:
registration of legal entity

Cost of registration The cost of the second year Number of Directors Corporate tax rates Payment of Charter Capital Financial statements
1995.00 USD 1990.00 USD 1 12.50% No Yes

COMPANY FORMATION IN CYPRUS

incorporation cyprus

The Republic of Cyprus is a former British colony and a current member state of the European Union. It is located in the Mediterranean Sea bordered by Turkey (to the south), Syria (to the west) and Kastellorizo (a Greek Island to the east) with a population of 1.2 million people. Cyprus’s capital and financial hub is Nicosia. Its official languages are Greek and Turkish, although English is widely spoken due to the past British colonial rule. 

The Euro (EUR) became it’s official currency in the year, 2008 with its economy strongly dependent on the service sector (that is equivalent to 4/5 of the country’s GDP). Tourism is the main part of the country’s service sector, with about two (2) million visitors every year; then you have the financial and asset management sector.

Cyprus is one of the most favourable European environment to start or set up a company or business, and so, it is referred to as the gateway of the European common market due to the favourable tax policies, economy and other foreign investment laws.

It is chosen by many non-EU companies and serves as a portal of investment from the western world into Russia, the Middle east, Asia and South America. It is also a shipping hub with the Cypriot registered vessel, the fourth largest in the world and a large revenue provider. The Republic of Cyprus is an exporter of citrus fruits, cement, potatoes, clothing and pharmaceuticals.

Many entrepreneurs/businessmen are eager to start up offshore company in Cyprus, but however, it is important to know that Cyprus is not an offshore zone in a traditional sense because companies in Cyprus must undergo the state registration process, submission of financial statements and hold annual shareholders' meetings.

ADVANTAGES OF OFFSHORE COMPANY REGISTRATION IN CYPRUS

  1. Cyprus has a far more stronger international reputation in comparison to other classic offshore jurisdictions. It is not on the "black list" of world offshore companies.
  2. Cyprus has signed agreements on double taxation with 60 countries.
  3. The financial statements in Cyprus are submitted in accordance with international standards.
  4. Cyprus has one of the lowest corporate tax rates in Europe.
  5. Many categories of expenses can be referred to prime cost.
  6. Extremely favourable conditions for the development of holding companies (there is no consolidation tax, and activity of a controlled foreign company is not regulated) with the main activity related to control of assets in other Cypriot companies.
  7. No tax on international/external dividends, on capital gains, on income from sales of securities.
  8. Simplicity of the registration procedure, and the low cost of maintaining the company.
  9. Possibility to trade with European companies (obtaining the VAT number).
  10. Convenience to operate with loans via Cyprus offshore company.
  11. No currency control.
  12. If foreign experts of an offshore company in Cyprus work beyond the jurisdiction, they pay an income tax varying from 0% to 2%.
  13. Non-resident of Cyprus, who is the successor to the estate, is not subject to taxation.
  14. The possibility of using nominal service.
  15. Losses can be rolled over to subsequent tax periods until they are covered by income.
  16. Enhanced protection offered to its shareholders from a privacy point of view.

REGISTRATION REQUIREMENTS OF COMPANY IN CYPRUS

Organizational Requirements

These are the organizational registration requirements for the formation of a new company in Cyprus. They include:

  1. A minimum of one director;
  2. A minimum of one shareholder;
  3. An individual can be both a shareholder and director;
  4. A registered and verified Cyprus address is required;
  5. The company must have a secretary (the individual can be a resident or non-resident);
  6. The use of nominal service is allowed.

If the following requirements are not met, there are certain restrictions placed on business activities which involves banking, insurance, financial services and much more without obtaining a special permit.

Requirements of Company Name

  1. A company name can be prepared in any language with the use of Roman or     Greek alphabet, provided that the translation into Greek or English is submitted.     At the same time, the name should be officially recognized as euphonic.
  2. It is prohibited to use names similar or analogous to existing ones.
  3. The names containing hint of illegality or connection with the patronage of     royal families will not be registered.
  4. The companies with names containing such words as "trust", "bank",     "insurance", "reinsurance" are subject to licensing.
  5. The name should end with the word “Limited (Ltd)”.

