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Cyprus Stock Exchange’s Emerging Market Listed Cyprus companies ideal for any type of project

Cyprus Stock ExchangeInternational investors aiming to invest globally in any type of investment (Equity or bond trading, property and others) now have an opportunity to conduct their business in an efficient way by choosing to register a public company in Cyprus and subsequently list the company on the Cyprus Stock Exchange’s Emerging Companies Market through simplified procedures and very reasonable costs.

Eurivex, a regulated Cyprus investment firm, is an authorized Nominated Advisor (Nomad) to help facilitate the listing of foreign companies on the Cyprus Stock Exchange’s Emerging Companies Market (CSE/ECM).

All the above can be done through Cyprus registered companies, with their bank accounts, Boards and registered offices in Cyprus. The investors in the listed Cyprus companies which list on the Cyprus Stock Exchange’s Emerging Companies Market will get to benefit from the low taxation rate of 10% applied on net profits in Cyprus, no withholding tax on dividends declared to non-residents, plus the double taxation avoidance treaties that Cyprus has signed with more than 45 countries including the US, Canada, Germany, UK, France, Italy, Spain as well as with Russia, India, China, Qatar and the UAE to name a few.

For the double taxation benefits to apply, the majority of Board of Directors should be Cyprus resident.

A Cyprus based public company listed on the Cyprus Stock Exchange’s Emerging Companies Market is also ideal for thousands of Russian owned Cyprus private firms, which were used extensively to purchase property in Russia. Following the agreement on the amendment to the Russia-Cyprus Double Tax Treaty, which now awaits parliamentary ratification before implementation, Russia will impose a capital gains tax of 15% on capital appreciation from property investments on all companies, with the exception of publicly listed ones. The Cyprus Stock Exchange is a recognized stock exchange by the Russian tax authorities.

Cyprus Stock ExchangeIf the new issue is under EUR 2.5 mln value, there is no need to submit prospectus, with the listing on the Cyprus Stock Exchange’s Emerging Companies Market possible through Admission Document that will be prepared by the listed company’s Nominated Advisor (Nomad). If the new issue is more than EUR 2.5 mln in value, a prospectus needs to be submitted to the Cyprus Securities & Exchange Commission (CySEC) for approval before the listing on the Cyprus Stock Exchange’s Emerging Companies Market is completed.

Advantages of listings on Emerging Market of Cyprus Stock Exchange

– A listed company on a eurozone exchange

– Public Company is essentially a Holding Company qualifying for all double taxation benefits

– Company is entitled to engage in all types of investments according to Board of Directors decisions

– Beneficial owners can raise up to EUR 2.5 mln funds through very simple procedures

– Listed company can raise money through private placement of shares before or after listing

– Company can be used to acquire other companies, either by cash or through share exchange

– Major shareholders can pledge their shares in listed company to their bank and secure better pricing since they are pledging higher quality collateral

– No minimum daily volume requirement, hence no need to do fictitious trades

– No minimum share dispersion requirement, which means beneficial owner can hold 100% of the shares

– No minimum or maximum market capitalization restriction requirement, which means even small companies with a market capitalization of EUR 50.000 can list on the Cyprus Stock Exchange’s Emerging Companies Market

– Very reasonable costs, both to set-up and maintain the listing on the Cyprus Stock Exchange’s Emerging Companies Market.

The Cyprus Stock Exchange’s Emerging Companies Market is ideally placed to allow companies to operate in a listed environment but at the same time keep their costs under control.

Eurivex provides best online forex trading services along with an award winning MT4 Trading Platform. Know more about our services at www.eurivex.com

Disclaimer:

Shavasb Bohdjalian is an approved Investment Advisor and CEO of Eurivex Ltd., a Cyprus Investment Firm, authorized and regulated by CySEC, license #114/10. The views expressed above are personal and do not bind the company and are subject to change without notice. Investing in markets and trading on leverage is highly risky and it may not be suitable to all investors since it carries a high degree of risk and you can lose more than your initial investment.

 

 

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Startup a forex hedge fund in record time – Perfectly legal and under Eurozone Jurisdiction

Forex Hedge Fund - EurivexSuccessful traders managing to beat the market and with proven track record should seriously consider starting up their own forex/commodity or equity hedge funds, attract money from other investors and perhaps become the next billionaires as opposed to setting up a forex brokerage or an investment firm dealing in equity, bonds or forex.

Suppose you are the successful trader and you can approach and raise money from a small group of investors who trust your track record, but you are frightened by the regulatory hurdles, since we all know that even in the least developed markets, becoming involved in the financial industry and then attempting to raise money is a tough and time consuming process, which in most cases kills the entrepreneur spirit.

Should you give up? Definitely no, because we have the solution for your needs and we can get you up and running in record time, in a perfectly legal way and under EU jurisdiction allowing you to raise money from investors and managing your affairs through a flexible and tax friendly environment. Here is how it works.

A Private Fund or in legal jargon, a variable capital International Collective Investment Scheme (ICIS) will be set up based in Cyprus, which essentially means when investors enter the Fund with money, the company issues them with units and when they redeem their units and exit the Fund, those units are cancelled.

It has to be noted that the investment objectives, the composition of the owners, directors, entry and exit fees and other conditions, repayment clauses as well as administrative costs will be included in the Offering Memorandum (OM), which is essentially the legal document through which an investor enters or exits the ICIS.

