# Cyprus for a prop firm: CySEC licence, company, cost.

> Does a Cyprus prop firm need a CySEC licence? What CySEC has said, CIF capital, company formation fees and time, 15% tax, banking. Checked 12 Oct 2026.

- Source: https://pipvalley.com/jurisdictions/cyprus
- Publisher: PipValley - web design studio for prop trading firms
- Updated: 2026-10-12

**Short answer:** A simulated-evaluation prop firm in Cyprus usually starts as a private limited company: about €515 in Registrar fees on the accelerated route and 7–10 working days to incorporate (law-firm guide updated 3 Oct 2026). There is no CySEC licence written for prop firms; a CIF licence (€75,000–€750,000 capital) applies only if you execute client orders, hold client money or deal against clients. Corporate tax is 15% from 1 Jan 2026.

## At a glance

- **Regulator:** CySEC (Cyprus Securities and Exchange Commission) licenses Cyprus Investment Firms (CIFs); there is no CySEC licence category written for simulated-evaluation prop firms. [5][1]
- **Regulator stance (Jul 2024):** CySEC chair George Theocharides: "there will certainly be more scrutiny on [prop trading] firms in the near future", adding they "will fall under a robust regulatory framework". [1]
- **EU level (Jun 2026):** Theocharides: "ESMA is not currently engaged in any substantive discussions regarding retail prop trading"; it "does not appear to rank among the Authority's immediate priorities". [2]
- **What triggers a licence:** Executing client orders, holding client money or dealing on own account against clients needs a CIF licence: €75,000, €150,000 or €750,000 initial capital by model. [5]
- **Company and fees:** Private limited company. Registrar fees on the accelerated route: name €30 + registration €265 + certificates €220 = €515 (our sum), based on €1,000 share capital. [6]
- **Formation time:** Name approval 1–3 working days; incorporation about 7–10 working days; ready to trade with bank and tax registration in 2–4 weeks. [6]
- **Annual levy:** The €350 annual Registrar levy was abolished from 2024 by Law 25(I)/2024; companies still file an annual return with financial statements. [6]
- **Corporate tax:** 15% from 1 January 2026 (was 12.5%). Special Defence Contribution on dividends cut from 17% to 5%; loss carry-forward extended from 5 to 7 years. [7][8]
- **Banking reality:** A Cyprus legal guide (21 Sep 2026): "Company incorporation does not guarantee access to banking"; fintech and crypto businesses get enhanced due diligence. [9]
- **Data and cookies:** GDPR via Law 125(I)/2018, supervised by the Commissioner for the Protection of Personal Data; cookies need prior consent under Part 14 of Law 112(I)/2004. [10]
- **Local precedent:** Trade.com runs prop challenges through Tplus Technologies Limited, a separate Cyprus company, not its CySEC-licensed broker Trade Capital Markets (TCM) Ltd (Jun 2024). [4]

A prop firm sells evaluations: a trader pays a fee to trade a simulated account under your rules, and traders who pass can earn rewards calculated from simulated results. A Cyprus Investment Firm does something else: it executes real orders for clients, holds their money or deals against them. That line decides whether CySEC licensing is your problem, and it is the first thing a Cyprus lawyer will test against your product, your terms and your website copy.

This page covers what is specific to Cyprus. For the full launch order (platform, CRM, payments, rules, website) start at [the start-a-prop-firm hub](https://pipvalley.com/start-a-prop-firm), and for the legal question in general read [do prop firms need a licence](https://pipvalley.com/guides/do-prop-firms-need-a-license).

> This page explains how things generally work and what regulators and law firms have published. It isn't legal, tax or financial advice. Confirm every point with a licensed lawyer and a tax adviser in Cyprus before you act.

## Does a prop firm need a CySEC licence?

Not as a rule, as of 12 October 2026. CySEC has not published a licence category, circular or consultation aimed at simulated-evaluation firms that we could find. What exists is commentary from its chair. In July 2024 George Theocharides told Finance Magnates that "there will certainly be more scrutiny on [prop trading] firms in the near future, in the coming years", that "these prop trading firms will fall under a robust regulatory framework", and that "it's not the time to estimate whether it's (prop trading) going to be under MiFID or something else."

Two years later the EU picture had cooled. In June 2026 he said that "to the best of my knowledge, ESMA is not currently engaged in any substantive discussions regarding retail prop trading" and that it "does not appear to rank among the Authority's immediate priorities". That describes where EU work stands. It is not a statement that the model is unregulated in Cyprus, and it can change quickly.

