Forex Trading company Cyprus - clarify required share capital please?

[ForexGenius]

Hi,


New to this forum so hello to all I really need to know what the required share capital is to open a Forex Company? According to your website /register-offshore-company-online/offshore-company-services/forex-license.html (can't post links) there are 3 different amounts euro 80,000 / 200,000 / 1,000,000 what is applicable?

 

[JohnLocke]

1. A Forex Trading Company in Cyprus needs to be licensed by the Cyprus Stock Exchange Commission to operate as a Cyprus Investment Firm (CIF) and provide foreign exchange services where these are connected to the provision of investment services. The type of services that will be offered by the Forex Trading Company is solely based on the type of CIF they would like to be. Typically other Forex Trading Companies apply for Reception and Transmission of Orders, Execution of Orders and Dealing on Own Account when they have their own trading platform however there are a few that also apply for Investment Advice and Portfolio Management.


2. According to the Law the capital requirements are as follows:


A CIF that provides reception and transmission of orders in relation to financial instruments and/or execution of orders on behalf of clients and/or portfolio management and/or provision of investment advice and holds clients' money or/and client’s financial instruments, must have an initial capital of at least two hundred thousand euro (€200.000)


A CIF that provides reception and transmission of orders in relation to financial instruments and/or provision of investment advice and does not hold clients' money or/and clients’ financial instruments, and which for that reason may not at any time place themselves in debt with their clients, may have an initial capital of at least eighty thousand euro (€80.000); or at least forty thousand euro (€40.000) and professional indemnity insurance covering all member states or some other comparable guarantee against liability arising from professional negligence, that it enters into with an insurance undertaking, representing an amount of at least one million euro (€1.000.000), per claim, and in aggregate at least one million five hundred thousand euro (€1.500.000) per year for all claims.


A CIF that provides one or more of the following investment services or/and performs the following investment activities shall have an initial capital of at least one million euro (€1.000.000):


(a) dealing on own account;


(b) underwriting of financial instruments and/or placing of financial instruments on a firm commitment basis;


© placing of financial instruments without a firm commitment basis;


A CIF that wishes to apply, for example, for dealing on own account and reception and transmission of orders will need to have an initial capital of €1.000.000.


You are referring to this site : Forex Trading Company in Cyprus | Offshore Company Formation

 

[ForexGenius]

A CIF that provides reception and transmission of orders in relation to financial instruments and/or provision of investment advice and does not hold clients' money or/and clients’ financial instruments, and which for that reason may not at any time place themselves in debt with their clients, may have an initial capital of at least eighty thousand euro (€80.000); or at least forty thousand euro (€40.000)

Thats where we are belonging so it is EUR 80,000 can this be used for company expenses?

 

[JohnLocke]

No the share capital need to stay at the company's bank account for the live time of the company or for as long as the company shall be licensed for Forex trading!

 

[zoomer]

Is this Forex license also valid in India or europe only?

 

[fxstarter]

Hi Zoomer I have been informed that this license is valid worldwide.

 

[EliasIT]

So if it is not a Forex company the share capital don't need to be paid in but if it is CySec licensed one will need to pay in the capital right?

 

[JohnLocke]

So if it is not a Forex company the share capital don't need to be paid in but if it is CySec licensed one will need to pay in the capital right?

True! CySec required the share capital to be paid in for security reasons.

 

[JohnLocke]

Is this Forex license also valid in India or europe only?

I can't tell you how the Indian regulator will look at a European Financial license worth to contact them to clarify.

 

[EliasIT]

whoo you made my day I was afraid of you would answer that all have to pay in the share capital because you ddn't mentioned that while I placed my order.

 

[JohnLocke]

Glad to hear that you got piece of mind to go into the weekend

 

[EliasIT]

Glad to hear that you got piece of mind to go into the weekend

It is an important issue so I needed clarification hope it is ok!

 

[JohnLocke]

Sure it is an important information also for your references please see the lots of information we have at the following link:


Forex Trading Company in Cyprus | Offshore Company Formation