Company Registration in Cyprus

Cyprus remains one of the most popular destinations for companies wishing to do business in the European Union. Despite the fact that this jurisdiction can no longer be considered an offshore zone in the full sense, it offers attractive conditions for business. Therefore, company incorporation in Cyprus can be a good solution if you want to enter European markets.

The «Zigma» law firm offers services for establishing legal entities in this country. We offer our clients the Cyprus company formation with a bank account or a turnkey solution – the purchase of an already registered legal entity.

Why is Cyprus attractive for business?

The business registration Cyprus is in high demand for a number of reasons. There are several advantages to such a solution.

• Favorable location. Cyprus is located in the south of Europe; it is one of the largest transport and transshipment hubs.
• Excellent reputation. Before the reforms, the reputation of Cyprus was very controversial, but now the situation has improved a lot. If you decide to open an offshore company in Cyprus, there will be no problems with opening a bank account in EU banks or cooperation with European counterparties.
• Agreements on the absence of double taxation with 60 states.
• Attractive conditions in terms of taxation and reporting. Many categories of expenses can be accounted for as net costs.
• There is no regulation for non-resident foreign companies that are registered in Cyprus. Therefore, registering or buying a ready-made company in Cyprus is a good solution for international holdings.
• The possibility of obtaining a VAT number, which opens the way to free trade in all countries of the European Economic Area.
• Ability to carry forward losses to subsequent periods. Company registration in Cyprus is beneficial because losses can be transferred forward until profits offset them.

In addition, it is also beneficial to register a company in Cyprus from the point of view of the absence of currency control. Thus, this jurisdiction's rules are quite loyal regarding procedures, taxation, and reporting.

What companies can be registered?

Before you open an offshore company in Cyprus, you need to know about the forms of ownership of legal entities, as well as some features of the establishment of organizations. Company registration in Cyprus is available in the following forms:

• LLC;
• Open or closed partnership;
• Branch of a foreign company.

Registration of companies is carried out in the Cyprus Commercial Register (UBO). And here is a very important point. In Cyprus, the business register is open and publicly available. Therefore, anyone can get information about the company.

When creating a company in Cyprus, you must choose a unique name. It can be written in Latin or Greek alphabet. Before registration, the name is checked by the UBO registry of Cyprus for similar names. Companies registered as LLCs are required to add Limited (LTD) at the end.

Information about shareholders and directors is entered into the Cyprus corporate register during the company formation in Cyprus. There must be at least one shareholder and one director (it can be the same person). They can be both individuals and legal entities. A mandatory requirement for organizations is the presence of a secretary. They can be either a resident or a non-resident. One of the important advantages to set up an offshore company in Cyprus is the possibility of using a nominee service. Also, when establishing an organization, information about the office is mandatory.

What documents are needed to register a company?

In order for a company to be registered and included in the Cyprus trade register, it is necessary to submit a package of documents. It includes the following papers:

• Information about shareholders, directors, and secretaries.
• Certificate of registration of a legal entity (if the company is already established in another jurisdiction and opens a branch in Cyprus).
• Certificate of registration of legal address.
• A notarized copy of the Memorandum and Articles of Association.
• Minutes of the meeting of shareholders.
• Company name.

Also, during company registration in Cyprus, confirmation of the contribution of the authorized capital is required. To do this, you must provide a bank statement.

If you are interested in ready-made offshore companies in Cyprus for sale, then the stage of registration and preparation of documents is not relevant. The re-registration procedure is carried out, which takes one day.

How are companies managed?

Before the company formation in Cyprus, it is important to know how such legal entities are managed. Control over activities is carried out by voting of the Board of Founders. The powers of a company director may be limited. This reduces the risk of misconduct on their part.

In order for an organization to be considered a non-resident, it must conduct business outside of Cyprus. All meetings of the founders are also carried out only outside the republic. If you register a company that is resident in Cyprus, then all meetings of the board of directors must be held directly on the territory of the republic.

The Cyprus Registry of Legal Entities is fully public. Any interested person can get information from the UBO register in Cyprus about the ultimate beneficiaries, as well as the director, accountant, and secretary. However, there are ways to remain anonymous. First of all, this is the use of a nominee service when data on the nominee director and nominee secretary are entered into the Cypriot business register. In order to preserve the anonymity of shareholders, the mechanism of issuing bearer shares or a declaration of trust can be used.

Taxes in Cyprus

Before you register or buy a ready-made company in Cyprus, you must be aware of the specifics of taxation in the jurisdiction. The tax rates in the republic are as follows:

• Income Tax – 12.5%;
• Value Added Tax – 19%;
• Real Estate Transfer Tax – 8%.

Company registration in Cyprus is beneficial for companies that carry out transactions with securities and receive dividends – the tax rate in this case is 0%. Also, there is no tax on real estate, inheritance, and net assets in the republic.

«Zigma» Law Firm offers its clients the services of Cyprus offshore company formation with a bank account. Our specialists have extensive experience in this field, as well as constantly monitor the updates of legislation. We will carry out the procedure for company formation in Cyprus on a turnkey basis – we will provide advice, prepare documents, and accompany the process. «Zigma» also offers ready-made offshore companies in Cyprus for sale. We offer legal entities with and without a history of economic activity. The registration process will take only one day.

Do you want to buy a ready-made company in Cyprus?