Company Registration Process in Cyprus (CY)
There is an opportunity to establish businesses within the Republic of Cyprus using foreign subsidiary corporation under the Companies Law Act (section 347, Chap. 113). This procedure isn’t viewed as a setting up a new legal entity, because there is already an incorporated organisation abroad.
This means that a foreigner owning a branch in Cyprus may use this offshore affiliate for any legal activities on an international level. This subdivision can also be established as separate firm from the main enterprise or an extension. The head institution remains fully liable for all activities the overseas affiliate is undertaking, therefore it has to take all obligations and responsibilities as well as efficaciously keeping a record of its loss and profit account.
Overseas division registration procedure
Although the business establishment process in this country is similar to the setting up procedure of a completely new organisation, there remains the necessity to file a proof of the holding company’s existence. This means that, the list of documents enumerated below should be sent to the Registrar of Companies, for successful partnership legalisation in Cyprus, within one month:
- The organisation’s charter/ Articles of Association.
- Memorandum of Association.
- Other significant documents providing company information.
- Any documents concerning the company authorities (Director, Secretary information).
- Branch register name.
- Representative address in Cyprus.
The Representative will receive the power to control the subdivision registration process and make necessary notices and documents with the help of a Power of Attorney. All the submitted materials should be legitimatised by public notaries and the Cyprus Council in the country of origin, with an apostille. Translation of all appropriate documents into Greek to be filed with the Companies Registrar. If any amendments to company information take place, you should immediately inform the Registrar.
The overseas division should bear the same responsibility as the main establishment and its head office should also be based in the Republic of Cyprus. You cannot appoint a Shareholder for the branch, for the sole reason they are a part of the holding company. The firm is also obliged to create a bank account in its own name for an effective subdivision registration.
When the offshore affiliate registration is completed, all the documents should be passed to the firm’s management office. Moreover, it is requested to file a special document providing proof of corporation’s capital deposit existence. Certificate of Legalsation should then be passed to the Ministry of Commerce by the representative, in order to submit a tax application, along with the information about the principal firm, its affairs, shareholders and list of directors. You should also register VAT and provide annual accounts.
For every financial year, the main company owning a branch within the Republic should submit financial statements made according to the laws (of the native country) and head organisation’s tax return.
If the affiliate authorities and business activity’s control is in Cyprus then the taxation on the profits is 10% lower, and if the authorities and activities control is not situated in the county, the profits are free from taxation.
The corporation’s division registration in Cyprus is definitely the best means of conducting your practical affairs all over European countries. This legalization process is not difficult and time-consuming, if all the necessary information was submitted and the subdivision name has been approved, it should only take approximately six-seven days.
Feel free to contact us for detailed information or support.
Crypto-currency Start-ups Buying False Reviews is Destablising Reputable Investment Sources
When cryptocurrency issuers want reviews for their coins, reports have surfaced that several prominent companies have been found offering money to advertisers in exchange for positive appraisals.
Is the Era of Shell Companies Coming to an End?
The Honourable Dr. Orlando Smith, Premier and Minister of Finance has announced that the BVI Government will take all reasonable steps to address European Union concerns about economic substance and a new Legislation is intended to be in force by the end of December 2018 in order to avoid the European Union Black List of Tax Heaven Jurisdictions.
Regulatory Update: BVI Economic Substance Act 2018
In 2016, the Council of the EU pledged to start advocating tax transparency and fairer taxation within Europe and consequently worldwide. After the EUs Code of Conduct Group (COCG) on taxation investigated BVI practices, they found a number of concerns regarding legitimate substance requirements for companies and limited partnerships doing business in and through BVI.
Information on the Payment of Cyprus Taxes for Pensions & Rental Income
Cyprus employees who are considered to have tax resident status, pay tax on their global income. Employees not considered to be tax resident are only charged for specific types of income that are originating from Cyprus-based sources.
Cyprus Regulatory Update: Shell Company Definition & Exceptions
The Central Bank of Cyprus has released new guidance for all credit institutions on the island, refining the definition for shell companies and subsidiary entities; coming into effect from November 2018, which are detailed as follows:
Singapore Variable Capital Company VCC: New Features & Benefits
The introduction of the VCC is a significant positive for the Singapore funds industry. Its aim is to retain Singapore as an attractive business destination and to keep investors wishing to domicile locally.
Consolidated Accounts for Hong Kong Companies: Subsidiary Requirements
As per Hong Kong company’s ordinance subdivision 3 section 379 subsection 1, a Company Director will have to prepare year-end financial accounts that comply with sections 380 and 383.
Challenges of Our Time: Cryptocurrencies & Their Regulation
The very concept of cryptocurrencies derives from technologies and the creation of alternatives to existing payment systems, which for the most part is caused by the negative consequences of financial crises and the injustice within the sphere of financial and legal regulation. Many people are convinced that the cryptocurrency is likely to become an alternative to the established global financial system and open new opportunities to those segments of the population and citizens of those countries that are deprived of the opportunity to work with the banking financial system.