AIF Alternative Investment Fund |
RAIF Registered Alternative Investment Funds |
AIFLNP Alternative Investment Fund for Limited Number of Persons |
Regulated – Authorised by Cysec |
Regulated through external manager who falls under AIFMD |
Lightly regulated - Authorised by Cysec |
No. of investors: Unlimited |
No. of investors: Unlimited |
No. of investors: Up to 50 |
Type of Investors: Retail, Well informed, professional |
Type of Investors: Well informed, professional |
Type of Investors: Well informed, professional |
Legal Forms of AIF: Common fund Investment company Limited Partnership |
Legal Forms of RAIF: Common fund Investment company Limited Partnership |
Legal Forms of AIFLNP: Investment company Limited Partnership
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Initial Capital requirement: €125,000 for internally managed AIFs €300,000 for internally managed AIFs (AIFMs) No requirement for externally managed AIFs |
Initial Capital requirement: No requirement
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Initial Capital requirement: €50,000 for internally managed No requirement for externally managed AIFLNPs
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Maximum Assets under Management Up to €100,000,000 including leverage or Up to €500,000,000 without leverage and no redemption rights for 5 years, if does not fall under the AIFMD No restriction if falls under AIFMD |
Maximum Assets under Management Up to €100,000,000 including leverage or Up to €500,000,000 without leverage and no redemption rights for 5 years, if does not fall under the AIFM No restriction if managed by AIFM |
Maximum Assets under Management Up to €100,000,000 including leverage or Up to €500,000,000 without leverage and no redemption rights for 5 years
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Minimum Assets under Management €500,000 per compartment within 12 months from authorisation (may extended to 24 months upon approval from Cysec). The initial capital requirement cannot be taken into account |
Minimum Assets under Management €500,000 per compartment within 12 months from authorisation (may extended to 24 months upon approval from Cysec).
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Minimum Assets under Management €250,000 per compartment within 12 months from authorisation (may extended to 24 months upon approval from Cysec). The initial capital requirement cannot be taken into account |
Depositary: Mandatory to appoint if the AIF falls under AIFMD |
Depositary: Mandatory to appoint a local depositary |
Depositary: Mandatory to appoint if the AIF falls under AIFMD |
Time Required: 1 month application preparation + 6 months for the authorisation from Cysec |
Time Required: 1 month application preparation + 1 month for the registration from Cysec |
Time Required: 1 month application preparation + 6 months for the authorisation from Cysec |
Units of AIF can be listed |
Units of AIF can be listed |
Units of AIF can be listed |
Management: Can be internally managed Can be externally managed by: - AIFM or - UCITS Manager or - Mini Manager or - Investment Firm
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Management: Can only be externally managed by: - AIFM or - UCITS Manager or - Mini Manager or - Investment firm if the established as a Limited partnership and invests at least 70% of its assets to illiquid assets and it is closed ended |
Management: Can be internally managed Can be externally managed by: - Investment firm - UCITS Manager, - Mini Manager or - Third country company providing Investment management services, or sole purpose company |
Investment restrictions exist based on: the type of investors AIF’s investment policy |
Investment restrictions exist based on: the type of investors AIF’s investment policy |
Investment restrictions exist based on: No restrictions
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Cypriot funds are able to combine transparency along with tax benefits for investors. The fund industry has experienced a significant growth during the past few years in Cyprus, establishing the island as one of the major fund jurisdictions in the EU. Cypriot professionals have developed their skills over the fund sector and are able to provide first class services to those interested in entering the fund industry. Along with the above factors, Cyprus can provide a number of significant benefits to the investors, making the country an attractive business destination.
Benefits offered form the establishment of a Cyprus Investment Fund:
Lower set up and operational costs compared to the largest EU fund hubs, Luxenberg and Ireland.
Harmonization with modern fund legislation:
- Cyprus was one of the first EU member states to transpose the AIFM Directive into national legislation.
- As a result Cyprus funds can provide an EU passport offering fund managers cross-border fund distribution since fund managers are fully compliant with the EU legislation.
Modern and transparent legal and regulatory framework.