Other EU regulators have been less patient. Belgium's FSMA warned the public about prop trading firms in March 2024, describing a "worrying rise in prop trading firms' advertising on social media". A Cyprus firm that markets across the EU should expect that kind of attention in each country it sells into, not only at home. Our guide to [whether prop firms will be regulated](https://pipvalley.com/guides/will-prop-firms-be-regulated) tracks the signals.

## When does a Cyprus forex licence apply instead?

If any part of your business executes real client orders, holds client money or deals on its own account against clients, that part is a Cyprus Investment Firm and needs a CySEC CIF licence. The capital alone changes the budget: a CIF licence starts at €75,000 of initial capital and reaches €750,000 for a market maker, before staff, compliance and audit. Our [forex broker licence guide](https://pipvalley.com/guides/forex-broker-license) and [how to start a forex brokerage](https://pipvalley.com/guides/how-to-start-a-forex-brokerage) cover that route.

Groups that run both keep them apart. Finance Magnates reported in June 2024 that Trade.com launched prop challenges through Tplus Technologies Limited, a separate Cyprus company, while its EU brand runs through the CySEC-licensed Trade Capital Markets (TCM) Ltd. If you plan to copy-trade or hedge funded traders' positions with a broker, ask your lawyer where that activity sits; our page on [whether prop firms use real money](https://pipvalley.com/guides/do-prop-firms-use-real-money) explains the models.

**CIF initial capital under the EU IFR/IFD regime (RSM Cyprus, checked 12 Oct 2026)**

| Business model | Initial capital | Prop-firm relevance |
|---|---|---|
| Advice or portfolio management, no client money | €75,000 | Rarely relevant to an evaluation firm |
| Holds client money, straight-through processing | €150,000 | Relevant if you broker real trades for traders |
| Market maker, dealing on own account | €750,000 | Relevant if you take the other side of real client trades |
| Simulated evaluations only, no client money | No CIF licence category | Company law, consumer, data and AML rules still apply |

## How do you form a company in Cyprus?

Cyprus company formation runs through the Department of Registrar of Companies and Intellectual Property, usually via a local law firm, which also handles the beneficial-owner due diligence. A Cyprus law firm's guide updated on 3 October 2026 lists these Registrar fees and timings for the accelerated route with €1,000 share capital:

- Name approval: €30; 1–3 working days; an approved name is reserved for six months.
- Registration (forms HE1, HE2, HE3): €265; Registrar processing 2–4 working days.
- Certificates (incorporation, directors and secretary, shareholders, registered office) and certified memorandum and articles: €220.
- Optional Registrar file of English translations: €160; the HE1 stamp (€49) is paid to the Cyprus Bar Association, not the Registrar.
- Register with the Tax Department within 60 days of incorporation.
- Beneficial owners are recorded in the Registrar's register and confirmed every year.
- No annual levy: the €350 levy was abolished from 2024 by Law 25(I)/2024, but an annual return with financial statements is still due.

## What does a Cyprus company cost, and how long does it take?

Government fees are the small part. Lawyer, registered office, company secretary, bookkeeping and the statutory audit are quoted individually and recur. The table adds only the published figures; it is not a quote. For a full budget, use [the launch cost calculator](https://pipvalley.com/tools/prop-firm-launch-cost-calculator) and our [company formation cost comparison](https://pipvalley.com/guides/prop-firm-company-formation-cost).

**Cyprus company: published fees and timelines (sources below, checked 12 Oct 2026)**

| Item | Figure | Source |
|---|---|---|
| Name + registration + certificates | €30 + €265 + €220 = €515 (our sum) | George K. Konstantinou LLC |
| Annual levy | Abolished from 2024 (Law 25(I)/2024) | George K. Konstantinou LLC |
| Incorporation | About 7–10 working days | George K. Konstantinou LLC |
| Ready to trade (bank, tax) | 2–4 weeks | George K. Konstantinou LLC |
| Corporate income tax | 15% from 1 Jan 2026 (was 12.5%) | PwC Worldwide Tax Summaries |
| CIF licence capital (only if brokering) | €75,000–€750,000 | RSM Cyprus |

## Will a Cyprus bank and processor take a prop firm?

Not automatically. A Cyprus legal guide published on 21 September 2026 says "company incorporation does not guarantee access to banking", and that fintech, crypto and online-gaming businesses "may be subject to enhanced due diligence even where their activities are entirely lawful". Plan for onboarding to take longer than incorporation, and prepare a one-page description of the simulated model, your refund and payout policies, and your restricted-countries list before you apply.

Most founders run a bank account for operating costs, a high-risk card route through an orchestration layer, and a crypto route for purchases and payouts. Cyprus is a payments hub for the industry: [Paytiko](https://pipvalley.com/tech/paytiko), for example, lists its legal entity in Larnaca. Compare options in [prop firm payment processing fees](https://pipvalley.com/guides/prop-firm-payment-processing-fees), [crypto payments for prop firms](https://pipvalley.com/guides/prop-firm-crypto-payments) and payments for a new prop firm.

