ASP Licence In Cyprus: When Is It Required?
A brief look at when the provision of administrative services in Cyprus falls within the scope of the ASP Law — and when it may not.
The general position
The provision of administrative services in Cyprus — including company formation and management, the provision of directors, secretaries, registered offices, nominee shareholders and related corporate services — is a regulated activity under the Law Regulating Companies Providing Administrative Services and Related Matters (the “ASP Law”). As a rule, a person carrying on such services by way of business requires a licence.
Not every case is caught
The ASP Law does not apply uniformly to every arrangement that looks, at first glance, like an administrative service. The legislation carves out a number of situations where a licence is not needed, and the boundary between a licensable activity and an exempt one turns on the specific facts — who is providing the service, to whom, in what capacity, and on what basis.
Why the distinction matters
Providing administrative services without the required licence carries regulatory and criminal consequences. Equally, structuring an arrangement as licensable when it need not be can add unnecessary cost and complexity. Getting the analysis right at the outset is therefore essential — both for service providers and for the businesses and investors relying on them.
How we support
We advise clients on whether their particular arrangement falls within the scope of the ASP Law, whether an exemption may be available on the facts, and how best to structure the provision of services in Cyprus. If you are considering an arrangement that may be affected — or would like a view on a specific scenario — please get in touch.