Setting up a Limited Liability Company (LTD) in Cyprus

A Limited Liability Company in Cyprus is regulated by the Cyprus Company Law, Chapter 113, being the most popular form of business that foreign investors choose when coming to Cyprus. One entrepreneur can choose to form a company as holding, property or general trading company.

Capital

There is no minimum capital required for setting up a Limited liability Company in Cyprus. The currency of the capital is euro and the amount is divided into shares of any value. At request, the company’s capital may also be expressed in another currency. The total capital is called Authorised or Nominal Capital, while Paid up Capital is the part of the Nominal Capital that has been paid up by shareholders.

Shareholders

The LTD company in Cyprus must have a minimum of one registered shareholder and a maximum of 50 members.  For the company’s registration process, the following information is requested about each of the founders: full name, nationality, address, profession and number of shares to be taken up. It is not compulsory for the shareholders to be residents in Cyprus.

Management

It is recommended that the limited liability company in Cyprus has at least two directors, but the business can also be run by only one director. It would also be better to have at least one Cypriot Director, due to the facilities for tax purposes in Cyprus. Anyway, this condition is not compulsory. At registration, it is necessary to provide the Director’s full name, nationality, address, profession and a copy of the passport. The LTD also needs to appoint a secretary, who has to be a resident in Cyprus and who will act under the control of the Directors.

Control

Any limited liability company registered in Cyprus need to have a local accountant that issue annual audited accounts. A copy of the documents has to be submitted to the Department of Inland Revenue. Moreover, an annual return in statutory form has to be submitted to the Registrar of Companies. The document has to provide information about share capital, shareholders, directors, secretary and registered office. Any changes have to be registered with the Registrar of Companies.

Other requirements

The Registrar of Companies has to approve the LTD’s name when starting the registration process. This is way it is recommended that several names are proposed. Nevertheless, any company needs to have a registered office in Cyprus, where the limited liability company’s official documents are sent and kept.