## What are the tax points to raise with an adviser?

Cyprus corporate income tax is 15% from 1 January 2026, up from 12.5%, according to PwC. The same reform cut the Special Defence Contribution on actual dividends from 17% to 5% (non-domiciled shareholders remain exempt) and extended loss carry-forward from five to seven years, according to Cypriot law firm AGPLAW. How evaluation fees, payouts to traders abroad and your own residence are treated is a question for a Cyprus tax adviser; ask before you choose the structure, not after the first audit.

## What must a Cyprus prop firm's website show?

A Cyprus company sells under EU law, so consent and consumer rules are legal requirements, not design choices. Cyprus implements the GDPR through Law 125(I)/2018, supervised by the Commissioner for the Protection of Personal Data, and cookies beyond the strictly necessary need consent under Part 14 of Law 112(I)/2004, according to DLA Piper.

- Entity disclosure: the Cyprus company name, registration number (HE number) and registered office in the footer and terms.
- A plain simulated-trading notice and a statement that the firm is not a CIF or broker (unless it is). Draft one with [the disclaimer generator](https://pipvalley.com/tools/prop-firm-disclaimer-generator) for your lawyer to review.
- A restricted-countries list enforced at checkout and KYC; see [how prop firms decide restricted countries](https://pipvalley.com/guides/prop-firm-sanctions-and-restricted-countries).
- A cookie banner that blocks non-essential cookies until consent, and a GDPR privacy policy naming the controller.
- Refund and cancellation terms your lawyer has checked against EU distance-selling rules; see [prop firm terms and conditions](https://pipvalley.com/guides/prop-firm-terms-and-conditions).
- Languages: most Cyprus-based firms sell internationally in English; add the languages of the markets you target.

> PipValley builds prop firm websites with entity disclosures, restricted-country logic, simulated-trading notices and consent-first cookie banners, on any platform. See [the launch service](https://pipvalley.com/services/launch-a-prop-firm).

## When should you not choose Cyprus?

- If you will take the other side of real client trades from day one: budget for a CIF licence and its capital, or pick a different structure with your lawyer.
- If your operators and decision-makers live elsewhere: tax can follow where the firm is managed, which can undo the reason for choosing Cyprus.
- If you need a bank account in weeks: incorporation is quick, banking is not.
- If 15% tax and an annual audit outweigh the EU address for your traders: compare [the BVI](https://pipvalley.com/jurisdictions/bvi) or [Dubai](https://pipvalley.com/jurisdictions/dubai), and the [jurisdictions index](https://pipvalley.com/jurisdictions).

## Launch steps

1. **Define the product in writing:** Describe exactly what traders buy (simulated evaluation, rewards from simulated results, no client money) and have a Cyprus lawyer confirm it falls outside the CIF regime.
2. **Reserve the name:** File the name approval (€30, 1–3 working days); the name is held for six months.
3. **Incorporate the company:** File HE1–HE3 (€265) and order certificates (€220); expect about 7–10 working days overall on the accelerated route.
4. **Register for tax and record owners:** Register with the Tax Department within 60 days and record beneficial owners; agree a bookkeeping and audit provider.
5. **Open banking and payment routes:** Apply to a bank or EU e-money institution, a high-risk card route and a crypto processor in parallel; budget 2–4 weeks or more.
6. **Choose the platform and back office:** Pick a trading platform and CRM; see the trading platform guide and CRM and back office.
7. **Publish a compliant website:** Launch with entity disclosure, simulated notice, restricted countries, GDPR privacy policy and consent-first cookies, reviewed by your lawyer.

## Providers worth a look

- **Paytiko**: Payment orchestration (cashier, routing, pay-ins, payouts) with its legal entity in Larnaca, Cyprus; pricing on request.
- **BridgerPay**: No-code payment orchestration connecting to 1000+ PSPs, useful when one card acquirer is not enough.
- **Confirmo**: Crypto payment gateway authorised as a CASP under MiCAR, with a prop-trading page covering challenge payments and payouts.
- **Sumsub**: KYC, AML screening and fraud prevention with a dedicated trading and broker solution.
- **Veriff**: Document, biometric and liveness checks sold as self-serve plans or enterprise.
- **Rise**: Contractor payroll in fiat and crypto that markets itself to prop firms for funded-trader payouts.

