Captive Insurance Companies (CIC)
The incorporation of international captive insurance companies, which restrict their operations to insuring risk of the parent,
holding or associated group of companies to which they belong, are welcome.
Nexia Poyiadjis possesses the necessary expertise and know-how to help you with all legal and other administrative procedures
in connection with the registration and operation of CICs.
Registration procedure
The registration procedure to be followed is complicated and expert must be sought froth beginning. In particular:
- Central Bank permission must be obtained for the registration of the company in Cyprus as a captive.
- Memorandum and Articles of Association of the company must be prepared and approval obtained before applying to the Registrar of
Companies to register the captive.
- Minimum share capital of CYP 10.000 must be subscribed in contrast to CYP 200.000 that applies to other insurance companies.
- Licence to transact insurance business must be obtained from the Superintendent of Insurance. In order for such licence to be
granted the following must be supplied to the Superintendent of Insurance:
- Memorandum and Articles of Association
- Balance sheet showing separately minimum issued and fully paid up share capital of CYP10.000 and total liabilities
- Auditors' report in the manner specified by the Insurance Companies Laws and Regulations
- Business plan for the companies first three years of operation including information regarding administrative structure of the
company's principal office and branches approximate number of agents, commissions to be paid etc
- Particulars of the person that will administer the affairs of the company
- A guarantee by a bank given on the strength of the company's invested capital.
- Details of the various classes of insurance business to be transacted.
- Specimen of policy contracts to be adopted.
Benefits
- Low subscribed share capital
- Maintenance of specified solvency margin may not be required
- No requirement for investment in approved areas
- No requirement for maintenance of deposits with the Central Bank of Cyprus
- Usual requirements for reinsurance treaties in resepect of risks are waived
Shipping Companies
- Ship Owning
The island's development into an international maritime centre began in 1963 when the Government offered the first incentives
aimed at the encouragement of ship ownership and the registration of vessels under the Cyprus flag. In the early 80' s the
Cypriot merchant fleet ranked 32nd on the list of maritime nations.Today it ranks 6th with over 2.600 ships exceeding 26 million
gross tonnage. This achievement is due to the cost competitiveness of the Cypriot Ship Registry, the island's well-developed maritime infrastructure as well as the high standard of services offered to international shipping.
- Management
Some of the world's largest ship management companies have their headquarters on the island from where they manage a
considerable number of vessels under the Cypriot and foreign flags. Their success has led other enterprises offering
shipping related services, such as marine insurance, average adjustment, ship classification etc, to be established
in Cyprus. The Cypriot merchant fleet ranks 6th on the list of maritime nations. This achievement is due to the cost
competitiveness of the Cypriot Ship Registry, the island's well-developed maritime infrastructure as well as the high
standard of services offered to international shipping.
The Department of Merchant Shipping, Ministry of Communications and Works is the appropriate authority for the registration of
vessels.
International Financial Services Companies
" A growing number of International Financial Services Companies ("IFCs") have established an international presence in Cyprus. These firms offer a wide spectrum of financial services to the public, ranging from investment advice to the management of investment portfolios and the establishment and operation of collective investment schemes.
Details on the establishment and operation of International Financial Services Companies in Cyprus can be obtained on request from us.
IFSCs can take various forms
" International Trustee Services Companies
" International Collective Investment Schemes
" International Fixed Capital Company (IFCC)
" International Variable Capital Company (IVCC)
" International Unit Trust Scheme (IUTS)
" lnternational Investment Limited Partnership (IILP)
" Subsidiaries of Overseas Collective Investment Schemes (Feeder Funds)
" International Financial, Trustee Services, Mutual Funds
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