# Cyprus Law 87(I)/2017 CIF Licensing: Dossier, Fees & SLAs

> Navigate Cyprus Investment Firm (CIF) licensing under Law 87(I)/2017 and DI87-03: Form 87-00-01 dossier, EUR 75k/150k/750k tiers, and activation checks.

Canonical: https://eurofirmledger.com/bulletins/cyprus-law-87-i-2017-cif-authorisation-tiers-6-month-timeline
Last updated: 2026-11-14T19:49:28.834Z

**Publication:** Euro Firm Ledger
**Category:** Cysec Cif Icf Safeguarding Directives
**Published:** 2026-11-13T17:20:25.915Z
**Author:** Lukas Lindqvist, CEFA (Certified European Financial Analyst (EFFAS/CEFA, Frankfurt & Zurich))
**Reviewer:** Not recorded

## Answer-first summary

Obtaining a Cyprus Investment Firm (CIF) charter under Law 87(I)/2017 Section 5 requires submitting Form 87-00-01, passing Section 7 six-month review, and clearing CySEC’s on-site pre-activation operational inspection.

## Key takeaways

- Cyprus CIF authorization under Law 87(I)/2017 Section 5 and Directive DI87-03 requires Form 87-00-01 submission, forensic 5-year UBO source-of-wealth trails, and bespoke IOM/ICARA manuals.
- While Section 7(3) sets a 6-month statutory review clock from a complete dossier, real-world greenfield CIF licensing and pre-activation build-out span 9 to 14 months.
- CySEC enforces a two-stage gate: Conditional Authorization is followed by a 6-to-12 month build-out and physical/operational inspection before live activation and EEA passporting unlock.
- Under reformed Directive DI87-07, initial Investor Compensation Fund entry fees (EUR 2,000 to EUR 35,000+ across services) are permanently non-refundable—even upon voluntary license surrender.

## Related financial entities

- **Cyprus Investment Services and Activities Law (CySEC)** (CYSEC-CIF) — license: Statutory framework administered by CySEC transposing MiFID II, governing the authorization and operational requirements of Cypriot Investment Firms.
- **Global Legal Entity Identifier Foundation (GLEIF) Standard** (GLEIF-LEI) — product: Global standard for the 20-character alphanumeric Legal Entity Identifier (LEI) uniquely identifying legally distinct entities engaging in financial transactions.
- **MiFID II Cross-Border Passporting Framework** (MIFID2-PASS) — license: Harmonized European framework allowing authorized investment firms to provide investment services across all EU member states and EEA countries.

## Analysis

Incorporating a **Cyprus Investment Firm (CIF)** in Limassol or Nicosia under **Part II (Sections 5 through 25) of Law 87(I)/2017** and **CySEC Application Directive DI87-03** remains one of the primary pathways for global multi-asset brokers, prime-of-prime liquidity houses, and algorithmic asset managers entering the 30-state European Economic Area. Yet the days of 4-month "rubber-stamp" CIF approvals are long gone: today's **[CySEC](/competent-authorities/cysec) Authorisations Department** runs forensic source-of-wealth checks on Ultimate Beneficial Owners (UBOs), demands full 3-year [IFR/IFD K-factor stress projections](/bulletins/eu-ifr-ifd-class-1-2-3-prudential-capital-k-factor-guide-2026), and withholds live operational activation until examiners physically inspect the firm's Cyprus premises, IT servers, and certified key-function holders!

Within our [CySEC CIF & ICF master guide](/bulletins/cysec-cif-authorisation-eur-20000-icf-safeguarding-guide-2026) and the [CySEC safeguarding hub](/topics/cysec-cif-icf-safeguarding-directives), benchmark your greenfield CIF licensing timeline and fee budget against established authorization holders such as [CAPEX.com](/firms/capex) ([292/16](/verify/license/292%2F16)), [Colmex Pro](/firms/colmex-pro) ([123/10](/verify/license/123%2F10)), and [B2Prime](/firms/b2prime).

