Guide to Company Incorporation in Cyprus

1. What is the minimum share capital of a Cypriot Private Company Limited by Shares?
In Cyprus most entrepreneurs who start their small to medium-sized business incorporate a Private Company Limited by Shares. This company type is not required a minimum initial capital.

2. What is the minimum share capital for a Public Company Limited by Shares?
This business entity, though similar to the Private Company Limited by Shares is used for business at a larger scale. It implies no maximum number of partners and a minimum capital of CYP 15.000 (Cyprus Pounds).

3. Are there any special requirements for establishing a Private Company Limited by Shares in Cyprus?
Cypriot Private Company Limited by Shares is the most common type of entity in Cyprus and can be established by one or more partners, up to a maximum of 50. The company is handled by the management board and the shareholders are liable only to the extent of the capital invested, monetary or non-monetary. The Cypriot Law imposes a registered office in Cyprus. Usually there is no need for the company director to travel to Cyprus, as the company can be incorporated by an authorized company representative. However an important requirement is the company's bank account and some banks require for the account titular to sign the documents at the bank's headquarters. An entrepreneur is able to open a bank account in his own country at a bank that has a legal branch in Cyprus and then transfer the information.

4. How can I register for VAT in Cyprus?
Foreign traders who activate in VAT applicable trading must register for VAT. In order to do so they must complete a VAT Form and submit it to the VAT district office. In Cyprus there are four VAT districts in Nicosia, Larnaca, Limassol and Paphos. The registration can be made personally or a representative may be appointed.

5. How can I open a bank account in Cyprus?
A Private Company Limited by Shares must have a bank account in Cyprus and in order to do so some banks require the presence of the account's titular at their office. However there are plenty banks with international branches. Therefore an entrepreneur may open a bank account in his own country at a bank that has a filial in Cyprus. The information is transferred to the respective bank and original signatures are required. In order to open the bank account the procedures differ from bank to bank, but the documents required are few, including registration certificate of the company, original signatures and identification documents for the managers.

6. How can I recruit personnel in Cyprus?
Recruiting personnel in Cyprus for new foreign-owned companies is easily done. The workforce of the country is skilled and productive with a high educational level. Therefore the average salary is quite high. A company may create accounts on job specialized websites or collaborate with a recruitment agency that offers only the best suited candidates for the company's needs.

7. What is the average salary in Cyprus?
The economy of Cyprus is thriving, even in the last economically difficult years. Therefore the average salary in Cyprus is quite high ranking over 1.800 EUR.

8. What is the overall economical situation in Cyprus?
The economy of Cyprus has been continuously developing due to the well established relationship between the public and the private business sectors. Relying on natural resources important business sectors are trading an tourism. However all business sectors, especially education, information and technology receive support and incentives from the Cypriot government. Cyprus employees benefit from strong social system and enjoy a good quality of life. Foreign investment is viewed as valuable therefore various incentives in the form of loans, grants and special funds exist for certain domains. Another advantage for a foreign investor is that Cyprus offers a welcoming business environment where foreign owned companies are viewed with no difference then Cypriot ones.