COMPANY REGISTRATION

THE DEPENDABLE JURISDICTION: CYPRUS

Cyprus is well known for its beautiful beaches, great climate but it also has a favorable tax regime, which makes it an attractive jurisdiction to register your business. It also has a highly educated workforce, a safe environment and it is located at the crossroads of Europe, the Middle East and Africa making it an ideal jurisdiction to establish a new or existing business.

Cyprus is also a full member of the European Union and has a modern legal system which is complimented by an experienced service sector, which promotes quick and reliable business dealings.

Other benefits worth mentioning include the Corporate Tax rate of 12.5% and the fact that dividends are not taxed.

For a Cypriot Company to be taxed in Cyprus the control of the company must be exercised in Cyprus. While this has not been defined by legislation it generally means that the registered office should be in Cyprus and the majority of its board of director’s should be residents in Cyprus.  

The company must file yearly financial reports to the companies Registrar and a fee of 350€/year is levied on all companies by the Registrar. Furthermore a company must hold a yearly general meeting which can now be conducted via telephone according to the latest amendment of the Companies Law Cap 113. 

Company registration is now done electronically which has drastically reduced the time it takes for a company to be registered.  Every company registration begins with a name application which takes 2-3 days to be approved by the Company’s Registrar.  You can apply for any name as long as it is not considered ‘undesirable’ and or conflicts with an existing company name.   You should consult with your service provider who will be able to conduct a search in the Registrar’s database to ensure your name application will be successful the first time and avoid any unnecessary delays.

Once the name has been approved and all the incorporation documents have been signed it takes 3-5 days for the company to be approved and the certificates issued. Official company certificates are issued by the Company’s Registrar and will be required for all the company’s activities including opening a bank account.  Cyprus is a member of the Hague Convention which means that the certificates can be ‘Apostilled’ and used in foreign countries who are also members of the Convention. Currently there are 112 countries who employ the apostille system.  Lastly in order for a company to be incorporated you will require the signature of a Lawyer.

You can register any type of company as long as its activities and purpose are within the limits of the law. The most popular type of company, due to the flexibility that it offers, is the “General Trade” company which allow the company to trade globally and in any type of industry.

Nominee Directors are allowed, which means that you can protect your identity and you’re your involvement in the company. There is no obligation to disclose your personal information to the Company’s Registrar and such information will not be available on public record. You will also retain full control over your company and its assets.

A company must also file yearly annual audited accounts to the company’s registrar, which must be prepared by an accredited accountant. A company must also register for VAT which is payable quarterly.

Most service providers provide a free consultation with a lawyer and or tax advisor via skype, telephone or email, to help you make the best decision when it comes to registering your company in Cyprus.   

Summary of Benefits

• ·  Corporate Tax is just 12.5% which is one of the lowest in Europe.
• ·  There is no capital gains tax on immoveable property sold outside of Cyprus.
• ·  The name of the beneficial owner only has to be disclosed to your service provider.
• ·   Reasonable Accounting costs.
• ·   Shares sold are not subject to tax.
• ·   Dividends are not taxed.
• ·   Nominee Directors are allowed

For more information about registering a company in Cyprus contact This email address is being protected from spambots. You need JavaScript enabled to view it. 

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