COREDO > Financial Licence in Cyprus: CIF, EMI and PSP

Financial Licence in Cyprus: CIF, EMI and PSP

Cyprus is one of the leading European jurisdictions for fintech, payment, and investment businesses with access to the EU single market. The jurisdiction offers flexible regulation, a competitive tax system, and the opportunity to obtain licences from CySEC and the Central Bank of Cyprus for operating across Europe.

Since 2016, COREDO has been assisting clients with obtaining financial licences in Cyprus, providing full support — from selecting the appropriate licence to communication with regulators and business launch.

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Cost of the service
from 75 000 EUR

Regulatory Framework of Cyprus's Financial Sector

Cyprus’s financial legislation is based on the full transposition of EU directives into national law. This means that licences issued by Cypriot regulators are recognised in all states — members of the European Economic Area — through notification procedures.

Key regulatory acts:

Law 87(I)/2017 “On Investment Services and Activities” — transposition of Directive MiFID II (2014/65/EU). Regulates the activities of Cyprus Investment Firms (CIF) under CySEC supervision.
Directive EMD2 (2009/110/EC) — regulates electronic money issuer activities (EMI). The minimum capital under EMD2 is EUR 350,000.
Directive PSD2 (2015/2366/EU) — regulates payment institutions (PI). Transposed in Cyprus by the Payment Services Law (2018–2025). Supervision — Central Bank of Cyprus.
Directive CRD IV (2013/36/EU) and Regulation CRR (EU) 575/2013 — banking licensing, minimum capital EUR 5,000,000.
MiCA (Regulation (EU) 2023/1114) — from 2024 onwards applies to crypto-asset service providers (CASP), supervised by CySEC.

Cyprus’s status as an EU member ensures that licensed companies have passporting rights: a licence issued by CySEC or CBC allows provision of services throughout the EEA without obtaining additional permissions — a notification procedure in accordance with PSD2 Art. 28 and MiFID II Art. 34–35 is sufficient.

Main Types of Financial Licences in Cyprus

Several categories of financial licences are available in Cyprus, each designed for specific types of activity.

Licence Type	Regulator	Regulatory Base	Min. Capital
CIF — Cyprus Investment Firm (Simple)	CySEC	MiFID II / Law 87(I)/2017	EUR 75,000
CIF — Cyprus Investment Firm (STP)	CySEC	MiFID II / Law 87(I)/2017	EUR 150,000
CIF — Market Maker / Dealer	CySEC	MiFID II / Law 87(I)/2017	EUR 750,000
EMI — Electronic Money Institution	CBC	EMD2 (2009/110/EC)	EUR 350,000
PI — Payment Institution	CBC	PSD2 (2015/2366/EU)	EUR 20,000 – EUR 125,000
Banking licence	CBC	CRD IV / CRR	EUR 5,000,000
CASP — Crypto-Asset Service Provider	CySEC	MiCA (2023/1114)	EUR 50,000 – EUR 150,000

The most sought-after product for international fintech business is the CIF (Cyprus Investment Firm) licence, which allows provision of asset management services, brokerage services, forex trading and advisory across Europe.

CIF Licence (Cyprus Investment Firm): Details

The Cyprus Investment Firm licence is an authorisation issued by CySEC pursuant to Law 87(I)/2017 (transposition of MiFID II). It allows the firm to provide investment and ancillary services in accordance with Annex I of MiFID II.

CIF Licence Categories

Simple Licence (Category A)

provides the right to receive and transmit client orders, execute orders on behalf of clients, portfolio management and investment advice. The firm is not entitled to hold client funds or financial instruments. Minimum initial capital — EUR 75,000.

STP Licence (Category B)

expands powers: the firm may hold client funds and financial instruments, provide asset management and wealth management services. Minimum initial capital — EUR 150,000.

Market Maker / Full Licence (Category C)

includes all the services listed above, as well as trading on own account (dealing on own account), underwriting financial instruments, managing Multilateral Trading Facility (MTF) or Organised Trading Facility (OTF). Minimum initial capital — EUR 750,000.

CySEC also establishes a mandatory contribution to the Investor Compensation Fund: EUR 2,000 for each investment service and EUR 35,000 for custody services. Annual CySEC regulatory fee — from EUR 5,000 to EUR 10,000 plus a variable component.

EMI and PI Licence: Central Bank of Cyprus

For companies specialising in issuing electronic money or providing payment services, the licensing authority is the Central Bank of Cyprus (CBC).

EMI (Electronic Money Institution)

is regulated by Directive EMD2 (2009/110/EC). Minimum regulatory capital — EUR 350,000. The EMI licence allows issuance of electronic money, opening of client electronic wallets, making payments and conducting money transfers. Through passporting under PSD2 Art. 28 and EMD2 Art. 3, a Cypriot EMI licence ensures access to the entire EEA market.

PI (Payment Institution)

is regulated by PSD2 (Directive 2015/2366/EU). Minimum capital depends on the type of services: EUR 20,000 for money remittance, EUR 50,000 for payment initiation, EUR 125,000 for the full range of payment services.

