Frequently Asked Questions – Obtaining EU Insurance Passporting via Cyprus Cyprus Insurance Agents & Brokers matters to consider Kyriakos Tramountanellis x / Sunday, September 15, 2024 / Categories: Insurance Cyprus Insurance Companies – Licensing FAQs and Important Considerations Insurance companies from 3rd countries and the UK are using Cyprus as their entry point within the EU to sell their insurance products and services. As a result, Cyprus is becoming a hub for insurance EU passporting due to its straightforward licensing applications and reasonable and simple licensing requirements. Cyprus Insurance Company Set up: Cyprus Company Created and Regulated by the Registrar of Cyprus Insurers usually acting for an overseas (3rd country or to a less extent EU) insurance company. The Cyprus company sells its products and services via simple EU passporting applications. Given the success we had with such enquiries we have decided to list below the most common enquiries asked by prospect and current clients. Cyprus Insurance Companies – FAQs How long does it take to receive the Insurance Agents / Brokers License? It takes 2-3 months, but you need to take into account the following: Company must be formed Its Memorandum & Articles of Association (M&A) must include specific provisions to its insurance activities; they must clearly stipulate that the company can trade as an insurance Agent or Broker. Company Name – tricky Your preferred company name must be approved by two registrars! First, the name must be approved by the Cyprus Registrar of Insurers and then by the Cyprus Registrar of Companies. The Cyprus registrar of companies usually accepts the approved name by the registrar of insurers. Timeframe: Each name application takes usually <10 working days to be approved so be prepared that both name applications could take 1 month to be approved. What about Company substance? Is it required? Yes. Regulated entities in Cyprus must have local substance. Office and staff although the Insurance Regulator does not examine these. Such requirements are implied by the local social insurance and tax office and are not part of the licensing application process. In addition, management must have passed its Insurance Certifications which will be checked by the regulator, and this is conditional for the license to be granted. However different requirements exist for insurance agents and brokers. Detailed breakdown of the differences can be obtained here. Licensing – what is the Key requirement? Licensing for an insurance agents or brokers license Key requirement are the credentials of one of the directors as they should be holders of professional insurance qualifications. Even though the differences in licensing requirements between insurance agent and broker are large, if management can not have the appropriate credentials the application will be rejected. Detailed breakdown of licensing requirements can be obtained here. Cyprus Company Set Up – applicable scenarios Application for General Insurance License: Once of the directors of the Company must be a holder of an international accredited certificate for general insurance acceptable by the Cyprus Insurance Regulator. We can assist you with this process. Equivalently, a Life insurance License: One of the directors of the Cyprus Company musty be an international accredited certificate for general insurance acceptable by the Cyprus Insurance Regulator. We can assist you with this process. Composition of the board/ management of the Company The Cyprus Registrar of Insurers can accept various combinations of the board composition as long as the substance and regulatory requirements mentioned above are met. Simple Scenario: Cyprus company must have a local director residing in Cyprus holding International Insurance Accreditations relevant to the operations of the Company. Common Scenario: Cyprus company has a local director with no insurance credentials and an overseas director (residing anywhere but not in Cyprus) who holds the International Insurance Accreditation relevant to the operations of the Company. As long as the person holding the right credentials (qualifications) is at the board this requirement is met. EU Passporting via Cyprus Is it easy? Fast? Once you obtain a Cyprus Insurance License then passporting becomes easy as in Cyprus it is a structured and relatively straight process. Passporting usually takes ½ months to be approved by the Cyprus Registrar of Insurers. Once we obtain the local Cyprus (EU) insurance license we will then apply for EU passporting. Specific EU countries must be specified in the application. Cyprus Companies acting as agents of overseas companies. Cyprus Limited companies are becoming increasingly popular for acting as insurance agents to overseas insurance Companies, usually outside the European Union. Insurance companies from 3rd countries find Cyprus their ideal partner for passporting as Cyprus: Fast and relatively straight forward licensing process Cheaper costs to set up and maintain the agents / broker’s license Low tax costs and great relocation incentives (read here for more benefits) Passporting is the simplest in Europe Cheap application and consultation fees when compared to other EU countries. More information about obtaining a Cyprus Insurance License can be obtained from our website in the licensing section, click here. Watch the video on our YouTube channel here. Want to know more? General information about insurance requirements in Cyprus Insurance Brokers license information requirements Insurance Agents, license information requirements Differences between the Agents and the Brokers licenses. CYAUSE Audit Services has assisted many international insurance companies primarily from the UK (following the Brexit) obtaining EU Insurance passporting via the creation of a Cyprus company which was used for EU passporting purposes. Feel free to enquire with us further by dropping an email at: kt@cyprusaccountants.com.cy About CYAUSE Audit Services Ltd was formed in 2011 in Nicosia, Cyprus by Mr Kyriakos Tramountanellis a Fellow Chartered Accountant. With more than 25 years of experience in the field, Mr Tramountanellis has formed an excellent reputation of excellence and professionalism in the accounting profession. CYAUSE Audit Services Ltd provides a full spectrum of services to its international and local clientele, from offshore and onshore incorporation and licensing of insurance agents & brokers, investment firms to Accounting, Audit and Tax services to local and international entities and groups. Our extensive knowledge of tax and vat matters and close relationship with governmental offices enables us to deliver even the most complicated engagements within tight deadlines without compromising the quality of our service. 1281 Rate this article: No rating Tags: Insurance RegulatorCyprus insurance companieseuropean unioncyprus company set upCyprus Registrar of Companiesinsurance brokers licenseinsurance industryinsurance marketinsurance EU passportingRegistrar of Cyprus InsurersEU passporting applicationsInsurance Agents licenseCompany substancelocal social insurance and tax officeInsurance Certificationsprofessional insurance qualificationsGeneral Insurance LicenseCyprus Insurance RegulatorCyprus insurance agentCyprus insurance brokerpasportingeurope accessinsurance productsinsurance advisoryfcasuperintendentinsurance superintendentactuary for insuranceifrs17ifrs 9if1if2ciiinsurance exams Please login or register to post comments.