Фото: COMPANY REGISTRATION IN CYPRUS

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Sirenko Mykola

A specialist in the practice of migration and corporate law, he also specializes in legal support for business in EU countries.

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COMPANY REGISTRATION IN CYPRUS

Reading time: 4 min.

The Republic of Cyprus is considered one of the most favorable for doing business among foreign investors. The legislation of the Republic allows companies to be opened in various legal forms, which is convenient for working in offshore and onshore zones. The country's tax legislation is loyal and flexible for foreign investors. And dividends can be withdrawn without taxation at all. The fact that you can engage in any type of activity adds to the attractiveness. For foreigners, there are no strict restrictions on the type of business, instead, as in other countries, there are certain restrictions on the types of activities that foreign investors can engage in.

Current areas of business in Cyprus as of today

  • IT sphere
  • Tourism
  • financial services
  • Sea transportation

Features and benefits

The peculiarities of doing business in Cyprus today are that the company can be registered remotely. An extensive banking system, including Bank of Cyprus, RCB Bank, Eurobank Cyprus, Astro Bank, Hellenic Bank, Alpha Bank Cyprus. A fairly flexible tax system, for example, the tax on corporate rights is only 12.5%. Cyprus is ready to receive foreign investments and is open to investors from other countries. The legal system has many similarities with the legal systems of Great Britain and Singapore.

The process of company registration in Cyprus

  1. Company name reservation. This is necessary so that there are no identical company names.
  2. Submission of an application for company registration
  3. Consideration of this application by the authorized body of Cyprus
  4. Obtaining a certificate of incorporation.

Registration period

The term of company registration in Cyprus can last from a week or more.

Requirements for the company to be registered

  1. The minimum starting capital is only 1 euro
  2. The legal address of the company must be in Cyprus
  3. The number of shareholders must be less than one
  4. The company must have a director and a secretary. The director can be a person who is a foreigner, but the secretary of the company must be a resident.
  5. The company must hold an annual meeting of shareholders and submit financial statements every year.

Advantages of the company in Cyprus

  • progressive laws that allow transparent activity in the legal field;
  • favorable tax system. Compared to other countries, the income tax is only 12.5%;
  • quick and easy company registration;
  • membership of Cyprus in the European Union, which gives the right to use EU Directives;
  • some lines of business have a flexible system of tax benefits. This makes it possible for beginners to open a business;

Legal form of doing business in Cyprus

  1. Limited liability company. This legal form is popular among foreign investors. This is due to the fact that at least two shareholders are required for registration. Shareholders are responsible for obligations within the limits of their contributions. If the LTD is non-resident, then such company is exempt from income tax.
  2. Joint-stock company. Another no less popular form of business. When choosing this form of company creation, the number of shareholders can be from 1 to 50. Liability is limited to the number of shares. Movement of shares between shareholders is also limited.
  3. Partnership. When registering a partnership, an agreement on joint activities must be concluded between the participants of such a partnership. The number of participants can be from 2 to 20 people. Within a month from the date of conclusion of the partnership agreement, you must be authorized in the Register of Companies. There are no requirements regarding the authorized capital and residency of partners.
  4. Individual trader. This is the simplest form of doing business, which is similar to the Ukrainian FOP. For this form, there are no requirements for keeping and submitting accounting reports.
  5. Affiliate. This form of registration is suitable for those foreign companies that aim to establish their legal presence in Cyprus. For this, it is necessary to provide the founding documents of the main company and information about the directors and secretary of the foreign company.
  6. SE. This form is suitable for merging or merging two companies into one, which will carry out its activities in Cyprus. It can also be a holding or a conversion, which under certain conditions can turn into an SE.

So, summing up, it is worth noting that in Cyprus the conditions for registering a company are quite favorable and fast. And the flexible tax system attracts foreign investors.

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A specialist in the practice of migration and corporate law, he also specializes in legal support for business in EU countries.

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