## Permission-to-Capital & Application-Fee Matrix (Law 87(I)/2017 & DI87-03)

Under **Directive DI87-03**, CySEC calculates upfront non-refundable application scrutiny fees additively per requested MiFID II Annex I Section A investment service and Section B ancillary service:

| CIF License Configuration | Law 165(I)/2021 Capital Floor | Typical MiFID Annex I Box Selection | CySEC Upfront Application Fee | Mandatory ICF Joining Fee |
| :--- | :--- | :--- | :--- | :--- |
| **Advisory / RTO Boutique (No Client Assets)** | **EUR 75,000** | A(1) RTO + A(4) Portfolio Mgmt + A(5) Advice (zero B1 / zero cash) | Base **EUR 7,000** + EUR 1,000–2,000 per extra A-service | Exempt ONLY if zero covered client cash/assets held |
| **STP Agency / Custody Multi-Asset CIF** | **EUR 150,000** | A(1) RTO + A(2) Execution + B(1) Safekeeping + B(2) Margin + B(4) FX | ~**EUR 11,500 – EUR 15,000** (additive A + B schedule) | **EUR 2,000 – EUR 5,000+** per covered service (DI87-07) |
| **Full Market-Maker / Principal Dealer CIF** | **EUR 750,000** | A(1) + A(2) + **A(3) Dealing on own account** + B(1) + B(2) + B(4) + B(5) | ~**EUR 15,500 – EUR 20,000** (+ EUR 10,000 if MTF/OTF A8/A9!) | **Up to EUR 15,000–35,000** initial non-refundable ICF entry! |
| **Fast-Track Express Examination Option** | Applicable to any tier | Voluntary accelerated CySEC review queue (when active) | **+EUR 25,000** express surcharge atop standard DI87-03 fees | Unchanged statutory DI87-07 entry fee |

![Four-phase Cyprus Law 87(I)/2017 CIF authorization and pre-activation inspection timeline at CySEC](/api/figure?type=flow&title=CySEC%20Law%2087%28I%29%2F2017%20Four-Phase%20CIF%20Licensing%20Pipeline&subtitle=From%20Cyprus%20Registrar%20incorporation%20through%20Section%207%20conditional%20grant%20to%20live%20activation&steps=Phase%201%20%20Dossier%20Prep%20%282-3m%29%3A%3AIncorporate%20CY%20Ltd%2C%20lock%20share%20cap%2C%20draft%20IOM%2C%20AML%20%26%203-yr%20ICARA%7CPhase%202%20%20Sec.%207%20Review%20%286-10m%29%3A%3AForm%2087-00-01%20filing%20%2B%20UBO%20SOW%20vet%20%2B%20CySEC%20Q%26A%20rounds%7CPhase%203%20%20Conditional%20Grant%3A%3A6-12%20mo%20deadline%20to%20lease%20Limassol%20office%2C%20hire%20staff%20%26%20join%20ICF%7CPhase%204%20%20Activation%20Audit%3A%3ACySEC%20inspects%20IT%2C%20bank%20accounts%20%26%20LEI%20-%3E%20Publishes%20License%20%23!&metrics=STATUTORY%20CLOCK%3A%3A6%20Months%3A%3ASec.%207%283%29%20from%20COMPLETE%20dossier%7CREAL-WORLD%20RUNWAY%3A%3A9%E2%80%9314%20Months%3A%3AIncl.%20Q%26A%20stop-the-clock%20rounds%7CBOARD%20QUORUM%3A%3A%3E%3D%204%20Directors%3A%3A2%20resident%20Exec%20%2B%202%20indep%20Non-Exec%7CPRE-ACTIVATION%20CAP%3A%3A6%E2%80%9312%20Months%3A%3ABefore%20conditional%20grant%20lapses)

