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:
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:
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.
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.
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
(4-5 months)
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.