How to register a company in Cyprus

by Xozepew Usaz We are always in the lead!

Types of Cypriot companies

The most popular business structures for registering a company in Cyprus are:

— Sole Proprietorship

This form is suitable if you do not need to hire employees and you can run a business on your own account. Income from activities is subject to personal income tax at a rate of 0 to 35%.

– Private limited company (LTD – Private Limited Company)

This is the most popular type of company in Cyprus and does not require a specific minimum share capital. The number of shareholders is from 1 to 50.

— Branch of a foreign company

Branches of companies are registered during the expansion of the parent company and are treated as separate structures. The parent company is fully responsible for all debts of the branch.

If there is a branch, it is possible to obtain a work and residence permit for TOP employees from the parent company under the Intra Company Transfers program.

Intra Company Transfers (ICT) provides for a simplified procedure for obtaining a residence permit for a manager and key employees and is issued upon transfer from a parent company to its own branch in one of the EU countries.

— Cyprus Trust

Trust is a mechanism of legal relations, according to which the founder of the Trust transfers his assets (property of the trust) to the trust property of the Trustee/Principal (Trustee), who is obliged to manage the assets in favor of the Beneficiary or to achieve a specific goal on the terms provided for in the Trust Agreement ( trustdeed). A Cyprus Trust can conduct business in Cyprus and abroad.

The main criteria and requirements that are necessary to open a company in Cyprus from scratch for the LTD type

1. Come up with 3 options for the company name.

The name of a limited liability company in Cyprus must end with Limited or Ltd.

2. Description of the activities of the company being opened for the memorandum of association (Memorandum and Articles of Association).

3. Legal address of the registered business.

To register a company in Cyprus, you must have a legal address. The legal address can be the address of lawyers, auditors or a registered agent (service company).

4. Organization of a real office of the company in Cyprus, in accordance with the requirements of Substance.

There must be a physical office in Cyprus and the contact details of the company (telephone, email address).

You can provide a lease agreement for office space in a business center or ownership of commercial property.

5. Director responsible for the management of the company.

There must be at least one director, who may be a resident of Cyprus or a foreigner. At the request of the client, we provide nominee directors. The director of the company must have the appropriate knowledge or necessary qualifications to manage the company and make the necessary decisions.

6. Opening a corporate bank account at a local bank

A bank account in Cyprus is an important criterion for certifying that the control and management of the company is carried out in Cyprus and entitles you to the corresponding tax benefits.

7. Profile of directors and beneficiaries.

All foreign directors and beneficiaries establishing their company in Cyprus must provide a professional and financial business profile.

If you are interested in opening a business in Cyprus, we recommend that you use the services of professionals from https://www.fintecharbor.com/company-registration-in-cyprus/ in order to avoid mistakes and delay the process due to ignorance of all the intricacies of paperwork.