The supervisor and regulator of ICIS in Cyprus is the Central Bank of Cyprus, a eurozone member central bank.

In order to setup the Fund or the ICIS, the minimum requirement is for the promoters to provide at least one shareholder who will inject the minimum capital of EUR 50.000 or USD 70.000 and will become the founding member holding the voting shares and thus absolute control, if they so wish. Other investors may be non-voting.

The ICIS also requires at least two competent directors (one of whom is preferable to be Cyprus resident for the Fund to qualify for tax benefits), a reputable Custodian Bank which will hold the assets and an independent Administrator firm which will calculate the Net Asset Value of the Fund, based on which investors will enter or exit. A regulated fund management company (such as Eurivex) may act as the overall fund manager who will then outsource the actual management to the specialist manager. Eurivex will also make sure that the EU’s Markets in Financial Instruments (MiFID) directives are applied and the Fund Manager is managing the fund according to the OM clauses.

Once the ICIS is set up, the promoters are allowed legally to approach and raise money from up to 100 investors globally and without limitation on the amount. If the Fund wants to raise money from more than 100 investors, then it stops becoming a private fund and needs to pass other procedures and become a mutual fund. The fund raising is done based on the Offering Memorandum clauses and by following strict Know-Your-Customer (KYC) and abiding by the EU’s Anti-Money Laundering (AML) rules, under Eurivex supervision and guidance.

The whole procedure is very simple and will be completed in less than 3 months. Eurivex has teamed up with the right partners to offer complete packages from how the ICIS is registered, preparing the OM, processing the application through the Central Bank, finding the non-executive Cyprus resident directors and professional firms and helping support the smooth operation of the ICIS.

By having a Cyprus based ICIS, you also get to benefit from the multiple tax advantages that Cyprus offers. The main ones are that Cyprus has the lowest corporation tax rate in Europe at 10% applied on net profits after deducting expenses, there is no capital gains tax and there is no withholding tax on dividends declared to non-residents of Cyprus by the ICIS. In most cases, dividends received from Cyprus can be repatriated back home because of the extensive double tax avoidance treaties signed by Cyprus with 50 countries including US/Canada/UK/Germany/France/Italy as well as Russia/India/Ukraine/China to name a few.

The fees for setting up and annual maintenance of an ICIS are also very competitive and reasonable. Setting up fees are about EUR 12.000 with the other costs (custodian bank, administrator, fund manager) costing about EUR 25.000 annually or 1-2% applied on the NAV of the Fund, plus external auditor and director fees. The fees are significantly lower than those applied in Luxembourg and Ireland, two other popular destinations for funds in the EU.

Disclaimer:

Shavasb Bohdjalian is an approved Investment Advisor and CEO of Eurivex Ltd., a Cyprus Investment Firm, authorized and regulated by CySEC, license #114/10. The views expressed above are personal and do not bind the company and are subject to change without notice. Investing in markets and trading on leverage is highly risky and it may not be suitable to all investors since it carries a high degree of risk and you can lose more than your initial investment.

Website : www.eurivex.com Email : Shavasb@eurivex.com

Capital protected forex products, how safe are they?

Forex products and EurivexAn increasing number of investors looking to play the highly volatile forex market are choosing to invest in capital protected schemes, which at least protect the original capital invested. With the forex market see-sawing in wild swings, making money is becoming more and more difficult. There are also groups of investors such as pension funds, life insurance companies and pensioners who can ill-afford to bear capital losses but still wish to have some kind of exposure to risky assets in commodities, forex, and stock indices.

That is why an increasing number of forex investment firms, forex hedge funds or even forex startups are offering capital protected products to attract investors. Here is how the scheme works.

The bulk of the money raised from investors, about 92-95% is placed in zero coupon bonds, with the objective that at the end of the period, the total will amount to at least 100 or equal to the original sum invested.

The remaining 5-8% is then invested in purchasing options so that in the event that the underlying asset appreciates or depreciates in line with the investment objective of the fund, the investors will receive the percentage gain of that particular market moving in their direction. In such a positive return, the investor will get the proceeds of the maturing bonds, 100, plus the positive return earned on the profit generated on the options.

If on the other hand, the market goes against the underlying investment, the options expire worthless and there is no additional loss on the investment. This means the investors get back their money as the maturing bonds expire.

The main risk is for the bond issuer defaulting. As with all capital protected schemes, the issuer does not take responsibility if the company whose bonds have been purchased goes bust. The risk is always with the investor.

For this reason, investors are strongly recommended to diversify their investments and select a variety of investments, so that even if the underlying bonds in a capital protected scheme default, the rest of their investments will be safe.

Unfortunately, the investor cannot instruct his forex broker or forex fund manager to apply stop loss protection since the capital protected products are tailor made for specific periods and will benefit if the underlying asset moves in the direction stated when the original investment is made.

Disclaimer:

Shavasb Bohdjalian is an approved Investment Advisor and CEO of Eurivex Ltd., a Cyprus Investment Firm, authorized and regulated by CySEC, license #114/10. The views expressed above are personal and do not bind the company and are subject to change without notice. Investing in markets and trading on leverage is highly risky and it may not be suitable to all investors since it carries a high degree of risk and you can lose more than your initial investment.

Website : www.eurivex.com Email : Shavasb@eurivex.com