articles | 25 January 2021

Cyprus AIFs at a Glance

A Cyprus AIF is cost-efficient and simple to set-up, manage and operate. It offers a modern regulatory framework that is in line with relevant EU directives, is supervised by the Cyprus Securities and Exchange Commission (CySEC) and enjoys reduced reporting requirements.


 

AIF with Limited number of Persons 

 

AIF with Unlimited number of Persons 

 

Registered AIF (RAIF)

Regulatory Authority


CySEC


CySEC


CySEC – however no licensing required


Limitation on number of Investors


50 (with look through provisions)

Not applicable

Not applicable

Available Structures*


Variable Capital Investment Company (VCIC), Fixed Capital Investment Company (FCIC), Limited Partnership (LP)


Variable Capital Investment Company (VCIC), Fixed Capital Investment Company (FCIC), Common Fund (CF), Limited Partnership (LP)


Variable Capital Investment Company (VCIC), Fixed Capital Investment Company (FCIC), Common Fund (CF), Limited Partnership (LP)


Umbrella Funds

Possible for all structures


Possible for all structures


Possible for all structures


Minimum Share Capital


internally managed funds only €50,000

internally managed funds only €125,000

externally managed the RAIF does not require minimum share capital


External Manager Licensing Requirement


No, can be internally managed

No, can be internally managed

Yes, always externally managed

 

Director Requirements


Fit and Proper


Fit and Proper

 


Fit and Proper

Depositary Requirements


Based in Cyprus, EU or third country that has cooperation agreement with Cyprus; exemption in specific circumstances


Based in Cyprus, EU or third country that has cooperation agreement with Cyprus. When managed by AIFM shall be located in Cyprus


Always based in Cyprus, except for Limited Partnerships managed by a MiFID entity

Reporting **


Audited annual report and half-yearly unaudited report to be submitted to CySEC and made available to unitholders


Audited annual report and half-yearly unaudited report to be submitted to CySEC and made available to unitholders

Audited annual report and half-yearly unaudited report to be submitted to CySEC and made available to unitholders


 

* Amendments to the current Partnership Law will allow the General Partner to elect
for legal personality of the Limited Partnership upon its establishment


** Additional reporting requirements apply for AIFs with unlimited number of persons which are subject to the AIFM Law and for Registered AIFs, the scope and frequency of which depend among others in the type of AIF managed by the AIFM and the level of AuM

Cooperation Partners
  • Logo for Cyprus Investment Funds Association
  • Logo for Association of Cyprus Banks
  • Logo for Cyprus International Businesses Association
  • Logo for Cyprus Chamber of Commerce and Industry
  • Logo for CYFA Cyprus
  • Logo for Ministry of Energy, Commerce, Industry and Tourism
  • Logo for Invest Cyprus