certification, compliance check
Application submission

Company registration and capital contribution
Application review

Average 6–10 months; communication with regulator, responses to requests
Issuance of license

Start of operations and ongoing compliance

Approximate licensing times in Cyprus

Document preparation: 2–4 months.
Company registration, account opening, capital contribution: 1–3 months.
Application review and license issuance: 6–10 months.

Practical recommendations

Carefully study Cyprus requirements and match them with your business model.
Plan long-term goals and build a realistic business model.
Engage professional lawyers and consultants to reduce risks of refusal.
Prepare detailed transparent documentation (funding sources, management qualifications).
Stay updated on legal changes and adapt compliance processes in time.

Important: legal support for brokerage licenses in Cyprus

Mistakes at any stage (company registration, documents, regulator communication) can lead to refusal. To ensure success, it is highly recommended to work with experienced legal professionals who will consider your goals and project specifics.