- Redomiciliation laws are in place
- Rigorous anti‐money laundering laws and regulations which gives Cyprus the status of a compliant jurisdiction.
Offering of transparency and Protection to investors, through obligatory reports to Investors and the Cyprus Security and Exchange Commission (Cysec).
Provision of quality services and support:
- Country’s population is one of the most highly educated within the EU and
- has a strong network of financial and professional service providers who have skilled, educated and multilingual teams specialized in servicing the fund industry, lawyers, accountants and auditors.
Flexibility offered by various fund structures:
- Any kind of asset can be included in the investment strategy of the AIF
- Umbrella structures are available
- Various types of funds are available (e.g. AIF, AIFLNP, RAIF), with different characteristics to better fit to the needs and wants of any investor.
Taxation benefit for the fund itself:
- Tax exemptions from:
1. Capital Gains tax from the sale of corporate titles and other financial instruments
2. Capital Gains tax from the sale of immovable property situated outside Cyprus
- Dividends received
- Low corporate tax of 12.5%
- Double Tax Treaties with 60 countries
- Interest received is taxed under corporation 12.5% and not under Special Defence Contribution at 30%
- Notional Interest Deduction on new equity
Taxation benefit for the Foreign Investors:
- No withholding tax on dividends received from fund
- No tax on redemption of unit by the unitholders
- No capital gains tax on disposal of units by the unitholders, provided that no Cyprus real estate exist.
Taxation benefit for the Fund Manager:
- Attractive incentives for fund managers to relocate their fund management operations to Cyprus – with a potential flat rate 8% tax on carried interest for a 10-year period
- Exemptions for up to 50% of taxable income derived from emoluments exceeding €100,000 for up to 10 years will apply to previously non-tax resident individuals that take on Cyprus-based employment
- Exemptions for up to 20% or €8,550 (higher of) of taxable income derived from emoluments not exceeding €100,000 for up to 5 years will apply to previously non-tax resident individuals that take on Cyprus-based employment
- Fund management services provided to alternative funds are not subject to VAT
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Globalserve Consultants Ltd can assist you in the funds set up in Cyprus and maintenance.
You can contact us on This email address is being protected from spambots. You need JavaScript enabled to view it.
Opening a Bank Account – The Next Step of your Company Formation Strategy
Bank accounts are vital for business, as are the wealth of services that banks can offer to their customers. It’s important to use the services of a bank you can trust, and one that offers the services you need, and gives you the best return on your investments. Here at Globalserve we offer a wide range of services for business customers, from company formation and management to tax and financial services. Included in our long list of areas of expertise is bank account opening and bank introductions.
A dedicated banking department
We have an entire department devoted solely to ensuring the banking needs of our clients are met. Our banking staff are highly skilled and very experienced so they’re a vital source of information should you require any advice or support. Our team can help you with the initial setting up of your accounts, along with account maintenance. We can also help you with obtaining debit cards and with your daily banking transactions.
We are a specialist bank introducer too
Many clients wish to be introduced to banking institutions worldwide, and we have gained a fantastic reputation as a reputable and trusted bank introducer. We are able to introduce new clients to representatives of banks, not just in Cyprus, but also in countries such as Luxembourg, Switzerland, Mauritius, Bulgaria, UAE, UK and more.
We make the processes simple
Setting up corporate bank accounts can be a complicated process. Luckily, we have many years of experience with the procedures involved and so we can guide you through every step ensuring you have all the correct documentation and no time is wasted in setting up your accounts. We are here to support you in making the best banking choices for your businesses and gaining accounts with banks that can fully support your business and fulfil all your requirements.
We set up virtual meetings for you
Another way in which Globalserve can be of real help to you is by setting up a virtual meeting between yourselves and bank representatives. Banks often require face to face meetings, and that can be time consuming and troublesome or even impossible should there be issues with permission to travel and flight availability. Security and validation is of course very strict within the banking world, but banks are agreeable to conducting meetings via Zoom or Skype provided they are arranged through Globalserve Consultants Ltd.
Do you wish to know more?
If you’re interested in the banking services offered by Globalserve then please do get in touch, you’ll find all our contact details and more information regarding our services available on our website. We look forward to working with you.
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