We offer all-round services to companies and individuals that are relocating to Cyprus or do business through or in Cyprus:
| CYPRUS COMPANY FORMATION |
| Company law |
Companies Law, Cap 113, as amended 2003, resembling closely English Companies Act, 1948. |
| Types of company: |
Public companies limited by shares, private companies limited by shares, companies limited by guarantee, branches. |
Type of company preferred for international transactions |
Private company limited by shares, both managed and controlled by residents or non-residents. |
Shareless (bearer share) companies |
Not possible. |
| Capital requirements |
Minimum authorized and paid up capital CP1.000. If such companies have a fully-fledged office in Cyprus, minimum capital is CYP10.000/EUR17.000 |
| Beneficial disclosure/ Nominees |
If confidentiality is required, nominee/trustee company/ies can hold the shares on behalf of the beneficial owner/s |
| Company Name |
Name approval is required by the Registrar of Companies |
| Taxation rates applied to companies generally |
Taxation system residence based. In relation to companies' residence, determined by management and control test and generally where majority of Board resident and where Board decisions effectively made. Corporation tax of resident companies 10%; special contribution for defence at 15% for incoming dividend subject to CFC rules, Parent-Subsidiary Directive and tax treaties. No withholding tax on dividends paid to non-residents whether individual or corporations. Non-resident companies not subject to taxation in Cyprus, but tax treaties cannot be invoked. |
| VAT registration possible? |
Yes. Companies registered in Cyprus and whose income derive exlusively from sources outside Cyprus, are in general exempt from VAT registration. Cyprus registered companies however which have trading activities within the EU, may be required or voluntarily to register for VAT purposes. |
| Method of incorporation |
Memorandum and Articles in Greek drafted, signed by one or more subscribers, submitted to Registrar of Companies. |
Are ready made companies available? |
Yes |
| Length of time to incorporate |
15 working days approx |
| Minimum members/shareholders |
One for private company; seven for public company either natural or legal entity. |
| Registered office |
Mandatory requirement for address in Cyprus. |
Can the registered office be lawyer's/ accountant's office ? |
Yes |
| Directors |
Mandatory. Minimum one Director. Local directors or local alternates directors may be appointed. |
Must a director/ secretary be resident? |
No legal requirement for either, but if no resident Director, then may be considered non-resident company (see above). Resident secretary need not be resident but advisable as Annual Return and other documentation is required to be in Greek language. |
Are Corporate Directors/ Secretary allowed? |
Yes |
| Secretary |
Mandatory. A director can also act as Secretary. A sole director cannot be the secretary. For practical purposes, a corporate body may be appointed as secretary |
| Appointee directors/ secretary possible |
Yes |
| Meetings |
AGM of shareholders required within 18 months of incorporation and thereafter annually. AGM/EGMs necessary to approve and file audited accounts with Annual Return. Telephone meetings possible. Written resolutions permissible if unanimous and executed by all relevant parties. |
| Annual return |
Mandatory indicating share capital, names of Directors, shareholders and secretary. Must be filed with audited financial statements in Greek. |
Must financial statements of a company be audited? |
Yes, by a local authorized auditor. |
| Are there any exchange control or other financial restraints imposed upon a company? |
None, apart from restrictions under Article 60 EC Treaty. |
| Companies formed in the last year: |
14,494. |
| Number of companies on the company register altogether |
137,659. |
| How, if any, is migration into and out of the jurisdiction achieved? |
None specifically provided for in the law. Foreign corporations can establish branches in Cyprus and Cyprus corporations can form branches in other jurisdictions. |
| Residence & working permits to expatriate personnel possible? |
EU citizens do not require work permit to work in Cyprus as directors or employees in local or international companies in Cyprus. Residence permit is required, which is a matter of procedure; renewable every 5 years.
Non-EU citizens require both residence and work permit. Procedure is different for Directors of companies from expatriate personnel. |
| Anticipated amendments to company law over the next 12 months |
Although the island joined the ERM2 exchange rate mechanism in 2005, adoption of Euro postponed until 2008. Increase on incorporations in 2005 from 2004 expected to continue into 2006 and 2007. Personal tax rates scale May favorably change in 2008. |
Ready Made Companies - send email to receive a list - with subject: Readymade Company
Please complete attached Questionnaire to incorporate a Cyprus Company and forward it to us by email: offshore@pkalopetrides.com.cy or fax +357 22 665299.
