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Cyprus Company Formation Frequently asked questions (FAQs)

1. What are the benefits of incorporating in Cyprus?

Cyprus is considered to be one of the most attractive jurisdictions in Europe to form a limited liability company due to its advantageous tax system. Cyprus holding companies enjoy all the benefits that the low tax jurisdiction has to offer such as full exemption from tax on dividend income, no withholding tax for dividends paid to non-residents, no capital gains tax and one of the lowest company tax rates in Europe of just 12.5%.

In addition, Cyprus has more advantages such as its corporate laws which are based on the English Companies Act and are in line with EU directives, low incorporation fees and a quick incorporation process. Moreover, Cyprus has a wide double tax treaty network and is currently negotiating for more.

2. What is the procedure of incorporating in Cyprus?
Before any other steps are taken, the Registrar of Companies must be approached to approve whether the name by which the company is proposed to be incorporated is acceptable. After the name is approved, the necessary documentation needs to be prepared and filed. Such documents are the articles of incorporation and memorandum of association, registered address, directors and secretary.
3. What are “corporate documents”?

It is recommended to ensure that upon the incorporation of the company, its beneficial owners or other appropriate officials are provided with copies of all corporate documents. Such corporate documents normally comprise:

  • Certificate of Incorporation
  • Memorandum of Association
  • Articles of Association
  • A share certificate
4. What is the Memorandum and Articles of Association?

Every Cyprus Company must have its own memorandum and articles of association. The memorandum contains the basic information of the company such as the company name, registered office, the objects of the company and so on. Care must be taken that the first few object clauses are tailored to the specific circumstances and main business objects and activities of the company.

The articles specify rules about the governance of the internal management of the company and regulations about the rights of the members (appointment and powers of directors, transfer of shares, etc).

 

5. What are the share capital requirements?
There is no legal requirement as to the minimum or maximum share capital of the company.
6. What is the minimum number of directors and shareholders, and who can be one?
Under Cyprus Law, every company limited by shared must have a minimum of one director, one secretary and one shareholder. From a tax planning point of view, it is often required that the company is shown to be managed and controlled in Cyprus and, accordingly, it is recommended that the majority of the directors appointed are Cyprus residents.
7. What information is required for each shareholder and /or beneficial owner and director?

For shareholders: Full name, Date and place of birth, Nationality, Residential address, Utility bill as a proof of a residential address or passport with registration stamp for CIS countries, Occupation, Copy of passport, Number of shares to be held.

For directors: Full name, Date and place of birth, Nationality, Residential address, Utility bill as a proof of a residential address or passport with registration stamp for CIS countries, Occupation, Copy of passport, Registered Address.

The following type of documents of Director/Shareholder be sent via email.

  • Scan in color of notarized valid Passport
  • Scan of notarized Proof of Personal Address
  • Bank Reference Letter
  • CV

The time frame for the incorporation process is 5-7 working day after we clear our KYC procedure as well as there is no other question from Cyprus Registrar. At the last stage, we need you to send the notarized copy of all above documents to Cyprus for our record.

The shares may be held by nominees in trust for the beneficial owners without public disclosure of the owners’ identity.

For more information about nominee service, please refer here

8. What is a registered office?
Every company must have a registered office from the day it commences business or within 14 days after its incorporation, whichever is earlier. The registered office is the place where writs, summonses, notices, orders and other official documents can be served upon the company. It is at the registered office where the company’s register of members is kept, unless the company informs the Registrar of Companies of another place.
9. Do we need to have an office in Cyprus to set up the company?

Our service can provide you The Office Address Registered for the incorporation process. As the Secretary company, we also offer the Virtual Office Service to keep record of your company documents.

Other benefit of Virtual Office service, please refer here

10. How long does it take to register a company in Cyprus?
It usually can take up to 10 working days to establish a new company in Cyprus. If time is of high importance, there are shelf companies available.
11. What is a shelf company?
Shelf companies are already registered companies with no prior activity. Shelf companies have a past incorporation date and an existing registration number and can be easily transferred to a client within one working day, which gives the advantage of time for urgent situations.
12. Can you open a bank account for a Cyprus company?
Yes, we can. Most of case, we support client to open an account with Bank of Cyprus in Cyprus. However, you still have many choice in other jurisdictions.
13. Can we have a corporate shareholder/Director?
Yes. Certified Company Documents and Personal Documents of Director/Shareholder of this company (as #7) are required.
14. Can the company issue the Bear Share?

No

15. Can I have Visa to stay and work in Cyprus?
The company does not help you get a Cypriot Visa. You must apply for it through the Immigration Department or Cypriot Embassy in your residence country.
16. What is the minimum capital for Company in Cyprus.
There are no mandatory requirements for a minimum share capital for a private limited liability company. Although the registered capital is not required to be paid up, our company registration experts in Cyprus recommend that you do deposit an initial capital for your company of approximately 1,000 EUR. The public limited liability company required no less than 25,630 EUR as minimum share capital.
17. What are the types of companies that can be incorporated in Cyprus?
The types of companies in Cyprus are: private and public limited companies, partnership, sole proprietorships or branches of foreign companies. Please contact Our experts to help you understand the particularities of each business type.

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