Cyprus Forex License
The procedure for establishing a foreign exchange company is more complicated than the usual registration because the entity is classified as an Investment Firm. Therefore it should fulfil the requirements laid out both in the regulations specific for this type of activity and the national law on companies.
The procedure begins with the registration of an ordinary company followed by an application for a foreign exchange trading license, subject to approval by the national Securities and Exchange Commission.
Cyprus Forex company registration
After we register your company in Cyprus, we will open an account under your name in a local bank in order to deposit the required share capital amount. The minimum capital is determined by the nature of the established foreign exchange company. We will require additional information on the proposed activities of the company in order to advise you on the minimum required amount. The simplest type of foreign exchange company offers investment consultancy, order reception and transmission; it does not handle directly the money of the clients. This basic setup requires available capital of 80 000 Euros. On the other hand, if the company handles clients’ cash and has a platform for trading with foreign currencies, the required share capital is 200 000 Euros. Finally, if the firm offers any of the services listed below, the required share capital increases to 1 million Euros:
– own-account dealing;
– providing guarantees;
– placing financial instruments (no firm commitment);
– management of multilateral trade.
Additionally, the company must submit a business plan and Rules of Procedure together with all required forms and documentation to the Security and Exchange Commission and other national authorities. We offer support and consultancy for this step. According to our experience, the period from the beginning of the procedure to the issue of the license for Forex activities may range from 2 to 4 months.
It is important to note that the Cypriot authorities are obliged by law to review the application within 6 months from its submission.