Forming and Operating a Fund in Cyprus: A Guide for Emerging Cyprus Fund Managers and Investors
Contributed by Soteris Flourentzos & Associates LLC
24 September, 2018
This guide aims to thoroughly capture the rapidly growing investment funds industry in Cyprus. It sets out the reasons why a Cyprus fund shall be chosen as an investment vehicle and potential pitfalls and obstacles that may arise, while it also provides warnings and guidance to safely and effectively navigate the process of forming and operating a Cyprus fund, highlighting the obligations of different key players of a fund, so that any potential liability would be avoided.
The guide is divided in two main parts. The first part is much more descriptive, trying to introduce and analyse the types of Cyprus funds, namely UCITS and AIFs the ways each fund is marketed, the key players that should be selected so that the fund would operate effectively and the main obligations that should be assumed so that any liability would be avoided. In this way, the readers would get an understanding of which type of fund corresponds to their needs and may be consulted by us for any further assistance. While, throughout this navigation provided in the first part, the main advantages of setting up a Cyprus fund are generally exposed, the second part comes to expand on this point, as it sets out three of the main advantages of domiciling a fund in Cyprus that shall be considered; namely, the chance of redomiciliation of a foreign fund in Cyprus without losing its legal status, the benefits of listing in the Cyprus Stock Exchange and the tax benefits of setting up a fund in Cyprus.
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