Cyprus Company Formation

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Cyprus

Company Formation and Related Services

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Steps for Company Formation in Cyprus

F.A.Q.

Cyprus is an important European business hub providing major advantages to foreign investors such as a low tax haven, a stable economy and a welcoming territory for any type of investments. The company registration procedure in Cyprus is basically the same for all business entities, having a simple and straightforward structure.

1) In order to incorporate a company in Cyprus, the shareholders are required to comply with certain standard and well structured procedures. Upon deciding on company registration in Cyprus, the client is asked to provide the denomination of the future entity; given that the respective denomination must firstly be checked and then reserved, the client is given the possibility to state three such names as per his/her choice.

2) At the same, the client should fill out a standard form where information on the shareholding structure and company’s intended activities is provided. Along with this form and depending on the shareholding structure the client should also provide a series of documents among which we mention: copies of the passport, utility bills, and articles of association, certificate of incorporation and certificate of good standing that are to be used in the incorporation process.

3) The next thing to do is to prepare the articles of association and other registration-related documents with the help of a local lawyer. These documents must contain the company's name, board of directors, the shareholders names and addresses and the company's headquarters and object of activity. The same should also indicate the company secretary, which, according to the Cyprus law, is mandatory for any company registration.

4) Once the company’s documents have been duly prepared they can be submitted with the Registrar of Companies in Cyprus. As a result of this last step, the founders of the Cyprus

Company obtain a Certificate of Incorporation, a Certificate of Shareholders, a Certificate of Directors and Secretary and one of the Registered Office Address.

REQUIREMENTS FOR COMPANY INCORPORATION IN CYPRUS

- Any person of any nationality or residence can be director or shareholder in a Cypriot company;

- the shareholders of a company established in Cyprus can be both natural persons or legal entities;

- a company in Cyprus must hold a local registered office (service provided by BridgeWest)

- a company in Cyprus is required by law to appoint a company secretary (service provided by BridgeWest)

- nominee services, such as nominee director and nominee shareholder, are allowed.

SERVICES PROVIDED FOR COMPANY FORMATION IN CYPRUS

-  drafting the Articles of Association (necessary for the opening a company in Cyprus);
The Articles of Association of an Cypriot company can be signed through Power of Attorney (the same applies to Public Notary proceedings, a step required by the Cypriot Law).

-  drafting all other documents required for th incorporation of the Cypriot company;
These documents include: Specimen Signatures, Special Forms provided by the Company Registration Office in Cyprus, passport copies etc.

-  arranging Public Notary procedures (The procedures for incorporating a company in Cyprus have to be done through a Cypriot Public Notary);

-  offering a Registered Office in Cyprus for your company (if required);
The registered office of a company opened in Cyprus may be any address where the Cypriot company declares to have its headquarters. The registered office will be public.

-  setting up a bank account for your Cypriot company.
This refers both to an initial share capital account as well as a current bank account after the company is opened in this country.

- recommending an accountant in Cyprus;
Accountancy services are recommended for any new business opened in Cyprus.

Incorporating a Private Company Limited by Shares (LTD) in Cyprus
This is the most common type of company used in Cyprus and it is founded by one ore more partners, up to 50. When a businessman wants to open a company in Cyprus must have a registered office in
Cyprus and a local company secretary. The shareholders subscribe shares, monetary or non monetary, which are given a nominal value and cannot be transferred. The members of a private company limited by shares are liable to the company's debts and obligations only to the extent of the nominal value of their shares. In a private company limited by shares there is no minimum required capital.

Registering a Public Company Limited by Shares (PLC) in
Cyprus
The public company limited by shares functions the same as a private company limited by shares, except that shares are freely transferable and there is no restriction as to the maximum number of partners. The minimum share capital of a public company limited by shares is CYP 15.000 (
Cyprus pounds, currency of Cyprus).

Establishing a Cypriot Branch, Subsidiary or Representative Office Any foreign company is able to set up branch entities in Cyprus. These can be set up as separate entities from the parent company (Cypriot companies having the foreign company as shareholder) or extensions of the parent-company in
Cyprus.

CYPRUS KEY FACTS

-  The standard corporate tax rate for companies that are registered in Cyprus is 10%, one of the lowest in Europe.

