Registration of the company in Cyprus
Cyprus was a colony of Great Britain, but now it is an independent country and an EU member. Besides, Cyprus is consider financial heaven. For the last few decades, the authority built one of the most flexible taxation systems in the world.
The procedure registration of the company in Cyprus
Step 1. Choosing the legal entity for the company.
The most common options are:
- Limited liability company. They can be public or private, the difference depends on your plans and shares. In the private company all the shareholders are liable for the company debts. The public company is responsible for the affairs by itself. The legislation puts demands to the minimum share capital of the public company – at least 25 650 Euros. The private company is unlimited in capital formation.
- Representative offices of foreign companies. Your business will be operate in Cyprus according to the local legislation. But the parental company will be situated in other country.
- Partnerships. You can conduct a general or limited partnership. The main requirement of this type of entity is a number of owners – at least 2 partners.
- Sole proprietorships. If you plan to manage a business by yourself, it will be the simplest variant to set up a company in Cyprus.
Step 2. Documents for registration.
You have to submit:
- notarized copies of passports;
- the naming of a company (you should check it in the Trade Register first). It is useful to choose a few names if the preferred name will be occupied;
- notarized founding documents;
- documents of the director and secretary (copies of passports);
- bank account;
- the legal address of the company – you have to buy or rent a real office in Cyprus.
Pay attention. Nuances in the procedure for different companies
LTD is the most common type of company in Cyprus. You can set up a business on your own or include partners. In this case, it is important to record how the profit will be share among all shareholders. The presence of the Secretary’s position is obligatory.
In a private type of company, you can form any share capital. It can be a winning condition for the small business. But in case of losses, all the shareholders will be liable for their cover.
So, the public company suggests financial protection for its owners. The only problem can be connect with the number of shareholders. You need at least 7 members.
It is also possible to register an offshore in Cyprus. This option assumes that the main founds of the company will be located outside the country. Nevertheless, the procedure for company registration is similar to other legal entities. You should pay attention to this variant, as an offshore company pays lower taxes and provides the owners with increased security and privacy.
No matter what option do you choose, you still need a real office in Cyprus. It is a strong requirement, which can not be dropped. The best way to save time and to be sure that affairs are going well is to hire a local agent.
There is a great number of such agents in the Cyprus market. This person will help you to operate a business, recruit personnel and control the finance if you are abroad.
Step 3. Applying for the Certificate of Registration
If your documents are notarized, you still need to fill an application in the Trade Register. After the approval, you will receive a specific Certificate. There is no need to renew it – the certificate is valid until the liquidation of the company.
Step 4. Tax and licenses
With the Certificate of Registration, you can submit the documents for taxation and licenses (if you need to). Only after getting the confirmation from the tax and government, authority you can start providing services in Cyprus and abroad.
Fees for business registration
Each step of company registration is payable. A total cost depends on the type of legal entity you choose for business.
The first fee should be pay during the name registration. It will cost you approximately 30 Euros. The second fee is make for including the company to the official Register.
Do not forget about other payouts:
- notary’s fee for the document approval;
- office rent;
- staff salary;
- bank account opening and further service;
- share capital.
- name reservation will take 1 day;
- preparing documents – up to 3 days;
- submitting documents – 2-4 days;
- registration for taxation – 1 or 2 days.
Eternity Law International will gladly help you with registration of the copmany in Cyprus, and our specialists will answer all your questions. Take advantage of our many years of practical experience – save your time and your money.
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