## Inside Form 87-00-01: Five Dossier Pillars That Delay Incomplete Filings

Why does Section 7(3) Law 87(I)/2017's statutory "6-month decision deadline" stretch to 10–14 months in practice? Because the 6-month clock **starts ticking ONLY once CySEC formally certifies the dossier as "complete"**—and examiners pause the clock whenever any of five core annexes lack institutional rigor:
1. **Forensic UBO Source-of-Wealth (SOW) & Tax Clearance Trail**: Every ultimate natural person holding >= 10% (or cumulative controlling influence) submits personal questionnaires, clean apostilled criminal records, 5-year personal tax returns, and **audited bank trails tracing every euro of initial CET1 back to taxed legitimate business income**.
2. **Internal Operations Manual (IOM) & Conflict-of-Interest Policy**: Must reflect your *exact* order-routing topology (MT5/cTrader/proprietary OMS bridges, named EU Liquidity Providers, [B-book vs A-book split](/bulletins/cysec-cif-b-book-market-maker-hedging-k-npr-conflict-controls))—CySEC rejects generic copy-pasted consultant Word templates on sight!
3. **Three-Year Prudential IFR/IFD & ICARA Model**: Month-by-month CET1, [FOR, K-CMH, K-ASA, K-NPR, K-TCD](/bulletins/eu-ifr-ifd-class-1-2-3-prudential-capital-k-factor-guide-2026), and Article 43 HQLA stress tests proving CET1 never dips below 100% of PMR/FOR even under zero Year-1 revenue.
4. **DORA ICT Risk Architecture & Business Continuity Plan**: Mapping primary/backup EEA data centers, cybersecurity CISO reporting, and vendor exit clauses.
5. **Four-Eyes Board & Certified Key-Function Nominations**: Naming 2 Cyprus-resident Executive Directors + >= 2 Non-Executive Directors alongside [CySEC Advanced & AML-certified](/bulletins/cysec-public-certification-register-basic-advanced-aml-exams) Compliance/MLRO and Risk heads.

## Two-Stage Conditional Authorization vs Live Activation Gate

Unlike jurisdictions where receiving the license certificate lets you onboard clients the next morning, **CySEC splits authorization into two distinct legal milestones**:
- **Milestone A — Conditional Authorization Letter**: Confirms CySEC's Board approved the application subject to completing operational build-out within **6 to 12 months** (leasing physical dedicated offices in Cyprus, moving initial capital from blocked bank escrow to operational accounts, paying the initial **Directive DI87-07 non-refundable ICF joining fee**, obtaining a [GLEIF LEI](/passports/gleif-lei-standard), and onboarding staff onto Cyprus Social Insurance!).
- **Milestone B — Final Operational Activation & Public Register Listing**: Only after CySEC verifies every fulfillment document (often including an on-site/video walk-through of the Limassol/Nicosia trading, compliance, and server rooms) does CySEC assign the public XXX/YY license number and unlock **Article 34 EEA passport filings**!

## Modeling Total Greenfield CIF Pre-Revenue Launch Capital & Setup Outlay

Budget the true all-in cash commitment required from incorporation through Month-12 live activation for a **EUR 750,000 Full-Scope Principal Market-Maker CIF**:

```formula
Greenfield_CIF_Total_Day1_Funding_Commitment (Total_Cash_Required_EUR) =
 Statutory_PMR_Share_Capital_Locked_EUR
 + Pre_Breakeven_12Mo_Cyprus_Operating_Deficit_Buffer_EUR
 + Upfront_ICF_NonRefundable_Entry_And_Extraordinary_Buffer_EUR
 + Legal_Advisory_CySEC_Fees_And_DORA_IT_Buildout_EUR

Worked Limassol EUR 750,000 Full-Scope CIF (A1, A2, A3, B1, B2, B4) Launch Budget:
 Statutory Paid-In CET1 Share Capital Floor (Law 165(I)/2021 Sec. 9(1)) = EUR 750,000
 Year-1 Pre-Breakeven Operating Burn Cushion (keeps CET1 >= EUR 750k after salaries/rent!) = EUR 420,000
 CySEC DI87-03 Application Fees + Non-Refundable DI87-07 Initial ICF Joining Fee = EUR 44,500
 Legal/Prudential Licensing Counsel, IT/OMS Setup & Pre-Activation Office Fit-Out = EUR 165,000
 Total Founder Equity Cash Commitment = 750,000 + 420,000 + 44,500 + 165,000 = EUR 1,379,500!
```

