Incorporate a Company in Cyprus
Company formation in Cyprus is attractive because Cyprus is a member of the EU. At the same time, the corporate tax rate is only 12.5%. However, this is not relevant for companies where management and control is exercised from abroad. These companies are exempt from taxation in Cyprus.
The company name must end with “Limited” or “Ltd.” (no other suffix is allowed) and must be approved by the Registrar of Companies and Official Receiver Department. This procedure usually takes 2 to 4 working days.
The number of shareholders in a company can be from 1 to 50. A shareholder can be a natural or legal person of any nationality. Details of shareholders such as their name, address and nationality are part of the public record; however, they can avail of a nominee service by designating a nominee shareholder, which we can provide by virtue of an agreement or a trust deed for a reasonable fee. CAPITAL
There are no minimum requirements for the minimum or maximum share capital of a Cyprus private limited company. However, for practical purposes, it is recommended that companies be incorporated with a minimum share capital of €1,000 divided into 1,000 shares of €1 each.
MEMORANDUM AND ARTICLES OF ASSOCIATION
To register a company, a memorandum and articles of association must be drawn up and filed with the Companies Register. and the memorandum of association specifies the activities that the company may carry out and the articles of association specify the rules for the internal management of the company.
DIRECTORS AND SECRETARY
Cypriot companies are managed and controlled by the Executive Board. A company must have at least one director. There is no restriction as to the nationality of the directors and both natural and legal persons can be directors of a Cypriot company.
Management and control of the company determines the tax status of the company. It is therefore customary for the majority of directors to be Cypriot residents. In this case, the company is considered resident in Cyprus for tax purposes.
Details of directors are part of the public record; however, our company can provide a nominated director if necessary, for a reasonable fee for this.
The company secretary can be either an individual or a legal person and is responsible for administrative matters relating to the company.
Each company must have a registered office and address in Cyprus, which must be registered and updated at the Registrar’s office.
OFFICES IN CYPRUS
A Cyprus limited liability company can operate from abroad or have a fully-fledged office in Cyprus. There are certain regulations and procedures that must be fulfilled if the company wishes to set up a full-fledged office in Cyprus.
Company meetings do not have to be held in Cyprus.
The process usually takes between 2 and 3 weeks; however, fast-track treatment can be requested.
RECORDING OF MAINTENANCE PAYMENTS
From the second year, there are recurring maintenance fees of €600 (excluding annual tax and VAT, if applicable). These include:
Provision of registered office and registered address
Provision of a company secretary
Note: As of June 2011, all companies registered in Cyprus must pay an annual state tax by June 30th of each year (regardless of the date of incorporation). This charge of €350 is to be considered good and for the business name to be kept in the register kept by the registrar.
Under Cypriot tax laws, companies are considered to be resident in Cyprus for tax purposes if the management and control of the company is in Cyprus and are taxed at 12.5% of profits. However, non-resident companies are not subject to Cypriot tax provided that the management and control of the company is exercised outside Cyprus and the company does not derive any income in Cyprus. It should be noted that in such cases the company is not allowed to benefit from the Cypriot double tax treaty network.
Cyprus has double taxation agreements with over 60 countries worldwide.
AUDIT AND ACCOUNTING
A Cypriot public limited company must submit audited accounts to local tax authorities and the Department of the Registrar of Companies and Official Receiver. Company law requires a company to keep accurate accounting records in accordance with International Accounting Standards (IAS). The first reporting period can be up to 18 months from the date of incorporation and thereafter accounts must be prepared annually. The appointment of a Cypriot auditor is required.
Our services include :
Name check and approval
Filling in incorporation documents at the Registrar of Companies
Payment of state subscription tax on the authorized capital up to € 1.000
Provision of registered office and registered address for one year
Provision of company secretary for one year
Registering with the Cyprus Tax Department and obtaining a Cypriot tax number
Note: If you are applying for a company bank account outside Cyprus, you will need to order a full set of company documents.
DOCUMENTS required :
Provide the following documents to all directors, shareholders, beneficial owners and authorized signatories:
Notarized copy of a valid passport.
Original or certified copy of utility bill electricity, water, heating/bank statement (as verification of residential address, dated within three months).
Original or certified copy of Bank reference letter (dated within three months).
In cases where shareholders and/or directors are corporate bodies, fully waived set of corporate documents and certificate of good standing (for companies registered more than one year).
IMPORTANT NOTE: LICENSABLE BUSINESS ACTIVITIES
If you carry out any activity without the required license or authorization issued by a relevant authority in any jurisdiction, KGN Services will not be able to assist you with the company incorporation or bank account establishment in connection with such unlicensed activity
Licensable activities include, but are not limited to: the provision of financial services involving trading/brokering in foreign exchange, financial and commodity-based derivative instruments and other securities; offering investment advice to the public; insurance and banking; operation and administration of collective investment schemes and mutual funds; payment processing services; money exchange, money transmission or money brokering; asset management; safe custody services; gambling, gaming and lotteries.
Contact us if you need help with licensing your financial, Forex brokerage or gambling company.
Shipping of company documents or bank kits to your destination requires an additional charge and is automatically added to your order at the time of ordering. Shipping costs for international courier services are calculated automatically depending on geographical zones.