International Collective Investment Schemes (ICIS) refer to Cyprus private investment funds that can be performed under the law of Cyprus.
Investors, widely known as unit-holders, establish these funds and each fund can have up to 100 unit-holders. The purpose of a private ICIS is the collective investment of funds injected in such schemes by the unit-holders. It provides the route for these funds to be managed and invested by professionals with the ultimate goal of making profits for the investors. Profits will then be extracted in the most tax efficient way.
The primary regulatory, commercial and legal advantages associated with the establishment of such investment schemes include the following:
- Private Funds can be established with limited and unlimited duration or with variable or fixed capital. They can also take the form of a limited company, trust or partnership, depending on the underlying circumstances applicable in each specific occasion.
- Private Funds are fully regulated by the Central Bank of Cyprus.
- Formation can be effected within weeks, subject to all conditions being met and subject to the workload of the Central Bank.
Furthermore there is a plethora of tax advantages incentivizing the formation and establishment of such funds:
- exemption from tax on profits from sale of shares and other financial instruments;
- exemption from tax on foreign dividends received;
- no withholding on interest and dividend payment made from Cyprus abroad;
- no withholding tax on income repatriation;
- exemption on profits on disposal of securities; and a wide network of Double Tax Treaties is in place with more than 40 countries worldwide, securing tax incentives and encouraging the channeling of funds in other countries without or with reduced further taxation.
We at ConnectedSky are able to provide our clients with the necessary guidance and advice on which type of ICIS would best satisfy their needs and corporate responsibilities.
For more in-depth information on our Cyprus ICIS & Foreign Funds experience, please email us directly on email@example.com.