CBC considers applications within 6–12 months. Organisational structure requirements are similar to those of CySEC: a board of directors with two executive and two non-executive directors, the majority of whom must be Cyprus residents, the presence of a compliance officer and a certified auditor.

Advantages of Financial Licensing in Cyprus

Cyprus maintains the status of one of the most attractive jurisdictions in the EU for financial business for several reasons.

Tax regime.

Cyprus corporate tax is 12.5% (an increase to 15% is being discussed under the OECD reform). Dividends paid to non-residents and capital gains from the sale of securities are tax-exempt. Income from IP assets is taxed at an effective rate of 2.5%. Cyprus has over 65 double tax treaties.

Regulatory efficiency.

CySEC is one of the most pragmatic regulators in the EU: compared to BaFin (Germany) or ACPR (France), the licensing procedure in Cyprus is considerably cheaper and faster. The total duration of the procedure is 8–12 months for CIF, 6–12 months for EMI/PI.

Passporting throughout the EEA.

The single European passport allows a Cypriot licensed company to provide services in 30 EEA states without additional licences.

Developed infrastructure.

Cyprus has a mature market of legal, accounting and technology services oriented towards the financial sector, which significantly reduces operating costs.

Confidentiality.

Cyprus legislation provides a high level of protection for corporate information while complying with EU requirements.

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Requirements for Obtaining a CIF Licence (CySEC)

To successfully pass the licensing procedure, the applicant must meet the following requirements.

Corporate structure.

The company must be registered in Cyprus as a private company with limited liability (Ltd). Registered office — on the territory of Cyprus.

Board of directors.

A minimum of four directors is mandatory: two executive and two non-executive. The majority of directors (at least three out of four) must be Cyprus residents. All directors undergo a “fit and proper test”: verification of professional reputation, qualifications, financial soundness and absence of convictions.

Capital.

The minimum initial capital must be fully paid up before submission of the application. Depending on the licence category: EUR 75,000, EUR 150,000 or EUR 750,000.

Risk management systems.

The applicant must submit operating procedures, risk management policy, compliance programme and AML/CFT procedures in accordance with the requirements of AMLR (Regulation (EU) 2024/1624).

Business plan.

A detailed three-year business plan describing services, target markets, financial forecasts and operating model.

Technology infrastructure.

Trading platform, IT systems and cybersecurity measures complying with DORA requirements (Regulation (EU) 2022/2554).

Contribution to the Investor Compensation Fund.

EUR 2,000 for each investment service, EUR 35,000 for custody services.

CySEC regulatory fee.

State fee for reviewing the application — EUR 7,000.

Cost of COREDO Services for Licensing in Cyprus

COREDO provides comprehensive services for obtaining a financial licence in Cyprus: from legal structuring and company registration to supervision of interaction with CySEC and CBC, development of AML/CFT policies and preparation of business plans.

Service	COREDO Cost
CIF Licence (Cyprus Investment Firm)	from EUR 75,000 + VAT

The cost of COREDO services does not include regulatory fees, contributions to the Investor Compensation Fund and other state charges, which are paid separately.

Regulatory capital (the company’s minimum initial capital) is not included in the cost of COREDO services and is deposited separately.

Payment Terms

COREDO offers phased payment of licensing services linked to key stages of the procedure. A deposit is made before the start of work; subsequent instalments — upon achievement of agreed results (company registration, submission of an application to the regulator, receipt of a licence). The exact payment schedule is agreed individually when drawing up a commercial proposal.

Documents Required for Submission to CySEC

The following documents are required for submission of an application for a CIF licence:

Incorporation documents of the Cypriot company (articles of association, memorandum of association);

Personal questionnaires for all directors, shareholders and key employees in CySEC form;

Certificates of no criminal conviction and no insolvency for each director and shareholder;

Proof of minimum share capital (bank reference or bank statement);

Three-year business plan with financial forecasts;

Programme of operations with detailed description of investment and ancillary services;

Organisational chart, including governance structure and key functions;

Policies and procedures: compliance, risk management, AML/CFT, IT security;

Recommendation letter from the founder’s bank;

Description of IT systems and trading platform;

Documents confirming professional qualifications of directors (diplomas, employment records, CV);

Additional documents as requested by CySEC.

Stages of Obtaining a Financial Licence in Cyprus

The licensing procedure in Cyprus consists of several sequential stages.

Preliminary assessment and strategy (2–4 weeks).

COREDO analyses the client’s business model, determines the optimal licence type, develops the company structure and prepares the project roadmap. At this stage, a decision is made on the CIF category (Simple/STP/Market Maker) or the choice of EMI/PI licence.

01

Company registration in Cyprus (2–4 weeks).

Incorporation of a Cypriot company in the Department of the Registrar of Companies, opening of a corporate bank account, depositing of share capital. COREDO supervises the client from selection of the company name to receipt of incorporation documents.