![All-in EUR 1.38M cash funding stack required to license, staff, and activate a greenfield EUR 750k full-scope CySEC CIF in Limassol](/api/figure?type=bars&title=True%20Cash%20Budget%20for%20a%20Greenfield%20EUR%20750k%20CySEC%20CIF&subtitle=Why%20founders%20need%20~EUR%201.38M%20total%20equity%20to%20keep%20CET1%20above%20EUR%20750k%20post-activation&steps=Statutory%20PMR%20Floor%3A%3AEUR%20750k%20permanent%20CET1%20share-capital%20floor%7CYear-1%20Burn%20Cushion%3A%3A%2BEUR%20420k%20CET1%20surplus%20absorbing%20Month%201-12%20payroll%7CLegal%2C%20OMS%20%26%20Office%3A%3A%2BEUR%20165k%20pre-activation%20Cyprus%20build-out%20%26%20counsel%7CCySEC%20%2B%20ICF%20Entry%20Fees%3A%3A%2BEUR%2044.5k%20non-refundable%20DI87-03%20%26%20DI87-07%20fees&metrics=ICF%20ENTRY%20FEE%20REFUND%3F%3A%3A0%25%20Non-Refund!%3A%3ADI87-07%20abolished%20legacy%20refunds%7CUNUSED%20LICENSE%20LAPSE%3A%3ASec.%208%281%29%28a%29%3A%3ALapses%20if%20unused%20for%2012%20months!%7CPASSPORT%20WAIT%20AFTER%3A%3A%2B1%20Month%20SLA%3A%3AArt.%2034%20notice%20AFTER%20activation%7CDOMAIN%20APPROVAL%3A%3ACySEC%20Gate%3A%3AEvery%20URL%20must%20be%20pre-approved!)

## Domain Pre-Approval & Section 8(1) "Use It or Lose It" 12-Month Rule

Two post-licensing traps require strict calendar tracking: first, **no CIF may launch a new brand website or regional landing domain without prior notification and listing in CySEC's Approved Domains registry**. Second, under **Section 8(1)(a) of Law 87(I)/2017**, CySEC may withdraw authorization if a CIF **does not make use of its authorization within 12 months** or expressly renounces/ceases providing investment services for more than **6 consecutive months**—blocking "warehoused dormant shell licenses"!

## Frequently asked questions

### Is buying an existing Limassol CIF faster than applying for a greenfield Law 87(I)/2017 license?

Previously yes, but today the gap has narrowed dramatically: acquiring >=10% of an existing CIF triggers a full Section 22 Qualifying Holding assessment by CySEC (60+ working days plus Q&A pauses taking 5–9 months) plus inheriting historical client/ICF conduct liabilities!

### Does CySEC still refund a CIF’s accumulated Investor Compensation Fund capital if the firm surrenders its license?

No! Under the legacy pre-2019 ICF regime, departing CIFs reclaimed unused ICF capital balances; Directive DI87-07 abolished member ownership of ICF contributions for all post-reform ex-ante fees—making initial and annual ICF payments permanently non-refundable.

### Can a newly incorporated Cyprus CIF hire its Compliance Officer and Risk Manager only AFTER receiving conditional approval?

During Form 87-00-01 filing, applicants must generally identify and submit CVs/questionnaires for proposed Executive Directors and key-function heads, though employment contracts typically activate upon Conditional Authorization so salaries are not burned during the 8-month review queue.

### Can one Cyprus Investment Firm operate multiple distinct retail trading brand names and URLs?

CySEC sharply curtailed multi-brand proliferation due to retail confusion over the EUR 20,000 per-entity ICF cap; any trade name or additional domain must receive explicit CySEC justification approval and prominently display the exact legal CIF name and license number.


## Source URLs

- https://www.cysec.gov.cy/en-GB/legislation/services-markets/cifs/
- https://www.cysec.gov.cy/CMSPages/GetFile.aspx?guid=936d2d37-71a4-4f13-9640-7a7e0a80c638
- https://www.cysec.gov.cy/en-GB/entities/investment-firms/cypriot/

## Citation

- APA: Lukas Lindqvist, CEFA. (2026). Cyprus Law 87(I)/2017 CIF Authorisation: Application Dossier, Fees & Activation Gates. Euro Firm Ledger. https://eurofirmledger.com/bulletins/cyprus-law-87-i-2017-cif-authorisation-tiers-6-month-timeline
- Canonical article: [Cyprus Law 87(I)/2017 CIF Authorisation: Application Dossier, Fees & Activation Gates](https://eurofirmledger.com/bulletins/cyprus-law-87-i-2017-cif-authorisation-tiers-6-month-timeline)
- Site research index: [Euro Firm Ledger](https://eurofirmledger.com/llms-full.txt)