Advantages and benefits of registering a company in Cyprus:
- The use of a nominee director and shareholder is permitted to ensure complete confidentiality and anonymity.
- The authorized capital of the company does not have to be fully paid in cash at the time of incorporation. You can pay it later at any stage.
- A legal entity, established in Cyprus is considered a company established by the European Union. Accordingly, this “belonging” is a good indicator for cooperation with serious companies around the world.
- Annual corporate expenses and maintenance costs are low compared to other countries.
- In order for the Cypriot company to make payments for services/works/goods, it is also necessary to have a bank account, which you can open anywhere in the world.
- You can receive your European Union VAT registration number within 48 hours.
- In the event that you choose to nominate nominees, you may obtain full power of attorney to carry out all or any of the Company’s operations that you desire.
- You can register a legal entity without visiting Cyprus, even if you are going to become a director yourself.
- You may have a virtual office in Cyprus as headquarters, a dedicated phone line, fax, email account, and office space to meet with clients.
- You can manage the established Cyprus offshore company remotely while doing business on the other side of the world .
- Tax benefits :
- the favorable tax legislation:one of the lowest corporate tax rates in Europe a mere of 12.5% on profits;
- exemption from participation in dividends;
- there are no taxes on the distribution of dividends or the payment of interest and patent rights (when used outside of Cyprus) to non-tax residents of Cyprus;
- there are no social security contributions for shareholders;
- dividends between Cypriot companies are tax-deductible, with tax deductions and dividends from foreign investments (according to criteria that are easy to meet);
- capital gains tax is levied only on real estate located in Cyprus or on the shares of a private company owning property in Cyprus;
- profits from the sale of securities (including shares) are not taxable;
- – business reorganization (for example, through a merger, acquisition or division) is not taxed;
- profits earned by a permanent establishment abroad (outside Cyprus) are not taxed. This fact once again testifies to the attractiveness of Cyprus for foreign investors;
- a company in Cyprus pays only 2.5% tax on all profits from owning or trading intellectual property rights such as patents, trade names, trademarks, music, sports or science rights, etc.
- The registration of a Cyprus company entitles the real owner and his family members to a long-term visa for two years (with the possibility of extension) and a work permit.
- A Cypriot company may be re-registered abroad in any other country.
- Cyprus has signed dozens of double tax treaties around the world (with more than 55 countries).
- You can also obtain a Cyprus forex license, which allows you to engage in foreign exchange activities and operate as a regulated financial institution. This license provides credibility and regulatory oversight, making it an attractive option for those involved in the forex industry. With a Cyprus forex license, you can conduct your forex business with confidence and benefit from the favorable business environment Cyprus offers.
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How to open a company in Cyprus
- Choose the right legal entity. The most important and first step during the process of organizing your business will be to determine the structure to be used. By understanding your business objectives and activities, our team of dedicated consultants will recommend the most appropriate legal entity for your business;
- Select and reserve a unique name for a future legal entity with the Companies Register;
- Determine the amount of share capital;
- Identify the future shareholders: the legislation governing the formation of a company in Cyprus provides that there must be at least one registered shareholder;
- Appoint directors: there must be at least one director – directors can be of any nationality;
- Choose a secretary: a company established in Cyprus must have a secretary;
- Have a certified copy of the passport and current utility bill of each of the owners and shareholders to meet Anti Money Laundering Requirements. This is required even if you plan to use a nominee service.
- Register your office: every legal entity, registered in Cyprus must have a registered local office;
- Define the scope of activities of the future business: this action is necessary for the Memorandum and Articles of Association of the future company;
- Based on the above information, prepare the necessary documents for the incorporation;
- Having a set of all necessary documents, the next step is to submit them to the Cyprus Registrar of Companies and further confirmation of the documents provided by you.
- Submit the relevant fees and get the result. If you provide all the required documents, information, and fees, you will most likely become the owner of a business registered in Cyprus.
- The final stage of creating a new company is registered with the Tax Department. The Cyprus legal entity also needs to obtain registration for VAT and social security contributions.
- In order to make payments, every business must have an open corporate bank account.
