About the country
Cyprus has become a very popular location for financial service companies, due in no small part to its low levels of taxation and easy entry requirements. There are actually more Forex brokers with a base in Cyprus than in any other jurisdiction. CySEC stands for the Cyprus Securities and Exchange Commission, which is the body charged with the regulation of financial services in Cyprus, and the popularity of this location means it’s definitely got its work cut out. Nevertheless, it manages to do a more than reasonable job, and we’ll give you all the pertinent details should you be looking to invest with one of the many CySEC Forex brokers.
About Licensing Body CySEC
Cyprus offers a very positive environment to establish a forex broker firm within. It is a well established and respectable jurisdiction in regards to the issuing of a financial licensing. It follows very strict rules and regulations as implemented by the financial services authority of Cyprus (CySEC – The Cyprus Securities and Exchange Commission). Therefore, having a Cyprus forex license can prove to be a very positive investment, as it gives your traders the peace of mind that you are a fully licensed and regulated FX broker in an honest and reliable European jurisdiction.
Our Process for Cyprus Forex Company Formation
- Gather and prepare all the documents, including those of due diligence reports pertaining to the Forex requirement
- Prepare initial corporate documents and statutory declarations by the shareholder/director to the CySEC
- Establish a Cyprus company
- Preparation of AML procedures and custom tailored business plan
- One month before getting registered in CySEC, you need to have bank guarantee as the regulator that you have 125000 EUR (For STP license and Binary options) or 730000 EUR (Market Making license) in your bank account.
- Submission of report and all corporate documents to the CySEC to start the process of application
- Ad-hoc support and provision of minor documents required during the process
- Receipt of Cyprus Forex Broker License from the regulatory body and delivery of documents to the Client
Advantages of incorporating a Company in Cyprus
- A CySEC license is recognized by EU countries (Cyprus is member of the EU)
- Currently, Cyprus is the leading jurisdiction for Forex regulations
- Respectable license
- Affordable to obtain and maintain
- Allows the players/investors to complain directly to CySEC
From the Client
- Notarized passport copy (Should be notarized in English – 2 copies)
- Last 3 months utility bill (Should be notarized in English – 2 copies with original)
- Director/Shareholder’s Bank reference letter
- Lawyer’s reference letter
- The copy of educational degree certificate (Should be in English)
- Director/Shareholder’s CV
- Bank statement showing that EUR 125,000(For STP license or Binary options) or EUR 730,000 (For Market Maker license) is in your bank account
Related to the process
- CySEC Application Form
- Bank Application Forms
- AML (Anti Money Laundering) Procedures
- Business Plan
- Financial projection of your business
- Balance sheet with forecast description
1.trademark applications, IP Agreements and Domain Name Registration;
2.website preparation as well as the preparation or review of any other marketing material.
3.assisting with the purchase and negotiations for an MT4 server or any other trading platform required
4.assessment, review or testing of the entity’s proposed trading platform;
5.assisting with the implementation of Know Your Customer (“KYC”) processes or other compliance procedures.