Documentation Requirements

There are certain documentation requirements that must be met for the incorporation of a company in Cyprus. They include:

  • Certificate of incorporation (English/Greek);
  • The Director’s certificate; 
  • The Secretary’s certificate;
  • The Shareholder’s certificate;
  • The Registered Address certificate;  
  • Passport copies of the shareholders (must be notarized)
  • Apostille of binded copies of Constitutive documents 
  • The Memorandum and Articles of Association of the company (must be notarized too);
  • Excerpts from the first Meeting of the Board of Directors; 
  • Non Trading Warranty;
  • Company’s chosen name approval from the Trade Register;
  • Bank statement indicating the deposit of the share capital of the business.

cost of company registration in cyprus

MANAGEMENT OF A COMPANY IN CYPRUS

In accordance with the norms of the legal system of Cyprus, control over the activities of an enterprise is carried out via voting at the shareholders' meeting. At the same time, entitling documents retain the right to daily control over the board of directors.

In order to steer clear from illegal actions of the director, the shareholders of a company are entitled to impose restrictions on his authority.

In order to retain the status of an offshore company in Cyprus, the enterprise must conduct business activities, and shareholders’ meetings should take place beyond the jurisdiction.

It is important for resident company that all decisions are made within the territory of Cyprus.

Peculiarities of the company in Cyprus:

  • Information about beneficial owners or shareholders is public and stored in the central bank of the Republic of Cyprus.
  • If the identification of the owner of the company can lead to any negative consequences, it is necessary to preserve the anonymity of the data. This can be achieved by applying mechanism for the use of bearer shares or trust declaration.

TAXES IN CYPRUS

The Cyprus company pays the income tax of 12.5% (the rate was set in 2013). 

In Cyprus, there are no inheritance, real property, net wealth and municipal taxes. There is an immovable property transfer tax up to 8%. Value-added tax is 19%. The income from dividends and transactions with securities are not subject to taxation.

COMPANY REPORTING

Offshore in Cyprus should annually submit:

  1. Tax return;
  2. Financial statements containing report of an independent auditor;
  3. Financial report compiled in Greek;
  4. Annual report containing information on shareholders, secretaries, directors.

The first three types of reporting are submitted to the Tax Department of Cyprus, and the report in Greek to the Registration Chamber.
Even in the absence of dynamic activities of the company and lack of accrued taxes, an offshore company in Cyprus must submit reports certified by the auditor.

WHAT TYPES OF COMPANIES CAN BE OPENED IN CYPRUS

When planning to open a company in Cyprus. These are the various types of companies that can be opened in Cyprus.

  1. Limited Liability company. This could either be a private limited liability company or a public limited liability company.
  2. Partnership (General and limited partnership).
  3. A branch of a foreign company. It’s possible to open a branch or a foreign office in Cyprus.
  4. Sole Proprietorship.

CYPRUS COMPANY FORMATION FAQS

  • How long does it take to register a new company in Cyprus?

Cyprus company registration could take up to 30 days.

  • How much does it cost to register offshore in Cyprus?

The cost of registering a company in Cyprus costs $1995 but from the second year, it will cost $1990.

WHY INCORPORATE WITH LAW&TRUST INTERNATIONAL?

  • Full range of related services: Provision of a full range of legal, corporate, government, and business intelligence related services.
  • Professionals and expertise of Law: Worldwide registration and legal maintenance of companies, accounting services and audit, tax planning and optimization, trademark and patent registration, and many more. Top professionals are always available to help your business.
  • Thorough domestic service: Law &Trust ensure our services cover every province or region in Cyprus. No matter where you decide, be rest assured we got the location covered.
  • Free initial advice: Lawyers of Law and Trust provide free initial advice, as well as services for analyzing and developing a legal position on the issue you have raised.
  • Fast and safe: Law&Trust keeps every clients’ details secured.
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Set of documents
   
  • Certificate of incorporation (English) 
  • Certificate of incorporation (Greek) 
  • Apostille of the bound set of copies of Constitutive documents 
  • Written Resolution of the Subscriber to the Memorandum of Association 
  • Certificate of Director and Secretary 
  • Certificate of Shareholders 
  • Certificate of Registered Address 
  • Minutes of the first Meeting of the Board of Directors 
  • Share Certiciates 
  • Non Trading Warranty 
Nominee director and shareholder
 

Price: +665 USD

 
  • Power of Attorney 
  • Director Resignation Letter 
  • Secretary Resignation Letter 
  • Nominee Director’s Declaration 
  • Deed of Indemnity 
  • Deed of Trust 
  • Instrument of Transfer 
  • Tax Certificate 
  • Certificate of Good Standing 