- In addition, it is worth remembering that depending on the type of business you plan to engage in Cyprus, there may be a need to issue permits: you will need to apply for various special licenses or permits. It is the presence of such documents that will allow you to legally engage in business, the creation of which you will spend some time. In order not to be distracted by the above (but such mandatory nuances), you should contact specialists who will take into account all your wishes and Cyprus company formation without any problems!
Required documents for setting up a company in Cyprus
- name approval consent;
- original Memorandum and Articles of Association;
- declaration form (known as HE1 form);
- declaration of registered office address Form concerning (known as HE2 form);
- form containing details on the legal entity Directors and Secretary (known as HE3 form);
- list of employees who will act as directors, in case of a public company (HE5).
- Certified Memorandum and Articles of Association;
- Certificates of Incorporation;
- Certificates of Shareholders;
- Certificates of Directors and Secretary;
- Certificate of registered office address;
- Share Certificates.
- Form 162 which is filled out for registration as a taxpayer with further receipt of a Tax Identification Number (TIN);
- Form 101 for registration for VAT ( filled out when the VAT limit is reached or by willful registration).
Choosing a business entity
Company name
- the name is similar or identical to the name of another existing registered business;
- common name;
- the name is descriptive;
- the name is misleading (for example, if it suggests a non-existent royal/national or international connection);
- the company name represents a geographic location.
Applying for company registration
- a statutory declaration (form HE1) signed and sworn before the court by the entrusted lawyer;
– the Memorandum and Articles of Association in accordance with the proposed type of the company, duly signed in the Greek language. In case a private or public limited liability company with shares chooses to adopt, as its Articles of Association, the regulations contained in Table A of Schedule I of the Companies Law, a relevant document should be submitted which refers to the title of the regulations that are being adopted; - a solemn declaration of the witness of signatures is completed;
- a certified translation of the Memorandum and Articles of Association into a language other than Greek. A certified translation of the specified documents by an affidavit or by a sworn translator of the Republic of Cyprus is also allowed, in case you wish to create a file of translations for obtaining certified copies of the Memorandum and Articles of Association in a foreign language;
- permission, consent or prior approval of the relevant state body or the relevant body in case it is necessary for the use of certain words or phrases and/or in connection with the business activity, in case the listed documents were not submitted together with the application for approval of the name.
To accelerate the business registration process, an additional fee must be paid.
When registering a public company you also need to submit form HE5 with payment of an additional fee.
- a statutory declaration (form HE1) signed and sworn by the entrusted lawyer before the court;
- a notification of the business’s registered office address (form HE2);
- a notification in relation to the information of the company’s first directors and secretary (form HE3);
- the memorandum and articles of association in accordance with the proposed type of legal entity duly signed in the Greek language. In case a private or public limited liability company with shares chooses to adopt as its articles of association the regulations contained in Table A of Schedule I of the Companies Law, a relevant document should be submitted which refers to the title of the regulations that are being adopted;
- a certified translation of the Memorandum and Articles of Association into a language other than Greek. A certified translation of the specified documents by an affidavit or by a sworn translator of the Republic of Cyprus is also allowed, in case you wish to create a file of translations for obtaining certified copies of the Memorandum and Articles of Association in a foreign language;
- permission, consent or prior approval of the relevant state body or the relevant body in case it is necessary for the use of certain words or phrases and/or in connection with the business activity, in case the listed documents were not submitted together with the application for approval of the name;
- the fee and an additional fee in case an accelerated procedure is required. Payments can be made, in cash, by cheque, through an account maintained with the Department of Registrar Companies, or through bank transfer;
in case a public company is incorporated, the submission of form HE5 is also required, with the payment of an additional fee.
Opening a corporate bank account
The opening of a corporate bank account remains mandatory when registering a Cypriot legal entity , as it is part of the incorporation procedure. At the first stage, the corporate bank account is used to deposit the share capital of the future business, and then it is used for business transactions. Foreigners and investors interested in setting up a business in Cyprus can start the opening procedure before arriving in the country – they can open a Cyprus bank account online.
- Memorandum and Articles of Association of the company;
- Certificate of state registration of the company;
- Certificate of shareholders of the company (if any);
- a document that confirms the positions of the director and the secretary – Certificates of Directors and Secretary;
- a document confirming the legal address of the company registration
- Certificate of the Registered Office;
- a proof of business address issued by the Group Principal Trading Offices;
- a Certificate of good standing for foreign companies if they have been opened for over 2 years;
- an application bank form (each bank has its own sample);
- website.