## Your website

PipValley builds the marketing website for any platform or route: pricing table, rules, payouts, FAQ, legal pages and the checkout hand-off. Plan your launch: https://pipvalley.com/contact?src=launch-jurisdiction&place=cyprus

## Questions

### Do I need a CySEC licence to run a prop firm in Cyprus?

Not as a rule, as of 12 October 2026: CySEC has no licence category for simulated-evaluation firms. If you execute client orders, hold client money or deal against clients, you need a Cyprus Investment Firm licence. CySEC's chair said in 2024 that prop firms will face more scrutiny, so have a Cyprus lawyer review your product and terms before launch.

### How much does Cyprus company formation cost?

Registrar fees come to about €515 on the accelerated route (name €30, registration €265, certificates €220), according to a Cyprus law firm's guide updated 3 October 2026. The old €350 annual levy was abolished from 2024. Lawyer, registered office, accounting and audit fees are extra and quoted individually.

### How long does it take to set up a company in Cyprus?

About 7–10 working days to incorporate, and 2–4 weeks to be ready to trade once the bank account and tax registration are in place, according to George K. Konstantinou LLC (October 2026). Bank onboarding for a prop firm often takes longer than incorporation, so start those applications early.

### How much capital does a Cyprus forex licence need?

A Cyprus Investment Firm needs €75,000, €150,000 or €750,000 of initial capital under the EU IFR/IFD regime, depending on whether it holds client money or deals on its own account, according to RSM Cyprus. A simulated-evaluation firm that never touches client money does not fit these categories.

### What is the corporate tax rate in Cyprus in 2026?

Cyprus corporate income tax is 15% from 1 January 2026, up from 12.5%, according to PwC. The Special Defence Contribution on dividends fell from 17% to 5% in the same reform. Ask a Cyprus tax adviser how evaluation fees, trader payouts and your own residence are treated before you pick a structure.

### Is CySEC about to regulate prop firms?

Not imminently, on the public record. In June 2026 CySEC's chair said ESMA is not in substantive discussions on retail prop trading and that it is not an immediate priority. In 2024 he said prop firms would eventually face a robust framework. Watch CySEC and ESMA announcements and review your terms each year with your lawyer.

## Sources

1. [Finance Magnates: "Prop trading will fall under robust regulation at some point", CySEC chair (16 Jul 2024)](https://www.financemagnates.com/executives/exclusive-prop-trading-will-fall-under-robust-regulation-at-some-point-cysec-chair/) (checked 2026-10-12)
2. [Finance Magnates: Prop trading slips down Paris agenda as the US steps up (26 Jun 2026)](https://www.financemagnates.com/forex/prop-trading-slips-down-paris-agenda-as-the-us-steps-up/) (checked 2026-10-12)
3. [Finance Magnates: FSMA warns public against dubious practices of prop trading firms (7 Mar 2024)](https://financemagnates.com/forex/fsma-warns-public-against-dubious-practices-of-prop-trading-firms) (checked 2026-10-12)
4. [Finance Magnates: Trade.com launches prop trading under a Cyprus-based entity (12 Jun 2024)](https://www.financemagnates.com/forex/tradecom-launches-prop-trading-under-a-cyprus-based-entity/) (checked 2026-10-12)
5. [RSM Cyprus: CIFs, Cyprus Investment Firms](https://www.rsm.global/cyprus/cifs-cyprus-investment-firms) (checked 2026-10-12)
6. [George K. Konstantinou LLC: Cyprus company formation (updated 3 Oct 2026)](https://gk-lawfirm.com/practice-areas/cyprus-companies-law/cyprus-company-formation) (checked 2026-10-12)
7. [PwC Worldwide Tax Summaries: Cyprus, taxes on corporate income](https://taxsummaries.pwc.com/cyprus/corporate/taxes-on-corporate-income) (checked 2026-10-12)
8. [AGPLAW: Cyprus tax reform 2026](https://www.agplaw.com/cyprus-tax-reform-2026-a-comprehensive-legal-analysis-of-the-new-tax-framework-in-force-from-1-january-2026/) (checked 2026-10-12)
9. [Global Law Experts: High-risk business incorporation and structuring in Cyprus, a 2026 legal guide (21 Sep 2026)](https://globallawexperts.com/high-risk-business-incorporation-structuring-in-cyprus-a-2026-legal-guide/) (checked 2026-10-12)
10. [DLA Piper: Data protection laws of the world, Cyprus](https://www.dlapiperdataprotection.com/?c=CY&t=law) (checked 2026-10-12)
11. [PipValley tech data: Paytiko](https://pipvalley.com/tech/paytiko) (checked 2026-10-12)

_Not legal, tax or financial advice: rules differ by place and change often; speak to a qualified lawyer and tax adviser. Evaluation accounts are simulated; nothing here promises revenue, pass rates or payouts._