Knowledgebase: Cyprus Company Formation
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How to register a Forex Trading Company in Cyprus?
Posted by Peter Derek - Sales support on 09 October 2009 12:07 PM
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One will need to register a regular Cyprus company with registered office address and company secretary as a minimum. As soon as the registration has take place, CCLOGIC will obtain a license by the CYSEC which costs EUR 27.000 + pocket expanses in the range of EUR 5000 to 10.000 (mainly fees for the CYSEC). CCLOGIC will prepare all required documents, preparation of a business plan, the operations manual and completion and submission of all necessary forms and documents to CYSEC and other Cypriot authorities. During the entire process we will work closely with our clients to ensure that everything will go as expected. Also note, the required share capital which need to be paid up is : EUR 200.000 Unless the company will be offering only the services of Reception and transmission of orders and/or provision of investment advice in which case the share capital can be reduced to : EUR 80.000 Also a relevant question which we often get is: When does the share capital of EUR 1.000.000 apply? The capital of Eur 1.000.000 is required only if one or more of the following services take place: (a) Dealing on own account (b) Underwritting (c) Placing of financial instruments without a firm commitment basis (d) Operation of Multilateral Trading Facilities Otherwise the capital is EURO 200.000 For more information please feel free to contact us. Register a Forex Trading Company Learn more: What is the cost of a Forex Trading company license? Forex is a big business, which involves a lot of money. Because of this, rules and regulations have been put into place to ensure that the market is not full of ‘cowboys’. Of course what this does mean is that people looking to get into the industry will have a tough time. Why? Well, the expenses associated with setting up in the industry are fairly extreme. But where does it all start? Well, after registering a company, the owner needs to obtain the correct license. Now for most other industries, a license wouldn’t set you back to much, maybe EUR 500, or in some cases maybe even EUR 1,000. Getting yourself a Forex Trading company license is a whole different kettle of fish though! If you want to do it properly then you’ll need to contact the CYSEC and they will charge a upfront fee of EUR 27,000 for the license. So is that it, you are ready to go? Unfortunately, it doesn’t stop there after paying for the Forex Trading company license. The CYSEC incur a lot of fees and charges which will generally range between EUR 5,000 and EUR 10,000. So before you even become legal you will have forked out anything between EUR 32,000 and EUR 37,000. As mentioned before, this is a big industry. In fact, you should be glad that setting up in the industry and buying a Forex Trading company license costs so much. It allows the market to remain competitive but not quite flooded, so there is plenty of scope for expansion on a daily basis. Even a small slice of such a big market could potentially make you a millionaire if you play your cards right. The problem is, there is a lot more to it than simply purchasing a license. The related authorities require a decent commitment and one that needs to be paid in full before trading. If your company is looking to offer advice or simply the transmission of orders, then you’re in luck as you’ll only have to produce a share capital of EUR 80,000. On the other hand, if you are looking to do anything else you could be charged an upfront share capital of EUR 200,000. In fact, in the most extreme cases the related authorities will actually require a share capital of EUR 1,000,000. Of course this is out of most peoples reach, but is one of the reasons that there is still plenty of money to be made in the Forex market! Making a decision before you proceed is definitely a wise choice. Ensure that you know exactly what your company will be doing as this could save you a lot of cash when producing share capital. Remember if you need to upgrade to a higher licensing agreement then this can be done as and when you need to. There is no need to invest a higher amount of share capital if you don’t need to! This money could be used to develop your business, rather than be wasted as share capital. | |
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