CYPRUS ALTERNATIVE INVESTMENT FUND
Cyprus has recently enacted reformed Investment Fund legislation which effectively was aimed at replacing the previous outdated legislation (Law 131(I)/2014).
This initiative forms part of a series of measures aiming at reinforcing the Alternative Investment Funds regulatory framework and strengthening the position of Cyprus in the global funds industry.
The structure of the Fund can be any one of the following:
- Fixed Capital Investment Company
- Variable Capital Investment Company
- Investment Limited Partnership
- Common Fund (AIF with unlimited number of persons only)
The advantages of setting up an AIF in Cyprus are:
1. Harmonized legislation with EU Directives provides for a favorable framework in which Funds and Fund Managers can operate.
2. Extensive experience with overseas clients considering that Cyprus is an established International Business Center.
3. Relatively low set up and operational costs and relatively high level of education.
4. Cyprus is strategically placed Geographically location in the center of 3 continents thereby giving a footbridge to the Asian and African market into Europe.
5. Favorable tax system
Additionally, irrespective of the benefits which Cyprus has to offer in general to the Corporate and Business world, under the new legislation there are also more substantial and core benefits, such as:
- the Licensing procedures are straight forward rather than cumbersome under the previous legislation.
- There are no minimum capital requirements in respect of setting up an AIF in Cyprus.
- The composition of an AIF may consist of an unlimited number of investors. This is in contrast to the pre-existing ‘AIF for Limited Number of Persons’ (AIF LNP) which has been limited to 75 investors historically.
- There are no strict investment restrictions in respect of AIFs, save for certain requirements which will be addressed accordingly.
- The assets under management of a RAIF are subject to no limitation.
- Discuss the Business concept surrounding the Formation and Purpose of the Fund.
- Advice on the Set up and Structure of the AIF.
- Liaise with the Authorities for the licensing of the Fund.
- Incorporate the necessary Corporate structure(s) necessary to execute the Incorporation, Management, and Administration of the Fund.
- Draft the Fund Documents, Contracts and Manuals necessary for the Licensing process and the Fund Administration.
- Opening of Bank Accounts and Managing the Accounts for the Fund.
- Provision of specialized personnel to Manage and Administer your Fund.
- Provide ongoing legal support to ensure the smooth operations of the Fund.