Cyprus Investment Companies

Cyprus Investment Climate

Thanks to the development and improvement of the legal framework for the development of foreign business in the late 90s, Cyprus has become a very reliable European center to create investment funds. Positive competitive environment, favorable tax conditions have become the main prerequisites for investment development.

Advantages and types of private investment companies

The purpose of creating a private investment company is a total investment of funds and a combination of contributions that will be managed by experienced managers in the future. The turnover of assets in the future will bring a profit, cleared of taxes. The main features that simplify the process of creating steel:

quick and easy way to get a license for an organization;
the absence of restrictions on the part of the controlling regulator of the country regarding the size of investments and the environment where they will be directed;
arbitrary amount of authorized capital;
There is no tax on dividends earned and capital gains;
investment managers may be the directors of the funds themselves;
The investment fund has all the benefits of the country that are laid for other registered companies.

The Central Bank of Cyprus is the Regulator of investment organizations and has the right to call a company, trust or partnership investment fund. There are types of funds in accordance with the possibility of their activities and rights.

Investment Fund, whose participants and founders are non-residents of the country. Share capital and its size can not be changed. For registration, the amount must be at least 100 thousand euros. This requirement does not apply to private funds with up to 100 contributors.
Funds with non-resident shareholders, but with capital, which may vary in direct proportion to the number of new investors.
International trusts, proceeds from investments in which are sent directly to the beneficiaries.
A limited liability partnership in the composition of individuals or legal entities is represented as an investment partnership. Managed by one main partner who is responsible for assets, their turnover and liabilities.

The composition of the investment fund is mandatory approved by the Central Bank.

Investment Manager – performs management work in the person of the director, general manager or investment company.
Depositary It may be a credit institution, an investment company, a legal entity, a bank, which have the right to act as depositories.
Administrators who are responsible for financial reporting and document flow.
Auditors preparing a regular audit.
Legal advisors. I work on the charter, the contract, solve problems with registration and licensing.

Collective investment companies

The purpose of creating such a company is to invest in the turnover of stock exchange securities of the stock market, deposit and foreign currency accounts of banks and other monetary instruments. They can be in the form of:

joint investment funds, where market instruments and depositors’ assets are in free use;
a limited liability investment company with a capital that can be changed, it corresponds to the assets of the company.

All nuances about the establishment and activities of companies, including the name, managerial staff, confirmation of the depositary, legal licensing, the size of the initial capital, restrictions on activities, must be reviewed and approved by the Securities and Exchange Commission.

Alternative Investment Funds

Alternative investment funds have become another form of investment, which are presented in forms similar to private foundations:

investment companies with fixed capital that can not be changed for a period of time, ceases to exist after receiving and distribution of money between investors;
companies with authorized capital, which varies depending on the acquired investment;
funds co-owners of assets of alternative companies;
partnership, participants do not have the right to manage the company and sign contracts, as this is done by the main partner.