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Company Registration Requirements in Cyprus

Primary Requirement for Cyprus Company Registration

  • Minimum one Director and Shareholder. Max Shareholder 50 in Pvt Co.
  • No Minimum Share Capital requirement, But standard says 5000 Euros
  • A Local Company Secretary
  • A Local Nominee Director and Local Nominee Shareholder to achieve tax residence in Cyprus

Cyprus Company Features and Overview

Though Cyprus offers many different business forms, such as several kinds of businesses and partnerships, in addition to branches and even trusts, nevertheless the most popular thing to create for business is that a Cyprus private company limited by shares, or even simply Cyprus Ltd.. This sort of company is occasionally referred to as LLC.

Cyprus companies may engage in just about any legal company, but have to obtain licences for some regulated activities such as banking, insurance, money financing, or investment advice.

A Cyprus company must have a registered office in Cyprus and create a secretary, a person or a company, resident or non-resident. The minimum number of directors and investors in a Cyprus private business is just one, and there are no legal limitations as to their nationality or residence, they can also be either individuals or companies. It needs to be noted, however, that for a business to be treated as Cyprus tax resident and also be able to enjoy all the tax benefits, it is a good idea to have a Cypriot majority board thus you may demonstrate that a firm is managed and controlled from Cyprus.

Why open a company in Cyprus?

  1. Reputable jurisdiction, member of the European Union
  2. Clear corporate law and stable tax policy
  3. One of the lowest corporate tax rates in the EU – 12.5%
  4. No legal restrictions on the residence of people who own (shareholders) or manage (directors) a Cyprus company

Pre-requisites of Company Incorporation in Cyprus

  1. Your company's name (you need to have the Title approved by the Registrar Before the actual registration)
  2. Who the shareholders are and what is the share capital
  3. Who the initial board members will be
  4. Where the registered office will be (this does Not Automatically have to be the Speech of any Real offices - it Is more of a correspondence address)

Something about Domestic (onshore) Vs. offshore companies

Cyprus used to differentiate between national (onshore) and offshore companies, where offshore companies weren't permitted to trade indoors Cyprus but appreciated a valuable tax regime. The differentiation had been abolished from 1 January 2003 in the run-up to the country's accession into the EU and was replaced with a residence-based method of taxation. Presently a uniform corporate tax rate (currently 12.5%) applies to most companies that are Cyprus tax residents. A Cyprus company is considered to be a tax resident if managed and controlled from Cyprus and also a non-resident if handled and controlled outside Cyprus. Therefore as soon as the saying"a Cyprus offshore company" is used today, it means that a Cyprus non-resident company which is not subject to taxation in Cyprus.

Step by Step Guide to Register your Company in Cyprus

Choose Your Preferred Business Entity
Primarily, you need to decide which business structure suits your investment. When evaluating the options, we strongly recommend consulting with professionals in the area and people who have undergone the same experience. It will provide you with a much broader outlook and an inside about what you should expect in some of those 3 constructions available.
Provide a Name and Check If It’s Available
Before setting up the business, you need to pick up a name that reflects your organization and assess if this title is available to use.
Draft the Articles of Association
After the name and structure are decided, you will need to draft the Article of Association. This document must include:
# The name of the company
# The purpose of it
# A list of owners
# The ownership structure and how it is divided between them
# People who own a part of the company and the percentage they own.
# The names and personal details of the company's shareholders, partners, officers, and directors as well as their respective rights and duties.
Submit Required Paperwork
The red tape may include: According to your business arrangement, you Will Need to submit certain documents and forms to the Cypriot trade register (maintained by the Department of the Registrar of Companies and Official Receiver)
Check for Necessary Licenses
When a company is specialised in a determined sector, it is subject to tighter regulations from the government. So, if you are in doubt if you need a particular license or not, consult our consultants to be sure you are on the perfect track and to prevent fines or penalties.