Cyprus Investment Firm (CIF) Licensing under CySEC

The Cyprus Securities and Exchange Commission (CySEC) offers a well-established licensing regime for Investment Firms (CIFs) seeking to provide online securities trading and other investment services across Europe. As one of the most recognized regulators in the Forex and CFD industry, CySEC operates within the EU's MiFID II framework, enabling firms licensed in Cyprus to offer services across the entire European Economic Area (EEA).

Key Advantages of a CySEC CIF License:

• EU Regulatory Passporting: Under MiFID II, firms can offer services or open branches in any EEA country without additional licensing.

• Reputable Banking Options: Cyprus offers access to credible and established European banking institutions.

• Tax Efficiency: Cyprus boasts one of the most favorable corporate tax regimes in the EU, with a corporate income tax rate of just 12.5% (to be increased to 15%)

• Prestigious Licensing: The CySEC license is internationally respected, particularly in the Forex and CFD space.

• Well-Defined Procedures: CySEC has a transparent and structured application process.

Passporting Rights

A CIF license from CySEC allows for the provision of investment services and establishment of branches across the EU/EEA without the need for further authorization, thanks to MiFID II passporting rights.

Licensing Procedure Overview

1. Company Incorporation in Cyprus
   Incorporation typically takes 2–3 weeks. This is the first step before the licensing application.

2. License Application Preparation
   Includes compiling a comprehensive document package: business plan, internal manuals, organizational structure, etc.

3. Capital Adequacy Requirements
   Before the license is granted, shareholders must demonstrate legitimate source of funds:

   • STP License: Minimum €125,000 capital; proof of €500,000 in legitimate funds

   • Market Maker License: Minimum €730,000 capital; proof of €1,000,000+ in legitimate funds

4. Government Fees
   Approximately €5,000 + 19% VAT, based on the services selected. An official calculator is available to determine the exact fee.

Required Documentation for CIF License

To apply for a CySEC license, the following documents must be submitted:

1. Completed CySEC application form

2. Details of shareholders, directors, and key personnel (CVs, CySEC questionnaires, etc.)

3. Certificate of incorporation and company constitutional documents

4. Proof of registered office in Cyprus

5. Confirmation certificates for directors and secretary

6. Group and organizational structure charts

7. Clean criminal records and Certificates of Good Standing for key persons

8. Company procedures manual

9. Three-year business plan and financial forecasts

10. AML/KYC policy documentation

11. Tax declarations or audited financial statements proving legitimate shareholder funds

If you are looking to establish a licensed Cyprus Investment Firm (CIF) and expand your services across the EU, our experienced team can guide you through the entire process—from incorporation to licensing and beyond.