CYPRUS AND THE IGAMING INDUSTRY
For us to set up your company in Cyprus, we would first require, as per EU and local regulations, the documents of the shareholding entities (if applicable) and the UBOs (Ultimate Beneficial Owners). We will also require documentation on the contact persons for the entity.
Our compliance team will conduct the onboarding when we have all the required documents. Once the documentation is accepted, we will incorporate the company in Cyprus. The Registrar typically takes about two weeks to incorporate the company.
We also offer shelf companies (according to availability) at an extra cost. These are already legally set up but have yet to become active.
Gaming operators in Curaçao or other non EU countries usually look for payment processing with reputable EU Payment Service Providers (PSPs) or acquiring banks. Due to strict regulatory requirements, such EU based banks and PSPs tend to refuse to enter into agreements with non EU based companies.
WHAT IS THE
PURPOSE OF THE EU
BASED COMPANY?
As EU based PSPs and acquiring banks are restricted from entering into agreements with non EU companies, a solution (accepted by PSPs) is to incorporate an EU based subsidiary into the non EU licensed entity. This company can then be used to enter agreements with banks and PSPs on behalf of the non EU company and fulfills the operational task of processing entity within its corporate structure. The licensed non EU entity as the shareholder would retain control over the EU Payment Processing entity.
WHY CYPRUS
IN PARTICULAR?
After Malta ceased to be an option for processing payments on behalf of non EU companies, operators sought alternatives to process payments with their EU PSPs. We researched several jurisdictions, and although many countries were initially considered as a good substitute, they were not necessarily a strong option, as (i) some had uncertainties when it came to the legal framework, and (ii) Cyprus was by far the best cost - quality solution.
The Curaçao - Cyprus type of setup is a viable option for Curaçao or other non EU B2C operators as long as the following criteria are met:
The Cyprus company should only provide payment processing services to one company; and
The non EU entity is a 100% shareholder of the Cyprus company– i.e., it should be within the same ownership structure.
Setting up a company in the Republic of Cyprus can be a great way to expand your business in the EU and take advantage of the country's favorable tax system and business friendly environment.
We can help you every step of the way!
CONTACT US TO LEARN MORE ABOUT OUR
CYPRUS RELATED SERVICES!
