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Understand the Jurisdictions Setup Requirement Before Proceed Your Register Company in Cyprus
Why Register Company in Cyprus?
Located at the crossroads of Europe, Asia, and Africa, Cyprus is close to the routes connecting Europe with the Arab world and the Far East, making it a strategic financial hub in the region. The island’s ideal location, first-class infrastructures, and thriving business opportunities have established itself as one of the preferred countries for investment.
Why Setup a Company in Cyprus?
Many agree that Cyprus is one of the important European business hubs offering many benefits to foreign investors such as attractive tax system, stable economy, and good business environment. On top of that, Cyprus in a member country of the European Union and that has created an access for investors to traipse into the nearby European markets.
How to Setup a Company in Cyprus?
The company registration procedure in Cyprus is quite simple and straightforward for all business entities. Companies registered in Cyprus are subject to the Company Law (which was modelled on the English Companies Act in 1948).
1. Determine the business types
As of now, Cyprus offers different types of companies that will offer plenty of opportunities to investors.
- Private Company Limited by Shares – Any person is eligible to register a private company because it allows a single shareholder.
- Exempt Private Company – Made by a corporation and another company, this type of company is exempted from filing tax returns and is not subject to the statutory restrictions on loans to directors.
- Company Limited by Guarantee – It is usually a charitable or a non-profit company.
- Branch of Overseas Companies – Cyprus allows any foreign company to open a branch on the island.
- Public Companies – Applicants must meet eligibilities to open the public company: A team consisting of seven shareholders up and at least two directors with the minimum share capital of 25, 630 euros.
- General Partnership – A minimum of two individual members (the maximum is 20 members) are required in general partnership.
- Limited Partnership – The benefit of such partnership is that partnerships and offshore companies could work together as they both beneficiate from tax flexibility.
- Sole Proprietorship – Governed by the Partnership and Business Names Law, sole proprietors run the business on their own (with or without employees) and the sole proprietor will have unlimited liability for his or her debts.
- Trusts – Three types of trust are available in Cyprus: local trust, offshore trust, international trust.
2. Name the business
3. Incorporating a Private Company Limited by Shares (LTD)
- This is the most common type of company registered in Cyprus and a minimum of one shareholder is required.
- A registered office address in Cyprus and a local company secretary are among the requirements for the registration of the company.
- The documents and information that have to be filed with the Registrar of Companies:
- The Memorandum and Articles of Association.
- A statement that the liability of the members is limited by shares or by guarantee, when applicable.
- The amount of the share capital and details of the shares authorized to be issued, and
- The subscribers to the memorandum together with the number of shares for which they have subscribed.
The whole process of formation and registration procedures, including opening the business bank accounts, takes up two to three days.
Many see Cyprus as an ideal place to expand their global business profile as well as to enter the nearby EU markets due to its strategic location and low tax rates. If you are looking for more business opportunities in EU region, Cyprus has lots to offer.
For more information and guidance on how to get started registering a company in Cyprus, contact us at 3E Accounting for further assistance.
For request of quotation and more information about Register Company in Cyprus, please email us at email@example.com and we will promptly reply within 24 hours.