Registration of a company in Cyprus | SIGTAX

Registration of a company in Cyprus

 

How to register a company in Cyprus

If you are planning to set up business in EU, then Cyprus is definitely for you. In comparison  to other European countries Cyprus has a lower cost  of living and most of all business friendly. Cypriot government initiates many business  friendly steps in order to attract more foreign investors. It also creates citizenship and allowance of residency by investment programs. Additionally, Cyprus is considered as a favorable place for taxpayers.

Steps to set  up a company

  • Plan your business wisely from it depends on all the following steps and procedures in the future process of a company registration; Decide the future legal structure of the company;
  • Make a business model and financial plan;
  • Identify financial resources and opportunities;
  • Choose your physical address;
  • Choose the name of your future legal entity;
  • Incorporate as a legal  entity;
  • Open a corporate account for the share capital deposit;
  • Register the Tax authority;
  • Register for VAT;
  • Register for VIES;
  • Register at the Social Insurance Services;

 

The main types of business legal structures in Cyprus are:

  • Public Company Limited by Shares;
  • Company Limited by Guarantee;
  • Branch of a Foreign Company;
  • Partnership.

Documents needed for the company’s registration

Both local and foreign investors who want to open companies in Cyprus must prepare the following documents and submit the following information with the Trade Register:
 

  • Copies of the passports of each shareholder and notarization of them;
  • Residence address of the shareholder.
  • An approval of the chosen company name which must be obtained with the Trade Register;
  • A copy of founding documents;
  • A certified copy of the Memorandum and Articles of Association, statutes, charter of the company and notarization of it (the documents must be in Greek language, if no the certified translation is needed);
  • A Copy of protocol of appointment of Directors and Chief Accountant;
  • Name and address at least one person resident in Cyprus authorized to accept on behalf of the company;
  • Information about the company director(s) and secretary (their identification papers);
  • A bank statement indicating the deposit of the share capital of the business;
  • The tenancy agreement or property title indicating the legal address of the company in Cyprus.

Types of companies Cyprus

The minimum numbers of shareholders is seven. The minimum requirements for the share capital is €25.630. You can freely choose the name of the company but the abbreviation ‘LTD’ must appear  at the end of the name of the company. A public company must at least have two directors and comply with certain provision of Cyprus Companies' Law before commencing business. In case where the shareholders of a public company reduced below 7 and the company continues its trading activity for more than 6 months, then the shareholders lose their limited liability status and are liable personally in an unlimited manner for the debts of the company created during that period.

A Cyprus Private Company Limited by Guarantee is almost the same as a Cyprus Private Company Limited by Shares only that it’s members (founders of the company) do not, typically, hold any shares, they declare that they would contribute a set amount towards the obligations of the Company in case of winding up. Usually these companies are incorporated as non-profit organizations and are used for charity purposes. A company limited by guarantee has members rather than shareholders.

Any foreign company can establish a legal presence in Cyprus through the form of a branch. There are two types of a branch:

  • Local branch of a foreign company, which is operating in Cyprus;
  • International business branch of a foreign company, which is carrying business outside Cyprus.

The branch of a foreign company must have a special features under which they should operate:

  • there must be a distinct place of business being used for carrying on the business of the enterprise, possibly premises or a site;
  • the place of business must be fixed, that is, have a certain degree of permanence;
  • the non-residents business must be carried on through this fixed place of business.

 

 

There are two types of partnership under the Cyprus jurisdiction: general partnership and limited partnership.
In general partnership the liability of the partners can considered jointly and separately with all other partners for an unlimited amount of the debts and obligations. Partner can also take part as a company with limited liability or another partnership.
Limited partnership is a partnership in which at least one off the partners must have unlimited liability for the debts and obligations of the Partnership, at the same time other partners have limited liability. Partner can also be a limited liability company.

Почему вам следует выбрать SIGTAX при открытии бизнеса на Кипре?

SIGTAX будет сопровождать вас на протяжении всего процесса регистрации. Мы предоставим вам бесплатные консультации специалистов в этой области. Мы сделаем все возможное, чтобы у нашего клиента не было проблем и забот. Мы поможем вам собрать все необходимые документы и их нотариально заверить, а также будем сопровождать вас во всех пошаговых процессах.

 

FAQ block for company registration in Cyprus

It usually takes around 10-14 working days

Yes, registered address or office is part of the registration process. 

The standard corporate tax rate is 12,5%

It depends on level of liability you require, especially for your personal assets.