Register a Company in Cyprus
Legal form: A duly incorporated Cyprus company constitutes a separate legal entity and may sue and be sued on its own name. A Cyprus company may take a form of a private Limited Liability Company either limited by shares or by personal guarantee of its members.
Company name: A company name must be chosen and approved by the Registrar of Companies. This procedure usually takes 2-4 working days.
Memorandum and Articles of Association: To register a limited liability company, Memorandum and Articles of Association must be prepared by a licensed law practitioner and filed at the Office of the Registrar of Companies. The Memorandum specifies the activities in which the company may engage and the Articles of Association specify the rules governing the internal management of the company.
Shareholders: The number of Shareholders in a private Limited Liability Company may be from 1 to 50. A Shareholder can be a physical or legal person of any nationality. Details of Shareholders such as their names, address, date of birth, passport number and nationality must be submitted to the Registrar of Companies. Beneficial owners of the company have the option not to disclose their details should they wish so. They may use nominee Shareholder/s that our firm can provide by virtue of a personal agreement or a Deed of Trust.
The minimum share capital: A Cyprus limited liability company should have a minimum authorized share capital of 1,000 Euro. The minimum issued capital is one share of 1.00 Euro.
Company Directors and Secretary: The minimum number of Directors is one. The company must have a Cyprus resident Secretary (individual or legal entity). The Director can be a physical or legal person of any nationality. The same person cannot act as both the Director and Secretary if there is only one Director in the company. The Registrar of Companies keeps the following details of company Directors and Secretaries: full name, nationality (or country of registration in the case of a body corporate), residential address (or registered address in the case of a body corporate), date of birth (or incorporation), passport number (registration number) and occupation. Our firm can provide you with nominee Director/s (if this service is required) for a reasonable fee.
Registered office: Every company is required to have a registered office and address in Cyprus which should be notified at the Registrar’s Office.
Basic Tax Principles: According to Cyprus Tax laws, Cyprus registered companies are considered to be Cyprus tax residents by default and are taxed at 10% on profit. However, non-resident companies are not subject to Cyprus tax provided that the company management and control are exercised outside Cyprus and the company does not derive any income in Cyprus. It should be noted that in such case the company might not take advantage of the Cyprus double tax treaties network.
Fixed Annual Levy: On 26th August 2011 The House of Representatives of Cyprus announced a fixed Annual Levy of €350 per annum on all companies which is payable by the 31st December each year. Non-payment of the levy may result in deregistration by the Cyprus Register of Companies.
Double Taxation Agreements: Cyprus has concluded 44 double tax treaties with: Austria, Armenia, Bulgaria, Belarus, Belgium, Canada, China, the Czech Republic, Denmark, Egypt, France, Germany, Greece, Hungary, India, Ireland, Italy, Kuwait, Kyrgyzstan, Lebanon, Malta, Mauritius, Moldova, Montenegro, Norway, Qatar, Poland, Romania, Russia, Singapore, Slovenia, South Africa, Sweden, Syria, San Marino, Serbia, Seychelles, Tadzhikistan, Thailand, Ukraine, United Arab Emirates, United Kingdom and USA.
Submission of audited financial statements: A Cyprus company must submit audited financial statements to local Tax Authorities and Cyprus Company Registrar.
The Company Law requires that a Cyprus company maintains proper accounting records in accordance with the International Accounting Standards. The first reporting period can be up to 18 months from the date of incorporation and thereafter financial statements must be prepared annually. A Cyprus Auditor is required to be appointed.
The Cyprus companies have to prepare and submit their annual tax returns to the Tax Authorities by 31st of December following their year-end.
Offices in Cyprus: A Cyprus company may operate from abroad or may have a fully-fledged office in Cyprus. There are certain regulations and procedures that must be fulfilled in case a businessman wishes to establish a fully-fledged office in Cyprus.
Meetings: Company meetings need not be held in Cyprus.
Time needed for formation: From 2 to 3 weeks. Priority claim can be requested.