02

Development of document package (4–8 weeks).

Preparation of a complete package: business plan, AML/CFT policies, programme of operations, internal procedures and regulations, IT documentation, personal questionnaires of directors.

03

Submission of application to CySEC/CBC.

The regulator confirms receipt of the complete document package. From this moment, the official six-month review period begins under Law 87(I)/2017. In practice, the procedure takes 8–12 months.

04

Interaction with the regulator (3–6 months).

CySEC or CBC sends clarification requests, conducts interviews with directors, verifies documentation. COREDO coordinates responses and ensures prompt reaction to requests.

05

Receipt of licence and activation (2–4 weeks).

After acceptance of a positive decision, the company meets the conditions of licence issuance: confirmation of hiring of local employees, completion of technical integration, payment of final fees. The licence is entered in the CySEC register.

06

Comparison with Other EU Jurisdictions

Parameter	Cyprus (CySEC)	Lithuania (LB)	Spain (Banco de España)	Latvia (FKTK)
Licence Type	CIF (MiFID II)	EMI / PI	EMI / PI	EMI / PI
Min. Capital (CIF/EMI)	EUR 75K–EUR 750K	EUR 350K (EMI)	EUR 350K (EMI)	EUR 350K (EMI)
Review Period	8–12 months	6–12 months	6–12 months	6–12 months
COREDO Cost	from EUR 75,000	from EUR 60,000	from EUR 80,000	from EUR 50,000
Corporate Tax	12.5%	15%	25%	20%
EU Passporting	Yes	Yes	Yes	Yes

Cyprus is advantageously distinguished by the most competitive corporate tax rate among EU countries (12.5%) and mature CIF infrastructure, optimal for investment firms and forex brokers. For payment services (EMI/PI), comparable alternatives are Lithuania and Latvia with faster procedures and lower operating costs.

Our Experts in Financial Licensing in Cyprus

Financial licensing projects in Cyprus at COREDO are managed by specialists with many years of practical experience. The COREDO team has been operating in the financial licensing market since 2016 and has completed projects in more than twenty jurisdictions.

Pavel Kos

Head of Legal at COREDO. With the company since 2017, heading the legal team since 2020. Specialises in strategic planning of licensing projects, interaction with European regulators and supervision of clients at all stages — from selection of jurisdiction to licence activation.

Basang Ungunov

Lawyer at COREDO. With the company since 2022. Specialises in preparation of legal documents, development of AML/CFT policies and Legal Opinion for financial organisations. Holds a Master's degree in Law (LLM).

Frequently Asked Questions

What is a CIF licence and how does it differ from an EMI?

The CIF (Cyprus Investment Firm) licence is issued by CySEC and regulates investment activities: brokerage services, portfolio management, forex trading. The regulatory base is MiFID II. The EMI (Electronic Money Institution) licence is issued by the Central Bank of Cyprus and regulates electronic money issuance and payment services. The regulatory base is EMD2 and PSD2.

Can a financial company be opened in Cyprus remotely?

Company registration and document preparation can be carried out remotely. However, for obtaining a CIF licence, the physical presence of directors in Cyprus is required: they must be residents, and the company’s office must be actually functioning.

What is the minimum share capital for a CIF licence?

The minimum initial capital is EUR 75,000 for a simple licence (without holding client funds), EUR 150,000 for an STP licence and EUR 750,000 for Market Maker. Capital must be deposited in the bank account of the Cypriot company before submission of the application.

How many directors are required for a Cypriot CIF?

A CIF requires a minimum of four directors: two executive and two non-executive. At least three of them must be Cyprus residents. All directors must pass the CySEC fit and proper test.

Does a Cypriot CIF licence give the right to operate throughout the EU?

Yes. The Cypriot CIF licence provides full passporting rights within the EEA under MiFID II (Art. 34–35). To commence operations in another EU country, a notification procedure through the home regulator (CySEC) is sufficient.

What is the corporate tax rate in Cyprus for financial companies?

The current corporate tax rate is 12.5%. As part of the 2025 reform, an increase to 15% is under discussion to comply with the OECD’s global minimum tax. Capital gains from shares are not subject to tax; dividends to non-residents are paid without withholding tax.

How long does it take to obtain a CIF licence in Cyprus?

The full cycle from company registration to obtaining a CIF licence is 10–16 months. CySEC is obliged to make a decision within six months from receipt of a complete document package, however in practice the procedure takes 8–12 months including the preparatory stage.

Is a Cypriot company necessary to obtain a CIF licence?

Yes. The CIF licence is issued only to Cypriot legal entities registered as Ltd with a registered office in Cyprus. A foreign company cannot obtain a CIF licence directly.

Get a Consultation and Submit an Application

COREDO supervises clients at all stages of obtaining a financial licence in Cyprus: from initial assessment of the business model and selection of licence type to interaction with CySEC and CBC, development of AML/CFT documentation and licence activation.

Since 2016 we have helped fintech companies, investment platforms and forex brokers successfully enter the regulated European market.