Investment Funds in Cyprus are regulated under the Alternative Investment Funds Law of 2018. As a member of the European Union, a license in Cyprus offers access to the large European Union market subject to compliance with the license conditions. It also offers a stable investment environment and access to international standard banking facilities.
A Cyprus Investment Fund license in the form of an Alternative Investment Fund (AIF) license can be of two main types: an AIF-LNP for funds that allow participation of up to 50 persons or an AIF-UNP which allows participation of an unlimited number of persons. Most businesses willing to deal with the general public may be required to obtain an AIF-UNP License.
The first step for obtaining a Cyprus Investment Fund License is to register as a local Cyprus Company or a Limited Partnership or a Common Fund.
In most cases, a Variable Capital Investment Company is the preferred form of incorporation to apply for a Cyprus Investment Fund License. The formal application for a license has to be made to Cyprus Securities and Exchange Commission. The fee for an application for a Mutual Fund license is around EUR 2000. After completion of the application process, the Cyprus Securities and Exchange Commission will issue a license. In addition to the application process, there is a need for continued compliance including maintenance of accounting records and half-yearly submission of information to the Cyprus Securities and Exchange Commission.
If you are interested in learning more about a Cyprus Investment Fund License and how it can help your business, please get in touch with us and our dedicated team of experienced professionals will assist you through the entire process of obtaining a Cyprus Investment Fund License