- the Partnership agreement;
- the Certificate of Incorporation;
- a Certificate of the partners;
- a Certificate of Good Standing for foreign partnerships if they have been registered for over 2 years;
- proof of the registered office;
- an application, the form of which you can find in the bank ;
- website.
- сertified identification documents (passport, id, etc);
- proof of address (recent up to 3 months original utility or certified copy);
- information about the different trading partners of the company and the countries funds will be transferred to and received from
- in certain cases the banks might also ask additional documents such as sales contracts etc.
- fast opening process;
- documents can be submitted by fax or e-mail;
- no minimum initial deposit required;
- bank commission is low;
- provides an online banking solution.
Financial reporting and tax liabilities
- tax return;
- financial statements containing a report of an independent auditor;
- an annual report containing information on shareholders, secretaries, and directors;
- a financial report compiled in Greek.
The cost of register company in Cyprus
The average timeline Cyprus company registration:
It usually takes between 10 to 15 working days to complete the company formation in Cyprus: from the moment of submitting an application to the Registrar of Companies for approval of the name of the future business until issue of company’s official documentation (Certificates of Registration, Certificate of Board of Directors and Secretary, Certificate of Shareholders and Office Address, Authentication of company memorandum and Articles of association) as well as submitting applications to the Tax department for obtaining a Tax Identification Number and an application for opening a bank account in Cyprus.
The legal requirements for setting up your company in Cyprus:
- Name approval
The permission to use the name is issued by the Cuprus Registrar of Companies. The Registrar may refuse to issue a permit if a name is too similar to existing ones, or is found to be misleading or too generic. - Share capital
The standard authorized share capital is €1,000. There is no minimum paid-up capital requirement. The class of shares may include registered shares, preferred shares, redeemable shares, and shares with or without voting rights. - Shareholders
The minimum number of shareholders can be one, and they can be both individuals (Cyprus residents /non-residents) and legal entities. Trusts can also be shareholders of a Cypriot legal entity. - Registered office
Each legal entity registered in Cyprus must have a Cypriot registered office (a local registered address) where the official documents of the company will be kept. - Secretary
Cyprus companies must appoint a secretary. - Directors
The legal entity must have at least one director, and they can be either corporate or physical persons (individuals). Although there is no requirement that the director(s) are local, we recommend that the majority are Cyprus residents, so that the company is considered to be a tax resident of Cyprus. - Annual general meeting
All Cypriot corporations must hold a meeting of shareholders. The annual general meeting must be held eighteen months from the date of incorporation of the company. After the expiration of the above period, the legal entity must hold an annual general meeting of shareholders every year and no later than fifteen months after the previous one. - Accounting and audit
Cyprus companies are required to file accounts. Under the International Accounting and Auditing Standards, Cyprus businesses also must be audited annually by a firm of auditors.
Problems of starting a business in Cyprus
- all shareholders and director’s details of a Cyprus legal entity are available for public viewing on the Cyprus Departament of Registrar of Companies website, which may not be suitable for foreign investors seeking anonymity;
- setting up a legal entity with large share capital in Cyprus can be costly as the government fees for such creation are tied to the amount of authorized share capital allocated to the new company;
- since Cyprus is a member of the EU, information about the founders and shareholders of companies registered in Cyprus is publicly available;
- foreign investors looking to set up their business in Cyprus must commission the service provider or law firm must be resident in Cyprus;
- foreign and local companies looking to open a corporate bank account in Cyprus must be introduced to the specific bank by a locally registered fiduciary who must complete a thorough due diligence process with the client;
- in order for a Company to benefit from the tax benefits of several Cyprus tax treaties and the corporate tax rate of 12.5%, the legal entity must appoint at least one director, who must be resident in Cyprus;
- in order to open a corporate bank account for a foreign or local business in Cyprus, you will need the help of a local trustee who will help you pass the verification procedure with the bank;
- tax resident companies are required to annually submit to the Cyprus Inland Revenue Department all the financial accounts and file tax returns by the 31st of March following of the fiscal year;
- Regulations and procedures for government projects are carried out exclusively in Greek. International business owners should take heed to prevent any potential conflicts and misunderstandings.