Cyprus: The Gateway to Europe
Cyprus has been a cornerstone of the international development of Eltoma Corporate Services and has served as the doorway for many companies to enter into the European market and to establish international business exposure.
This is an overview of the key facts that make Cyprus such an attractive jurisdiction for doing business, we hope you find this informative and we look forward to assisting you with any particular request.
Companies in Cyprus:
The process of incorporating a company in Cyprus is straight forward and in our experience can take approximately 2 weeks to be completed.
The applicable law in this sphere is the Companies Law, Chapter 113. The Cyprus Companies Law regulates the different forms of companies, their minimum requirements and statutory obligations.
The principal forms of companies in Cyprus are:
- Public Limited Liability Company.
- Private Limited Liability Company.
- Or a branch of a foreign corporation.
Public Limited Liability Companies have unrestricted ability to transfer stock; can be composed by more than 50 shareholders and have the right to undertake an Initial Public Offering process.
On the other hand, Private Limited Liability Companies have a maximum of 50 shareholders, restricting the transferal of shares and prohibiting the public offering of shares or debentures of the company.
Lastly, a branch of a foreign corporation allows a nonresident company to operate in Cyprus and will be, generally, taxed under the same rules as a domestic company.
Certain formalities must be undertaken when incorporating a company in Cyprus.
The incorporation documents to start a company are the Memorandum and Articles of Association where the name of the company, its objectives, internal regulations and obligations will be described in detail.
Fundamental elements such as the board of directors (minimum one Director), authorised share capital, company’s secretary and registered address in Cyprus are also an integral part of the incorporation process.
Public companies must have a minimum share capital of EUR 25,629; whereas, a Private company has minimum authorized share capital of at least EUR 1 (is common practice to establish a share capital of at least EUR 1,000).
Companies in Cyprus must appoint a company secretary to prepare and file the documents of the company before the regulators, among other responsibilities.
Once these fundamental elements have been decided, the name of the company must be approved before the Registrar of Companies in Cyprus (administrative regulator of companies), this process takes 2 to 5 days on average.
After the name approval, the Memorandum and Articles of Association must be submitted to the Registrar for registration and the Registrar will issue a Certificate of Incorporation.
Finally, a recently incorporated company is required to be registered before the Tax Authorities within 60 days from the date of incorporation.
For access to the full article, download the complimentary PDF to read more about:
- Cyprus Company Maintenance.
- Cyorus Tax Treatment.
- Cyprus Tax Residency.
- Cyprus Tax Rates.