Below are some facts about obtain a license in Cyprus as a payment (financial) organization.

Cypriot financial companies can be divided into two groups according to the regulatory body:

  • Financial companies regulated by the Central Bank of Cyprus and
  • Financial companies regulated "by the Commission on the Cyprus Securities and Exchange Commission" (CySEC)

main benefit of establishing KIF is that income received during the financial instruments are not taxed as capital gains tax in Cyprus does not exist. Another advantage is the KIF low corporate tax (income tax is 12.5%, in accordance with the decision taken in April 2013).

As payment (financial) service organization , the following are allowed:

  • Conducting replenishment checking account cash withdrawals from the account and / or other operations associated with p / p (required initial capital of 125,000 euros).
  • Perform direct debit and credit transfers (including recurring payments) and payment transactions through a payment card or a similar device, including transfers of funds to the account of the customer payment organization, user or payment transfers to the account of another payment organization (mandatory initial capital 125,000 Euros).
  • Perform direct debit and credit transfers (including recurring payments) and payment transactions through a payment card or a similar device, where the funds are transferred are credit (required initial capital of 125,000 Euros).
  • Issuance and / or acquiring of payment instruments (required initial capital of 125,000 Euros).
  • Money Transfer (required initial capital of EUR 20,000).
  • Execution of payment transactions where the consent of the payer to execute a payment transaction is given by means of telecommunication, digital or IT device and the payment is made in favor of telecommunications, IT system or network operator (required initial capital of 50 000 euros).

also allowed other services:

  • services associated with converting currencies, currency storage client, and the storage and processing of data.
  • Operations payment systems.
  • Providing services
  • currency conversion.

license payment organization is available only to legal entities registered in Cyprus . In accordance with the laws of Cyprus the main office of a financial institution must be located no territory that jurisdiction.

 

main conditions for obtaining a license from the Central Bank of Cyprus:

  • Director, as well as those responsible for managing the payment organization should have a good reputation and have the appropriate knowledge (simple nominee director, will not suffice).
  • Shareholders or persons having control of the applicant must be identified. They are responsible in direct proportion to their contributions.
  • organizational structure must include one person responsible for each department (some functions may be outsourced, such as internal audit department management and accounting)
  • detailed description of each proposed payment service should be included in the Programme of Operations.
  • activities of a financial institution must meet the requirements set out in the Guide to Anti-Money Laundering EU.
  • activities of financial institutions must comply with the requirements on protection.
  • business plan for three years should be provided
  • organization shall provide evidence of initial capital.
  • Provide a description of the mechanisms of management and internal control movement of means of payment, including administrative procedures, risk management and accounting, which suggests that these governance mechanisms and controls are functioning properly by.
  • Description
  • the applicant's participation in a national or international payment system, as well as the description of the structural organization of the applicant.
  • Availability
  • Counsel payment organization.
  • Availability
  • external auditor.
  • Payment institutions are required to keep themselves at their own expense and in the manner prescribed by the Central Bank of Cyprus.

All

payment organizations registered in the public register of the Central Bank of Cyprus and indicate your name and address.

Billing Entity , licensed by the Central Bank, the Bank shall notify the desire to provide their services in other countries, and the Bank, in turn, notify relevant authorities in the jurisdiction of this initiative on the part of such an organization.

 

Estimated time of registration:

process usually takes about 4 - 5 months. Two months (can be accelerated to one if you have this will be all right) is necessary for the preparation and submission of all documents for Cyprus Securities and Exchange Commission («CySEC»). CySEC Commission will consider the application and grant a license for the period of 2 - 4 months.
 

Milestones obtain a license :

  • assessment of compliance of conditions for obtaining a license (share capital, two professional business managers, staffed office, administrative structure, personnel, technical and financial resources).

  • final decision on the application for a license

  • Meeting with Commission

  • Filing (plan, compliance, business risk management and internal procedures, questionnaires, company structure, and documents on the applicant)

  • Monitoring application filing

  • Consideration of applications

    (4-5 months)

 

Documents required for application:

  • application on behalf of the Company with details

  • application on behalf of shareholders with supporting documents, such as copies of passports, certificate of criminal record, the document confirming the lack of status of the bankruptcy of the company.

  • company's organizational structure

  • Organizational structure group (if any)

  • Business Plan

  • Guide internal procedures

Internal procedures are 50-60stranits document, which must be described in the whole internal company policy. The document must be prepared in accordance with the rules of MiFID (Markets in Financial Instruments) and take into account the different types of policies, such as potential conflicts of interest, best execution policy, risk management, business continuity, etc.

The business plan should consist of 30-40 pages which should be set out the company's strategy, organizational structure. A document should also include financial projections for the next 3 years the company on osnove3 scenarios (optimistic, pessimistic, and expected results).

Company Law & Trust International has extensive experience in the field of registration payment organizations in offshore jurisdictions, staff of highly qualified professionals who offer you a high quality legal services and will accompany the whole process of recording your payment organization , is always at your service. For more information, contact to our specialists.