Currency (Forex) trading is an innovative type of business that brings together buyers and sellers from all over the world, regardless of time and place. In other words, sellers and buyers transact forex immediately. Cyprus is considered to be an attractive place for the Forex market. The attractive regulatory and tax schemes, together with the low cost of operation and the high quality financial, accounting and legal services, motivate international Forex firms to set up their business activities in Cyprus. Furthermore, the legislation of Cyprus is harmonized with the EU Directives, as Cyprus is a full member of the European Union. Indeed, as a member state of the EU, Cyprus is fully harmonized with the EU Financial Instruments Market Directive.

However, it should be stressed that a Forex company must be licensed by the Cyprus Securities and Exchange Commission (CySEC) in order to launch its trading activities and offer its services in Cyprus. Forex companies belong to the category of Cyprus investment companies. As a result, Forex firms must comply with the regulations of Law 144 (I) / 2007.

Application procedure:

A main requirement is that the applicant must be a Cyprus company, with a specially drafted memorandum and articles of association. In addition, the Company must be based in Cyprus.

Criteria for granting a license:

1. Submit all corporate documents such as Certificate of Incorporation, Certificate of Directors / Secretary, Shareholders, Memorandum and Bylaws, etc. along with the Cyprus Investment Firm Application Form (Form 144-03-01).

2. Submit a three-year business plan, internal procedures manual and anti-money laundering procedures, and know your customers (KYC).

3. CySEC will make a decision within six months of receiving the application and supporting documents.

Main requirements:

  • The Company’s Memorandum must clearly state the nature of its business activities.

  • The Applicant must meet the minimum capital requirements.

  • At least one director is a permanent resident of the Republic of Cyprus and meets the CySEC criteria, that is, directors must be people of good repute and sufficient experience.

  • The company must have an office in Cyprus.

  • The company is obliged to develop internal control mechanisms, procedures and policies.

  • CySEC must be convinced that the company has internal procedures in place to avoid a possible conflict of interest with its clients.

Application fee:

In accordance with the provisions of Part I of Directive DI144-2007-04 of 2011 and Directive DI144-2007-04A of 2012, the Applicant must pay the corresponding fee.

The charge to pay is 3,000 euros increased by:

For. 1,000 euros for investment service of sections 1, 5 and 7 of Part I, Annex III of the Law;

B. 1,500 euros for investment service of sections 2 and 4 of Part I, Annex III of the Law;

vs. 2,000 euros per investment service / activity of sections 3 and 6 of Part I, Annex III of the Law;

D. 10,000 euros for investment activity 8 of Part I, Annex III, of the Law;

me. 500 euros for complementary service of Part II of Annex III of the Law;

Compliance and reporting requirements: Finally, it should be noted that investment firms authorized by CySEC have an obligation to continuously report to CySEC. In addition, they are required to comply with anti-money laundering regulations and develop “Know Your Customer” procedures.

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