Cyprus – Company Incorporation Guidance

Cyprus Key Points

• Time – 5 days to incorporate your company
• Directors – only one director of any nationality, is necessary for your company
• Shareholders – only one shareholder required of any nationality
• Share Capital – the share capital requirement is only €1,708
• Tax – low corporation tax
• Tax – no taxation on dividends and no Capital Gain Tax on sales of securities
• Support – using our 20 years experience we guide you throughout every step of the company formation process
• A Cypriot company must appoint a company secretary, which we will arrange for you
• More than 40 double tax treaties concluded with other countries

The Limited company in Cyprus

The Limited Liability Company is the normal private company in Cyprus. Most companies operating in Cyprus are private limited companies. (Limited or Ltd). We can incorporate a Cyprus Limited company for you in five days.

Corporate Structure of a Limited Liability Company

• Only one director is required – can be an individual or corporate
• A Cypriot company must appoint a company secretary, which we will arrange for you
• There is no requirement for Cypriot residency for shareholders and directors, although a resident director is recommended in many cases.
• All Cyprus businesses need a registered office
• Separate classes of shares with different rights to dividends are permitted

Imposition of Annual Fixed Duty on Cyprus Companies – €350

The Government of Cyprus has recently introduced a new legislation under which Cyprus Companies are required to pay an annual fixed duty of €350 per annum to the Registrar of Companies. For groups of companies the total duty is capped at €20,000.

The deadline for the payment of the Levy as from 2013 onwards will be 30 June.

The duty is not paid on time but is paid within 2 months from due date then there will be a penalty of 10%. If it is paid within 5 months from due date, there will be a penalty of 30%.

If the duty is not paid within 5 months from due date, the Companies Registrar will strike off the company from Registry.

Nominee Services

The company can be restored at Registry if a duty of Euro 500 is paid within 2 years from strike off date or €750 thereafter.

A Cypriot resident director is recommended to take advantage of Double Taxation Treaties.

Nominee shareholders are allowed and anonymity can be achieved by the use of our nominee shareholder service.

Type of Company for International Trade and Investment

A limited liability company is incorporated in Cyprus under the Companies Law Cap 113  which is based on the British Companies Act 1948. Companies incorporated under the Companies Law, Cap 113, as amended, who have obtained Exchange Control permission from the Central Bank of Cyprus to acquire IBC company status.

Restrictions on Trading

A company cannot undertake the businesses of banking and insurance, or the render financial services to the public, unless special permission is granted. It may also not trade with resident individuals or companies situated in Cyprus other than in relation to the maintenance of premises, banking and professional services.

Powers of Company

The powers and objects of a Cyprus company are contained within the Memorandum of Association and have to be specific.

Company Name

Names may be expressed in Greek, or any language that uses the Latin alphabet, provided that the Registrar receives a Greek or English translation, and the name is not considered undesirable.

The following names or their derivatives require special consent: bank, trust, building society, insurance, assurance, reinsurance, their foreign language equivalents or any name that the Registrar considers may have a connection with the aforementioned.