Foreign exchange trading(FOREX) is an innovative business that brings together buyers and sellers from all over the world, regardless of time and place. In other words, the buyer and seller directly conduct foreign exchange transactions. Kiplos is considered to be the charm of the foreign exchange market. The low operating costs, high-quality financial, accounting and legal services, and attractive regulatory and tax plans promote the business activities of international foreign exchange companies in Cyprus. In addition, Cyprus is a full member of the EU, so its legislation is consistent with the EU’s policy. To be precise, Kiev, as a member of the European Union, fully complies with the European Union’s financial instruments market directive.
However, it should be emphasized that foreign exchange companies must be authorized by the Cyprus Securities and Exchange Commission(CYSEC) to carry out business activities and provide services in Cyprus. The foreign exchange company is a Cyprus investment company. Therefore, foreign exchange companies shall comply with the provisions of Law 144(I)/2007.
Application procedure:
The main requirement is that the applicant must be a Cyprus company with a specially prepared memorandum of association and articles of association. In addition, the company’s headquarters should be in Cyprus.
License conditions:
1. Submit all company documents such as certificate of incorporation, certificate of director/secretary, shareholders, memorandum of association and articles of association, and application form of Cyprus Investment Company(Form 144-03-01).
2. Submit 3-year business plan, internal procedure manual and anti money laundering and customer identification(KYC) procedure.
3. CYSEC shall make a decision within 6 months after receiving the application and supporting documents.
Main requirements:
• The company memorandum should clearly state the nature of the business activities.
• Applicants must meet minimum capital requirements.
• CySEC’s standard is that at least one director is a permanent resident of the Republic of Cyprus, and the director should be an individual with good reputation and rich experience.
• The company shall have an office in Cyprus.
• Enterprises have the obligation to establish internal control mechanisms, procedures and policies.
• CySEC must ensure that there are internal procedures in place to avoid potential conflicts of interest with customers.
1. Application fee: According to the provisions of the 2011 DI144-2007-04 Directive and the first part of the 2012 DI144/2007-04A Directive, the applicant must pay the relevant fees.
The payment fee is increased to 3.000 euros.
a. The investment services specified in paragraphs 1, 5 and 7 of Part 1, Part 3 of the annex to the Act are 1.000 euros.
b. The investment services specified in paragraphs 2 and 4 of Part 3 of the annex to the Act are 1.500 euros.
c. The investment services/activities stipulated in paragraphs 3 and 6 of Part 3 of the annex to the Act are 2.000 euros.
d. 10.000 euros for investment activities in Part 8, Part 1, Part 3 of the Annex to the Act;
e. Parts 3 and 2 of the annex to the Act are 500 euros for each subsidy service;
2. Reporting and compliance requirements: Finally, it should be pointed out that investment companies approved by CYSEC are obliged to continue to report to CYSEC. In addition, they are obliged to comply with anti money laundering regulations and enact the Anti Money Laundering Law. Know the customer “; process.
