When deciding on the name of your company, please let us have two or three alternatives, in order to give flexibility to the Registrar of Companies to choose and approve the names to be used. Any name which is not similar to a name already registered can be approved by the Registrar but words such as King, Queen, Corporation etc cannot be accepted. We propose company names to the Registrar of Companies for approval. This usually takes 3-5 days. Once approval for the company name is obtained, the Memorandum and Articles of association of the company are prepared and submitted for registration to the Registrar of Companies.
Requirements for setting up a company in Cyprus
The detailed requirements and pertinent information for setting up a Company in Cyprus are:
Name of Company
Memorandum and Articles of Association
Every Cypriot limited liability company must have a Memorandum and Articles of Association, which specifies the activities in which the company may engage (known as the object clauses) and the means by which it will conduct itself. We are able to offer one which has proved itself to be trouble-free in practice, but some tailoring will be required. In particular, the first three main object clauses must include the main proposed activities of your company. Therefore, we will require from you precise details of these activities and then we can design an appropriate description.
Share Capital
There are no legal requirements as to the minimum or maximum share capital of the company. Not all shares have to be subscribed for. However, no money has to be paid in a bank account of the company and/or no share capital amounts are blocked.
Shareholders
There must be a minimum of one shareholder and if anonymity is required, the shares may be held by trustee companies in Cyprus in trust for the beneficial owners, without public disclosure of their identity.
The following information is needed for each shareholder:
- Full Name
- Address
- Passport Number
- Nationality
- Occupation and
- Number of shares to be held
- Bank Reference or Utility Bill
Secretary
The secretary is recognized by the law as an officer of the company appointed by and responsible to the directors. The responsibilities of the secretary include mainly the maintenance of the statutory books and the minute books.
Director
Every company must have at least one director who may be an individual or a company. For each director you wish to appoint, we need the following:
- Full Name
- Residential Address
- Occupation
- Nationality
- Passport copies (data page only)
If you wish, a nominee director can be appointed by our office. The nominee local director is suitable in cases where:
- you want to maintain anonymity, and/or
- the management and control of the company is to be exercised in Cyprus, and therefore the company is to be taxed in Cyprus.
Registered address
Every company must have a registered office locally. The registered office is the place where official documents can be served upon the company. The business address of the company is not necessary to be the same as the registered office address and it can be anywhere in the world. Our office address will be used as the registered office address unless you advise us otherwise.
Period needed to register a company
The time required for the incorporation of a Cyprus Company is about 20 working days from the date we receive the required information from client and the approval of the company name from the Registrar.
Bankers, currency and signatories
The company may open bank accounts with any bank in most of the main currencies and money transfers can be affected without foreign exchange restrictions. If there is a preference for a particular bank, please give the name of the bank, the type of account and currency, as well as the signatories of accounts.
Annual Reporting
Annual accounts audited by independent qualified auditors must be submitted. Annual Tax Return must be submitted.
Taxation
- Corporate tax rate is 10%, the lowest in Europe.
- No withholding tax is imposed on the payment of dividends, interest or royalties, made from Cyprus Company to any company or individual in any country in the world.
- Tax losses can be carried forward indefinitely to be set-off against future profits.
Confidentiality
The public records kept at the Registrar of Companies will show the names of the registered shareholders of the company. If you wish, nominee shareholders can be appointed by our office to maintain anonymity of the beneficial shareholders. The public records will show the names of the nominee shareholders of the company. A declaration of trust and a blank transfer of shares will be given by the nominee shareholders.
Trading Restriction
No restrictions. Permits for certain types of business must be obtained prior to the commencement of operations.
Formation costs
The formation costs for a company vary according to share capital involved and other factors. Our professionals can discuss clients’needs and give a made to measure fee.
Company certificates and documents
On registration of the company, we can supply the owners with full documentation, properly legalized and translated into English comprising:
- Certificate of registration
- Memorandum and Articles of association
- List of Directors, Secretary and shareholders
- Address of the company’s registered office
- Share Certificate(s)
- Power of Attorney (annually)
- Any other information concerning the company’s activities up to the date of its establishment.