Fund Registration in Cyprus:

Funds are one of the most transparent mechanisms for making a profit for investors who are interested not in daily business, but in the passive increase of their funds.

Such corporate instrument is traditionally used as an alternative to bank financing, deposits, real estate investments or other large-scale investments.

The main advantage of investment funds is that they can pool the capital of many participants (investors) and, with the help of professional managers, make this capital work effectively. For such purposes, Cyprus is the most suitable jurisdiction.

This jurisdiction has flexible legislation to attract collective investment and the ownership of several types of securities. That is why investing in a Cyprus fund is a fairly profitable investment option.


Legislation:

Funds are one of the most transparent mechanisms for making a profit for investors who are interested not in daily business, but in the passive increase of their funds.

Such corporate instrument is traditionally used as an alternative to bank financing, deposits, real estate investments or other large-scale investments. The main advantage of investment funds is that they can pool the capital of many participants (investors) and, with the help of professional managers, make this capital work effectively.

For such purposes, Cyprus is the most suitable jurisdiction. This jurisdiction has flexible legislation to attract collective investment and the ownership of several types of securities. That is why investing in a Cyprus fund is a fairly profitable investment option.

Features of Alternative Investment Fund:

The activities are fully regulated externally by the managing licensed AIFM manager Unlike other forms, RAIF does not need to obtain a special license from the Cyprus Securities and Exchange Commission (CySEC), but it does need to be entered into the CySEC Register The investment is established exclusively by professional or experienced investors The investment of the investment funds takes up to 6 months.

Alternative Investment Fund:

• Share capital - no deposit requirements.
• Investments - the value of assets under the management of the fund in the first year of operation shall be at least 500 000 EUR. Investors attract the assets.
• Investors - at least one qualified investor. There is no quantity limit. Investors purchase shares.
• Manager is an external licensed manager AIFM (Alternative Investment Fund Manager) who manages the fund and is responsible for it.
• Administrator is a mandatory position that reports to a manager. The administrator keeps monetary and internal accounting. -Depository is a local professional participant in the securities market that stores certificates of securities belonging to the fund. The appointment of depository is mandatory. It is mandatory to appoint also auditor and legal advisor.
• Shareholder - at least one natural or legal person, without restrictions on residency.
• Director - at least one natural or legal person, without restrictions on residency, but preferably a Cypriot.
• Secretary - only a Cypriot resident, can be a natural or legal person.
• Accounting - it is mandatory to submit financial statements annually, regardless of whether the fund was operating or not.
• RAIF is required to have a registered office in Cyprus. Prohibited Activities - RAIF cannot establish monetary policy, act as a fund for granting loans or borrowings, or engage in banking and insurance activities.

Taxation of Alternative Investment Fund:

The income of a Cyprus investment fund is taxed according to the same principle as for classic companies, at the income tax rate of 12,5%. Cyprus does not impose a subscription tax on the net assets of the fund, does not levy tax payments when paying dividends to non-residents.

In addition, the country has a huge number of Double Taxation Treaties with other countries, which can significantly reduce tax costs when transferring interest, dividends, royalties and other types of income. Funds can be established using different structures: sub-funds, different number of investors and different amountof shares. That is why the corporate structure is developed on an individual basis for particular requirements and purposes.

Consultancy in real estate:

If you are buying your home your holiday place or investing in any size project as long as it concern real estate the main steps shall be contracted to safeguard your rights:

1. Due Diligence on the Property by executing compliance checks and ensuring that the Property is transferrable in the name of the buyer prior to executing any payment to the potential seller (to find out and disclose any legal encumbrances and/or burdens, such as MEMOS, Mortgages, Tax burdens, which may be applicable to the subject property);
2. Drafting and preparation of the Power of Attorney and relevant representation documents;
3. Reviewing, Drafting, and Preparation of the Reservation Agreement and the ‘Contract of Sale ’ and/or Assignment Agreement as applicable;
4. Proceed with the Stamp Duties of the Contract of Sale at the District Tax Department;
5. Deposit the Contract of Sale at the competent Land Registry;
6. Preparing and submitting the application Acquisition Permit of the Immovable Property, along with the requested Documents at the District Office, on behalf of the Clients (applicable to Non-EU citizens);
7. Submitting on behalf of the Clients any application and/ or any relevant documents to the Value Added Tax department for the reduced rate of 5% in relation to the purchase of any new Property and collect the approved certificate as well from the competent Value Added Tax Department (if applicable); and,
8. Collect and settle all the dues for the Property before the transfer to the name of the purchaser
9. Arrange with the competent District Land Registry Office for the transfer of the property in the name of the new owner.

Through our associates we offer tailored made solutions of high quality for specific needs to clients who develop, invest, own, lease, dispose or acquire all types of property. In addition to such we further may fully undertake the management of the giving properties and aid to ensure the best possible return investments.