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Alternative Investment Fund in Cyprus

Michalaki, Pitsillidou Law Firm > English Articles  > Alternative Investment Fund in Cyprus

Alternative Investment Fund in Cyprus

Alternative Investment Fund in Cyprus

The Alternative Investment Funds (Law 131(I)/ 2014, provides the establishment of fund from a number of professional investors with a purpose to investing for their own benefit.

‘AIF’ or ‘Alternative Investment Fund’ means any collective investment undertaking, including investment compartments thereof, which, collectively: raises capital from a number of investors, with a view to investing it in accordance with a defined investment policy for the benefit of those investors.

Authorization

The operations of an AIF require the prior authorization and communication by the Securities and Exchange Commission in accordance with the provisions of the Law.

The Regulator is the Cyprus Securities and Exchange Commission. CySec is the legal entity of public law which is established and which operates in pursuance of the Cyprus Securities and Exchange Commission Law.

In addition to the application for authorization, shall submit to the Securities and Exchange Commission some more documents.

There are 2 types of Alternative Investment Funds:

  1. ALTERNATIVE INVESTMENT FUNDS WITH LIMITED NUMBER OF PERSONS

The Law includes:

  • Characteristics of an Alternative Investment Fund
  • Establishment of an alternative investment fund
  • Operation and organization of an alternative investment fund
  1. limit the number of its unit holders, including the co-holders, to the maximum limit of 75 persons
  2. define specifically that the relevant fund is only addressed to professional or/and well informed investors
  3. assets under management do not exceed the AIFMD a) 100 million euro (including leverage) or b) 500 million euro (5 year lock up period without leverage)
  1. ALTERNATIVE INVESTMENT FUNDS WITH UNLIMITED NUMBER OF PERSONS 
  1. minimum capital requirements €125.000
  2. investor shares shall be transferred
  3. Investment restrictions in order to avoid ensuring liquidity

The benefits of the Cyprus alternative investment fund are:

  • Low corporation tax (12, 5%)
  • Legislation harmonized according to the market requirements
  • Low operation costs

 

For more information and guidance get in touch with our lawyers or email iMPK Global Business Law Firm – Cyprus Lawyers, at info@impklawyers.com .Tel. +357 99345000 – Fax +357 25 660097

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