Registration of a company in Cyprus
Businessmen from different countries are attracted by favorable financial conditions and taxation in the Republic of Cyprus. Here they offer the lowest percentage of income taxes in Europe, which is 12.5%. If an organization registered in Cyprus trades with residents of the European Union, an additional VAT tax (VAT) is paid. In the case of trade with other countries, this tax is not.
To apply for the formation of a company, a businessman will need the following documents:
Notarized copy of the passport.
Official confirmation of the registration of the company name issued in the Commercial Register.
The agreement of founders drawn up according to the template and the charter of the enterprise, as well as the agreement of partners. All documents must be notarized.
Information about the secretary and director of the company is required. To do this, you need their identity cards and a certificate confirming the place of registration of residence, a personal bank account and a bank letter of recommendation.
Bank statement, which indicates the presence and amount of authorized capital.
Agreement for the lease of premises at the legal address of the enterprise in Cyprus.
OPEN A COMPANY IN CYPRUS
In accordance with the law on companies in Cyprus, only licensed lawyers in Cyprus are entitled to deal with the execution, preparation and signing of all documents.
The duration of opening the activities of a new organization can take from 1 week to a month. To open, you need to go through a few simple steps:
Legal advice with a representative. It involves the collection of all necessary documents and advice on preparing for registration.
Name selection and reservation. It is better to prepare several variants of names at once, since, in accordance with the legislative framework, names cannot be repeated in the register. The name verification procedure may take 2-3 days. The uniqueness of the name is established according to the Companies Register. Any name in English must have the ending - Ltd or Limited.
Choice of business type. According to the legal framework in Cyprus, you can open:
a new branch of a foreign organization;
partnership of both closed and open type;
private or public limited companies;
Foreigners more often choose a private form of activity with shareholders. The minimum number of shareholders is 1 and the maximum is 50.
Preparation of statutory documents and execution of an application for registration. Drafting and translation into Greek or English and notarization. On average, this process will take approximately 1 week. The main package should contain: the charter and memorandum of the organization, a statement from the leading lawyer, a certificate confirming the legal address, details of the secretary and director.
Opening a bank account for a company. To do this, the owner of the organization will need documents in English:
a copy of the international passport with notarization;
documents confirming the place of residence;
declaration confirming income;
bank reference letter from another institution where there is a financial account.
The minimum amount of authorized capital for registering a company is 1,000 euros, but it is better to present an amount higher.
Tax matters. Registration with the tax service, issuance of a VAT number.
Special licenses. Depending on the field of activity of the company, in some cases it may be necessary to obtain special permit certificates or licenses.
Information about the legal address of the company. The address must be within the country.
Payment of all fees and charges.
Company's certificate of incorporation. This document signifies the completion of the registration and contains the registration number.
Since Cyprus lawyers are involved in the preparation of all documents, the founder of the organization needs to use their services. To save time, you can use other related services.
Additional services include:
Accounting services and payroll management;
Possibility of registration of services of virtual office;
Accompanying, if necessary, business immigration;
Registration of documents for foreign employees, if necessary (residence permit, visas).
REGISTER OF CYPRIOT COMPANIES
From the beginning of 2020, a single register of beneficiaries began to operate in Cyprus. Access to this data can only be obtained by fiscal and government agencies. The creation of the new supervisory authority was linked to the 4 AML EU directive, which requires additional controls in order to prevent terrorist financing and money laundering.
The UBO or Register of Beneficial Owners is the main registry that contains data on the beneficial owners of companies. The Department of the Registrar of Companies or the Registrar is responsible for the registration procedure.
The beneficial owner is the owner of the company or a person who owns shares (from 25%), has a share ownership in the company or the right to vote, and transactions are carried out on his behalf. For trust funds, the beneficiaries are the settlors, protectors, trustees, or any other person in control of the operation.
The legislation has come into force since the beginning of 2020 and the deadline for submitting data on the current beneficiaries of companies to the UBO registry is August 23, 2021. For convenience, the Department has published instructions with detailed information on the submission deadlines, the list of required documents, and penalties. The registration procedure takes place through an online service.
In December of each year, all companies are required to confirm their beneficial owners. For submission to the Registrar, the following information about the beneficiaries should be provided:
Full name, legal address of residence, nationality and date of birth.
The extent and nature of the beneficial interest. Number of shares in percentage terms, voting rights, control and degree of influence of the beneficiary.
Type and number of the document that certifies the identity.
Indication of the date of entering a specific person as a beneficiary of the company.
Indicate the dates when the details were changed or the date when the beneficiary ceased to be such.