-  The standard VAT rate is 18%, but there is a reduced rate of 8% and 5%. There are also some services and goods to which a zero VAT rate is applied. The minimum annual turnover that a company must reach in order to be mandatory to register for VAT is 15600 EUR (or 10251 EUR for acquisition of EU goods).

-  There is no withholding tax on the dividends paid by a Cyprus company to its non Cyprus resident shareholders and no withholding tax applies on dividends received from EU subsidiaries.
Please contact us for more information and prices implied by opening a company in Cyprus.

Partner: Company Formation in Cyprus



Articles on Company Formation in Cyprus

Types of Companies in Cyprus

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Set up a Company in Cyprus

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The Department of Registrar and Official Receiver of Cyprus

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Open Company Branch or Subsidiary in Cyprus

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Shelf Company in Cyprus

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Guide to Company Incorporation in Cyprus

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Paying Taxes in Cyprus

  1. What is the corporate tax in Cyprus? The standard corporate tax rate for companies that are registered in Cyprus is 10%, one of the lowest in Europe. 2. What is the VAT in Cyprus? In Cyprus, the standard VAT rate is 18%, but there is a reduced rate of 8% and 5%. There a ...

VAT in Cyprus

1. What is the VAT rate in Cyprus? In Cyprus, the standard VAT rate is 18%, but there is a reduced rate of 8% and 5%. The 8% VAT rate is applied to transport of passengers, restaurants, accommodation, while the 5% rate applies to hair salons, maintenance of private households, confectionary products ...

Doing Business in Cyprus

Country profile Cyprus is a republic with 754,064 inhabitants, that are extended on 9,250 kilometers square. The country is actually an island, situated in the Mediterranean Sea. The capital city of Cyprus is Nicosia, with approx. 195,000 people. Other important cities include Larnaca, Limassol or P ...

Company Law in Cyprus

Anyone who wants to set up a business in Cyprus needs to be aware of the rules mentioned in the Cyprus Company Law, cap. 113, which is considered to be inspired by the English Companies Act 1948. Anyway, there were some amendments to the Companies Law, which were introduced in 2000 and 2001. As a co ...

Foreign Investments in Cyprus

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Why Invest in Cyprus

Many elements contribute to making Cyprus an attractive option for foreign investments. Doing business on this island is facilitated by location, infrastructure, work force and tax system. Besides, the Central Bank of Cyprus provides sufficient data to consider that Cyprus has a high potential in te ...

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 ...

Setting up a Joint Stock Company (PLC) in Cyprus

Joint Stock Companies in Cyprus are public companies limited by shares (PLC). As a matter of fact, any company without the restrictions applicable to private companies limited by shares is a public company. A PLC has access to capital markets and may sell its shares to the public, as well as being l ...

Lawyer in Cyprus

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Cyprus Public Notary (Certifying Officer)

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Cyprus Accountant

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Power of Attorney in Cyprus

A power of attorney in Cyprus is a formal means of handing over one’s authority to make decisions on another person’s behalf. The activities that the attorney is entitled to perform are usually defined in the power of attorney in Cyprus. These actions may include representation in legal ...

Business Start-up Costs in Cyprus

1. What is the minimum share capital? One can choose between two most popular types of companies that are usually set up in Cyprus. For a Private Company Limited by shares, there is no minimum share capital required, but if the choice is the establishment of a Public Company limited by shares, then ...

Company Liquidation in Cyprus

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Open a Representative Office in Cyprus

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Register a Non Profit Organization in Cyprus

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Nominee Director in Cyprus

 In Cyprus is a popular fact that the confidentiality of the beneficial owners of the private or public companies limited by shares in Cyprus is assured by appointing a nominee director. Any entity, individual or corporate body can be appointed to replace the beneficial owners stated in the inc ...

Open Business in Cyprus
We guarantee a cost-efficient solution for full company setup, bank account and VAT registration

Meet us in Nicosia

Call us now at +44 203 287 0408 to set up an appointment with our lawyers and accountants in Nicosia, Cyprus. Alternatively you can incorporate your company without traveling to Cyprus.

As a BridgeWest client, you will beneficiate from the joint expertize of local lawyers and international consultants. Together we will be able to offer you the specialized help you require for your business start-up in Cyprus.