Cyprus offers a range of benefits for businesses looking to establish a presence in the region. From its favorable tax regime to its strategic location and business-friendly environment, there are numerous reasons why you may wish to consider registering a company in Cyprus.
The main legislative body governing the rules and policies of corporations in Cyprus is the Companies Law, Cap.113, which adopted almost identical provisions with the English Companies Law of 1948.
The procedure to register a company in Cyprus is rapid and straight – forward procedure that is generally completed within few days. All procedures may be done distantly as the physical presence of the beneficial owner in Cyprus is not required. Cyprus has one of the lowest tax rates in Europe; subject to 12.5% corporate tax.
Consultation
Firstly, you need to come across the right person to assist you with consultation, who will provide guidance with the required procedure in Cyprus in order to register a company successfully.
A business structure must be made to guide you with the legal structure of your business; a public limited company (PLC), a private limited company (Ltd), a sole trader, and a partnership.
Bear in mind, documents may be asked such as a copy of the passport and address (utility bill is required) of the partners, as well as directors and shareholders. Your partner/s can be appointed as directors, shareholders, and secretary as it is not necessary for a new person to be appointed.
- Please note, according to Cyprus Law, a company must have at least one shareholder, a director, and a secretary, and a registered office address in Cyprus, used for communication purposes. This is not the business address of the company.
At this stage, documents may be asked to be signed relating to the fee.
Secondly, you have to come up with a name for your company that is going to be attractive.
Once, you choose the name it can be reserved for six months to the Department of Registrar of Companies and Official Receiver (DR – COR).
Incorporation
When all of the above is settled, you are ready to register a company in Cyprus.
Company document preparation is needed which includes the address of the subscribers, the amount of share capital, the name of subscribers, and the number of shares.
The next step is to draft Memorandum and Articles of Association which defines/describe the objectives, rules, and regulations of your company and it must be signed by the director/s and shareholder/s of the company.
Once the registration is approved, the DR – COR will provide you with the following documents: Memorandum and Articles of Association signed by the DR – COR, Certificate of director/s and secretary, certificate of shareholder/s. certificate of registered office, certificate of Incorporation.
Post Incorporation
Once the registration with the Registrar of Companies, a Tax Identification Number (TIN) must be obtained from the Cyprus Tax Department as it is required for tax transactions related to Cyprus. VAT Registration is essential if your turnover is expected to be equal to or more than €15.600.
In case, you would like to employ staff in Cyprus, your company must register with the Social Insurance, Ministry of Labor, and Welfare in order to make contributions to the related schemes.
Opening a bank account in Cyprus can be helpful to pay taxes as well as any business transactions. It is not necessary though if you don’t wish to employ staff in Cyprus. You can apply to open a bank account in any country you wish.
If you are residing abroad, the process of registering a company in Cyprus can be tedious. However, employing the services of our firm can be very simple. Our team can assist you to navigate the complexities of setting up and planning a business in Cyprus, as we have a deep understanding of the Cyprus legal and regulatory environment.
Article written by
Maria Demosthenous