General information
Square9 250.00
Population138 071.00
CapitalNicosia
Unemployment5.10
State polityPresidential republic
Telephone code357
Place in the world in corruption30
locationAn island in the north eastern Mediterranean Sea
ClimateMediterranean with hot, dry summers and cool winters; avg. maximum temperature (August) +35°; avg. minimum temperature (January) 0°
Literacy rate97.60%
Ethnic groupsGreek Cypriots - 77%; Turkish Cypriots - 18%; other minorities - 5%
USD exchange rate0.75
GDP per capita47
Official languageGreek and Turkish
Credit ratingBB+
The judiciarySupreme Court (judges are appointed jointly by the President and Vice President)
Executive authorityCouncil of Ministers appointed jointly by the President and Vice President
Legislative authoritiesUnicameral parliament: House of Representatives (80 seats; 56 assigned to the Greek Cypriots, 24 to Turkish Cypriots, but only those assigned to Greek Cypriots are filled; members are elected by popular vote to serve five-year terms)
Corporate information
Opportunity to purchase ready-made companiesYes
Legal systemBased on English common law, with civil law modifications
Terms of purchasing ready-made company10 to 30 working days
The use of the Cyrillic alphabet in the nameNo
Local registered officeYes
Organizational and Legal FormsPrivate company limited by shares, Exempt private company, Public company limited by shares, Company limited by guarantee, Branch of overseas company, General partnership, Limited partnership, Sole Proprietorship, Trust
Terms of registration15 to 25 working days (3 to 6 working days with payment of acceleration fee)
Indication of BPA in the nameLimited or Ltd.
Prohibited expressions in the nameAsset Management, Asset Manager, Assurance, Bank, Banking, Broker(s),Brokerage, Capital, Credit, Currency(ies), Custodian(s), Custody, Dealer(s), Dealing, Deposit(s), Derivative(s), Exchange, Fiduciary(ies), Finance, Financial, Fund(s), Future(s), Insurance, Lending, Loan(s), Lender(s), Option(s), Pension(s), Portfolio, Reserve, Savings, Security(ies), Stock, Trust, Trustees
Local registered agentNo
The information required to be kept at the registered officeRegister of directors and secretaries; register of members; books containing the minutes of any general meeting; register of holders of debentures; copies of instruments creating charges and mortgages, register of charges, book of mortgages, other
Shares and share capital
Standard currencyEUR
The minimum amount of the issued capital1 share
Bearer sharesNo
Terms of payment of the issued capitalImmediately after the release, or in the terms stipulated by the terms of issue and specified in the relevant decision on the issue
Terms of capital paymentNo restrictions
Possibility to issue shares without par valueNo
Taxation
VATYes
Basic corporate tax rate12.50%
Capital gains taxYes
Withholding taxYes
Currency controlNo
The tax on personal incomeProgressive from 0% to 35%. Special Defence Contribution tax applies to dividends (17%) and interest income (30%) instead of Personal Income tax. For rental income, a Special Defence Contribution tax of 2.25% is charged in addition to personal income tax.
Corporate tax rates details10%
Stamp dutyYes
Other taxesSpecial defence contribution tax, Immovable property tax, Social insurance contributions, Social Cohesion Fund contributions, Motor vehicle tax, Import and excise duties, Immovable property transfer fees
Director and Secretary
Minimum number of directors1
The requirement for residency directorsNo
Director of legal entities are allowedYes
The data reveals to the local agentYes
Data field to the public registryYes
Meeting / regularity / placeNo restrictions
The requirement for the presence of the SecretaryYes
Requirement to the residense of the SecretaryYes
Requirements to qualification of the SecretaryNo
Legal entity as the SecretaryYes
Shareholder and beneficiary
Minimum number of shareholders1
Data is entered in the public registerYes
Shareholders residency requirementNo
Information about the beneficiary is disclosedNo
Information may be disclosed to the local agentYes
Shareholders-legal entities are acceptableYes
Meeting / regularity / placeYes / annually / no restrictions
Reporting
The requirement for filing reportsYes
Open access to reportsYes
Statutory auditYes
The requirement for filing Annual ReturnYes
Open access to the Annual ReturnYes
The requirement for reportsYes
Treaty on avoidance of double taxation (States which signed)64
Membership in the OECDNo
Is it offshore according to Russian legislationYes
Trademark Registration
TM Comprehensive Study TM Registration Request TM Registration Certificate Total
First Class Additional Class First Class Additional Class First Class Additional Class First Class Additional Class
153.00 153.00 743.40 743.40 230.40 0.00 1126.80 USD 896.40 USD
«TRADEMARK» refers to «Wordmark», «Logo» or «Wordmark + Logo»

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In Cyprus, Trademark Comprehensive Studies are for word marks only.
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